Realtor ®-The Woodlands Real Estate

Well thought out Stephanie.  I read it with interest and made a mental note to respond similarly.  In the heat of dialog with clients, it's easy to overstep.

I think, all you can you is to give them an answer depending on my knowledge, when it comes questions about taxes, I refer to their CPA, loan to a loan agent and so on. This is a nice post, thank you for posting.

Stephanie, These are great points and I don't know how many times I have to tell my buyers that it is not my place or I am not the expert in that field, but some buyers get offended thinking I just don't want to help them.

Great examples and suggestions of how these situations should be handled. Our team policy on this is "Be the source of the source."

Great Examples...Am I getting a good interest rate should be a question for the Mortgage Broker....I think all those questions should be passed on to the proper people...good schools.....call the school district and ask what kind of complaints or problems have they had...How much will it sell for in 3 years...In securities we use..."past perfomance is no guarantee of future results", so it would be impossible to speculate, but one could assume that the trend will continue the way it has for the last 20 years or so.

Excellent post. I try to educate my buyers of these issues before and during the process of looking for homes. In our buyer's agency contract, our company has even created an addendum that addresses many of these points and the buyers sign it before we go out looking.

Good post. Thanks for sharing it. We all have to be careful of what we talk about.

Hi Stephanie,

This is very good.  I'd like to use it, with credit to you of course.  

Thanks,  Doreen

Great tips.  It is easy to get pulled in too far.  I have heard other agents say things that scare me.

These questions are hard not to answer with an opinion., but if we do, we can get into trouble, I try to refer to the law when I cannot give my client my opinion on a question

good post. fortunately, for most of these, the realtor can refer them on to someone who can help (the school board, the loan officer, the home inspector)..

Stephanie,  Congrats!! on the feature...  This post really diserve it.  I liked your first statement.. :-)

I run across the same things.  Particularly the interest rates.  Usually, I refer them to a qualified mortgage officer for many of the same reasons you mentioned.  Thanks for the post

Very informative. I can see how anyone could get pulled into answering these questions and, potentially, getting in trouble.

It's amazing how simple things can turn into big nasty ones. As much as you want to help your clients you have to be careful and c.y.a. Good post

Stephanie,

Interest rate..I am not in the mortgage business so I will refer them to the rate charts or a pro in that area. Offers should be based on what the range of value is or what they feel it is worth to them...i never refer to a specific number. How could I possibly answer the question what it will bw worth in 3 yrs? If they want to know the school ratings they should refer to many sites with all those statistics. Drive through a neighborhood to get a feel for it. Worried about inspections? I always say that a buyer is entitled to an inspection and that i am not an expert in that field...nor do I assume there will or will not be problems..that is why they pay the inspector. All these questions should be answered by that professional in that filed but i might point them in the right direction but never make recommendations about something I am not sure of.

 

Those are all good questions.  The best you can do is help them find the information that they can use to figure it out themselves. 

Stephanie _ I loved this post - you did a great job and I bokmarked for future reference - homerun!

Stephanie, great post!  No matter your experience, it is always a good idea to review these.

"What will this home sell for in 3 years?"  Now, that's a really tricky one!  Can't imagine that any of us would definitively answer that one.

LOL.... i like that first question.

i cant tell you how many times the buyer's agent has told my clients that 'their lender' can beat that rate.

LOL.... i guess some buyer's agents are psychic.

 

Stephanie, as always your posts are right on....very nice.  Providing both the questions and the answers.

Great post. I agree that it is important to differentiate for your clients the difference between what you can offer them as "fact" and what would merely be your "opinion". On a similar vein, our MLS recently sent us a warning against using language like "great schools" in MLS listing remarks...you could be fined. They offered this advice: say "Stephenson HS district" or "award winning school district". As long as it is fact rather than opinion you are okay.

You're making the lawyers in the audience very proud right now!  It's such a shame that there are some questions we can't answer (i.e. schools and neighborhoods) when relocating buyers NEED us to answer.  Alas.

Good Morning Everyone!

I am going to comment on everyone shortly...but Leigh just caught my attention.  I think it is important to have all of the tools and resources together for RELO clients.  I don't know about elsewhere, but in Houston answering these questions could be a MAJOR Fair Housing Violation.  I refer all of my clients to a website that has statistics that contain information that is good for people even if they don't have kids. 

Watch out, don't get caught by the Fair Housing Police. :)  I'll be back to answer everyone in a little while.  Gotta go set up the Insulation Guys outside.

Great post.  We actually lost a client a few years ago because of the neighborhood question. 

We were working with a young couple and had actually put in an offer on a home.  Then her dad wanted to see the place, so we showed it to all of them again.  Dad didn't really like the house.  He asked us about the neighborhood because he didn't want his little girl in a "bad" neighborhood.  We explained to him that we could not answer that question, but we told him to drive around and even gave him a website to check out. 

He really was not happy that we refused to give him an answer.  Long story short, he convinced them to rent a place for awhile instead of buying.  The funny thing is that the home they were set to buy was below market value at te time, and is worth about $100K more now. 

Steph~ 

I've bookmarked this and asked my whole team to review this post. I consider this a superb and valuable addition to our resource library here at Active Rain. Than you  for sharing this and for putting it together in a way that really makes sense for our team and for our clients. Much appreciated.

Stephanie...

My answer to questions such as these is normally "I can't answer that but I will tell you who can" :)

It's also my standard of practice to inform potential customers that I am in fact bound by the C.O.E.

TLW...ROAR!

Oh. I forgot....

"What's the C.O.E.?" That is another excellent question :)

just tell them that the neighbors are questionable and there's one of them robbing everyone blind but it is either that neighborhood or the one next door that is built on a landfill

Your questions are rather mild? Race is always an issue in this market so you have to be careful. Clients will just ask you how many blacks are in the neighborhood, there is no sugar coating the questions that they may ask. I tell them that is not a question that I can answer. I have school reports for the areas that break everything down to scores test by grade and everything else. There is a high correlation of appreciating neighborhoods and good schools. Thye are published yearly and provide a wealth of imformation that we do not talk about. These are government reports. 

Stephanie,

I am amazed at the quality of your posts. Every time I read one of yours I learn something or see how a consumer could learn something. I wish I was as talented as you are in writing posts.

Great information, Stephanie, and congratulations on the feature. Tough questions, and there are others...is this area safe, what kinds of people live in the neighborhood, and so on. Obviously lots of things we can't answer, but providing options for buyers to learn the answers to their questions, letting them know why that is important, and clarifying why we cannot answer certain questions will normally work. It's hard especially for relocation folks since they really need help in getting the answers.

Jeff

Great post,  I agree that we  need to be careful not to overstep or give out misleading information.

By the way, last comment was mine, did not realize that I had not logged in!

Now that's what I'm talking about! So many times we have to deal with questions and so many times I hear other agents answering those same questions! I do not and will not answer any of these and another question is about taxes....ask a tax man!  And even the ones that ask about real estate law! There's a bunch we could add to this list....bottom line...if we're not qualified....don't answer....I can give my opinion on the school if it's one my kid's went to ....but I tell them that also...and that it most likely has changed since my kids are adults now...haha.

Great post! Boy, we really have to be on the ball with all things real estate! I often give my clients names and numbers to local neighborhood associations and police to get crime stats and area info. If asked I let them know that  I'm not allowed to give out information as being a lic agent in the sate of MI.

Thanks Richard- I agree. We want to tell them everything, but sometimes we just can't.

Hi Francisco- Great way to handle the questions!

Hi Mana- You are right. They get frustrated because they think we don't care. That is NOT the case at all.

Hi John- That's a great policy!

Hi Chuck- You are right on Target!

Thanks Bob and Carolin- We do need to be careful.

Thanks Doreen-  Let's talk about that one.

Hi Randy- I hear that all of the time. "Well, my last agent said we would not want to live there."  WHAT!

Hi Lori- It is very east to give an opinion, but it is FACTS that they need.  Great job telling them where to go.

Hi Kristine- So right!  The questions CAN be answered.  Just by the proper people.

Thanks Matt! I thought you would like that one. :)

Hi Denise- Good job telling them where to go!

Hi Gary- We could get in LOTS of trouble.

Hi Wayne- I want my clients to say "My agent found me the perfect house"  NOT  "Well, my agent said it was ok."

Hi Neal- You are so right.

Thanks Tim- You are so right also!

Hi Cyndee- Thanks!

Thanks Jennifer- I agree-always good to review.

Hi Diane- Don't you love that question. :)

Hi Tom- Maybe they are psychic.  LOL. :)

Thanks Gary- Nice to see you stop by.

Hi Kelly- We have similar MLS rules here. They are VERY strict, as they should be.

Thanks Leigh- Great points you made.

Hi Jim and Maria- That's another one. The parents as the advisor. Don't you love it!  Sorry that happened.

Hi JaneAnne- Thanks! I ran in to several of these questions yesterday. :(

Hi TLW- Nice to see you drop by. Many people do not understand COE. I guess that is another post. :)

Hi David- LOL! I will tell them that and then have them sign the "Just Kidding Disclosure".

Hi Eric- I run into the same questions here. I have received soe VERY shallow questions over the years.  School stats are always the best way to go.

Thanks Jeff F!  What an amazing compliment!

Hi Jeff D- There are lots of other questions. I just didn't want to bore people. :)

Hi Ana- We need to be careful.

Hey Big Sis!  It's amazing some of the comments that other agents make. Unfortunately many consumers don't know it's wrong.

Hi Mary- I do the same thing. One slip up could make us start looking for a different career.

Great post! We have to be so careful not to step beyond our own licensing. I just keep a list of providers and web sites on hand and refer them to the proper experts and authorities.

Thanks Lisa- That's a great way to handle these questions!

This is a terrific post and one that I will share with agents that I am mentoring

in my office. It is always refreshing to a post like this one. Thank you. Pamela

Good post - some of it seems state-specific but the concept is oh-so-relevant.

Excellent post!  Thank you!

I would like to share this with a few of our newer agents.  Sometimes in the spirit of wanting to do the right thing, we wind up stepping on our own tails. 

Great Post.

Questions like these always find their way to us. Being able to answer and not "step on your own tail" sure is key

This was a great post! I am rusty at working with buyers and you just gave me a quick simple review of things that come up with buyers frequently.  Thanks for the review

Stephanie,

We get a lot of questions, too, most of which are very relevant to the mortgage process. And they are answered based on your knowledge of the subject. If you don't know the answer, I'd say so and add that I'll find out. Then there will be questions about an opinion, like where are interest rates going to be next week. You just have to say that no one knows, unfortunately, but this is the trend as of today. 

Great post Stephanie, thanks for reminding us

Great post Stephanie and Congrats on the featured! It can be difficult to answer those questions. "In my opinion" is a good way to start the dialogue, if you so choose. Have a great weekend : ) 

I agree.  Sometimes, though we are expected to know.  That's the tricky part.

Thanks for the great post.  We have many relo clients coming into Seattle, and I almost always get the "is this a good area" question.  Your suggestions are much appreciated.

Thanks Pamela- I'm glad it helped.

Hi Jeff- Thanks a lot!

Thanks Carol- It's easy to get caught up in the swing of things and spill the beans.

Hi Michael- Thanks and you are so right.

Hi Esko-  You are so right. Consumers want an opinion, but what they really need is face which unfortunately is not always available.

Thanks Dianne!

Hi Kelli-  That's a great point and Thanks!

Hi Chris-  Nice to see you stop by!

Thanks Tracie-  I'm glad it helped.

This was great, Stephanie.  If I really click with my clients, I have to remember to respond as you stated above; I'm an open book with someone I'm comfortable with.  Thanks for the reminder.

Good words of advice.  Too many agents, in seeking to be as helpful as possible, offer too much information that could get them into BIG trouble.

The questions sound so easy. But they aren't...lol. Great post!

You did a great job with the difficult questions and how to answer them.  Especially the one about schools -- I hear agents almost every day answering that one inappropiately -- I think you will help a lot of new and old agents remember how to deal with these questions.

Hi Anne-Marie- Thanks for stopping by and you're welcome.

Hey Steven, BIG..BIG Trouble. :)

Hi Christy- Often times they are not easy at all.

Hi Joan, Thanks!  I am glad that many people could benefit from it.

You have to be ActiveRain's best writer.  You always have something to say worth reading.

This is exactly what I was taught from my former associate broker!

I send them to the resource they are looking for.  Each person is looking for something different in a school district, neighborhood, inspection report, etc etc etc.  Nothing in life is perfect and I am not going to throw my personal opinion out there! 

I was just going over a sellers disclosure and thought of you...that's a spot we can get into trouble with if we open our mouths too much...

Stephanie,

Congratualtions on your feature. Very well deserved. Another one to be careful of is: is this a safe neighborhood?

Got to refer then to the local PD for that one.

Ginger

John L- What an amazing compliment! Thank you so much!

Hi Renee- You are so right.  Anyone's opinion could be way off base.

Hi Jeff-  You are right, the seller's disclosure could get us in a lot of trouble.  BIG Trouble.

Thanks Ginger!  The local PD is good for a lot of information. Thanks for mentioning that.

A note about this article. It was featured in Active Rain's Week in Review 6/18/07---6/24/07

This post was one of the Top 25 picks for the week! Congratulations and thanks for writing a great blog!

This wa a great blog for me to read. As a newbie, I am always looking for the do's and dont'd of the biz. Thank you for teaching me something today.

Non disclosure of things we were supposed to know is a high-ranking source of liability for us regardless of the state we do business in...how many of us have worked with an agent who "forgot" to tell us something material about the house?

Great Post - It is very easy to get caught up in questions that people ask. Sending them to the resource is a great alternative.

Thanks Angie!

Hi Irene, these are important points to remember.  Good Luck!

Hi Jeff, I have met a few.  :)

Hi Jeffrey, Thanks!  Always good to know a resource to send them to.

Great Post. I am always telling my clients that I'm NOT an Attorney, Inspector, Tax Consultant, Member of the School Board or any of the other professionals that you will need to contact for the proper answer to your question.

Very well put together post on questions that we confront daily.  I should give your answers to my clients in advance.  I am licensed in Texas as a home inspector, septic installer, termite certified applicator, real estate agent, loan officer.  I started as an inspector many moons ago and work in the real estate industry today.  It is so easy to assume that our clients should know better than to ask these questions because we field them everyday.  However, to the consumer, they are very important concerns which deserve a helpful and professional response.  Handling them delicately defines the difference between a fiduciary and a functionary agent.  Thanks for your insight, Brad Brusenhan w/ Keller Williams in North Dallas, TX.

Stephanie - I haven't read the comments yet (Oh so many!!! Good for you for creating a great conversation!) but I truly love...

Am I getting a good interest rate?  Great question!  But, I do not really know. If I said yes, I could be very wrong. As a Realtor I specialize in the Sales side of Real Estate.  The mortgage industry literally changes daily.  Mortgage related questions vary on MANY different factors.  I may not know the complete answer, but I know excellent Mortgage Professionals that would.

Let's go back a few years to the interest rates past -- double digits, 16, 18% -- and take into consideration what the interest rate is on most credit cards -- HECK YA you're getting a "good" rate!!! Joking aside, you provide a great answer!

Great post!  and kudos to you for seeing both sides of the questions! It is obvious you put a lot of thought into your work! If I ever come to TX I'm looking you up!

Mary, funny you mention the interest rate thing. It's all relative isn't it.  When I bought my house the BEST interest one could get was 8.5% Now people are freaking about 6.25%.  Funny.  Let's not talk about my Capital One card. :)  I refied too soon and got 6.5%.  Oh well. That's the way the cookie crumbled.

Thanks for stopping by!

Stephanie

These are some great scenario questions I get asked daily.  I am glad you posted this to remind others of this because we can in trouble quick by answering them wrong

 Thanks

At times, the less said, the better!

Hi Pam, That's a great way to handle it!  Good job.

Hi Brad, sounds like you have your hands full with business!  But, it sounds like you handle it all well.

Thanks Bradley, It's funny how this was intended to be a public post. I'm glad it helped everyone!  :)

Armando, you are so right. 

Good information here that I'll be sure to remember next time these questions come up...Thank you!

This is the one area we are most likely to get us in trouble. You want to be helpful and your clients are unaware of the laws regarding real estate. We must all remind ourselves what can put us in hot water. Great post and great reminders.

http://www.45daylistings.com/

Stephanie, congratulations on the Featured post!  Great Questions and really wonderful explanations.

The equivalent questions for a home inspector are:

Okay, you might not want to answer this, but would you want to live in this neighborhood?

Okay, you might not want to answer this, but would you buy this house?

Thanks Bill, glad it helped.

Hi Brad, Thanks! 

Thanks Irina!

Hi Steven, Thanks for the input.

What a great post Stephanie!  This is one I'm going to bookmark and I'll definitely be coming back to it for a visit now and again!

Nice Job Stephanie!

Very will written and a interesteing read.. thanks,

Scot Walker

First Choice Real Esate

Houlton, Maine

www.countyfirstchoice.com

207-532-4500 

 

Hi Partick- Thanks!

Thanks Scot!

Great post. The longer we are in the business, the wiser we become, and we may know the answers to some questions and yet not answer it, but direct them to the specialists. The people I tell them to talk to most often are 1. Their attorney 2.their accountant 3. the home inspector to explain the report.

 

Really good tips.  Too often, in an effort to be helpful, an agent will open their mouth and insert their foot.

The intention was good and honorable, but the end result could be a mess.  Sometimes, trying to service your clients is like trying to negotiate a minefield blindfolded.

Hi Gita, that is right.  Always refer them to the pros.  The more experience an agent gets the more pros we meet.  I know I keep adding to my list.  :)

Hi Steven, LOL at the minefield..but it's true.  Being able to communicate the reasons why we can't explain it is very important.

Stephanie,

This is fantastic. Would you mind if I linked to this blog in my SWSU course for Buyer Agents?

Let me know!

 Jennifer

Thanks Jennifer!

As a new agent, I find this advice to withhold opinion to be dissatisfying. Somebody that asks me about a school system or a neighborhood that I know a lot about would be getting less than they deserve. While I agree that you can point to valid resources to gather facts, informed opinion is what I want from an agent. I would hope to have an agent that can speak their mind without violating statutes. Am I being naive and unrealistic?

Sorry to repeat (this time WITH a login) 

As a new agent, I find this advice to withhold opinion to be dissatisfying. Somebody that asks me about a school system or a neighborhood that I know a lot about would be getting less than they deserve. While I agree that you can point to valid resources to gather facts, informed opinion is what I want from an agent. I would hope to have an agent that can speak their mind without violating statutes. Am I being naive and unrealistic?

Stephanie,

Thank you for these important reminders, seems a little like walking on egg shells sometimes. 

When Clients ask what the property will be worth in the future I always tell them that every since I dropped my real estate crystal ball, it hasn't been that reliable. You have to follow that with a smile but it usually people realize what they're asking.

It does seem like walking on egg shells a bit!  Oh - well- we don't want to get in trouble for being honest with our opinions do we???????????? It's a great life!~

Good Grief! It was a lot of work scrolling to the bottom of your comments. I cheated, I did not read them all. Part of our training is teaching us where the lines are. If we practice law, we get in serious trouble, we have to discipline ourselves in several areas because we are taught facets of the other professionals business, but we are not the bottom line professional there. That goes for practicing law, doing home inspections (my inspector/advisor constantly stresses that I should not step into his turf), CMA's are not Appraisals, either--yet on real estate shows you hear them saying the REALTORs appraised value...

I like for my clients to be as empowered as possible: Getting their free credit reports, analyzing them for errors, use common sense in cleaning it up, then knowing their credit score. In my humble opinion, once you know your credit score, if you have been honest with yourself, then at http://myfica.com you can get a general idea of what interest rate you can expect to pay. Of course, some lenders may slap my hand even at that point.

In the big scheme of things, paying for the appropriate professional services is a drop in the bucket compared to the price of a home, or getting stuck in a nasty transaction.