Why Being a "Stickler" Protects Your Entire Business

Steven L Burch (00:00)
All right. Welcome to the Leaning Lane podcast. ⁓ I don't know if it's just because here recently I I've been more in transactions and files and compliance side of things. And you know, it's always kind of interesting and fun when you look at it from a high level view and multiple different transactions, ⁓ how much of a stickler on certain things ⁓ people think that you are.

But in reality, ⁓ they really are big, you know, issues and things that you want to make sure that you're ⁓ looking out for. ⁓ I think sometimes on an agent level in a transaction, you're like, it's not that big of deal. It's not that big of a deal. But then when you have, you know, 20 some agents or how many other agents underneath you, and each person saying it's not that big of a deal over and over, there's a lot of not that big of a deals deals that are going on. So I don't know if you ever get

the you know, the comments, Ashley, that why are you such why are you so particular about, you know, how certain forms are or deadlines or ⁓ these different things. But what do you think that people miss or why is it that we look at it ⁓ as a requirement and a standard and others just not that big of a deal it?

Ashley Fredrick (01:15)
Yeah, I mean, I think it comes with time for one and experience. But I think I mean a lot of agents are really lucky that they haven't had ⁓ a lawsuit filed, a complaint filed, you know, those types of things. So I think that maybe until it like hits someone, ⁓ do they actually understand that, ⁓ like a one dotted eye might have prevented this buyer from selling this sewer or some

Steven L Burch (01:28)
Yeah.

Right.

Ashley Fredrick (01:44)
Sewer seller. ⁓ you know, so I think that I think that people are just so focused on like the ⁓ moment at hand instead of what happens 30 days from now, what happens a year after the transaction. Like I every state is different, but there's, you know, statutes of time that something could come up and know, typically two years later and like you could still be liable for it.

Steven L Burch (01:55)
Mm-hmm.

Ashley Fredrick (02:11)
⁓ I go back to the I say like I like to operate from a center of excellence. And I with that, then that comes compliance. And so I mean, and I get it, when I was an agent, like I was more focused on like that one transaction and you know what's going on. But I think once you step into the broker role, you now have to look at like a broader scope of like how could this be misinterpreted or how could this not be in someone's best interest? So

I think that for agents practicing that aren't, you know, in due day to day charge, like it's a ability to have to step back and just think like what could go wrong. And I I hate to have to think that way, but I think we live in a a sue happy world. ⁓ I mean, I hear every day like someone's, I'm gonna sue someone and then right, I normally can talk people off a ledge because like let's be honest, nine times out of ten it's not worth it.

Steven L Burch (02:44)
Okay. Right.

Ashley Fredrick (03:06)
⁓

you know, but or it's a misunderstanding or it can be fixed out so fixed in in some fashion. So, you know, I think we have like the legal hotline and that's the other thing. I like to read the legal hotline. I like to see like what people don't understand. I like to see what other agents have ⁓ gotten like complaints filed against. Sometimes blows my mind, ⁓ like what what they may or may not have done. But you know, there's just so many things now that are by the book.

Steven L Burch (03:19)
Mm-hmm.

Ashley Fredrick (03:34)
That can be compliance, it can be fair housing, ethics, you know, all those types of things that we really have to start to think in the bigger picture just instead of like the one transaction that we're on or the one person that we're dealing with.

Steven L Burch (03:46)
Right. I mean, there's so many different levels of compliance. You have your state laws, you have your ethics, like you said. I mean, there's there's all of it stacked together. And I think that ⁓ people only look at the contract aspect of things thinking that it's black white, so that's all it is. ⁓ I when I got in real estate I thought it's all black white. This is what the contract says. I think it's like the most gray, blue.

world out there because you have no clue which way it's going to go. and I think when you only hyper focus on, you know, just what the contract says or what you think it says and or your interpretation of it, you have your blinders on to everything else that may be affecting ⁓ what is actually going on. I don't know about you, but like these deadlines and people missing it. When I was an agent

I felt that agents, ⁓ co-oping agents missed deadlines all the time. Don't get me wrong, I've missed deadlines. I've I've missed plenty of deadlines when in learning and experience and dropping the ball. but I never wanted to be that guy in a in a real estate transaction. And that's not what I want my real estate company to be represented by. And I don't want people to know us by missing deadlines and dropping the ball. Like it's all about communication. So figuring out a system and a process to make sure that you're hitting those different marks, but

Ashley Fredrick (04:45)
the point.

Steven L Burch (05:10)
I distinctly remember when one of my deals very early on, I didn't pull or grab the earnest money from the buyer when they were signing the offer. I was like, just bring it by later on, not a big deal. Yeah. We got the under contract, I forgot, buyer forgot, I didn't follow up, right? And my remind you, like my grandma was my broker ⁓ at the time. And man, did she ⁓ light me up left down

I mean all the way freaking around on everything. ⁓ it was absolutely wild. And so I was like, yeah, that's never gonna happen again. I'm not gonna get scolded. So that's ingrained in my brain now. So I I just think it's it's yeah, it's not that big a deal. Like we can figure it out with an amendment or an addendum, whatever. But really it is. I I think it's kind of a a black eye on how it looks and how from all sides, all aspects of the transaction.

Ashley Fredrick (06:07)
I think yeah, you make a good point as far as like I can look at it as far as like a a damaged reputation or lost trust. You know, like it's as simple as like misstating a price on a on a Facebook post, right? Like it happens we're all, you know, ⁓ make mistakes, but same thing it might make the seller think that you like I can't even trust them to write the right price down or do the right address. Like I think

I saw because we have a lot of non-local lenders or agents. It was a listing here and then like they said located in the heart of X, like the city that they live in, which is like 45 minutes from here. So I was like, how would you feel if you were the seller and saw that? ⁓ I think too, like where it becomes different with a an agent is like ⁓ an agent will just see like one file at a time where like we as the brokers see

Steven L Burch (07:01)
Mm.

Ashley Fredrick (07:03)
25 files, you know, at a time. ⁓ where, you know, again, it's like one system where I'm thinking about always like risk reduction. Like, what can we do to reduce risk? And unfortunately, that comes with additional paperwork, additional signatures, additional education. ⁓ but I think it all it takes is like one time for someone to have like a shit moment. And then they're like, wait, that's why we do that. ⁓ and I I think that.

Steven L Burch (07:12)
Okay. ⁓

Okay.

Ashley Fredrick (07:31)
It's important too that we as brokers explain that more to the agents, you know, as far as like why, like why is this form? Like, why did I decide to implement this form? Why do I want this checked? you know, like I remember when people started not doing home inspections, which let's be honest, that was like a rare occasion before COVID. And then in COVID, everybody thought that that was cat's meow. And then, right, like two or three years later,

you'd hear about

Like they had something happen in the house, or then they went to sell and that person had an inspection and we weren't using ⁓ like a ⁓ acknowledgement of risk, if you will, for not having a home inspection. And then I I mean this goes back to education. Like I think I read something in in Inmin about somebody that sued by not having the inspection done and you know, that they recommended that there was a waiver of sorts that they signed. So sure enough, like I require it for all

No inspection. There's a specific form that says that they understand the importance of an inspection and they've chosen in their on their on their own not to have one that they hold the the liable the office not liable. And so I mean, same thing, like you just have to didn't think about it at the time, like that's their choice, but like where do we have them sign off that we didn't just not have that? So same thing, like it's just right, like one mistake can typically be fixable, but it's like when

Steven L Burch (08:47)
Difference.

Ashley Fredrick (08:57)
numerous things happen or there's a pattern, like that's where we as brokers have to step in and be like, this does happen a lot or could happen a lot. What can we do to change that or what practices can we do to change that?

Steven L Burch (09:10)
You know, the the thing here too, like being able to I mean, really, you're covering your ass, right? All the time, that's what we're doing is covering your ass.

Making sure we're doing it. And it's hard to be able to ensure that every single person underneath you is doing everything properly. But ⁓ it does go back to that reinforcement and the education side of things. ⁓ you know, even on the home warranty side of things, offering a home warranty. What happens? we've had multiple deals, but a buyer comes afterwards and we're like, well, I was never offered a home warranty. And since you didn't offer the home warranty, that's you know, you need to pick it up.

⁓ or I mean, there's just so many different scenarios that I can go through. It's just wild how people are, you know, just throwing blame anywhere that they can. But also, it is our job to ensure that we are offering all of these things. It is our job to ensure that inspections we are offering, ⁓ you know, making sure that you offer a a roof inspection, not just a whole home inspection. Like there's so many different things that ⁓ it's almost like

Creating a a package for individuals to ensure that all the boxes are gonna be checked, they're offered everything right up front. ⁓ and then even giving them multiple different recommendations for said home inspectors, right? Like if you only give them one home inspector, one home warranty, and you know, like that's putting, in my opinion, definitely at risk right there, because you're not providing options. ⁓

We just ⁓ got back on the legal hotline talking about you know, agents can get paid through home warranty. for lack of better terms, ⁓ a kickback, right? Like I I I know that's not technically what it is, but that's where it is. and so yep. The legal hotline said, Okay, cool. So if you offer them a home warranty.

Ashley Fredrick (11:07)
Feels like

Steven L Burch (11:15)
And you didn't disclose something, something goes wrong later on, and you got paid on said home warranty that you sold them. And there's no other, you know, competitors that you provided. What kind of liability now is on you? Because you're the one that placed them into that plan. And now it's no longer just the plan. Now it's going to be whatever the issues are going to arise. Like, I mean, we went down this whole trickle effect. So is the $75 really freaking worth it? No. Like, don't do it.

Right. Like that at least that's my opinion of don't do it. you never know how all this is gonna come back later on and bite you in your ass. And it's all about the documentation to make sure that you are ⁓ doing your due diligence and disclosing disclosing properly.

Ashley Fredrick (11:59)
Yeah, it's funny that you mentioned like the home warranties and we have an addendum to our offer that kind of lays out all of those things and it's look what I think the two biggest things in there are it asks for closing costs and it asks about home warranties. So I actually had another broker, ⁓ I would probably say a couple of years ago, and he called and he's like, Why does your office always send that extra addendum even though you have everything marked as not applicable? And I was like, Well, because how do I prove

that they were offered to ask for a home warranty. How do I prove that they were offered to ask the seller for closing costs? Otherwise, like I know for a fact that there are other agents that are not going over that form and didn't explain the options that they could ask for closing costs or that they could ask for a home warranty. So I was like, that's my CYA of they looked at it. They did not ask for it. So you know a year from now when the furnace goes out and they say, why didn't I have a chance to buy a home warranty? And

I can go back and be like, well, cause we checked not ethical, or now they've changed the form actually even better that says that they waive the option to have a home warranty. So again, it's this mind shift of you have to just think like what could go wrong, unfortunately. ⁓ I think the yeah, I think the other way to look at it too is that ⁓ if you do really present your offers clear with clarity, with precision, like

Steven L Burch (13:11)
Worst case scenario.

Ashley Fredrick (13:24)
Technically that really should make the offer go smoother because there's less gray area. I also think that for me personally, like I know agents that write sloppy offers and I know agents that write good offers. Like when you have very similar offers, like right, that's something you're gonna consider when you're talking to your sellers. I've even had it with sellers like where we had to counter back like things that were just missed, like the address was missed or like

Steven L Burch (13:38)
Right.

Okay.

Ashley Fredrick (13:53)
a check mark wasn't there and then that makes them question if they can actually get the deal to the closing table if they can't fill out a contract correctly.

Steven L Burch (14:02)
Mm-hmm. Yeah. I mean the in multiply that by how many transactions a year, right? Like that's a freaking lot. And those are the types of things that keep me up at night for compliance, right? Like I don't want that. And I think that that's why, you know, we're so determined to bring value and make sure that we're educating our

Ashley Fredrick (14:08)
Mm-hmm.

Steven L Burch (14:26)
Agents and talking about real life scenarios, right? Like we don't we don't just gloss over it. We make sure that we have conversations. It's not to throw anybody under the bus or anything else like that. ⁓ but how else is anybody else going to learn if we don't share those experiences? And there's things that every day I've never experienced and I learn and you know, sharing that constantly versus, you know, hoarding back that information ⁓ and

you know, that's why it's important to show up ⁓ at the meetings and important to be able to make sure you're catching up on the the articles that are coming through and what is actually happening around the world versus just staying in your own little bowl.

Ashley Fredrick (15:08)
I think you make a good point about like sharing. Like I think I I mentioned that we added like a brainstorming section to our office meeting. And sometimes what I'll do is I'll specifically ask an agent that had an issue the week before that we'll I'll ask them like, Hey, can we bring this up in the meeting? And then we'll maybe talk about like this is what happened, like what could we have done differently? What should we have done differently? But I also like it that the brainstorming section has been like, Hey, I have this coming up and it doesn't quite feel right. Like what would be the best way to

Steven L Burch (15:35)
I don't think.

Ashley Fredrick (15:39)
do this. So making sure that those like lines of communication within the office and to the broker are open so that like you have enough confidence to be like, I'm not gonna just swing it. I feel like this I guess I always tell agents like if it gives you pause, then that's enough that you need to bring it to me. And then we can talk through it.

Steven L Burch (15:50)
Correct.

If you're questioning, like if you're yeah, if you are questioning, that means you need to bring it on up the chain and make sure that you're utilizing your resources so that you don't put yourself in a pickle. And I think one thing too that we've talked about multiple times is, you know, agents saying, Well, you're too busy, ⁓ or you're really busy and I don't want to bother you.

Yeah, no, that's what I'm here for. And also if we ⁓ you want to put my license, our license on the the line here, there goes everybody's, you know, livelihood. So let's make sure that, you know, no matter how small or large it may be, bring it to my freaking attention. Don't hide behind the freaking computer and run away. Like we need to handle this as professionals and move forward. Like we all make mistakes. We're humans.

Ashley Fredrick (16:43)
Yeah, you know, I think that is important. Like I know you and I both use ⁓ Blink and that's another area where I think it's a good training resource. So someone might have a question there. And a lot of times I tell people like, someone else might have that exact question and maybe they're just afraid to ask, or they haven't think they haven't thought to ask, or you know, it might be three months from now and be like, I feel like we talked about that, and then they can search this platform and be like, yep, and there was the answer and

Steven L Burch (16:51)
Uh-huh.

Absolutely.

Ashley Fredrick (17:10)
I've learned to try not to answer those questions right away on Blink because I like to try to see how other people will solve them. But then like if I see someone post something that's not quite right, I'll be like, great idea. But think about this, right? And I so I think it's really about trying to encourage people to think outside what they know to be black and white. Like what is the gray area? Okay, like that was your intention, but the way that you have it worded, could you see how it could be interpreted as this?

Steven L Burch (17:14)
Mm-hmm.

Let's try this.

Mm-hmm.

Mm-hmm. And one word changes absolutely everything. Right? ⁓ changing it from replace to repair. Those are like two totally different things, two totally different outcomes. So if you want it replaced, you say replaced. If you want it repaired and you're okay with that, it's repaired. Yeah, I can't inter intertwine those two because th those meanings are two totally different things. Drives me crazy. So

Ashley Fredrick (17:47)
I literally was gonna say that.

Right.

Steven L Burch (18:09)
Well, I'm glad we're sticklers. I think that ⁓ I know that we would not be where we are on building ⁓ extremely successful businesses and brokerages if we were not following the rules and ⁓ making sure compliance is is definitely there, having higher standards. because we know in this industry too, ⁓ there's a lot of people that don't have those standards. ⁓ and it's time to elevate the bar and rise up and make the difference in this industry because we definitely need it.

Ashley Fredrick (18:39)
I think makes all of our agents, you know, better agents in the long run to continue to win listings, continue to win buyers and protect the reputation that we've built.

Steven L Burch (18:50)
Absolutely. Well, let's continue to slay the day and continue to be sticklers for the rest of the day. All right. Thanks for tuning in in and make sure you guys ⁓ tune into the next one. We appreciate you.

Ashley Fredrick (18:56)
That's right.