Real estate is a rewarding industry, but it’s not without its risks. Every transaction, whether buying or selling, comes with a unique set of challenges that can turn a seemingly smooth deal into a complicated mess. As realtors, it’s our responsibility to manage these risks effectively to protect our clients and ourselves.
Recently, I had the great fortune of hosting Daniel Hershkowitz on my podcast. Daniel is someone I’ve admired for years, not just for his expertise, but for his ability to break down complex issues into understandable insights. As the Senior Director of Risk Management at The Agency, Daniel’s perspective on real estate risk is both broad and deep. During our conversation, he shared invaluable insights that every realtor, whether seasoned or new, can benefit from.
You can watch the entire podcast episode here:
Let me share with you the key points from our discussion.
Daniel's Career Path to Risk Management
Daniel’s journey into risk management is as fascinating as it is inspiring. He began his career by attending law school, where he initially focused on employment litigation.
However, his career took a turn when he saw an opportunity in real estate law. What started as a practical decision to secure a job eventually blossomed into a genuine interest in real estate.
As Daniel transitioned from being a real estate attorney to a real estate agent, he gained firsthand experience in the field. This unique combination of legal expertise and practical real estate knowledge set the stage for his current role in risk management.
Role and Importance of Risk Management
Daniel’s job, as he puts it, is to teach, problem-solve, and entertain. But beyond that, it’s about ensuring that real estate agents are equipped to handle the increasingly complex challenges of our industry.
As the real estate market evolves, so do the risks associated with it. Daniel highlighted that today’s real estate transactions are more intricate than ever, with legal, financial, and ethical considerations all playing a part.
His role is to help agents navigate these complexities, ensuring that they can provide the best possible service to their clients while minimizing potential risks.
CAR Forms Committee and Leadership Roles
Daniel’s involvement in various leadership roles within the real estate community further underscores his deep commitment to the industry.
He has been a key figure in the Forms Committee of the California Association of Realtors (CAR), where he has served as both a member and a vice chair.
Additionally, Daniel has held leadership positions in multiple real estate associations, including serving as the president of the San Francisco Association of Realtors.
These roles have given Daniel a unique perspective on the industry, particularly in terms of the legal and procedural aspects that many agents might overlook.
Commission Lawsuits and Industry Changes
One of the more pressing topics we discussed was the ongoing commission lawsuits, particularly the Sitzer lawsuits. Daniel provided an insightful overview of these cases and their potential impact on the real estate industry.
These lawsuits, which have challenged the transparency and fairness of commission structures, have significantly changed how commissions are handled.
Daniel explained that one of the key outcomes of these lawsuits is the increased focus on buyer-broker agreements. By requiring these agreements, the industry is moving toward greater transparency and more meaningful conversations between buyers and their agents about compensation.
While these changes might seem daunting, they also present an opportunity for agents to demonstrate their value and negotiate better terms for their services.
Challenges and Risks in Real Estate Transactions
From disclosure obligations related to finding a dead body under a house to the complexities of dual agency, Daniel has seen it all. These stories, while sometimes amusing, underscore the importance of being vigilant and ethical in all aspects of real estate transactions.
One of the key takeaways from this discussion was the importance of fiduciary duty. As agents, we are bound by this duty to put our clients' interests ahead of our own. This principle is fundamental in situations, like dual agency, where the potential for conflict of interest is high.
Daniel’s insights reinforced the need for integrity and transparency in every transaction.
Ethics and Professional Standards in Real Estate
Daniel and I both agree that realtors must uphold the highest standards. Unfortunately, the general public often misunderstands the role of realtors, especially in light of the numerous lawsuits that make headlines.
However, it’s our responsibility to educate our clients and demonstrate that we operate under a strict code of ethics.
This commitment to ethics extends beyond just following the rules; it’s about providing the best possible service to our clients. Whether it’s helping them find the right mortgage broker or negotiating the best deal, our goal is to guide our clients through the complexities of real estate with honesty and integrity.
Benefits of Podcasting in Real Estate
As I reflect on my conversation with Daniel, I can’t help but think about the value of podcasting in our industry.
Hosting a podcast has given me the platform to share insights from experts, like Daniel, with a broader audience. Podcasting is an excellent way for realtors to connect with their peers, share knowledge, and build their brands.
For those interested in starting their podcasts, I highly recommend working with a professional real estate podcast production company. They can help you create high-quality content that resonates with your audience and enhances your credibility as an industry expert.
Final Advice for New Realtors
As we wrapped up our discussion, Daniel offered some invaluable advice for new realtors.
He encouraged them to be hungry and curious, to never stop learning, and to embrace the challenges that come their way. He also emphasized the importance of having a strong buyer presentation and understanding the local market.
By doing so, new agents can demonstrate their value to clients and build successful careers in real estate.
Tune Into the REalizations Podcast for More Interesting and Insightful Conversations with Industry Experts!
Daniel’s insights were not just enlightening—they were a reminder of the complexities and responsibilities of being a realtor.
If you’re looking to deepen your understanding of the real estate industry, I encourage you to tune into the REalizations Podcast. It’s a space where perceptions meet reality, and where you can learn from the best in the business.
And, if you’re in the Bay Area and need expert guidance on your real estate journey, I’m here to help. Whether you’re buying or selling a home, my goal is to provide you with the best service and support every step of the way.
Get in touch with me today, and let’s navigate the hidden hazards of real estate together!
