Real Estate Ethics: Sleeping at Night is a Wonderful Thing
Posted on August 28th, 2007 by Jonathan Dalton
It struck me the moment I stepped into my client’s kitchen for an afternoon listing appointment yesterday: a piece of memorabilia marking him as former U.S. Navy. And then I saw the USAA calendar hanging on the wall. Immediately I knew what I had to do.
You see, I’m one of those real estate agents who works with USAA clients through the company’s Movers Advantage program. Here’s the gist of the program - if a USAA client uses a Movers Advantage program agent to buy or sell a house, they receive cash back from USAA at the end of the transaction.
Now where do you think that cash comes from? (What is “your back pocket, Jonathan?” Correct!)
Mentioning Movers Advantage would cost me a percentage on the sale and do the same on the purchase, with which he also wants my assistance.
So I ask you … what would you do in this situation?
- Keep your mouth shut, knowing you already have the business secured?
- Tell the client about the program and willingly surrender the dough in the interest of good karma?
If you read this blog, you don’t need me to tell you what I chose. Personally, I believe sleeping at night with a clear conscience is a wonderful thing. I will tell you that I’m probably in the minority for this answer - probably not among those enlightened agents who inhabit much of the real estate blogging world - but in general.
Choosing the second option isn’t an official violation of real estate ethics as set for by the bureaucrats at NAR. But that doesn’t make it ethical.
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Think you mean to say choosing the first option might not be ethical, yes? How about surrenduring the dough to the client through escrow and cutting out USAA?
It was a possibility, except it was in his best interest for me to tell him about the Movers Advantage program for the buy side of things.
And by telling him about one, I need to tell him about the other.
And yes, I don’t believe option one would have been right at all.
Jonathan,
Okay, I admit I would have LOVED to have gotten the full six rather than the four %.
I also admit I would have hated seeing the USAA calendar….like heck! To use USAA (last time I checked)one has to be retired military, or left the military as an officer, or left the military with a service connected disability.
I would have led the person to the “Movers Advantage” program without hesitation, for two reasons. First it’s available to him and he should be told about it if he didn’t know but more over you knew from the moment you walked in that this man or woman had served the nation. I wonder how much he or she hesitated before signing up for the military, possibly multiple times during his career. No doubt with each reenlistment he “thought about it”, like we think about that point or two we’ll be missing. But he did it and he didn’t risk 2%…he put his life at risk.
Okay, I admit it. I served but a long time ago, ‘69 & ‘70. So maybe I’m just a sucker for public servants like ex-military, teachers, fireman, and policeman. And like you, Jonathan, I sleep very well at night. So count me in with you as willing to sacrifice a point or so of my fee once in a while. When I’m able to provide service to a public servant, its kind of like finding a shiny penny. It brings a smile to being.
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“To use USAA (last time I checked)one has to be retired military, or left the military as an officer, or left the military with a service connected disability.”
Phillip - USAA opened up some and started allowing enlisted military (active and retired) a few years ago. Also, dependents of eligible service members are also eligible — forever. I’m an Army Brat and they’ve been my insurance company for everything, for a long time.
More importantly, thanks for your service.
JD - you know you did the right thing. Well done.
Jay,
You’re correct that USAA has opened up their eligibility rolls. I went on their site www.usaa.com and saw that, although they still don’t let us old enlisted guys in. None the less I think USAA is still one of the bargains in the insurance industry and I refer my veteran clients to them whenever I have the opportunity.
Thank you for the eligibility correction. Cheers,
Philip
Good information all around, gentlemen!
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