Real Estate Agents Know When to Refer to an Expert

In this ever more litigious society, it is imperative that you know your own expertise, as well as when you need to refer your client to another expert.  You are a Real Estate Agent, licensed by the state to sell real estate, unless you are also a licensed home inspector, electrician, or a member of the bar association, you do not practice those trades instead you must refer your clients out to those experts.

As a Real Estate Agent, you are open to law suits due to your role as an advisor to your clients, and a negotiator during the transaction.  You can also be called in front of the Association of Realtors, subject to fines, discipline, license suspension or even even have your license revoked.  These are serious issues, and will ultimately follow you into any career that you moved on to.

One of the easiest ways to avoid these potential hazards, is knowing your own limitations, know your strengths, and know your expertise.  If a client needs a home inspector, give them a referral to at least 3.  You may (and should) attend the inspection, however make sure that the questions regarding the inspection are directed to the inspector - after all in this portion of your sale the inspector is the expert.

Practicing law without out a license is another pit that is just waiting for an unwary Real Estate Agent to fall into.  In the normal day to day business of practicing real estate sales, we deal with contracts, we outline the basics of those contracts and even advise clients of new laws.  However, if a client has a question or needs a more indepth explaination of the contract or law, or asks your opinion concerning the law or a legal matter, refer them to an attorney.  They are the experts in law, not you.

In order to help with these issues when they show up it is helpful to have a compiled a list of your referral experts.  A client referral booklet or brochure may make your life just a little easier.  Compile your list of home inspectors, painters, carpenters, electricians, lawyers, remodelers, etc.  You can even add contact information for local services such as the electric company, gas company, water and sewer service,  local law enforcement and hospitals.  Ask other agents for their favorite referrals, if you are short on contacts.  This can be an excellent project for the entire office, including referrals from all the agents, and making a Phone/Address book to give to new clients.

Having a referral list handy, will help you when your clients ask the tough questions!  And make you the Hero when they are looking for help with a project, but don’t know where to go or who they can depend on.

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