Interview with Robert Read
Author of “Risk Hotline for Real Estate”
Reader Views is please to have with us today Robert Read, author of “Risk Hotline for Real Estate.” Welcome to Reader View, Robert.
Irene: What inspired you to write “Risk Hotline for Real Estate?”
Robert: For years I’ve witnessed the myriad problems brokers (agents) run into through carelessness or negligence. Whenever a broker has let some issue get out of hand, it isn’t long before he has quite an audience of his peers listening to his tale of woe. His peers whisper, “There but for the grace of God, go I.”
Their clients aren’t often so lucky…they have to live with problems created by agent error. Since these same problems seemingly occur over and over, I felt with my journalism background I could make a difference by putting many of those stories into readable form as a digest for other agents and the public to learn from.
Irene: Why do you believe agents make errors?
Robert: Agents err primarily through carelessness. We all mean to do well, but sometimes we let other phases of our lives interfere with our professional responsibilities. For example, we neglect to make or follow up on an appointment, we forget to write in a contingency in a sale agreement, or we write into a listing agreement that a home has central air when it does not. We must continually focus on what we are doing then double check to ensure we did it correctly. Have a peer review your work; better yet, your manager is required to review all offers and listings…go through the document with him or her and cover every item carefully. Once you get into the habit of doing that, you will make fewer errors.
Irene: As a agent with 28 years of experience, why do you feel this is an important book to make available to other agents and consumers?
Robert: No one, I mean no one, has ever written a book which collates thousands of events which have negatively impacted the lives and careers of agents as well as their clients. It is a ready resource which brokers and consumers alike can refer to on matters from how to handle home inspections issues to asking the right questions to knowing what language to put into a sale agreement. (On the lighter side, there are some very funny incidents also…in fact an entire chapter is devoted to humorous anecdotes.)
Irene: Every state has its own rules and regulations governing real estate sales. How does this book cover these aspects?
Robert: In situations involving agency, most states abide by NAR rules; in all others, I advise the agents to query their own local and state officials for rules and regulations governing their state.
Irene: Do you believe “Risk Hotline for Real Estate” would be of any benefit to a seller or buyer? If so, why?
Robert: As I alluded to above, the clients, our buyers and sellers, must take a highly proactive role in the transaction. It is they who will be left to deal with any negative issues resulting from a bad transaction…usually by suing someone. Few of us would prefer expensive and protracted court action to simply settling an issue quickly over the dinner table. Learning how to deal with these issues before closing the sale creates an environment conducive to negotiation and an amicable settlement…before the papers are signed.
Irene: On occasion a seller is not happy with the agent. What would you say is the most common reason and why?
Robert: The lion’s share of the time poor communication is the problem. An agent either ignores a problem or is unaware of it - because she or he has not been in close communication with her or his clients sufficiently to create a climate conducive to easy communication of problems. The broker may not call his clients regularly or worse yet, does not return their calls promptly. Clients are very nervous during the home sale or purchase. They want and expect quick and professional handling of issues. When they don’t get it, sometimes the sale falls apart, or once completed, attorneys enter the picture. A good agent will sit down with his or her clients at first meeting to discuss how things are done, how they can keep good open communication, and how to deal with problems which invariably come up.
Irene: What do you believe is the best way to resolve issues that occur between the agent and the seller?
Robert: I talk to my clients almost daily. I ask them if everything is going well for them or if there is something I need to attend to. Sometimes it isn’t enough to ask “How are things on your end?” or “Are you satisfied with how things are going?” Occasionally a follow-up question is needed…such as “I’ve noticed you’re a little silent lately. Please tell me if something is troubling you. I’m sure we can deal with it quickly if you just trust me to handle it for you.”
Irene: You encourage agents to have a mentor. Why is that?
Robert: I encourage new agents to have a mentor. It is impossible to enter a world in which transactions involving hundreds of thousands or millions of dollars are at stake and know all the answers as a new agent. When a new agent tries to “wing it” and does not ask questions of his or her manager or peers, he or she is asking for problems. Why? Because every transaction has problems. Even experienced agents deal with problems on virtually every sale. They either know from experience one of two solutions: How to handle it themselves, or how to handle it by asking their manager.
Irene: How would an inexperienced agent go about finding a mentor? What should he or she be looking for in a mentor?
Robert: The office manager nearly always knows the experienced brokers who are willing and able to mentor a new licensee. The new agent should seek someone they feel comfortable with and someone they feel will be willing and able to spend the time with them necessary to teach them. That is where the manager will be most valuable…knowing which experienced to team them with. Some offices do not offer this service, especially the “100%” offices (offices in which the agent pays an annual desk fee in lieu of a percentage commission split on sales). New agents should ask a manager when interviewing if that office has mentors available.
Irene: Tell us about “gentleman’s agreements” and the dangers of them.
Robert: “Gentleman’s Agreements” are largely a thing of the past. This is an event in which the parties involved do not put a request in writing in the sale agreement, such as “Seller to include kitchen refrigerator - Kenmore, Serial No. 356427″. Instead, they agree to this verbally. When the buyer moves in, they discover the old beater from the garage is now in the kitchen and the seller is long gone!
Irene: What are some of the most common hair raising mistakes that agents make?
Robert: Just a few examples are:
(1) A sale falls apart and the seller demands the earnest money deposit (normally thousands of dollars). The agent checks his or her file and discovers he or she forgot to have the buyer redeem the note when required.
(2) A buyer purchases a condominium or town home in which there is a special assessment for a new roof due in three months. No mention was made of it by the seller and the buyer’s agent did not request in writing a copy of the homeowners association minutes for the past two years, or ask if there were any special assessments due.
(3) A buyer purchases a home with a well. It is soon discovered that the well is actually owned by a neighbor and there is no well sharing agreement. (This is in my book).
(4) There are dozens more in my book.
Irene: As always, errors such as these are spread around by word-of-mouth. Besides, not making the errors in the first place, how do you suggest agents “fix” the rumors.
Robert: A broker has a fiduciary responsibility to his or her clients. Once a problem is discovered, the best remedy is to address it quickly and professionally. The first step is to consult your manager. Managers are there to serve the brokers especially at times like this. Perhaps the manager will want to consult the company attorney before responding to ensure the client’s interests are protected and dealt with correctly the first time.
If the agent tries to “handle it” him or herself without consulting their manager, they might exacerbate the problem at a time when a very professional response is needed most. (Of course, the “rumor” originates only in office gossip…when you are on the receiving end, it is fact.)
Irene: You suggest that consumers read “Risk Hotline for Real Estate” before they buy or sell a home. What would be the most important aspect of the book that is detailed for the consumer?
Robert: It is without question that consumers take responsibility for protecting their interests. When a consumer expects the agent to do all the due diligence (such as inquiring about zoning, boundaries, whether a lot can be subdivided, or hiring a repairman) , it is too easy for the agent to overlook a critical issue or not give it the importance that a client might desire. The agent can direct the client to the best resource, or even accompany the client, but the client must be directly involved
Irene: As a consumer, I assume I need to trust the agent. By reading your book I may find out some actions that the agent is doing that I’m not happy with. How do you suggest I handle the situation?
Robert: The consumer should immediately address the issue with the agent. If the agent stalls or refuses to correct a problem, then the consumer should contact the agent’s manager. The manager will get most problems corrected 90% of the time. If the consumer still desires further action, she or he can contact the local Realtor® association and/or the state real estate agency.
Irene: Robert, it is pretty clear to me that your book “Risk Hotline for Real Estate” is a must for both the consumer and the agent. Is there anything else that you would like your reading audience to know about your or your book?
Robert: My overriding focus in writing Risk Hotline was to enable us as Realtors® to provide better service to our clients. My stories provide both licensees and consumers a huge resource of potential issues and problems that can and do occur daily. Agents and consumers are affected equally; both have an inherent interest in opening communication and eliminating problems.
My book is the only current resource available which provides a compendium of problems plus ways to resolve them before they affect you directly.
Open communication breeds trust. By illustrating ways agents and consumers can open communication and resolve issues amicably, “Risk Hotline” will strengthen the quality of the process and ensure a lasting client relationship.
Irene Watson is Managing Editor of Reader Views, a book review service based in Austin, Texas http://www.readerviews.com