Cindy Finnerman - SFR, Broker, Lincolnwood, IL
I have family members who have NOT used me on the multiple transactions they have had. I was offended and hurt that my family did not have enough confidence in me professionally to give me the opportunity. I often hear buyers and sellers say"family comes first". I believe the expectations should be discussed in advance. My business is primarily from referrals and repeat business, so I must be doing something right. When someone says that family may not want you to know their personal or financial business, my response is, that the purchase and sale of a property is public information. As far as the financial information, I don't ask my clients how much they make, or how much they have in the bank. I leave that to the mortgage broker or lender, I just want to see the pre-approval letter. As a divorced parent starting over and now starting over again after the "bubble" ( I purchased 2 properties in the peak market), I really resented the fact that a stranger was making $20-$100K on each of these family transactions. I have been in the business for over 20 years and am totally capable and professional enough to handle the situation. It would have been nice to know my family felt the same.
In fact it is my family and friends who continue to fuel my business. It is not about being related, but the RELATIONSHIP. If you have a good relationship with your family and friends working with them is a pleasure and very fulfilling.
Kawain Payne, Realtor
Berkshire Hathaway Home Services
Seal Beach CA
Any involvement in the transaction, you would have to disclose that you have an interest in the transaction (representing a family member). Sometimes, following your prescribed system of conducting business can be "short cut" as you may believe that you already know how the person will respond or thinks about a situation. This may lead to "assumptions" rather than "vetting" the interests of your family member client. Best to always follow your tried and true systems regarding listing or selling a property.
Clarify up front your role and duties within the limits of the transaction. Sometimes, family members do not wish to disclose their personal financial portfolio to another family member.
With regard to dealing with friends, this depends upon your relationship with them. Again, they might not want to disclose their personal financial information, clarify this matter up front. Some friends are looking for a deal. These people might look for a deal (an agent that works for free) whether you are a friend or not. They just grind out their objectives. Again, your choice if you want to deal with such a client; friend or not.
Referrals to other agents may be an excellent option to maintain an arms length transaction and receive a referral fee at closing. This must be disclosed to the client. This method allows you to function as a friend and over see the transaction for your friend.
Brock Realty Inc.
If you'd like to search the MLS like an agent in real time, you can visit our website and sign up for a free Listing Book account. You will be able to change the search criteria to suit yourself and received morning reports regarding new listings, price changes and recent pendings.
I would instead, refer them to someone you hold in high esteem and consider a professional.