Many people commonly interchange the words "customer" and
"client" in their every day conversational usage. While there are, in
fact, a number of similarities, there are also quite a few differences.
These differentiations come much more often in service industries than
in those where a product is sold retail, because, in retail sales,
nearly everyone, with only a very few exceptions, are customers.
A customer is someone who either buys a product from you, or uses your services, without specifically contracting in any type of exclusive way. On the other hand, when one enters into a client relationship, there is far more of an obligation on both parties part.
This differentiation is most evident when it comes to the real estate process. A homeowner, who lists his house for sale with a real estate broker, enters into a client relationship. The homeowner, for a specific period of time, is contractually bound to that broker, in terms of all aspects of the sales procedure, except of course, the final decision whether to accept an offer, which always remains the homeowners option. The broker is obliged in a number of specific ways, as specified by that state's specific real estate laws and regulations. In most cases, a broker and his agents, owe the client a fiduciary responsibility, which includes confidentiality (except in the case of any material misstatement or other illegal or immoral situation), making best efforts on the client's behalf, and doing the best to secure the best possible offer and negotiating on the owner's behalf. The broker owes his entire loyalty to the owner during this entire procedure, and is forbidden to do anything which is not in his client's best interests.
When someone uses the services of a Realtor in the real estate buying process, most states require some specific type of Agency Agreement. A buyer or potential buyer can have the agent serve either in a customer or client relationship. First, a buyer can decide if he wishes to use an agent as a Seller's or Buyer's Agent. A seller's agent owes his responsibility to the seller of the house, while a buyer's agent negotiates on behalf of the buyer. Obviously, in this latter scenario, the broker owes his allegiance to the buyer, and is expected to due necessary due diligence, as well as supply the potential buyer with all pertinent information that he may attain. This includes information about length on market, how negotiable the seller might be (while a seller's agent should be trying to maximize price received by homeowner, the buyer's agent tries to obtain the best possible "deal" for the buyer.), and other important factors that might impact the buyer. A person desiring this arrangement can still be a customer, but generally will enter into a client relationship, so that the broker puts forth maximum effort on his behalf.
While in both scenarios, there should be no material misstatements ever made, obviously the degree and type of effort put forth will differ. It is important for the public to understand the distinction.
A customer is someone who either buys a product from you, or uses your services, without specifically contracting in any type of exclusive way. On the other hand, when one enters into a client relationship, there is far more of an obligation on both parties part.
This differentiation is most evident when it comes to the real estate process. A homeowner, who lists his house for sale with a real estate broker, enters into a client relationship. The homeowner, for a specific period of time, is contractually bound to that broker, in terms of all aspects of the sales procedure, except of course, the final decision whether to accept an offer, which always remains the homeowners option. The broker is obliged in a number of specific ways, as specified by that state's specific real estate laws and regulations. In most cases, a broker and his agents, owe the client a fiduciary responsibility, which includes confidentiality (except in the case of any material misstatement or other illegal or immoral situation), making best efforts on the client's behalf, and doing the best to secure the best possible offer and negotiating on the owner's behalf. The broker owes his entire loyalty to the owner during this entire procedure, and is forbidden to do anything which is not in his client's best interests.
When someone uses the services of a Realtor in the real estate buying process, most states require some specific type of Agency Agreement. A buyer or potential buyer can have the agent serve either in a customer or client relationship. First, a buyer can decide if he wishes to use an agent as a Seller's or Buyer's Agent. A seller's agent owes his responsibility to the seller of the house, while a buyer's agent negotiates on behalf of the buyer. Obviously, in this latter scenario, the broker owes his allegiance to the buyer, and is expected to due necessary due diligence, as well as supply the potential buyer with all pertinent information that he may attain. This includes information about length on market, how negotiable the seller might be (while a seller's agent should be trying to maximize price received by homeowner, the buyer's agent tries to obtain the best possible "deal" for the buyer.), and other important factors that might impact the buyer. A person desiring this arrangement can still be a customer, but generally will enter into a client relationship, so that the broker puts forth maximum effort on his behalf.
While in both scenarios, there should be no material misstatements ever made, obviously the degree and type of effort put forth will differ. It is important for the public to understand the distinction.
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