You've done it. You've found the home of your dreams. But you need a loan and don't know where to start. Just ask your Realtor. You need a mortgage provider, too? Your Realtor has a few suggestions. After you've closed the deal on your new home, thanks to the skillful negotiating efforts of your faithful Realtor, his services don't stop there. He can arrange to get you a great deal on cable TV, too. And after the stress of selling your home, delving into your financial history, and looking for the home of your dreams before it becomes someone else's, you're probably ready for a little R&R. Well, no problem. Your trusty Realtor can get you a great package deal to the Caymans -- and arrange to have a rental car waiting upon your arrival.

This "Want fries with that?" approach appeals to many convenience-seeking home buyers and sellers; after all, why not have someone else take care of the little "extras," the minutiae which collectively become mountains in our harried lives. Realtors have become, in a sense, multifaceted salespeople who stand to reap the benefits of commissions from multiple sources far beyond the realm of residential real estate. Realtors are here to accommodate our every whim. How could we complain?

Well, many of us do. Many consumers don't like the hard sell and would prefer to take care of the extras on their own. For others, it all comes down to the approach. We might warm up to Realtors who let us know they offer these services if we need them, but don't pressure us to take advantage of them.

Our readers -- comprised of both Realtors and consumers -- had plenty to say about the subject of ancillary services. Fifty-nine percent of the respondents in our most recent poll, "Should Agents be Selling Ancillary Services?," said Realtors should stick to what they do best -- providing guidance and negotiating services based on their insider's knowledge of market conditions, and most important, getting the deal closed. The remaining 41 percent of our respondents were open to the idea of having Realtors offer ancillary services. Here's a closer look at what our readers had to say:

Among those who said "no" ...

"An agent has enough to remember just to do a good job at the real estate transaction," says a "no" respondent. "We do not expect other vendors to sell houses; neither should they expect us to do their selling for them. It's a full-time job just keeping up with the latest on real estate contracts, market trends, and real estate technology. Give us a break!"

"I became a Realtor to sell real estate -- not someone else's wares."

"We position ourselves as real estate professionals. It might be a reach to position us as cable salespeople and travel agents and mortgage brokers and swimming pool salespeople."

One respondent took the direct approach: "Agents should specialize in what they do best. You go to Wendy's for hamburgers, McDonald's for fries, Taco Bell for burritos. [We're] becoming all things to all people. Agents have trouble selling houses, much less anything else."

"No way," another respondent said. "Do you want your doctor selling you health insurance?" Point taken.

"It diminishes our profession ... it would be like attorneys selling security systems."

"Selling other services is like being a part-time agent."

" ... the epitome of unprofessionalism."

"Absolutely not! Our job is to help buyers and sellers with their real estate needs, not to pitch products outside of the transaction. What next? Will we be offering to sell clients long-distance service?"

Among those who said "yes," most respondents added that selling those additional services is acceptable only if the services directly benefit home buyers and sellers. In other words, offering ancillary services such as home loans, mortgages, insurance and other home-related assistance help consumers. On the other hand, selling cable TV, long-distance service, and vacations serves little purpose and ultimately diminishes Realtors' credibility.

"Our customers usually ask our advice on the associated services, anyway. As an independent contractor [I'm not employed by my broker], I should be able to sell any product or service I wish."

"Only when it's a benefit to the real estate transaction. But be careful not to look like a carpetbagger."

"It's important that it not be a true sales approach, but [rather] an offering of services that remind the client the agent is a valuable consultant. In that context, it can only help all parties involved."

"The consumer wants a one-stop, do-it-all, simplified transaction. This adds value."

"Many companies today have in-house mortgage, title, and insurance services that offer competitive rates with great service. Who benefits? The consumer. RESPA is out of touch when they put ridiculous restrictions on agents and companies that offer these services."

"It is unbelievable that any Realtor who would double dip on both sides of the transaction would even dare say no to ancillary services. When you represent buyers, any help you can give them becomes a part of the trust relationship, and it must be fully disclosed that the agent may receive a commission [as a result of selling ancillary services]. These services should only be provided on nonrequired options, such as a home warranties."

"Any time you can give extra services to your clients, you should make every effort."

This response, while sarcastic, is effective nonetheless:

"As a real estate broker in an independent agency, I say, go for it! Rent those cars! Sell those discount merchandise club plans! Don't miss inputting one seller; buyer, or potential buyer's address into a central mailing and telephone database! Make sure these folks get mailed every wacky, tacky marketing scheme your parent franchiser can think of! Don't forget to ask what 18-hour portion of the day is best for the telemarketers to start calling! Have NAR come up with a new course with a spiffy designation for selling credit-card insurance! Do whatever you can do to make every intelligent home-seller and home-seeker dread the thought of visiting or phoning a national franchise real estate agency."

"As a Realtor, I'm often asked by my clients to recommend from whom or where to buy services. This is particularly true of newcomers to the area. I don't 'get a piece of the action.' I merely do it as a courtesy to my clients, and I only recommend someone if I am certain they will give good service/products, etc. If an agent is getting monetary compensation from ancillary sales, I believe they need to disclose that to the client. If you have built a trusting relationship with a client, why should they buy services from a stranger?"

Strong words are coming from both sides of the table. Realtors and consumers will have to agree to disagree among themselves, but two points are clear: If you're a Realtor selling ancillary services, tread lightly. If you're a consumer, and your Realtor offers you a tip for a home loan provider, smile and thank him -- especially if he informs you that he receives a commission from that service provider. If he then offers you a great deal on a cruise, well ... that depends. How badly do you need a vacation? Regardless of your attitudes on this subject, gingerly file these "suggestions" away in your mental filing cabinet, and don't sign anything right away. You've had some practice with this approach; it's the same strategy you've taken with the sale or purchase of your home.

Published: May 13, 1998

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