Baltimore HUD Homes Blog

Robert Read book, “Risk Hotline for Real Estate,” provides numerous examples of dealings where the real estate agent is not intentionally doing something wrong, but runs the risk of losing a sale, being reprimanded or even losing his or her license. This may happen because he has not put the client needs first, or is interested in the short-term benefit of making a quick sale, rather than the long-term benefit of a good relationship with his clients and the satisfaction of a job honestly done.

At first blush, Read book appears written mainly for Realtors However, it should also resonate very well with buyers and sellers. There is so much new information for consumers and agents, not previously written about in the so-called �how to� books. Risk Hotline guides the consumer through the seemingly endless ways a homeowner or buyer can and should protect themselves, both when selecting an agent, and also the process of selling or buying a home.

In today world, the consumer must be very proactive. As the book illustrates, leaving the home sale primarily in the hands of the agents sometimes results in heartbreak and/or legal problems for the consumer. A former award-winning journalist and TV news anchorman, Read interviewed dozens of real estate professionals, attorneys, and home buyers and sellers to get their stories.

An excellent resource, this book will be useful not only to new agents but also to managers interested in creating a value-based culture in their office, where agents behave ethically and are interested in more than expedient selling.

Beginning with advice to the new agent, Read makes certain obvious points. The agent must be well-dressed and have a clean car. His duty to his client seems clear-cut, to act in the clientï best interest.

In its ramifications this duty can be difficult. Read advises treating the client as someone whom the agent plans to see again and again, not just during the short-term reality transaction. If the agent looks at his or her client as �my client for life and envisions �service beyond closing the agent will quickly develop a mentality of thoroughness and specificity in each transaction and, incidentally, become totally involved.” If the client is treated as a member of the family, then the agent begins to understand his relationship with him better. Read cites the experience of other agents. “A former manager said he knows of many agents who work from the heart. Some have lent money when their clients ran short at the last minute, made repairs on their own, taken care of children for people, and helped people with personal problems so the transaction would not fall apart.”

The agent must be diligent in all his transactions. Read gives the example of a couple with a baby girl. The mother was a piano instructor for children. They were looking for a house in a quiet neighborhood. They found a home they were eager to buy, only to discover that drug addicts lived next door. The sale then fell through. Read suggests as the epilogue of this story that the agent have his buyers call the local police and ask if there have been any problems in the neighborhood. Read advises being circumspect when looking into a property. The agent must always have the clients needs in mind and think ahead.

Agents face the chance of being let go, but perhaps they will not be let go for situations that arise by accident. An experienced real estate manager gave two reasons for letting agents go. “1. The agent is not successful and does not respond to (the manager�s) efforts to guide the agent into a successful mentality. 2. The agent knowingly does something that is illegal or unethical.”

Yet there is the liability that the agent can easily do something illegal if he is not cautious. He is advised not to be afraid to ask stupid questions. Managers welcome these stupid questions, Read adds. For example, even the new agent must be cognizant of important inspection issues: �mold, underground oil tanks, wells, carpenter ants, termites and so on.” If he does not know about them, he should not be afraid to ask.

Read relates some anecdotes where agents face unexpected difficulties but also tells stories that have happy endings. An agent had a listing of a home that needed remodeling from top to bottom. The home was taken off the market. At this time another agent in the office received a call from the pastor of his parish about a desperate husband and wife–the husband had MS. “The home had a layout and size that would be perfect for the couple if they could picture how it would look modernized and altered to suit his MS needs. The surrounding area was flat and ideal for going on an outdoor stroll.” The couple had to sell their home first and it sold in a couple of weeks. The couple then purchased the home and remodeled. The agent forgave his commission on this sale. “The agent said this was truly a �good� story. Everyone had contributed and made it happen for this couple.”

If properly motivated, the agent performs a great service. Read suggests that if the client knew the complexities and professionalism involved in the agent�s job, he or she would have greater respect for his agent. This book maps in detail the complexities of the job, and also points the way to a higher level of job performance.

At the end of the book, Read devotes several chapters to value-based relationships and a value-based culture at the real estate office. He emphasizes how important good-training is, and suggests the manager teach by example. Read�s vision of an ultimately improved real estate profession is compelling and makes the book �must� read, for both professionals as well as home sellers and buyers.

Book Review: “Risk Hotline for Real Estate”
By Robert L. Read, CRB CRS
Classic Day Publishing (2005)
Reviewed by Linda Benninghoff for Reader Views (1/06)

Linda Benninghoff is a reviewer for Reader Views, a book review service based in Austin, Texas. http://www.readerviews.com