Episode 256 of the Toronto Real Estate Musing daily video blog.
Have you ever bought something at a store, brought it home and then changed your mind about your purchase?
Perhaps you were unsatisfied with the post-sale service. Maybe it was simply the wrong size, or it was too expensive, or you simply decided to try something else.
Some stores will refund your money, no questions asked. Did they treat you like a valuable customer, if not today, then hopefully one in the future?
Others will give you a hard time, refuse refunds or try to assign penalty fees or other fine print restrictions. Did you feel like patronizing these stores ever again? No – most likely these are the stores you will share horror stories about with your friends, family and even Internet review sites.
This is my, George O’Neill’s, belief. The true test of a firm is determined not by how easy it is to engage in business with it, but how easy it is to disengage in business with it.
Real estate is the same. It’s true that real estate agents enter into an exclusive contract with their clients for a set period of time. However, if the clients have a change of heart, it behooves the brokerage to comply with their client’s wishes. Clients should come first.
A good brokerage will also sit down with their clients to try to learn the causes for cancelling to hopefully resolve the conflict. However, if no resolution can be found, we at O’Neill Real Estate will immediately release the contract.
Unfortunately, some brokerages will hold their clients hostage for the duration of the contract. Some may even threaten their clients with litigation! It’s irresponsible behaviour and counter-productive to both parties.
At the end of the contract, the only thing the brokerage will most likely gain is a very angry and unhappy ex-customer.
How to protect yourself as a client
As a client, protect yourself from being held hostage by contracts. Before signing any agreement with your agent or broker, always ask what provisions are made for exiting the contract. Make sure you get a satisfactory answer and make sure you get it in writing.
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I agree and this hurt a lot. This is like blackmailing in lot of instances. I can tell you by my own experience, working as foreclosure expert in http://www.homesalegold.com , lot of clients tell us horrible stories abour brokerage. But i guess agents dont realize life time value of customers.
Great point, the life-time value of customers should never be underestimated. In addition, with the reach of social media, if I was mistreated by a company or service provider, I might be inclined to spread the word.
George