Ethics and Morals in Real Estate

Stuart Brody a long time friend is in the midst of teaching a class at SUNY in New Paltz on "Ethics and Integrity" to undergraduate business school students. Recently we talked at length about political examples of compromising personal convictions to increase approval ratings to get re-elected or politicians that vote for legislation that favors financial supporters to hopefully get re-elected. We all know that the reality of "I'll scratch your back if you scratch mine" is rampant in our political system for sponsoring bills and exchanging votes. I am quite sure I will never be a politician, all this pandering and keeping track of who I would owe favors too would just not work for me. So what kind of ethical dilemmas occur in the business of selling real estate? I believe popular opinion would say real estate agents will do anything to make a sale, I personally feel you cannot "sell" anyone anything if they don't want it. I told Stuart that for me the ethical responsibility to my clients, the public and other Realtors is so clear. I rarely have a moment that I need to give a second thought on how to respond in any situation. These are some of my simple rules when communicating with clients: 1. Always tell the truth, no matter how hard it is to say. 2. Always give advice that is in the clients best interest and put that interest above all others especially your own. 3. Communicate clearly and in a timely manner 4. Anticipate the needs of the client and provide resources and information that help them make informed and educated decisions. David and Walter were clients who purchased a small home on Mead Mountain Road in Woodstock NY about fifteen years ago. Whenever we saw each other they reminded me that I helped preserve their sanity by selling them the little chalet, it was their quiet weekend retreat from two high stress jobs in NYC. About eight years ago they wanted to spend more time upstate and needed a bigger house, "what can we get for our house" and "what do we need to spend on a new one"? I researched what they wanted, discussed property values and I gave a very clear picture of what the transition would cost them. No problem with the money, these were dream clients, they trusted me and we both knew I could make happen . While searching for their new home a thought kept reoccuring that they already had the perfect spot so why try to duplicate it, maybe, they could just add on. I suggested I set up a few meetings with a few architects and builders just so they could explore the idea before we got too involved in a new search. It soon became apparent that the cost of adding on to the house outweighed the cost of moving. I also proved the value of their expanded home would increase substantially. It ended up a win win since they got exactly what they wanted and it cost less than moving. Last year David and Walter did sell their house and moved to Florida but they had 8 years of bliss in their magical spot. and they never stopped thanking me for coming up with the idea. This was not an ethical dilemma but a moral one. As soon as the thought jumped into my head it would have been wrong of me not to discuss it. Each client has a new challenge , I ask myself "what is the best possible outcome" given the circumstances as I know them, I always will say what I think no matter consequences. If I help someone come to a conclusion that helps them even if it has no monetary benefit to me I never think twice. My business has grown from a two person office to the most successful company in Ulster and Greene counties in NY. I really believe much of its success is teaching, preaching and holding onto the values I adopted 20 years ago. To all my clients past and present "its always, all about you".

Real Estate News!

So if you listen really carefully you can hear the market start to whisper that we might actually be at the bottom. Of course no one will not know exactly where the bottom was because as soon as its declared its already over. The media does its job of reflecting the pulse of the industry but they have been relatively silent which is to say they have no story unless its bad or good, "status quo" is a boring headline. The market is not going up or down in most areas and the Hudson Valley is no exception, I think that is cause for a celebration! I have been very open about my opinion that we were not going to see any significant movement for another 3 years, we will probably see interest rates go up and if there is a recovery it will be slow and minimal perhaps 1-3% a year. For all those waiting for the market to go down another 10% to buy... not happening here. For those who are waiting for the market to go up in order to sell, get on with your plans, a few percent is not going to change your homes market value enough to wait it out. One significant change I've seen this year is we have moved from the first time home buyer rush in the first quarter of 2010 to a significant number of high end sales where cash is the big winner. I will be providing the statistics for the 1st quarter as soon as the figures are in. Have you heard the news that a 30 year mortgage may become a thing of the past??? Stay tuned for more information on that one.

What an Education!

One of the reasons to be a Coldwell Banker agent is to go to the International conference, Is Your Online Business Trusted? was a seminar given by Jeremy Blanton for some of us who have no idea what to do but know we are supposed to be doing it. Madison Hildebrand was giving his secrets on how he started his business before he got was signed up for the Bravo Show Million Dollar Listing. I tried to recruit him but so far he prefers Malibu to the Hudson Valley... I say his loss, this is the best place to live!