Trust is a two-way street. No one knows this better than a REALTOR®.

Meeting with potential buyers and trying to extract the necessary information to enter a deal can be a daunting task, especially in an age where identity theft and bothersome telemarketing calls run rampant.

Consumers are under constant attack for their personal information. When consumers do give out information, they don’t necessarily trust the receiving source because it tends to come from an impersonal request. REALTORS® find themselves lumped into the fray and competing for a client’s trust.

“The relationship built with clients is built on trust,” said Jeff Young, CRS, GRI, West Michigan Lakeshore Association of REALTORS®. “Most clients are willing to give their information and be open because they recognize that we, as REALTORS®, are here to help them accomplish their goals. It’s in their best interest.”

According to a recent nationwide 2003 Privacy Trust Survey conducted by Ponemon Institute in California and the CIO Institute of Carnegie Mellon University, more than half the organizations or institutions surveyed were trusted by more than 50 percent of Americans. The majority of the people surveyed were comfortable revealing personal data.

Of the several industries researched, primary physicians scored the highest privacy trust score (83 percent) from U.S. citizens. At the bottom of the list were the U.S. Department of Homeland Security and retail stores (36 percent).

Doug Whitehouse, ABR, CRB, CRS, GRI, LTG, RAM, Metropolitan Consolidated Association of REALTORS®, agrees with Young about the importance of trust between a REALTOR® and a client. He said REALTORS® who actively practice the Code of Ethics should have all they need to form a bond of trust.

“ I find that most of my clients are not reluctant to give me their necessary information because I have worked hard to establish good relationships with lenders and buyers,” Whitehouse said. “It is these relationships and constant work procedures from which clients build their trust to make the proceedings run smoothly.”

REALTORS® deal with sensitive financial issues. Trust is difficult with some clients because the survey respondents said that no matter who is asking for the information, it should always be handled with respect and privacy.

Of 5,500 people surveyed, 81 percent consider privacy to be important or very important to them. Also, men show a lower average of trust than women, 55 and 59 percent, respectively.

“ If potential clients do not feel comfortable with their REALTOR®, if they do not trust their REALTOR®, then they are going to find one they do trust,” Young said. “This makes a good first impression of making the client’s best interest a top priority essential.”

There’s no Lack of Trust

Half of those surveyed felt fear of inadequate protection of personal data, and rejected or canceled doing business with a company, which makes it essential for REALTORS® to gain their clients’ trust from the start.

Since real estate is a high-ticket item, most clients willingly give out their personal information. Clients tend to depend on REALTORS® for guidance.

“ People understand that the information requested is to help protect their best interest at heart,” Young said. “It is crucial to sell the professionalism of being a REALTOR® at every opportunity so clients become comfortable working with you.”

However, not every situation can be ideal.

“I do think there is a general, overall reluctance with people to give out personal information because of the awareness levels rising about identity theft,” Whitehouse added. “However, I have only had one person actually refuse to give me his social security number.”

In these situations, Whitehouse suggests it is best to not take the information, but to then make the person aware that, if problems arise, he will need to show the necessary proof that they are who they claim to be. He also suggests having the clients become preapproved, and have the documents at hand, instead of trying to convince lenders without proof that a client is worthy.

More Suggestions

Young said a contract can do a great deal to calm a reluctant buyer.

“By having a contract set with clients, you are professionally obligating yourself to them,” Young said. “I always tell my clients to withhold their personal information until they are sure they want to go into a contract with me. I am upfront with them because then they realize I will be honest, open and here to look out for them on a professional level. By having a contract with the client, it automatically raises comfort levels.”
Whitehouse said it is important to sit in with clients while consulting lenders in order to raise comfort levels with clients.

“ I’m a facilitator in these meetings to make sure that both parties are comfortable,” Whitehouse said. “For some of my clients, it is actually at such a level that they will call and have me go straight to the lender for them. I strive to make sure that clients see me as their advisor and their advocate.”