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Most professional referrals are circular, that is, the party being referred is most likely to refer business back, down the road.
I am hard-pressed to think of any profession that is not dependent upon referrals. Referrals are the bread and butter of trades people, medical, dental and legal professions.
That is how it should be, but when monetary funds are exchanged it starts to be something else.
I once saw on tv how a real estate agent was scamming buyers into buying cheap deals and than referring the buyers to a company to do the remodeling and the buyers trusted the realtor so much they bought it and went allong with the remodeling which turned out many times over the amount as being quoted and some people lost their homes to bad work and ridiculous high bills...than later it was exposed that the realtor was the VP of the construction company and was in it from the beginning without mentioning this and it left many HO losing all they had...this was on Dateline NBC!
Most professional referrals are circular, that is, the party being referred is most likely to refer business back, down the road.
I am hard-pressed to think of any profession that is not dependent upon referrals. Referrals are the bread and butter of trades people, medical, dental and legal professions.
Yet, my preferred home inspector does business with a great many Realtors and their clients. His website is covered with testimonials from other competent and well-known agents.
Likewise for my preferred closing attorney, termite company, HVAC company. They all have many directions to go with referrals or with their personal needs for Realtor services, often with people they have known much longer than they have known me.
I do not refer looking for circular referrals. I refer looking for competence, honesty, service, articulate discussion, and the ability to consummate their responsibilities.
I enjoy being on a first-name basis with service providers, not having to establish a relationship or expectations. We have understandings as to business practices, and respond to challenges as a team, and work through things productively.
These factors make the transaction less stressful and more enjoyable for my clients.
When speaking with clients in regards to process and procedure with inspections, lenders, plumbers etc. The clients are the ones that ask me if I have any recommendations. The first part of my answer is for them to contact any that they know, and these are the ones I have used in the past that I had good experiences with and so on. I can't imagine my clients preferring me to say "sorry can't make any recommendations someone made a bad recommendation once so they made it illegal".
The most important thing to remember is that no one is perfect all the time, and when we have a bad experience to punish/distrust everyone we come into contact with after that, places one at a disadvantage with their self as the worst enemy. Dwelling on the mistakes of others takes up the valuable time we could be using to find a more suitable person for the services we/our clients require.
Honestly, I feel because there is such a high risk of unethical behavior in the transactions of selling property, I think Real Estate agents and Brokers should not be allowed to make ANY referrals, ever! If they get caught making a referral, they should lose their license permanently. I think this would really help to protect the consumer. Why is it that they are allowed to make referrals? Don't you think allowing them to persuade a client to a certain group of people is controlling the sale?
I know they are not allowed kick backs but you are never going to be able to control that so why not stop all referrals as a better way to protect the public? Do buyers and sellers disagree with that? And if so, why?
You don't have to use the refered proffessional the agent suggests. Why don't you have your banker or attorney or appraiser that you plan on using already picked out on your own. Ask around to your friends for there choices of such proffessionals. Don't complain about the agents referrals if you don't have proffessionals lined up already. Do your own fiduciary duty. And if an agent insists on their referral just say no. You hired your realtor and they must do what you ask as long as it's not unethical
That is how it should be, but when monetary funds are exchanged it starts to be something else.
I once saw on tv how a real estate agent was scamming buyers into buying cheap deals and than referring the buyers to a company to do the remodeling and the buyers trusted the realtor so much they bought it and went allong with the remodeling which turned out many times over the amount as being quoted and some people lost their homes to bad work and ridiculous high bills...than later it was exposed that the realtor was the VP of the construction company and was in it from the beginning without mentioning this and it left many HO losing all they had...this was on Dateline NBC!
Dateline has also done stories about internet predators a few of whom were educators, laywers and other professionals. This does not mean that all or most teachers, lawyers and other professionals are internet predators.
The current hot button is the lotto scam by some retail sellers of lottery tickets. Does this mean all or most retailers are scamming?
There is always a percentage of the population anywhere, that is not what they appear to be. Most people strive to become more informed consumers. A few become paranoid and believe that everyone is out to cheat them.
You don't have to use the refered proffessional the agent suggests. Why don't you have your banker or attorney or appraiser that you plan on using already picked out on your own. Ask around to your friends for there choices of such proffessionals. Don't complain about the agents referrals if you don't have proffessionals lined up already. Do your own fiduciary duty. And if an agent insists on their referral just say no. You hired your realtor and they must do what you ask as long as it's not unethical
A fiduciary duty, by definition, is a legal relationship of confidence or trust between TWO OR MORE parties. You, therefore, cannot have a fiduciary duty to yourself. Or you cannot perform a fiduciary duty to yourself.
That's what we do, refer clients to inspectors, lenders, title companies, attorneys, roofers, electricians, plumbers, structural engineers, who don't know their businesses and will not get the job done, because, after all, realtors don't want the deal to close. !!!!!! Idiotic
But isn't it part of your job to fix the mistakes of others? I'm being serious here. Isn't it part of the real estate professionals job to keep the deal together and do what he can, within reason, to make sure the deal doesn't fall apart?
Going with the "ounce of prevention is preferred to a pound of cure" theory, wouldn't it behoove ALL parties if the Realtor in question had recommended good service providers in the first place, thereby increasing the odds that everything would work well the first time so that the Realtor wouldn't NEED to step in & fix those mistakes?
Absolutely. I never disputed that. I only disputed the poster who said something to the effect of it wasn't his job to fix the mistakes of others. And I think it is precisely the job of the real estate agents involved to fix all the mistakes they can to keep the deal together, no matter whose "fault" it is.
As an inspector, I have done the following.....
1. Been directly referred by the Realtor, and had the inspection set up by them.
2. Had name included on "list" from Realtor.
3. Was on Realtor's list, but client did not trust Realtor, got a recommendation from a friend - got me anyway.
4. Got a recommendation from the Realtor, a friend, AND a co-worker.
5. Picked me out of the yellow pages, or web site, or a brochure they picked up somewhere. They wanted to do it all themselves and didn't trust their Realtor.
In EVERY case, I did the same quality job. I really don't care if the deal goes thru. I'm not concerned if the house sells for the asking price, in fact most of the time I don't even know what the price is.
I'm not concerned with hurting someone's feelings, making sure someone can buy that new boat, or the fact that their kids need new shoes. I don't even care if the Realtor won't call me again because something happened with the sale.
MY main concern is my client gets the best inspection they can get, and gets a very clear understanding of the condition of the house, so they can make an informed decision.
I don't make the pipes leak, I just report that they do.
I don't alter the framing, or mess with the electrical panel. I just report what I see.
To think that I would risk being sued for big bucks, so someone else can make thousands of dollars, while I make a few hundred, AND ruin my reputation is insulting.
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An inspectors take
