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Many sellers today are turning to discount or flat fee listing companies to try to get their homes sold in today's real estate market.  These sellers belive that offering a commission will entice a buyer's agent to work directly with a seller in the negotiating process.

What are these sellers thinking?  Don't they know that there are a plethora of listings on the market that are represented by professional Realtors?  I am amazed how these sellers still believe that the real estate market is 2-3 years ago where placing a for sale sign in front of a home would lead to dozens of showings and offers.  Now, with by owners listing with flat fee companies, they still place their for sale by owner sign in their front yard.  How awkward do real estate professionals feel when they pull up to a home with a for sale by owner sign in the front yard with their potenail buyers sitting in the passenger seat?  Do you think the potential buyer is thinking about going around the agent to work directly with the seller?

With qualified buyers becoming like an endangered species in this market, I try to promote properties that have real estate professionals representing the sellers in the sale.  This way, I will be working with a licensed Realtor, who I know will do his/her job in facilitating a smooth transaction with little to no problems.  If I deal directly with the seller, only problems can occur.  Plus, I most likely will be representing both sides of the transaction, but only getting paid for half of the commission.

Any thoughts??

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11 Comments on Stop Showing Flat Fee Listings To Your Buyers!

I show my clients homes that fit their needs.  Period.

If the home is what they need, the vehicle it finds to market is moot.

I know who my client is, and never forget that.  I have no problem telling the other side, or my client, to seek skilled help as needed.

07/02/2007 11:03 PM by Mike Jaquish Keller Williams Realty, Cary, NC (Keller Williams Realty)


If you are worried that your buyer is going to go around you, then he probably is going to. Sign him up on an exclusive buyer's agent agreement. Then you can show him anything. But you probably should have that talk about the psychology of sellers who want to "save" the commission. How reasonable is that seller going to be? If I was a buyer I don't think that I would want to deal with an unreasonable seller who knows nothing but thinks he knows everything.

Bill Roberts

07/02/2007 11:06 PM by Bill Roberts - "Baby Boomer" Retirement Planning (Brooks and Dunphy Real Estate)


Hey Mike, Thanks for your post.  How do you feel about these discount companies that are placing homes on the market for sellers so they can just get their home listed on Realtor.com and only offering $100 to the selling agent on the MLS.  Would you still show those listings to your buyers??

 

07/02/2007 11:09 PM by Michael Citron (Web Email Flyers)


Michael,

I repeat:

"I show my clients homes that fit their needs.  Period.

If the home is what they need, the vehicle it finds to market is moot."

See, I look at the client/agent relationship as one of trust and fiduciary responsibility.

I would add:

Out of respect for my Broker-in-Charge, and the Sherman Anti-Trust Act, I reserve commission conversations for my clients and coworkers, as I have been instructed.

07/02/2007 11:17 PM by Mike Jaquish Keller Williams Realty, Cary, NC (Keller Williams Realty)


Wow, the Sherman Anti-Trust Act.  I'm impressed.  That usually doesn't come up. :)

I like Sherman tanks better.  Without them, real estate is a tankless job.

Sorry, go back to your discussion.  I'm just feeling giddy. 

07/02/2007 11:57 PM by Elite Properties


I agree with many points already but think not showing those listings without your clients understanding and direction is a violation of the law and Realtor code of ethics... Now, get them under exclusive BA agreement, explain the problems, etc... and they may very well tell you not to show them the listings... that is very much what I do with the FSBO issue and they usually don't want to deal with it when there are so many other homes available... Now, be factual and let them choose and you should stay legal AND not show the homes that will end you more work/grief for you...

 Just my thoughts...

 Mark Ryan

07/03/2007 12:25 AM by Mark Ryan, Broker, CRS, ABR (Mark Ryan Group / Re/Max Victory)


If I were your client and you did not show me FSBO's for the reasons you presented I most certainly would find a new agent. I want an agent who works to find me the home I want. Sorry, but you are not representing your clients if you do not show them FSBO's that meet their needs and desires.

07/03/2007 08:38 AM by Mark Pilatowski (myClosingSPACE)


If the buyer agent's services are worth more to his or her client than is being offered by the listing office, then the buyer agent should enter into a buyer agency agreement with the client.  That agreement should state the agent will perform the work for X dollars, and that the agent will show the buyer all properties that meet the buyer's criteria, regardless of whether the seller is represented.  The agreement should also state that the buyer will pay the difference, if any, between the value of the buyer agent's services and the amount being offered by the listing office/seller.

The result?   Buyers see all the inventory (as likely required by the Department of Licensing in that state), and buyer agents are paid an amount that it agreeable to both the agent and his/her client.

Ken Whitney
General Manager
MLS4owners.com

07/04/2007 12:13 PM by Ken Whitney


Louis,

I'm with you, get a buyer's agency agreement and show them the home they want, no matter who is selling it!

Todd

07/05/2007 02:26 AM by Todd Clark (Realtor), GRI (Washington Co, Beaverton Oregon) (Kastings & Associates, Beaverton Oregon Real Estate)


How can you have to do twice the work load with a FSBO doesn't your TC do all your paper work anyway. I just did a deal and was the only agent involved and it turned out to be  the most relaxing deal I ever closed! 

07/13/2007 04:22 PM by David


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Real Estate - Other: Michael Citron (Web Email Flyers)
Michael Citron
Plantation, FL
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