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It's called Negotiations ~ NOT WAR

By South Austin Real Estate Blog

Real Estate Agent with Sky Realty South Austin

July 31, 2009 12:18 AM

This week I had to do the continuing Education classes LEGAL and Ethics Update, you know the ones we do to stay on top of our MCE. During the class of Ethics the instructor was speaking about how we as Realtors are held to a higher standard (due to our licensing) over a layperson and can not take advantage of another person.

Example, Mrs ZYX has lived in her home for 20 years and is not aware that the neigbhorhood has increased treble in value. Mrs ZYX calls Real Estate agent ABC and says, I want to sell my home for $75,000 and go live by my children in another state. Agent ABC knows that neigbhorhood sells quickly for $200,000 and says Great, I will be right over. Without any further discussion Agent ABC buys Mrs ZYX's home for the stated $75,000.

Did agent ABC violate the COE? This became a heated discussion in our class... Yes, Agent ABC took advantage of MRS ZYX because he was a licensed agent that knew the actual value and did not advise MRS ZYX of the current market.

To me it was cut and dried... He KNEW, it was his job to know. A Layperson who has not been involved in the business would not necessarily know that values have increased 150% in 20 years.

Two of the agents in our class disagreed .. their position was, get the best deal you can, no matter how or what. Folks, it is not warfare, it is negotiations. You give, we give, the seller gets what they want, the buyer gets what they want and both agents get to the closing table and then to the bank.

Get to the closing table. That is our job, to make the deal work out well for everyone. yes there is a win win situation. I have been in many of them. The seller is happy and goes to do what he/she wants to do and the buyer has their new perfect home and they are happy. Does it always happen like that... if it doesn't it should.

It's called negotiations NOT war!

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Dorie Dillard Austin TX

Coldwell Banker Realty ~ 512.750.6899 - Austin, TX

NW Austin ~ Canyon Creek and Spicewood/Balcones

Gail,

I'm with you! The reason the public calls a Realtor is to get a professional analysis on their home. If after receiving all the information and they know what a professional says the property is worth to their best of knowledge and they still want to list lower (maybe to obtain a faster sale) it is their equity and choice to make. However not to educate the client properly on the value of their property in a given market is an injustice to our profession.

Jul 31, 2009 12:51 AM

Antoinette Scognamiglio, GRI, ASP

Coldwell Banker Realty - Mountain Lakes, NJ

There's no substitute for EXPERIENCE!

I can't believe two agents actually DISAGREED and thought that the listing agent acted ethically. That's frightening and, quite honestly, very embarrassing to me! And the fact that they VERBALIZED PUBLICLY that they thought the agent acted fairly is devastating!

Our job is to educate and protect our clients' interests, not take advantage of them!

Great post!

Jul 31, 2009 12:54 AM

Team Honeycutt

Allen Tate - Concord, NC

This is my favorite part of the transaction. I love to negotiate.

Shelton

Jul 31, 2009 12:56 AM

Charlie Ragonesi

AllMountainRealty.com - Big Canoe, GA

Homes - Big Canoe, Jasper, North Georgia Pros

Gail you really raise some interesting points. I think if the other agent had a buyer then he could have said I have a buyer and represented a buyer then I do not think it would be a violation. In effect as some one wh o got a call to list and then said he would buy the Realtor became an undisclosed, I am assuming , dual agent. So yes this would be a code violation. I am with you on this

Jul 31, 2009 01:00 AM

Betina Foreman

WJK Realty - Austin, TX

Realtor, C.N.E., with WJK REALTY

Gail,

I am with you 1000%. Some people are always ready to take advantage of the next person and I feel this is despicable. More power to you for getting the word out!

Betina

Jul 31, 2009 01:10 AM

South Austin Real Estate Blog

Sky Realty South Austin - Austin, TX

Dorie, I agree, the Seller called a Realtor for a professional opinion, even if she had a price in mind. After she is presented all the facts of value, and if then she choses to list and sell for below market, that is certainly a choice and could result in a quicker sale.

Antoinette, and can you believe this dialog happened in an ETHICS class... how do you spell ethics? It is embarassing to find people today do not have a clue as to what constitutes Ethics.

Shelton, I love the negotiations too, the fine nuances, I like to see all folks become a winner in a sale.

Charlie, Since the caller has called a PROFESSIONAL agency, do you not think she should be given the facts of value? I think you will agree, then if the Agency has a buyer, cool.

A part of the whole scenerio was the Seller called the Agent. and HE KNEW the price was not a true value of the market, giving him an advantage to take advantage of the Seller.

Jul 31, 2009 01:17 AM

South Austin Real Estate Blog

Sky Realty South Austin - Austin, TX

Betina, we see our society crumbling before our very eyes, I think it goes back to decency and how we treat each other. Ethics should be a given not be a mandated thing, but since we don't seem to treat each other fairly without the threat of a violation of the Law, we need these codes. When you think about that... that is just sad.

Jul 31, 2009 01:29 AM

Patricia Aulson

BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate - Exeter, NH

Realtor - Portsmouth NH Homes-Hampton NH Homes

Yes, there are those people who always like to shoot the other person down .......for some weird reason. I like the negotiation end of things as the comment above mentioned.

Patricia Aulson/portsmouth nh real estate

Jul 31, 2009 01:31 AM

Jim Valentine

RE/MAX Realty Affiliates - Gardnerville, NV

If he was going to buy it so low it would have been wise to have another agent represent the Seller in that circumstance. Of course ... there goes his steal deal.

Jul 31, 2009 02:52 AM

Sally Dunbar

Lyon Real Estate, Fair Oaks CA (Sacramento Area) - Fair Oaks, CA

Fair Oaks Realtor - Fair Oaks Homes for Sale

Gail - I'm amazed there were two people who felt that way. Yank their licenses. they are wrong. I once was called to list a house. The seller had a price in mind, and had a contractor willing to buy it as is for that price. I told hiim it was worth $40K more. He wanted it easy, and only needed the first amount. He then found out my hubby was a contractor. "Why don't you buy it? that would be even easier." "No, that would be taking advantage of you", I said. "I can get you more." 3 times he asked me to buy it. It just seemed wrong. After the third time we finally relented. I made him sign a statement that he understood that we were buying it severly undervalued and that we were buying it for profit.

Then he left a $1500 pool table. You don't have to screw them over to get a good deal. It's called getting what you both want!

Jul 31, 2009 03:33 AM

Frances C. Rokicki

Fran Rokicki Realty, LLC - Bolton, CT

Broker-Mentor,CRS

Gail,

There is always someone who is looking for a quick buck, however, it shouldn't be the Realtor! Here, in Connecticut, it is still a buyer's market. The buyer can offer whatever he likes. The seller can say, no thank you. The negotiations are the most important skills that we can have to help both sides of the sale. I totally, agree with you.

Aug 03, 2009 11:06 AM

Cris Burlew

Beach & Luxury Realty, Inc. - Saint Pete Beach, FL

Broker ~ St Pete Beach FL Real Estate

YIKES!!!! I would definitely stay away from those agents who thought there was nothing ethically wrong with that scenario. It is scary to think they are still out there handling transactions...makes you wonder what else they are doing.

You are correct in your thinking that it was wrong. Is it any wonder as to why we have to go thru ethics re-certification? We had a few in our class a few years ago who didn't see anything wrong with blind ads - but that's another subject!

Aug 04, 2009 02:50 PM