Twenty something years ago, Mike Sitren was the very first real estate broker I ever worked for. He was a very short, stout man who was in his 60's. I soon learned that Mike was well liked by his clients; and NOT liked at all by other real estate brokers. And, he seemed proud of that.
You see, Mike was always telling me to tell your clients the truth. And, he was insistent on that. And, I always understood his reason why: When you lie to a client, you disrespect them, he once said.
"It is truly NOT that hard to be honest in real estate. Most clients already know enough about real estate to get themselves into trouble," he would say. "Our job as a client's broker is to show them the way to a successful -- hopefully -- profitable sale. And, the profit was to the client with the broker receiving a fee for rendering service."
I always thought that was the way to go.
Anyway, a few years ago, my very own Mother was selling the last parcel of land that she and my Dad owned on Cape Cod. My Mom never, ever called me to even ask for my advice prior to putting the property on the market. (This probably turned out for the best.) Anyway, she listed with a person she was friends with because he was a "new" real estate agent and she wanted to help him get his business started. As it turned out, he was very, very inexperienced.
And, I did NOT find out about the sale until one day, while talking to my Mom on the telephone, she started complaining about "how" the transaction was going. The Buyer wanted a second 30 day extension; and the Buyer wanted a sales price reduction, The Buyer refused to do the "round table close." (Massachusetts for some stupid reason believes only attorney's are capable of closing a real estate transaction.)
Anyway, the Buyer was holding up closing. I asked my Mom, "Why didn't you just take the deposit as non-refundable and have them put another deposit into escrow to do an extension?"
She replied that she didn't know she could do that. She said, "It was the Buyer's money."
Then, I asked, "Why are you telling me this now?"
Her answer, "I thought you could help."
I replied, "I could have IF you had included me from the beginning."
I told her it was too late for me to get involved. I would be interfering in another broker's transaction.
I proceeded to tell her to have her "new" agent send the Buyer -- who by now was disclosed to be another RE broker, who was trying to flip the property on my Mom -- a notice that escrow was being canceled and the Buyer's deposit was being forfeited to the Seller.
My Mom said, "She couldn't do that. She would be in a law suit she couldn't afford."
I said, "Unfortunately, that is exactly what you have to do. Otherwise, the Buyer/Broker would be "stealing" the equity in your property."
She relented, and the agent sent the notice, The Buyer closed within a few days.
Later, she said, while talking, that, that "trick" worked. I reminded her that picking the right broker/agent was key to a successful real estate sale.
She asked me "How did you know the Buyer was trying to re-sell the property, I reminded my Mom, that I have been a working Real Estate Broker for 20 years. You learn "things" as you go along."
Anyway, I knew Mike Sitren was right about helping family -- even IF it is your Mom. She would have fought me all along and IF it wasn't a successful transaction, I would still be getting the blame to this day.
NOW, when it came time to help my "Know It All Younger Broker".... I will spare you.
Contacting David Howes is easy -- either by: davidATdavidhowesDOTnet OR call him at: 70 25 01 93 88 AND Follow David on Twitter: @DavidAHowes
You see, Mike was always telling me to tell your clients the truth. And, he was insistent on that. And, I always understood his reason why: When you lie to a client, you disrespect them, he once said.
"It is truly NOT that hard to be honest in real estate. Most clients already know enough about real estate to get themselves into trouble," he would say. "Our job as a client's broker is to show them the way to a successful -- hopefully -- profitable sale. And, the profit was to the client with the broker receiving a fee for rendering service."
I always thought that was the way to go.
Anyway, a few years ago, my very own Mother was selling the last parcel of land that she and my Dad owned on Cape Cod. My Mom never, ever called me to even ask for my advice prior to putting the property on the market. (This probably turned out for the best.) Anyway, she listed with a person she was friends with because he was a "new" real estate agent and she wanted to help him get his business started. As it turned out, he was very, very inexperienced.
And, I did NOT find out about the sale until one day, while talking to my Mom on the telephone, she started complaining about "how" the transaction was going. The Buyer wanted a second 30 day extension; and the Buyer wanted a sales price reduction, The Buyer refused to do the "round table close." (Massachusetts for some stupid reason believes only attorney's are capable of closing a real estate transaction.)
Anyway, the Buyer was holding up closing. I asked my Mom, "Why didn't you just take the deposit as non-refundable and have them put another deposit into escrow to do an extension?"
She replied that she didn't know she could do that. She said, "It was the Buyer's money."
Then, I asked, "Why are you telling me this now?"
Her answer, "I thought you could help."
I replied, "I could have IF you had included me from the beginning."
I told her it was too late for me to get involved. I would be interfering in another broker's transaction.
I proceeded to tell her to have her "new" agent send the Buyer -- who by now was disclosed to be another RE broker, who was trying to flip the property on my Mom -- a notice that escrow was being canceled and the Buyer's deposit was being forfeited to the Seller.
My Mom said, "She couldn't do that. She would be in a law suit she couldn't afford."
I said, "Unfortunately, that is exactly what you have to do. Otherwise, the Buyer/Broker would be "stealing" the equity in your property."
She relented, and the agent sent the notice, The Buyer closed within a few days.
Later, she said, while talking, that, that "trick" worked. I reminded her that picking the right broker/agent was key to a successful real estate sale.
She asked me "How did you know the Buyer was trying to re-sell the property, I reminded my Mom, that I have been a working Real Estate Broker for 20 years. You learn "things" as you go along."
Anyway, I knew Mike Sitren was right about helping family -- even IF it is your Mom. She would have fought me all along and IF it wasn't a successful transaction, I would still be getting the blame to this day.
NOW, when it came time to help my "Know It All Younger Broker".... I will spare you.
Contacting David Howes is easy -- either by: davidATdavidhowesDOTnet OR call him at: 70 25 01 93 88 AND Follow David on Twitter: @DavidAHowes
