Do we as agents put ourselves at risk by marketing ourselves as something we may not be?

I had an interesting conversation with a broker and an attorney recently that has sparked my curiosity.  We see marketing everyday where we as agents tout ourselves as experts or specialists, whether that is a waterfront specialist, a condo specialist or an expert in short sales, REO etc.

At what point are we just puffing or exagerating when we are not an expert?  What makes us an expert in a particular field? education, experience, or both?

This comes on the heels of a Short Sale Expert or Distressed Property expert discussion that I had with a broker whose office sent all of their agents to get their CDPE designation.  There is a handful at most of those 100+ agents that got their designation that have actually closed a short sale, the rest have not.  The agents in that office that are closing short sales do not, ironically enough, advertise their "expert" designation while a large percentage of the agents that have never actually even worked a short sale are advertising themselves as experts who can stop foreclosure.

Where do we as agents draw the line at false advertising?  At what point are we in violation of the code of ethics?  Does an agent who actually is NOT an expert at short sales open themselves up to liability by marketing themselves as an "expert"  

For the record, this is NOT a bashing of CDPE or any other designation, I LOVE education and think that any form of education that we can get is vital.

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I think there are very few "experts" out there- I do a high volume of shortsales and find myself learning from mistakes of myself and others every day.  Maybe that explains why so few who actually DO shortsales call themselves experts because we know the reality of the constantly changing and forever inconsistent rules and systems amongst the financial institutions and how easy it would be to end up with egg on our face!! :)

My exact feelings - Great Comment!

Just for the record, CDPE is NOT a recognized NAR designation. This is simply a marketing ploy to add perceived value to taking the course offered through a private company.  I am not knocking this company and/or it's classes. Imagine what would occur if every company that offered classes on specialized subjects had a designation....   NAR does offer a short sale designation from it's offered classes.  I am not comparing these 2 offerings; just want the members to be aware of these facts.

I am a graduate of the CDPE designation (Certified Distressed Property Expert).  I took that class about 2 years ago and during the class I asked the instructor about the potentail hazarads of calling ourseleves experts. Of course the question was pooh-poohed....  Right after I took the class and received the designation I spoke to our Oregon Assistant Attorney General.  I asked him about the liability of using that designation.  He said don't do it.  I then contacted Alex, the owner of CDPE and he must have had adiditonal calls as he stated they were looking at changing the designatnion to Ceritified Distressed Property Educators.  Well, that hasn't happended yet.  I did learn some good systems which I do use however I do not use the designation.

Thanks Pamela, good information here for sure.  I wouldn't count in CDPE changing anytime soon to Educator since Alex Charfin is now running Star Powers.  The CDPE money is probably starting to dry up, I noticed that they are starting to charge 299 for a 2 day internet course....

Of course, any licensed professional does. When you hold yourself out as an expert or specialist the Standard of Care you are expected to afford your client become a much higher bar. When that client is damaged, the licensed professional who held themselves out as that expert or specialist will be held to that standard in the determination of whether they breached their Duty. In the face of a growing effort by law firms to now advertise "Did you short sale your home? Did your home go to foreclosure? Did your real estate agent negotiate your short sale? YOU MAY HAVE RIGHTS", it is amazing that agents would even put those designations on their cards. They have already started to sue agents here in AZ. 

Another point that agents need to understand is that the stay on enforcement on MARS did not include section 5 on Truth in Advertising and that part of the FTC rules prohibiting certain claims is still in force.  

Very interesting response everyone.  I really appreciate the CDPE agents giving us their experience and thoughts.  Interesting to hear the attorneys also!  For the record, CDPE is a great course and I am bit surprised that NAR, in their wisdom, does not recognize the designation but what do we expect from NAR, they are about pleasing the "masses" and short sale agents are far from being part of the masses in my opinion.

Thanks everyone!

I have been a CDPE since 2009.  I have always been uncomfortable calling myself an expert.  I like Certified Distressed Property Educators.  I think that in short sales, experience is everything.  Your track record in short sale closings is the key.  Let your clients call you the specialist or expert in testimonies and recommendations.  I do have the CDPE logo on my marketing materials.  I also advertise specializing in short sales.  I have closed over 150 short sales, so I feel comfortable saying specializing in short sales.  My past clients will back this up. But, an agent just attending a class in short sales and calling themselves an expert is dangerous.

The Other Side of the Short Sale Equation

 

I’ll start by saying I have no real estate designations behind my name, although I have plenty in my own profession.  I’m no expert!  I’m just a buyer, the missing ingredient for some.  Realizing that potential buyers come after the process has started, I've read through many short sale posts in recent months and, I'm amazed at how many agents out there in the market that are so caught up in trying to impress their sellers with designations.  Why not impress your potential buyers while doing so?  

This is your money source.  Please hear me out.  There is absolutely nothing wrong with doing the best job you can for your seller but, from my perspective, this is only part of the short sale equation.  I would even venture to say that there is a bigger picture here.

I'd like to ask a question:

  • What is an approved short sale without a buyer?
  • How many agents here consistently go through 2 or more buyers on any given short sale?

A more direct question would be:

  • What is required of me as the seller's agent to keep an active buyer's interest to make a short sale successful?
  • Given the seller's records and file, do I have the tools, negotiation resources and contacts to get this transaction completed in a few short months?

My point is, if you’re good at what you do then, why not complete a short sale in 3-4 months rather than 6-7 months?  If the original buyer is impressed enough to stay with you, this may cut your work in half.  I truly believe that one of the least expensive, yet simple ways to secure a buyer's interest is to use plain old communication. It doesn't require much effort and, the simple truth is all that is needed.  Think about this, if a buyer doesn't want the truth, then do you really want that buyer for a transaction as serious as a short sale?  There's a good likelihood they'll run before you get the official approval anyway.  Plus, if your success track record shows that you're completing these transactions in a timely manner, I would think that even more back-up offers might be willing to take a chance.

I can personally say that the actions of the seller's agent have a tremendous impact on whether or not I will remain with a short sale transaction in the future.  From my own personal viewpoint; a buyer's perspective, and having gone through a short sale recently, if a seller's agent can not provide me with a proven track record of success, detailed plan and method of communication to be used throughout the transaction, then designations means very little.

Honesty, track record, professionalism, and business skills will go a very long way with me.

Hi Richard.

I will see if I can answer...

 

  • What is an approved short sale without a buyer?   not really such an animal.  There may be preapproved pricing in a short sale like with FHA but for a short sale to be approved there needs to be a buyer
  • How many agents here consistently go through 2 or more buyers on any given short sale?   Can not speak for others but I rarely have to go past 2 buyers, most of the time our #1 buyer is the person that closes the deal
  • What is required of me as the seller's agent to keep an active buyer's interest to make a short sale successful?   Nothing really, communication is a good thing though. Keeping a buyer active in a short sale is a function of the buyers agent, not the listing agent. This starts at the very first meeting, explaining short sales to the buyer and explaining how a short sale can take 6 months. From that point, the buyers agent needs to communicate regularly with the listing agent and relay the information to the buyer.  Listing agent  has no duty to a buyer unless the listing agent is also working with the buyer too.
  • Given the seller's records and file, do I have the tools, negotiation resources and contacts to get this transaction completed in a few short months?   Good question, our team interviews the listing agents before showing a short sale so that we can answer that question for our buyers, we prequalify the listing to see if the transaction has a chance.  Buyers agent is not privy to private seller information though.

 

A short sale is a balancing act with the listing agent and buyers agent.  We like to give and recieve feedback regularly and expect it regularly.  A buyers agent should never just wait for feedback, they need to get the feedback if the listing agent is not providing.  Communication needs to be open with the listing agent, the buyers agent/buyer....

I for one dont want or need designations beside my name, the education is great, the designation, not so much

Hi Jeff,

 

Thank you for responding and I understand your answers however, I was just making a point.  You and most of the agents here are probably the exceptions, or let's just say you guys set the bar high for others.

 

The point I was making (or at least tyring to make) is good old fashion honesty, track record, professionalism, and business skills will go a long way with me.  A specialty skill is icing on the cake.  As a buyer, who is actually an intergral part of the process, I look for results rather than designations.  I'm not saying that I want a rookie.  Of course want a pro but, I've seen what designations without results can do.

 

I'll use a football analogy, "Only a small percentage of Heisman Trophy winners actually go on to be Hall of Famers?"  The game is tougher, the competition is stiffer and the lower round draft picks have something to prove.

 

Just my 2 cents as a buyer...........

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