Real Estate Investing

I know one should never talk about certain things, but today’s office conversation turned to politics.  It centered around term limits for lifetime politicans in Washington, D.C.  My view is simple: while I often don’t like the decisions people in other states make about who they have in Congress, I don’t want someone to tell me that I can’t have my gal or guy serve if they’re doing a good job for me thanks to term limits.  Don’t take away my right to pick who I want to represent me.   My friend’s view was the polar opposite: get rid of them all after six to eight years so their work won’t be tainted with the power that corrupts, a natural occurance after so many terms.

I drew the parallel about how Realtors can also lose sight of their ethics and good intentions.  We are bound by a code of ethics and we *must* take continuing education ethics classes to ensure that we don’t forget them.  Yet I still find agents who are quick to sweep the guidelines under the rug. 

For example, I introduced a buyer to a property earlier this summer and performed due diligence (regular follow-up contact, etc.).  About a month later, a contract appeared in my office - an offer on my listing.  Lo and behold, it was a contract from the buyer I had been working with, as presented by another agent.

I called the agent who said, “I asked if they were working with someone else and they said you’d shown the property.  But when I asked if they signed the buyer agreement with you and they hadn’t, I knew it was okay to work with them.”

No, the buyer hadn’t signed so it was my own fault.  Live and learn.  Technically, the agent had committed no wrong and I knew it, she knew it.  However, it really wasn’t okay … you know, the golden rule.  Would she have wanted me to do that to her?  The kicker was she picked up the client because they had applied for their mortgage at the bank where she worked.  Hindsight is a glorious thing, no?

My point in this ramble is that there ARE PLENTY of Realtors out there who ARE ethical.  The friend I was talking politics with earlier - as we talked about politicians forgetting their ethics and how even Realtors do it - told me about his phone call yesterday.  The caller said, “I’m afraid I might have stepped on your toes.  I was given a referral from a lender and when I called the buyers, they said they’d been working with you.”  My colleague confirmed his customer/client relationship, and the other agent apologized then promised to walk away.  That, my friends, was impressive and restored my confidence in my fellow agents.

Today Matthew Rathbum of the Virginia Association of Realtors reminded us about “Do Unto Others…”

When decisions are made, are you asking yourselves about the long term consequence of those actions? We’ve all heard that “With Great Power Comes Great Responsibility” but do we really understand, as an industry, what that means? Just because you can do something, doesn’t make it right. Hurting someone, regardless if it’s in the name of “politics”, “client representation” or “self preservation” is still hurting someone.

Well said, Matthew.  I encourage everyone, no matter what business they’re in or the situation, to think first about whether their action is something they can be proud of the next day.  It’s not always about the money, but your decision can have a real impact on your reputation.

Several months ago, I piled in a car with other agens for our weekly “caravan” of homes.  During the caravan, agents drive from house to house looking at new listings.  We check out notes and try to consider whether the new listings will work for any of our buyers.  Sometimes they do, many times they do not.  At one listing, the home felt overpriced for the neighborhood. 

I commented that it was very highly priced compared to one I sold up the street six months earlier.  Other agents said the paneling made the house dark and it felt small.  One said it smelled funny.

The next week at our meeting, the listing agent told us something that made our hearts stop.  The seller had secretly placed a tape recorder on top of the refrigerator so he could hear the “true feedback” about what the agents thought of the house.  He didn’t want the listing agent to pull any punches.

I was mortified because I’m not always positive when I tour homes.  I try to be, but when the smell of dog urine is overwhelming… well… I say so.  Thankfully that time I just compared the price to one up the street, so it was a factual comment and not opinion-based. 

Then I read that an agent in Connecticut has been accused of taking food from her listings, along with spare change.  Wow.  She proclaims her innocence, but wouldn’t a Teddy Cam or a Nanny Cam be a more logical step to take than so you’ll have proof and not just accusation?  I remember several years ago an agent from a well-known national company was caught stealing lamps out of a home he listed.  He was a multi-million dollar agent, too!

I have never understood how anyone who steals anything ever thinks they can get away with it.  Maybe I’m just naive to the dark side of human nature - or it could be guilt reflex - but it’s just incredible to me that people would have the gall to pilfer, plunder, and be deceitful.

Thankfully most agents are honest to a fault.  To carry the title “Realtor” we follow a very strict code of ethics designed to both protect and serve a customer and client, but to also treat other agents professionally and fairly.  The vast majority of Realtors take the code of ethics to heart, so perhaps a question you should ask your potential real estate agent is whether they’re just an agent or a Realtor.