Guidance Versus Advice: Which is a Philosophical Standard of Care

As a real estate agent transacting in the East Bay, I am often an observer of my practice and other agents who are transacting around me. I often witness breakdowns that other agents are having with their clients and I believe these breakdowns are a result of the realtor acting for the sake of the transaction and not for the sake of the client’s overall concerns.  I am seeing a shift in client’s demands on real estate agents.  The clients are more and more demanding that realtors play an active role in improving their entire situation as a partner, not as a guide.  Clients want to be actively involved in every decision and they are demanding that the realtor know more about their situation in many domains.  The traditional method of taking clients out and showing them houses that have the right number of bedrooms and baths or a “nice” kitchen is over.

I see real estate agents trying to guide their clients and it is inevitable that clients push back. Guidance implies that a client cannot make a decision for themselves. For instance a dog might guide a blind person across the street.  This is necessary where a person cannot “see” where they are going.  Today, clients want to be educated so they can make the decision, they are not willing to abrogate these decisions to someone else.  They want to “see” what is going on.

Advisorship encompasses much more than just guidance. It is the art of anticipating and listening to a client’s concerns. Out of these concerns an agent can use their expertise to devise a comprehensive and whole strategy in partnership with their client. They can then advise their client on the risks and opportunities that exist for their situation in the specific domain where the real estate agent is expert. Finally, only after the agent and the client are in agreement about the concerns care for, the appropriate standards of care and the subsequent actions to take, can the transaction continue with satisfaction for both parties.

In this brief situational description we can see that guidance is only a piece of the advisory process. We have seen tremendous evolution in other professions.  It used to be that the patient did everything that the doctor said without question.  Today, it is customary and expected for the patient to consult carefully with the doctor, to seek second opinions, to do their own research, to ask pointed questions and to move forward only when they are satisfied that they understand what is occurring.  We see this same philosophy moving into the Real Estate profession as the numbers have gotten so big now that clients must understand what is going on before they move forward.  With the numbers getting bigger, the risks are more significant so we can expect to see this change continue and intensify.

If you are purchasing a home, find a realtor who will work with you on your entire situation and who knows that you need to have a good understanding of what is happening before you move forward.  Start with these questions: What standards of care and for which concerns must you design and act for?  What are the concerns that will be affected by this decision?  Who are the experts you need on your team for you to successfully avoid problem?

Be willing to ask these questions and be demanding to work with a Realtor® who will engage fully in this inquiry with you.  There is a lot riding on your decisions.

Thanks to Laughlin for the photo.