One Size Does Not Fit All 

THE PRACTICE OF REAL ESTATE IS COMPLEX. Realtors® are often presented with situations in which they must navigate the interests of all parties involved, while providing a level of service that lives up to the standards of practice required by the Code of Ethics.

What should a Realtor® do if their buyer client asks to submit a “seller love letter” with an offer? How should a Realtor® respond to the question, “Is this area safe?” Each Realtor® must consider questions like these to determine how best to respond in a way that continues to serve their client. On July 23, 2020, during an event presented by the NVAR Hispanic, Korean, Vietnamese and International Business Forums and the NVAR Professional Standards Advisory Group, a panel discussed these considerations.

The panel, moderated by Ava Nguyen, a Realtor® with Westgate Realty Group, featured: Tara Houston, broker associate with eXp Realty; Sita Kapur, a Realtor® with Arlington Premier Realty; Thai Hung Nguyen, a Realtor® with Better Homes & Gardens Real Estate Premier; and Veronica Seva-Gonzalez, a Realtor® with Compass. The panelists shared experiences, thoughts and business practices that are personal to them. While the Code of Ethics requires Realtors® to observe practices detailed by the 17 Articles, it is important to understand that each Realtor® might fulfill their duties and obligations differently.

ESCALATION ADDENDUMS

Realtors® in Northern Virginia understand that one of the many challenges presented by the year 2020 is a low inventory of homes available for sale. The panel discussed a few common techniques buyer agents are using to make their clients’ offers more competitive. Escalation addendums are commonly utilized in multiple offer situations and can serve both sellers and buyers.

Kapur explained that she views an escalation addendum as a tool for conversation when representing a seller, but she acknowledged that sellers have little incentive to consider addendums with minuscule escalation amounts.

When representing as a buyer’s agent, Seva-Gonzalez added that she always reminds her clients that although the process is an emotional one, it’s important to ask if it is worth it to pay way over price for a property.

“It is important to be in tune with what your client actually wants. If you do not understand their priorities, and something goes wrong, it puts your reputation at risk,” Nguyen said. Nguyen added that it may be in the best interests of the client to lose a bid – even with an escalation addendum.

“The best thing a Realtor® can do is go back to their client, give them the numbers and data you have, and let them make that decision,” he said.

LOVE LETTERS

The panel also discussed “seller love letters” and what Realtors® should do when clients ask to submit one with their offer.

Kapur noted that when she works with buyers, she asks them to look for commonalities, such as attending the same college or similar pets, but that when her clients do write a letter, she reviews it for violations of the Fair Housing Act prior to submitting it.

“I take it on as my responsibility to ensure that the letter does not contain Fair Housing violations,” Kapur said. “I also tell buyers that every seller is different. Some sellers will love the letters, but others won’t. Sometimes the letters work, other times they don’t.”

It is important for Realtors® to be aware of their obligations under both the Fair Housing Act and Article 10 of the Code of Ethics.

“Article 10 takes out ‘this is what I think, this is what I feel, this is my
background, and I was raised this way’ and allows Realtors® to forget about those personal biases,” Houston added. “Regardless of everything, we are going to treat everyone the same way. Article 10 gives Realtors® objectivity.”

SCHOOLS AND NEIGHBORHOODS

It is not uncommon for clients to ask their Realtors® “Is this area safe?” or “Is this school a good one?”

Discussing questions that have the potential to violate Fair Housing laws, the panelists agreed it is not the job of a Realtor® to make those assessments, and it is a risk to do so. Words such as “good” or “safe” are subjective and can mean different things to different people. Rather than provide specific answers, Realtors® should direct clients to review third-party sites or to visit a school or a neighborhood to help answer questions.

Houston, who was previously a school principal, shared that even with her relevant experience, she still cannot answer these questions for her clients.

“We need to provide objective information to our clients,” she said. “Realtors® risk putting themselves in bad situations when they take on the duty of weighing what makes a good school or what makes a bad school. It is up to the client to make that decision.”

Nguyen agreed, stating that when he is asked these questions, he simply guides his clients by asking them questions and allowing them to make the final decisions.

It is not acceptable for Realtors® to skirt around Fair Housing when discussing topics like neighborhood safety, and Realtors® might find themselves in trouble for saying things like, “I wouldn’t be hanging out there past 9:00 p.m.,” Houston commented.

Realtors® play a huge role in the development and composition of neighborhoods, and it is important for this power to be respected and understood.

LANGUAGES

Many buyers and sellers in Northern Virginia do not speak English as their first language. Seva-Gonzalez, who also speaks Spanish fluently, explained that if a client does not speak English or Spanish, she does not believe she can provide them with an adequate level of service and will refer them to another Realtor®. Nguyen suggested involving a co-agent that speaks the language of that client. All panelists agreed that their only goal is to provide equal services to each client, no matter what language they speak.

Realtors® must remain vigilant when providing real estate services. By following the Code of Ethics and its obligations, Realtors® can avoid putting themselves at risk. There is no “one- size” fits all approach to practicing real estate. It is up to each Realtor® to determine their own appropriate methods and practices so they can best serve their clients and protect all parties involved.



Stevie Fisher is the NVAR associate director of professional services.
Tiffany Johnson is the NVAR professional services administrator.
Teresa Watson is the NVAR education manager.