S.E.C. Real Estate Observer

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Editor’s Note: This article was initially published in the Real Estate News Observer in 194. It was the first in a series of articles by Dick Reno explaining the format, rather than formula, of the 7 C’s of modern real estate exchanging and counseling. We think this information is timeless and we’ll be publishing the entire series in the S.E.C. Real Estate Observer in future issues. Enjoy!

I : Contact

Much has been written about where to get clients, where to get listings, but there seems to have been little recognition of the study of the use of contacts themselves. Therefore, again based on experience and from a practical application, the following is suggested as a rather short dissertation on this subject of contact knowledge of which so little is acknowledged in writing in real estate education throughout the country. How to use contact knowledge to recognize a potential problem and/or transaction, and recognize that perhaps there is a problem that shouldn’t be handled.

1. The contact is the starting place of all activity, so a contact must be handled in an adroit and positive manner:

• To let the client know that you are interested in him, in his welfare, and how he might better himself in your assisting him to solve his problem – not just have an interest in a parcel of property.
• So that-you can, as quickly as possible, learn whether there is a problem that you believe you can assist in solving.
• To learn whether there’ is some reason you should not, or do not want to, get involved. Perhaps some other Broker is already involved in the client’s affairs. People often use us with no regard or consideration for ethics between Brokers. Too often a client will be trying to pit one Broker against another. So it is important to get information of this nature as quickly in an original interview as it is possible to do so.

2. Be careful, quick analysis, at the inception of the contact, you should learn:

• Whether a knowledgeable Broker on the subject of exchanging and/or Exchange Counselor and/or Counselor is involved, or whether you are inadvertently working with a practitioner who has been a bartender for 18 years and has about 10 days before your meeting with him obtained his first real estate salesman’s license.
• Whether you may be working with a Broker who thinks for his client.
• Whether you are faced with appraisal factors.
• Whether you have a price conscious client.
• The reason why the client has a parcel of property he doesn’t want.
• The degree of the “don’t want,” and whether a client is ready, willing and able.
• Whether you will be forced to contend with an attorney.
• Whether your client is knowledgeable at all about taxes, and whether he employs tax counsel.

3. Any contact should be given due consideration and full attention for the following reasons:

• The new contact may have been referred to you and you must learn this, and also find out who did the referring.
• Since the contact itself is the beginning of the flow of the life-blood of our business, no contact should be treated lightly.
• Many large transactions grow from what seem initially to be a problem that might involve a very small transaction. If the contact is handled properly on a $6,000 vacant lot it could very easily, over subsequent months, become a $100,000 transaction, or even larger.
• An image of you may have been portrayed to the new client, and it behooves you to maintain such an image. Therefore no contact can be sloughed in the handling.
• If all contacts are not given the equal consideration of personalized handling, you will be failing in your professional operations.
• If you don’t let each contact feel that he is a “first nighter,” he may feel that you are not interested in him or his problems, and since the specialty of the Exchange Counselor is based on the sincere desire to give service willingly and help people solve their problems, then unless you handle each one with the sincerity that is necessary to demonstrate that you are interested in him, you will not be getting the start with this client that is essential if you wish to handle him as professional Exchange Counselor