Client vs. customer: Semantics or a really big deal?

By
Real Estate Broker Owner with The Hamptons Edge Real Estate Co.

 

Client vs. Customer: Semantics or a really big deal?

 

It has become one of my favorite sayings - “In real estate, representation is everything.

 

I find that to be especially true in this current buyer’s market. So many buyers are missing out on great opportunities because they are unaware that they are entitled to a very special kind of representation.  They instead wind up working with an agent who is acting in the best interest of the seller.

 

In my most recent article in Dan’s HamptonsAsk the Expert” column, I covered a few basics on how a buyer can tell who the agent represents and why that’s important.

 

Hopefully, the tables below will clarify any confusion as to the two very different relationships when it comes to buyers working with real estate agents.

 

Please don’t be thrown off by the word customer. People automatically associate that word with someone who is purchasing something - thereby relating it to the buying side of real estate.  Well, that’s not necessarily so, as a customer can be a seller as well.  In real estate jargon, the definition of customer is “the third party with whom the agent deals on behalf of the principal (client).  Sounds pretty unappealing, doesn’t it?

 

Hampton One R. E. Group

 

Your Hamptons Exclusive Buyer’s Agent - Where all our Buyers are Clients

 

CUSTOMER

              RESPONSIBILITY

HONESTY

Ensure all laws and regulations pertaining to the transaction are obeyed

ACCOUNTING

Safeguard money and property held on behalf of the customer

REASONABLE SKILL

Provide customer with standards of practice and competence that are reasonably expected

DISCLOSURE (Material Fact and Agency)

Disclose material facts about a property.  Disclose agency relationship.  Explain the difference between a customer and client relationship in a timely fashion SO THAT A CUSTOMER CAN PROTECT THEIR OWN INTERESTS

 

 

CLIENT

                DUTY

FULL

DISCLOSURE

Disclose all info that might affect the clients decision

LOYALTY

Do not conduct the client's business in such a way to benefit the customer or any other party to the detriment of the client’s interest

CONFIDENTIALITY

Do not divulge any confidential  information about the client told or learned by the agent within the agency relationship

REASONABLE CARE AND DILIGENCE

Protect the client from foreseeable risks or harm and recommend the client obtain expert advice or assistance when needs are outside the scope of the agents expertise

OBEDIENCE

Act subject to the client’s continuous control (following all lawful instructions)

ACCOUNTING

Safeguard money and property held on behalf of client

 

 

 

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Topic:
Home Buying
Location:
New York Suffolk County
Groups:
I Love NY
Firefighters referral network
Vacation and Second homes
ABR-Accredited Buyer Representatives
Tags:
buyers market
client vs customer
hamptons exclusive buyers agent
hampton one r e group

Comments 4 New Comment

Rainmaker
592,532
Laura Allen, Lake Tahoe - Truckee Real Estate for Sale www.TahoeLauraLuxuryHomes.com
Tahoe Real Estate Agent Helping Buyers and Sellers
Coldwell Banker, Tahoe City, CA (530) 414-1260

Bill - great post.  I think there is a lot of confusion between the two and often the public assumes the client and consumer are the same thing.  Nicely done on identifying the difference between the two. 

October 27, 2011 03:57 PM
Rainmaker
119,847
Bill Carroll
YOUR HAMPTONS' REAL ESTATE SOURCE
The Hamptons Edge Real Estate Co.

Thanks Laura

October 27, 2011 04:58 PM
Rainmaker
223,559
Laurie Mindnich

Terrific explanation, and congrats on Hampton One- love the H1!

October 27, 2011 05:26 PM
Rainmaker
119,847
Bill Carroll
YOUR HAMPTONS' REAL ESTATE SOURCE
The Hamptons Edge Real Estate Co.

Thanks Laurie.

October 27, 2011 08:18 PM
Rainmaker
119,847

Bill Carroll

YOUR HAMPTONS' REAL ESTATE SOURCE
client level service makes all the difference
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