How can we claim to be professionals and fiduciaries and then tell our real estate clients to go to the Yellow Pages for venders when we know capable and ethical service providers we can recommend?
I started to respond to Randy Prothero's post on this topic, and got long-winded enough to build a post of my own.
I am reasonably risk-adverse. I know there are pitfalls in any business. I know that foolhardiness can have painful consequences. I also like Randy's position that handing over a list may well not reduce liability, only service.
But, I don't know how one can take all the liability out of a real estate transaction. Holding back on what we know due to fear of liability greatly diminishes the value we bring to our clients, I sometimes think. We surely only reduce risk for our clients anyway, and can't begin to tell them they have no risk.
I tell clients there is no perfect world, that every transaction entails some risk. That despite all the due diligence we perform, we can all still be surprised. I believe that. But, if we show inability as professionals to reach across the liability void, how can anyone expect a Buyer to take on risk in a transaction?
When my house was being re-sided, and there was a first day blow-up with the worthless subcontractor, my contractor called the outside salesman at the supply house and asked for a reference for a good crew.
The salesman said, "I know a lot of guys who can do you a job. I am going to give you ONE name. He is the one I recommend most strongly. If you can't work it out with him, call me back and I will hook you up with some other guys." The ONE name turned out to be a fellow who was consummately professional. I know a little bit about siding installation, and the crew exceeded my expectations.
I really liked how that salesman handled the referral. I have done similar since. 'ONE name, and I know others if you can't work it out."
So, when turning the customer loose to locate services, and seeing the customer has selected Bozo the Clown for home inspection, do we speak up? Do we tell them that just because Bozo has a home inspector license, all is well? Or do we just stand mum and think, "Boy, I'm glad I didn't refer that idiot?"
Mike Jaquish Keller Williams Realty, Cary, NC
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The problem here is people always seem to blame others. It is rare to have some one say this is my fault. So if you recommend then suddenly this becomes more than a "interview builder John". You client who didn't take your advise about anything tearfully yells the jury that you awere the expert and thats why he went with JOhn. I do ot know the answer either. It is very frustrating. Hopefully you will get more answers today and I qwill re read later