By Hank Trisler
Silverback Sellers, a group in LinkedIn, is currently discussing, rather vehemently, the question of whether incomplete disclosure is the same as deliberate deception. I've wrestled with this for more years than I care to admit, and to me it comes down to the question or whether we are responsible TO, or responsible FOR our customers.
Early in my career as the owner of a real estate company, my secretary asked me if I would help her grandmother sell her home. Would I? Is a bear a Catholic? Of course I'd take great care of her grandmother.
Eva Coutinho was a sterotypical grandmother. She was four feet and a bit of change, had a little cap of hospital-white hair and always smelled a little like cinnamon. If you asked Norman Rockwell to paint you a grandmother, he'd paint Eva Coutinho.
Being a professional Realtor, I carefully measured the home, prepared my market research and determined the house was worth $21,000 (that'll give you some idea of how long ago this was). When I revealed to Mrs. Coutinho the results of my labors and told her we should price at $21,950 (to provide a little "wiggle room"), she replied, "Oh, that's way too much."
This is not a response to which I was accustomed. I said, "I've done my research and I'm confident I can get you this much money for your home. I promised your granddaughter I'd take good care of you, so I want to get you top dollar."
"When my husband and I bought this home, we paid only $8,000 for it. I think $16,000 is more than enough." Eva went on, "Prices are getting so high, I don't know how young people will ever be able to buy a home, like we did."
I pulled on my Ferdinand Fiduciary T-shirt, puffed out my chest and said, "I'm responsible to get you the best price the market will deliver and that's what I'm going to do. Now press hard, the fourth copy's yours."
She knuckled under and at that moment I had ceased being responsible to Mrs. Coutinho, and had assumed responsibility for her. In selling and, I submit, all human relationships, this is the kiss of death.
Within three weeks I had a full price offer contingent upon an FHA loan. She readily accepted it. I was RIGHT. I'd rather be right than effective.
We got a low appraisal. Since I was a professional, I had the comps to get the appraisal raised and it only took about a month. During that time, the buyer had bought a boat, so he no longer qualified for the loan. I was madder than a mashed cat, but there was naught to do but put the house back on the market and find another buyer.
It only took about a month to get a new buyer and another couple of months to get the deal closed and I personally delivered the closing check to Eva Coutinho, much like a retriever bringing a duck to his master. After all, I had gotten her a full $5,000 more than she had wanted.
She seemed a little less that totally enthused. Oh, she was gracious, as that was her nature, but she was just a little less than totally tickled. My spirits were a bit damped, but there is no accounting for taste and I had done my level best as a professional.
Shortly thereafter Mrs. Coutinho left this mortal coil. It seems she had terminal cancer and only wanted to get rid of the house so she could live out her remaining days in peace and comfort. I had consumed nearly six months (more than half) of her remaining life in my efforts to get her more money, which she neither needed nor wanted.
I submit to you that we are responsible to be well-educated, diligent, honest to a fault, and industrious on behalf of our customers. We are not responsible for our customers and for the sometimes dumb (in our opinion) decisions they will sometimes make.
Come on over to Silverback Sellers and let us know how you feel about this.
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