We want to invite you to attend an incredible real estate training opportunity on Jan. 27, 2011, which will help you speak better in public to attract bigger business.

Peter Mosca ­ president and founder of BAK Communications Inc. ­ is a public speaking professional and coach who has helped train hundreds of REALTOR® leaders each year get over their fears and delivering powerful messages to their distinct audiences.

Now it’s your turn!

This in-depth course will cover:

• Implementing the seven C¹s of successful communications
• Getting your ideas recognized, accepted and implemented
• Preparing, organizing and delivering your messages
• Overcoming your fear of public speaking
• Becoming a more engaging and persuasive spokesperson

Buyers and investors are drawn to outspoken real estate professionals. Those who can master online tutorials ­ or even infomercials ­ typically have to beat back the hoard of buyers knocking down their doors.

During the online training presentation, Peter will help you master your own communication skills, taking into consideration your level of comfort, as well as professional goals, which will in turn influence the rate at which your career grows.

To attend “How to Speak with Relevance to your Audience” on Jan. 27, 2011, at 4 p.m. ET click on “Register Today” below. Seats are limited! So take advantage of this special offer now before we open it to agents everywhere!

REGISTER TODAY!

This article focuses on risk management for real estate agents. We are continuously encouraging agents to be more aware of risk management and techniques individual licensees can use to reduce risk.  Before I get into the article’s topic there are two areas I want to briefly cover.

First, what is risk management?  In its basic form, it is the processes, structures, etc put in place to monitor, reduce and/or get rid of risk.  You practice risk management every day, but probably do not realize it.  The simple acts of buckling your seat belt or brushing your teeth are ways of reducing risk.  The same applies to your daily activities as a real estate agent.  You need to get in a routine of reducing your risk.

Second, you must know that you are ultimately responsible for your actions.  Your firm may have risk management guidelines, procedures, etc. for you to follow.  They may even have training classes and audit files.  The bottom line, however, is that you are responsible for your actions and your reputation.

The following are ten work habits you can use on a daily basis to help reduce your risk of a claim.  While some of the habits may seem obvious, I can give claim examples for each item where agents have fallen short.  Sometimes it is the obvious items that we take for granted that gets us into trouble.  Also, this list is not all encompassing, but designed to get you started thinking about your daily work habits.

1. DOCUMENTATION: I cannot emphasize this enough.  Proper and consistent documentation can save you an enormous amount of grief.  Do it in real time as much as you practically can.  The longer you wait the more likely you are not to do it or leave out important information.  Documentation not only includes the notes in your file, but consistent confirmation and verification of information, phone calls, etc. with clients, title agents, banks, etc.  A little extra work here will save you time in the long run. Also, be sure to commit all oral agreements to writing.  If it is not written, it usually does not count.
2. DISCLOSURE: This is the corollary to the documentation.  There are two main points about disclosure that I want to make.  The first is that there is no such thing as too much disclosure.  When in doubt, disclose.  If you know about it or the seller knows about a problem, regardless of when it occurred, disclose it.  Never tell someone not to disclose something.  As sure as death and taxes, that is the item that will come back to bite you.   Second, never fill out a disclosure form for a client nor make any changes to it in your handwriting.  If anything is missed all the client has to say is that I told you to include it or that is not what I said.  If the client for some reason cannot complete the form, have them get a friend or family member to complete it.  You may think you are providing that extra level of service by filling it out, but all you are doing is potentially creating a headache for yourself.
3. KNOW WHAT YOU KNOW AND WHAT YOU DON’T KNOW: There is no possible way to know everything there is to know about a property.  Sooner or later you will be asked a question that you do not have an answer to.  It is alright to not know the answer.  Do not, under any circumstances, make up an answer or pretend to know the answer. This is actually an opportunity to provide good service.  Tell the clients that you do not know the answer and then get back to them quickly with the correct information.  Most clients will appreciate the fact that you were honest with them about what you know and do not know and the fact that you got back to them quickly.  Do not let your ego or fears of looking bad in front of a client get in the way of doing your job properly.
4. AVOID CONFLICTS OF INTEREST: Try to avoid such conflicts if at all possible. Even an appearance of a conflict of interest can lead to problems.  The client may no longer believe that you are working in their best interest.  Should there be a conflict of any type, please refer back to items 1 and 2.   The disclosure must contain what the relationship is and what, if any, remuneration you may be receiving.  Let the client make the decision as to what is in their best interest at this point.
5. AVOID OVER COMMITMENT OF SERVICES, WARRANTIES, ETC.: This is a trap that is easy to fall into because you want your client to remember you as the agent who went above and beyond the call of duty for them.  Providing great service is a wonderful thing, but make sure the service you are providing is within the scope of services to which you have agreed.  Do not assume any liabilities.
6. ALWAYS ACT ETHICALLY: This may seem like the most obvious one of all, but we still get claims and the commission still gets complaints.  The usual cause is that the agent becomes more concerned with the sale than making sure things are done the right way.  It is usually more about cutting some corners than dishonesty.  The bottom line is that your client has to come first.  It goes back to the Golden Rule.  Treat them as you would want to be treated.
7. DO NOT RECOMMEND SPECIFIC CONTRACTORS: Recommending a specific contractor is a sure way to find yourself with some problems.  It does not matter if it is your best friend, a family member, etc.  As soon as something is not done right, your client will be looking to you to fix the problem.  All the client knows, particularly if they are new to the area, is that the contractor you recommended messed up and they want the problem taken care of now.  At most, you should give the client a list of contractors.  The list should contain some type of wording indicating that previous clients have used these contractors and it is up to the client to contact the contractors to get pricing and references. You should also advise your clients to verify that the contractor has insurance, by getting certificates of insurance. (Your attorney can come up with wording that best meets your needs.)  Let the client decide which contractor to use.  Also, please keep in mind item number 4 if there is any potential conflict.
8. CONFIDENTIAL INFORMATION STAYS CONFIDENTIAL: It must be clearly explained and documented to the buyer/seller what information will be kept confidential (typically Motivation and Personal Secrets).  It also must be made clear as to what types of information will be disclosed (Primarily Property Conditions).
9. COMMUNICATION: As in disclosure, there is no such thing as too much communication.  Keeping all parties informed makes life easier for everyone.  Letting people know what is going on helps them feel comfortable and it also lets them adjust plans if given advance notice of changes.  The lack of communication is one of the leading causes of claims.
10. 10. DO NOT ACCOMPANY INSPECTORS: Under no circumstances should you or your client accompany inspectors.  You do not want to give any impression that you are supervising or influencing the inspections.  It is the kiss of death in a claim to be in that position.  If your client is uncomfortable with an inspector being in the house alone, see if a friend or family member can be there.  Just be sure they know not to answer any questions.  You should wait for the written report to start dealing with any issues brought up.

All of us at Williams Underwriting are committed to educating you in risk management.  Should you have any questions about this article or about risk management in general, please feel free to call us at 800-222-4035 or at wug@wugieo.com.  We will be glad to assist you in any way we can.

This article is not intended as legal advice.  All legal advice needs to be tailored to your specific circumstances.  The general information provided in this article is not a substitute for the advice of professional counsel.

Dated September 18, 2010