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Real Estate News And Advice
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December 2, 2008
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Response To: |
Square footage not essential or wise
(Jim in Seattle - 03/09/2001 05:43 PM)
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Main Topic: |
Should You Measure A Seller's Home?
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The Code of Ethics Provides Agent Guidance
Posted By: Sam Valenti - 03/15/2001 02:17 PM
Hello Jim,
I feel your pain! True, there are too many agents who are underskilled in determining value. You do have extensive experience and I agree to a point with your posting. What REALTORS and REALTOR-ASSOCIATES have in common that differentiates them from other agents and contractors is the National Association of REALTORS Code of Ethics and Standards of Practice. Example: Article 1, "When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS pledge themselves to protect and promote the interests of their client." "This obligation to the client is primary."
Standard of Practice 1-3 states, "REALTORS in attempting to secure a listing, shall not deliberately mislead the owner as to market value."
Standard of Practice 11-2 continues as follows, the obligations of the Code of Ethics in respect of real estate disciplines shall be interpreted and applied in accordance with the standards of competence and practice which clients and the public reasonably require to protect their rights and interests.
The cumulative effect of these statements indicate that Realtors have the obligation to represent the best interests of their clients to the best of their abilities. You are right in indicating that there is a competance gap between underskilled agents and those with higher skill levels. The underskilled agents should not attempt to devise schemes of home valuation including square footage if they lack the knowledge to do so. For those agents who do have the skill level and knowledge base to make valuation assessments including square footage, have an obligation "to protect and promote the interests of their client." The key is not to exceed one's skill level.
There has been an attempt by factions inside and outside the industry to "dumb down," the public perception of real estate agents. The hidden purposes are many including the disintermediation of agents by some dot.coms so that real estate might be practiced exclusively online. Another attempt is transaction brokerage, where no agency exists, and therefore the sales person has no basis for charging a realistic fee. I'm sure the Banks currently attempting to include real estate among their financial services would like to use low paid employees to list and show property. So you can see my reasoning in encouraging greater education. I have been in this industry for thirty-two years and have never been sued or disciplined by the state real estate commission. So it is possible for many of us to apply somewhat risky elements of the business successfully in our clients best interest without ending up in court.
I'm sure this idea is not firmly set in the public mindset, but experienced, educated, and dedicated agents are able to achieve superior results for their clients. In addition the process of the transaction, in most cases, runs like clockwork and results in a relatively stress free experience free of legal and ethical entanglements. There is a night and day difference between a quality transaction and one handled by a low paid employee who has little stake in the outcome.
In conclusion, agents who have the education and skill level to represent their clients at a superior level do use square footage as an important element, among many, both to determine a home's market value and price positioning point in the market place. It is this level of competence and service that the public needs to be more aware of. Perhaps then the idea of "dumbing down," and unrealistially low commissions would begin to disappear. We are both obviously in the same corner, and we just have marginally different perspectives about the square footage issue. Keep on educating,......
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