Ginny's RI House Hunt Blog: What is a Handshake in Real Estate?

Good morning Ginny,

In these days and times I see many situations occur that are less than stellar between agents. You always like to think that even if you have to rely on a handshake in a real estate trnsaction it means something!

Good thought provoking post. I resort to a handshake when dealing with referrals. Sometimes I may not have time to send the signed referral form but I give them the name of client and information .

That is ashame.  We all have to work together.  Why not work in the same ways we learned in kindergarden - share, help, be nice, be honest, etc.

Good morning, Ginny..... a handshake should always work.... a verbal agreement should be as strong as a written agreement especially between agents....suggested

Ginny: Like Cindy, the thought to not hold up my end of the deal would never occur to me.  I want to be known for running an ethical and fair business. 

Ginny, it is was nice to hear your story about an ethical and honest Realtor!     Referrals can get lost in the daily business, and luckily this professional upheld this agreement, even with a handshake!

So glad to hear someone still honors the handshake Ginny.  It's origins are a practical way to have sealed the transaction's fate. 

This is a great story, that he came through and honored your agreement.

I had to suggest this one Ginny!  Hope you have a very productive day my friend.

A vow verbalized which is someones word as evidenced by their "shaking" on it is sacred in my book or don't go through the motions to begin with...It means what it means....Its dishonest people who corrupt this..excellent post Ginny girl

I long for the days when a handshake would suffice to seal a deal. Things are so complicated now, you're never really sure if the deal will go through until closing. That deal speaks highly of the agent you worked with. It sounds like you did a great job of picking that one.

It would be really nice if traditions such as a handshake meant what it used to mean.  Thanks for the article and helping us realize the values we need to uphold on our side, even if it's not always reciprocated.

Ginny, I'd like to think our handshake would be good enough.  Coming from us to someone else I'm comfortable with it.  But in the interest of protecting our clients, anything being told to us that affects are clients has to be in writing.  We're stuck being concerned about the attorneys cleaning our clocks for getting into a "but they said" situation.  Bill

Ginny:  Seems whether a handshake or a contract ... these days you can get out of either commitment all too often and too easily.  Sounds like you referred a stand-up guy for this rental.  Congrats of choosing that source wisely ... and congrats to him for being a real professional.  Sad that way too often, this isn't the outcome you hear of ...

Gene

Terrific.  I love it when a plan comes together.  We do tend to gripe about everything thats wrong with agents but it's great to know that the hoinorable ones still exist.

I think a handshake is fine between honorable people.  If you do not know who you are dealing with, better to get it in writing.. and notorized.

Ginny, I wish a handshake would work all the time. Same goes for a verbal commitment/acceptance/counter offer. Get things in writing whenever possible.

Ginny - I take a virtual handshake from you anytime :) Of course when it comes to my clients buyers and sellers I'll do it in writing.

Hi Ginny,

I take a virtual handshake from you as well, Have a nice day, Good luck to you as the best of North Kingstown Short Sale Agents.

People don't have the same values anymore today, whether it is an actual handshake or a virtual one.  You would think they keep their word.  You're lucky it worked out for you.

Ginny, it's good to have people who are true to their words and values a handshake as a sign of agreement and commitment.  I wish handshake is enough but nowadays, we still need to document everything. 

Ginny there are some things that can still be done on a handshake, but it takes a long time to build up that kind of trust.  Unfortunately the days of just a handshake in the Lending Industry are gone.

Ginny: The time or two that I accepted a "handshake" deal, it was usually renegotiated later - by the other party, and not in my favor. I don't do that now. Everything is with a contract with a DocuSign signature at the least. It's also more businesslike, everyone understands what they need to do to get paid. 

We deal with referrals on a daily basis.  Some of them in writing and some not, but the check goes out when I owe it and if it doesn't come in when someone owes it to me, that will be the last time I refer to them. 

Hi Ginny, I take a virtual handshake from you, Good luck to you as the best of North Kingstown Short Sale Agents.

This is an example of what we would like to see more of from professionals in the real estate. 

Ginny, I have a relationship with some agents in my area where I feel I can get away with a spoken word knowing that it will be properly attended to down the road. All papers do catch up as well, though

I think in this day and age, a handshake can be sketchy...one has to have a good instinct about these things.  Sounds like it worked out for you and that is absolutely terrific!  Congrats for meeting someone with integrity :)!

Ginny, 

I love folks that you know the handshake is GOOD!  Kudos to the agent for keeping their word and handshake!

All the best, Michelle

It's alll about people doing what they say they will do.  I negotiated a sale on my new listing yesterday.  The buyer's agent got me the paperwork today, but in a file that neither my seller nor I could open.  While waiting for him to resend, I get a verbal from the agent that showed it today.  Says he's writing a full price offer.  I tell my client.  No, he's already negotiated (a slightly lower price) with the first buyer and he is standng by his word.  A verbal handshake, but he was totally willing to take a bit less money and keep his integrity in tact.

Ginny, I have done handshake referrals where the agent never sent the paperwork but I made sure they were paid. It's about integrity.

Sharon

Glad that one worked out, Ginny.  So far, I haven't been stiffed by anyone, but I've heard horror stories.  A noble agent on the other end will always do the right thing. 

It would be great if we could all simply trust a word and a handshake.  Maybe in a simpler time.

Ginny - I'm glad that the handshake worked here.  Sometimes you can do this though the attorney in me likes writing.

Ginny, a firm handshake when you meet someone, and a firm handshake when you say good bye goes a long way!

Handshakes are a true testament to character!

Years ago I taught my daughter to shake hands, and mean it! No whimpy handshakes around here.. One of her teachers in highschool asked her when did her dad teach her how to shake hands? She said NEVER.. that was my Mom who taught me that.. Shake hands... mean it .. and keep your word!

Nice work Ginny, that is what a handshake means - my dad didn't teach me this, but I've figured out, and a good shake and sold word goes a long way when there is nothing else.

I am so glad this generated discussion & comments...i do believe that rarely based upon being stiffed too...do i do this but i just felt it about this agent.  Clients I need everything in writing!

Hi Ginny.  There are some folks that I send referrals to where a handshake is good enough for both of us.  Then there are a few other instances...  

Ginny, phone handshake -- I like that. Sometimes we have to trust other agents to do the right thing. Good reminder that service to our customers/clients is what's important. 

I think most people still have integrity and will do the right thing.  But there are plenty of unethical ones out there which is why NAR has a Code of Ethics. 

I believe business is more about relationships than paper.

Yes our business requires contracts.  That doesn't mean that they can't sue.  It might mean they can't win.

I work with clienst and agents that their word is everything and some it's not.  I much more enjoy working with those who have integrity.

Ginny - My handshake is as good as gold, in my opinion.  If I make a promise to someone, you'd better believe I'm going to keep it.  My reputation in the real estate community could be permanently damaged if I renege on a handshake...

I would love to do business with a handshake and have done so many a time with no problems. BUT, I have been burned just as well by the agent that talks a big talk of being trustworth and request to do verbal negotiating to "Speed" things up then when it is time to sign off on the agreement they stiffed us and went with a late arriving offer a little higher than what we had verbally agreed on.

Ginny...

I'm still a handshake kind of guy, Once it's said out loud, it's a done deal. But sometimes others ... not so much!

Good post!  In some situations a handshake means different things.  If you are shaking hands to "solidify" a contract offer, it often times is worthless and unenforceable since real estate is all about WRITTEN contracts and you can't commit your clients to something without their approval.  In another sense, shaking hands means that you or the other party are giving your word or bond to do something (that is within your purview to do).  This one is only enforceable by your own integrity. 

Great post Ginny. It seems the 'older' agents, or the experienced ones still do business that way, their word is good. But conversely, the younger generation and some with a lesser reputation don't know the meaning of a handshake or giving your 'word' - they will rather give you 'excuses'.

It brings to mind the old adage fool me once, shame on you, fool me twice, shame on me. I would never send another referal to an agent that did not live up to their side the first time.

You know the problem I always run into is if I promise another agent something then I have to worry about my clients integrity.  I like to trust people, but get it in writing ASAP.

Ginny:

I like to shake hands to seal a deal.  It is not always possible, and it certainly isn't necessary.  It is a good gesture to make.

Hi Ginny, how we wish for the days when a handshake or a persons word was as good as a written agreement.

"Handshakes"(verbal, written, in-person, etc...) between 99% of the local Agents work. It's the "Clients/Customers" that seem to have little repect for it.

I do a fair amount of business on a handshake, if a person can not be trusted to honor their commitments without a contract then a 40 page contract probably wont force them to be honorable either.

Never heard of a phone handshake before. Learn something new everyday. {:<)

What a refreshing story. I also loved Jeanne's story ("#31). It's nice to know that some people still do honor their word without benefit of a written contract.

I "took a chance" like that last week with a new copywriting client. She changed her mind about what she wanted and needed something different - right away. Rather than write a different agreement, send it, and wait for payment I just went ahead with her letter. And, true to who I thought she was, she sent payment without even giving me time to write an invoice.

It simply feels good to do business with people like her, and like you described.

Ginny,

Great to hear a story with a pleasant and ethical ending!  I too would NEVER go back on my word to another agent.  I even had one referral from an out of state agent that I had only met briefly while on vacation.  She called with the referral and I told her to send an agreement but she just never got around to it.  Well it turned out the clients were wonderful, they did everything I asked them to and I sold their house in only three weeks.  Barely had time to even spend any marketing money.  She had only asked for a 20% referral so I surprised her by sending 30%.  She won, I won and yes I have received more referrals from not only her but a couple agents in her office.

Always play it forward!

I just had one of those "phone-shakes" that didn't work out.   Very disappointing.   There will be no more business going to that agent.    Reality check, again.  

Now we know why this agent has a great reputation!  I'm glad this transaction worked out well for you! Wow!  I loved Alesia's comment above.  She gets triple gold stars for going above and beyond.

We all do hope we would be treated fairly in a referral exchange but we've all experienced the human fact that it does not always happen....pay it forward to another agent in the business today and make yourself proud...thanks for sharing!

     Unfortunately, this is a noble discussion Ginny.  It used to be drilled into our psyches that your word is your bond at a young age.  At some point in time it stopped being passed down as being so important.

I still tell my kids - You speak it you own it (so choose those words cautiously)  Your word, your handshake is GOLDEN to your reputation.   Joy

That is a rare story these days. I did a rental referral right across the street from me and all of a sudden the guy isn't calling me any more! I forgot all about it until now.