Mama Liz's Blog: Customer vs Client

Thanks Liz, for making a distinction between the two. I see that I have more clients than customers.

I'm curious.  In the

Provide pre-printed forms

item, you don't mean give the forms to the customer, do you.  Ours are copyright protected by the BOR and can only be used by members.

This is a good post for folks who are tempted to work without an agreement.

There is definitely a big difference between a client and a customer, and you've done a wonderful job pointing those differences out.

Congrats on the featured post! Well deserved Liz!

Hey Liz -- Huge differences between driving an OLDCAR versus not! :)

We become the Fiduciary to the client . . . a much higher standard IMHO.

It's good for buyers to understand the difference between a client and a customer.

In Florida we are by default Transaction Brokers. We represent buyers or sellers or both. However we have no fiduciary relationship. Limited representation with limited confidentiality. It is though a form of brokerage representation. We work for customers.

Well done #7.

Yup...

I was just gonna say what Blog Boy (Bryant) said. I think everyone needs to be very careful about terminology. When we say "client" we may be implying things we ought not to be implying :)

Great topic Mama Liz :)

TLW...ROAR!

Liz just taught a class today on Buyer Broker and the importance of using them here in AZ.  We only work with clients, not customers anymore.  I haven't seen this terminolgy here in a very long time.

Liz, Good job explaining the differences. I think Florida is ahead of many states. In NY until a couple of years ago the client was the principal, the principal is the seller, all agents were sub agents of seller. All buyers were customers. There was no buyer agency. Now we have to disclose our agency relationship. We represent either seller or buyer or dual. Even without a contract we now represent the buyer if we show them other broker's exclusive listings. Now a customer is some one without representation. NY really made it complicated. 

Liz,

Our goal should be to get more clients. I expect that loyalty to be a two way street with clients and the real estate agent.

Nice post. This is a market where it needs to get back to basics!

A good reminder that there is a major difference between a client and a customer in the world of real estate.  Here we can provide Forms to the Consumer that have SAMPLE stamped all over them.

Sue of Robin and Sue

Also we need to be careful because each state is different and sometimes as is the case of NYC versus the rest of New York State there can be differences.  

Liz - great post about distinguishing the difference between the two. I also have more clients than customers!

Liz good post and well done!

Liz I would have to disagree with a portion of your post.  A customer is an individual who is NOT REPRESENTED BY THE AGENT IN QUESTION.  A customer is also the CLIENT of another Agent.  Often times a CUSTOMER is represented by and Agent....and the CUSTOMER is the CLIENT of that Agent while Remaining the CUSTOMER of you. 

There is a significant distinction.

In Alabama we have traditional agency relationships and transaction brokers, but Alabama also has something called "limited consensual dual agency" where both parties can ask an agent to be their agent with the consent of the other party. I never exercise that option! That is putting yourself on a tight-rope.

Thanks for sharing the agency disclosure and services provided information here. More people need to make that distinction. I pull out my RECAD form when meeting with anyone for the first time. You gotta make it clear from the start how you will be working together.

Good article.

This is so confusing to the consumer...  However, NAR did change the code of ethics and took out the word "fair" because it was subjective.  so now the requirement is to be honest... fair is out!

I sign them, then their clients, otherwise their not worth the time.

Liz:

This is a distinction that is extremely important and I think many people in the general public do not understand the difference.  Everyone who works with me signs a contract, therefore, everyone I work with is a client. I would not have it any other way.

This is very important here in Flordia and it is why I use the term customer instead of clients in my blogs. Someone is automatically a customer here unless they ask to change that relationship in which case they would become a client.

Lead>Prospect>Customer>Client

They are a client when we have signed a buyer or seller contract wth them, not until.

Damon in #18 makes a very good point.  The client belonging to the agent on the other side of the transaction is my customer.  And while I have a fiduciary duty to my client, I also owe my customer non-confidential disclosure and honesty.  This section of the CoE explaines it well.

Liz, this post identifies the rationale for buyer representation. Educating the buyer to know the difference is key. Thanks.

Liz:

Great reminder. Thanks.

Thanks for clarifying the difference between the two, very useful information.

Liz, I've often wondered why on earth anyone would want to be a customer? 

I have often wonder why there was a distinction.  Thank you for providing the information.

It is very easy to treat a customer too well, and that might turn them into a client without signing any papers.

Tricly issue!

Here in California we have a fine line where customer/client begins. Many times oral contracts are created when an agents dispenses information and a customer goes to client status with just the use of a verb.

There is a huge difference between the two and once you figure out the difference that is when you become a successful agent!

WOW--- thanks to each one of you for your comments here -- what a surprise to get the "little gold star" --I love it!!!!

There is some significant information in the comments -- thanks to Broker Bryant & TLW for pointing out the difference in Florida law.

Here, I am always "preaching" to my agent-owners about the difference.