Being a Professional vs. Acting Professionally. The term “professional” appears to have lost some of its luster today. While it used to be that the definition found at merriam-webster.com: “a type of job that requires special education, training, or skill,” was the commonly accepted usage, it seems not to be the case today. Today, if you get paid for doing something, you are a professional. Think, professional boxer, professional athlete, professional hit-man, etc., etc. But, again, there is still a disconnect. For example, being a “professional” is not the same as acting professionally. We’ve all seen examples, not only among Realtors®, but lawyers, doctors, CPAs, and so on: Professionals acting unprofessionally. And while it isn’t always easy to define, most of us know it when we see it.
So after spending more than a few decades practicing real estate brokerage law, I am going to climb up on my soapbox [and out on a limb], and attempt to define how I view professionalism in the Realtor® industry.[1]
To me, professionalism is the accepted form of conduct that one is expected to follow while engaging in his or her profession. It does not mandate one form of conduct to one’s client, and another to one’s peers in the industry.
Real Estate Transactions Are Not a Contact Sport. Too many times I hear stories of brokers becoming aggressive, threatening, intimidating, dismissive, etc., toward the broker on the other side of their transaction. That is not professional, and it reflects poorly on the individual and the industry. In real estate transactions, there is no ring, bell, or referee. They are not inherently adversarial. The seller wants to sell and the buyer wants to buy. Buyers do not make offers on property they are not interested in. It is not a zero-sum game where there must be one winner and one loser.
Yet, some Realtors® seem to view their transactions that way. They attempt to demonize the other agent to their client and others. Pretty soon, the client adopts their agent’s persona. What this creates is an “us versus them” attitude of open warfare, where cooperation on the smallest of matters is seen as a sign of weakness.
While I acknowledge that there are many situations where a dispute becomes unavoidable [which I will address below], my suggestion is that Realtors® begin all transactions putting their best foot forward. Professionals are polite. Ask rather than demand. Promise and deliver. Be respectful. C.S. Lewis once said that if you can’t love your neighbor – just act as if you do. If the business relationship thereafter falters on account of the other person’s unprofessional conduct, at least you will know that you did everything in your power to keep things on a higher level.
Professionalism is an Acquired Skill. It takes time; just like learning how to become a good real estate broker. Some acquire these skills faster than others; some are more experienced; some have more business savvy; some communicate better. But these disparities are no reason to treat others unprofessionally. Treating the other broker respectfully is far more likely to encourage their cooperation and result in a successful closing. [I learned this the hard way. The seller of a business my client was interested in purchasing was represented by an attorney I did not respect – not because I knew him from prior dealings – but because I didn’t believe he was the sharpest knife in the drawer. I wasn’t rude to him – just aloof. He sensed that. He had enough client control to simply refuse to negotiate with us. That was unprofessional and did not serve my client well. Memo to self: You catch more flies with honey than with vinegar.]
Burning Bridges. Portland is a small town. There is no advantage in burning bridges, unless you’re a pyromaniac. Success should not be measured by simply closing sales, but by closing them successfully, i.e. where both sides – principals and agents – felt they were treated professionally.
Chances are that you will cross paths with any particular broker or client more than once. Referral business can come from the most unlikely of sources – even years later. I have been asked to represent clients I opposed in prior litigation. I have received referrals from attorneys I opposed in court. Referral business is the best indicator of whether you were professional. The results, however, do not occur overnight. Professionals take the long view of their business and they are patient.
The Accidental Mentor. It’s always nice to help other Realtors® in your own company. But how about a Realtor® on the other side of your transaction? By this I’m not suggesting you share confidential information or be their new best friend. But what if the buyer’s broker has prepared an Addendum that does not clearly describe the agreement reached? Rather than dismissively rejecting it, how about contacting the broker to review the terms sought to be memorialized, and see if he or she can re-draft it to replace the earlier one? Assuming that the other broker is receptive, they have learned something, and you’ve moved the ball closer to the goal line. Perhaps most importantly, you have not diminished the other agent in the eyes of their own client. Professionals assist each other for their common good.
Why Honesty Works. History is replete with examples of people who went to jail, not so much for the crime, but for the cover-up. The loss Martha Stewart avoided on her illegal insider trade, $45,673, was a mere rounding error[2] on the balance sheet of someone whose net worth was approximately $700 million. But she needlessly lied to the federal investigators. That’s a no-no.
And even in day-to-day matters, the principle still applies. Don’t misrepresent, puff, overstate, spin, or exaggerate. Having tried my share of cases involving real estate brokers, I’ve seen what a plaintiff’s attorney can do to vilify the defending broker in the eyes of a jury. In one case, while the broker claimed he was legally acting as a dual agent, the opposing attorney characterized him to the jury as a “double agent” – a concept much easier to understand than the byzantine rules for a “disclosed dual agent.” People hear what they want to hear; even though they nod their head, does not necessarily mean they understand. In a dispute, your words can come back to haunt you.
And when you make a mistake – which we all do – say so. The honest disclosure likely carries far few consequences than the parade of horribles that will be visited on those who obfuscate and spin. Obviously, however, if you commit an error that may have serious legal consequences, before the mea culpa moment with your client, you first need to speak to your managing broker and perhaps your E&O carrier.
The take-away here is that even the slightest departure from the absolute truth can be characterized as a blatant falsehood or omission if the matter ends up in arbitration or court. Professionalism demands the unvarnished truth.
Why We Have Two Ears And One Mouth. Professionals listen first, then speak. In that order. We have all known folks who seem to have the same love affair with the sound of their voice, as Narcissus did with his reflected image. There can be several reasons; insecurity, inexperience, or the need to impress one’s client with their vast knowledge. My experience is that most folks guilty of this affectation fall into the last category. It goes by a number of simple nouns, such as “ego,” “hubris,” “pride,” “conceit,” etc. The absence of these affectations is known as “humility.” As C.S. once said, “True humility is not thinking less of yourself; it is thinking of yourself less.”
Professionals are comfortable with what they know and what they don’t know. They are more interested in what their clients have to say, than what they have to say. Professionals listen.
So if you want to learn about your clients, their needs, wants, and expectations, you must listen to what they are telling you. And listen with real interest – not feigned interest. Take notes, ask questions, seek clarification, and repeat what they said to make sure you understand. Allow them to ask you questions, your opinions, etc. Make sure you’ve answered their question before moving on. Information and advice is most appreciated when it is solicited – not when it is gratuitous and unsolicited. And conclude your client discussions by “circling around” to summarize the page you’re all on.
Knowing Your Product. Professionals are prepared. They do their due diligence ahead of time. They are familiar with not only the home at issue, but the comps, the neighborhood, and all of the positives and negatives about the product. They can speak confidently, because they anticipated the questions ahead of time. They did their research. They are rarely caught ill-prepared, and when they are, they say so, and promise a quick answer. Then they follow through.
Professionals strive to educate and inform. This means explaining ahead of time to clients, what to expect from the home-selling or home-buying process. To me, this includes providing a sample copy of the OREF Sale Agreement.[3] Discussing the offer-counteroffer process; the chance, if any, of multiple offers. Being conversant with sales in the neighborhood, the RMLS stats™ and trends.
However, professionals are careful about “advising” their clients. They understand the difference between fact and opinion. They are generous with facts, but stingy with opinions. They let other professionals, such as the appraiser, the inspector, the lender, do their jobs, without interference or disparagement.
Professionals are careful to manage their clients’ expectations. They do not over-promise or under-deliver. They prepare clients for the vagaries of the marketplace, where Murphy’s Law prevails.
Acting Like Cool Hand Luke. Remaining cool under pressure is the litmus test of a true professional. Professionals know what not to say. Anger and emotion can be infectious. Clients catch it from their brokers, and vice versa. I have seen this in the practice of law. Some clients want a gunslinger, and many lawyers are too willing to oblige. It is the same with some buyers; they want to leave blood on the battlefield. I have said that every attorney has the client he deserves. The same is true of Realtors® and their clients.
Professionals are able to recognize problem clients. They avoid them. They know that their time is better spent with two smaller transactions with manageable clients, than one big transaction and an unmanageable client. Problem clients come in all varieties, but they usually have two commonalities: They demand more of your time than is appropriate or normal, and they believe your time belongs exclusively to them.
Not Acting Like Alec Baldwin. Mr. Baldwin may be a good actor, but he appears to be constitutionally incapable of holding his temper. Instead, as regular as clockwork, when the paparazzi appear, he explodes, first physically, then verbally – and as if that weren’t enough to prove what an ill-tempered person he is – he underscores it by sending out whiny, derogatory texts and tweets.
Professionals avoid provocation. They aren’t profane. They endeavor to remain calm, both with their clients and other brokers. This applies to the spoken word and the written word. Today, with electronic mail, texting, and tweeting, it is far too easy to hit “Send” than it was in the past. And since electronic communications have supplanted the telephone, it appears that some folks regard it as an extension of themselves. They do not recognize the difference between business and personal environments. To them, they are their smart phone.
Professionals do not send electronic mail, texts or tweets that reflect poorly upon themselves, their clients, their company, or their industry. And when they are tempted to do otherwise, they first seek the advice of others they respect. They reflect before making statements that could be inflammatory. They do not dignify insults by trading them. Professionals have the foresight to know that one rarely regrets the unspoken word or the unsent email.
Professionals do not make threats. I’ve seen this too many times. Either in the middle of a transaction or immediately following its conclusion, a broker wants to file an ethics or Agency complaint. Unless it is truly egregious – and most of the time it isn’t – brokers should remember that they will have to drag their own client into the dispute. Win, lose or draw, it will exhaust time and energy that may be been better spent on something constructive.
My experience in the law profession has been that I did not need to file a bar complaint, just because a lawyer lied to me. Why? Because sooner or later, the lawyer got their own comeuppance, usually in the form of a bar complaint from their own client or a judge. Moreover, even if they remained in practice, I quickly learned never to trust the attorney again. For Realtors®, there may be times when a complaint is in order, but they should be thoroughly vetted with company management first.
The Agent Provocateur. Sometimes disputes are almost unavoidable when the agent on the other side thrives on aggression. Sun Tzu’s ‘The Art of War’ is their Bible. If you are new to the business, immediately involve a more experienced broker who is calm under fire. Don’t wait until things are out of control and the transaction is threatened. Don’t trade barbs.
There is no purpose in writing the person a stream-of-consciousness email complaining about their lack of professionalism. Henceforth, try to confirm all important communications via email shortly after any interaction. Be polite, professional and crisp. If they respond in an unprofessional manner, don’t dignify it with a response. The reason that I recommend email is that it creates a paper trail, should the situation go nuclear, and a complaint is made with the Real Estate Agency or local board.
If they refuse to cooperate, have your managing broker call theirs. I acknowledge that if you don’t have a managing broker – or the Agent Provocateur is a solo – you’re sorta stuck. Put your head down and keep pushing forward. If the transaction slows down or appears in danger of falling apart, you need to immediately give your client a heads-up with what you’re contending with. Don’t be whiny! [When I was first practicing, I was treated very poorly by a much more experienced solo attorney. His disrespect made me work much harder than I ever had before. In the middle of the trial, he offered to settle the case – a few years later he was disbarred.]
Here is the take-away: Life is full of unpleasant people. Don’t let them distract you from your goal, and don’t compromise your ethics or professionalism. No mud-wrestling!
Crossing T’s and Dotting I’s. Professionals pay attention to detail. They don’t take shortcuts. They return rejected offers, fully signed by their seller. They do not sign their clients’ names for them – even if asked.[4] They promptly relay all communications to their clients and to the other broker. They keep an electronic trail of their activities and transactions. They promptly return calls and emails, and when they fail to do so, they acknowledge it and apologize.[5]
They strive to learn, for their own benefit, and for the benefit of their clients. This means more than collecting CE credits; it means attending knowledge and information-based meetings, conferences, and seminars. Professionals have more than a passing familiarity with Oregon’s licensing law and Realtor® ethics.
Professional Success as a Self-Fulfilling Prophecy. Admittedly, much of what I’ve written above is aspirational. Just because we know the elements, does not mean we can, at the snap of a finger, implement them. Professionalism is more a maturing process than a natural born skill. It does not demand being one of the “smartest guys in the room.”[6]
Many folks have had what some call “luck,” but upon reflection, the good fortune can usually be traced back to a single defining event, or perhaps a series of such events, culminating in a new opportunity. This is to say that most professionals make their own luck. First in small ways at the start of their career, and later, in larger ways, with bigger and better opportunities. As I said earlier, professionals are patient.
[1] These are my opinions only. Readers are free to disagree.
[2] 0.00006524714285714286 to be exact.
[3] I am always amazed when a broker expresses surprise about a provision in the Sale Agreement that has been there for years. The Sale Agreement is the tool of the Realtor’s® trade.
[4] This is not only a very bad habit, but without a power of attorney (“POA”), there is no reason to do so. If the client is unavailable, he or she should give the POA to a relative or close friend.
[5] A word about late-night emails, i.e. after say 11:00 PM. Perhaps it’s just me, but when I receive emails at odd hours, I wonder why the sender is working so late; are they just disorganized, or don’t they have anything better to do at that hour – like sleep. I adjust late night emails for sending during regular business hours.
[6] Remember Enron. The “smartest guys in the room” went to jail.
