Recently, I've decided that I need to pursue FSBO's much harder to get my listing inventory up to the level I want it.  A week or so ago, I was going through one of our local FSBO sites making some calls.  I got a lady on the phone and, after giving her my quick pitch, she informs me that she already is listed with an agent.  I tell her thanks, have a nice day and I proceeded with the rest of my calls.

About an hour goes by and my phone rings... it's the lady with an agent.  She tells me that she listed her house on the FSBO site because her agent is doing any advertising, and she really needs a quick sale because they're relocating.  She goes on to tell me that they're considering firing her current agent, and would like to talk to me about listing the home for them. 

Great!!  Two days into my new FSBO program I'm going to get a listing. 

Now, I had remembered in training hearing something about not being able to talk to someone about listing their house while they're in a contract with another agent.  I went into an associate broker at my company's office and she tells me what I was afraid to hear.  "You can't talk with these people about anything until they cancel their listing.  Don't talk about price.  Don't talk about commission.  Don't talk about the advertising you do.  Just tell them that you'll be happy to talk to them about listing their house after their listing is withdrawn". 

I was devastated and could feel the listing slipping further away from me.  However, unwilling to let it go, I did talk to the lady about what I think her house should sell for and what kind of advertising I do when I list a home. 

So, here I am today... sitting around enjoying the holiday and reading a blog by Bryant Tutas that I just discovered.  It's filled with tons of interesting and informative content and I've been glued to my computer screen all day trying to take it all in.  I was enjoying all of the information I'd found when I came across this post. 

He talks about how he handles it when he's contacted by a seller who wants to place their home on the market with you, only they are currently listed on the market with another agent.  He says he has no problem going over and taking the listing.  There is a section in our code of ethics that covers this very issue.

Standard of Practice 16-6

  • When REALTORS® are contacted by the client of another REALTOR® regarding the creation of an exclusive relationship to provide the same type of service, and REALTORS® have not directly or indirectly initiated such discussions, they may discuss the terms upon which they might enter into a future agreement or, alternatively, may enter into an agreement which becomes effective upon expiration of any existing exclusive agreement. (Amended 1/98)

I hate to admit it, but I didn't know about this.  I will certainly make it a point to study up on our coe and take a class on the subject. 

Anyways, it seems that I did nothing wrong by talking to this lady who wasn't happy with the service she was getting from her agent.  Not once did I try to convince her to cancel her listing with the other agent.  She called me to talk about me listing her house, and I just answered her questions.

Update:  She did cancel the listing, but has decided to try FSBO for a couple weeks before re-listing.  I told her I didn't blame her for trying to save the commission and I'd be happy to help her if it didn't work out.  She's called me a few times with questions about the selling process, and I've been very helpful to her by answering all of her questions.  She let me know that she's giving it until 9/14 and if she doesn't have a contract she would like me to list it.  That happens to be my birthday and a new listing would be the best present I could ask for.

I'm thankful that I came across Broker Bryant's blog and got this cleared up.  I honestly thought I was doing something wrong just by talking to this lady while she was working with someone else.  Maybe I should talk to my associate broker and let her know what I found so she doesn't tell the next person the wrong information.

I'll take Broker Bryant's advice for now on and go take that listing!!!

 

 
Posted by Shaun Ramos on 09/04/2007 01:10 AM   Comments (18)   code of ethics, stealing listings  
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18 Comments on Am I being unethical??

SEP
04
2007
202,804 Points 3 Featured Posts Outside Blog
Just be careful Shaun, ultimately you have to answer to your broker...and if you were advised by the broker to not touch this until and unless it was canceled then you have to do what the broker says.   According to your update though it shows the listing was canceled...if that's the case then GO GET IT!
1:19am • #1

Mary: I didn't want to go too far into conversations with her, but I didn't want to tell her that I just wouldn't talk to her at all about it until she withdrew her listing.  I'm still new and am trying hard to build my listing inventory.  I just couldn't sit back and take the chance of letting her go. 

But I know you're right.  I need to listen to what my broker says.
1:29am • #2
650,291 Points Localism Sponsor Outside Blog
She did make contact with you first, you did not go after her. But that being said you have to follow what your broker's rules are. But soon this will all be "water under the bridge", so to speak, when the listing becomes yours anyway. Good luck in securing it.
2:04am • #3
This is a very delicate issue, I hope you get the right advise and proceed wisely.
2:30am • #4
Those who seek answers are the only ones who find them.  Good job for not giving up and doing the research to discover your truth.  You have learned something very valuable and may get a listing too.  Hot Damn!!
2:37am • #5
211,014 Points 1 Featured Post
Good for you Shaun!  Glad you found BB, he has much wisdom, knowledge and experience. 
2:59am • #6
874,587 Points 154 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp Called Shot Master

I get calls like this frequently. If they call me I have no problem explaining my services, but I never encourage them to cancel their contract, I suggest they give them time and when it is over, give me a call.

I had two agents in the last year, call me and say thanks, they were shocked I would do that.

5:34am • #7
416,892 Points 63 Featured Posts Outside Blog
I do the same as Missy.  Alot of it is list price and market conditions.  If the home isn't at the right price I let them know they should follow their agents advise to lower the price.  I call the agent and let them know their customer is digging around and to call them for another price reduction, they're already heard it once today.  I need their overpriced listing like a hole in the head.
5:38am • #8
1 Featured Post
I'm in with Missy and Chris. I know its better to ask for forgivness than permission but you did ask your broker and was told no.
6:17am • #9
194,051 Points 2 Featured Posts Outside Blog

Shaun -- you need to be careful. After all you did call her first. The data is old on a lot of FSBO sites so you should check to see if the property is listed with another agent.

 Standard of Practice 16-6 covers when they initiate the call you are the one that initiated this dialog.
6:43am • #10
1,048,726 Points 397 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Shaun, Thanks for stopping by my blog. I see you have been taking the BB Blog Tour:) While talking to her is perfectly ethical and a sound business practice, that I use frequently, you have to do as your Broker suggest. Your Broker makes the rules.

My rule is: If anyone at anytime ask me about RE I will talk about it. If they are currently listed I will still talk with them. If they want to list with me I will tell them I'll be happy to do business with them as soon as they are no longer under contract with another broker. I will even go over and complete a listing agreement dated for when then current agreement expires. BUT I NEVER suggest they cancel. In fact after I meet with them I will call their listing Broker and let them know I did so. This way it is all above board. I don't do sneaky.
7:26am • #11
404,039 Points 16 Featured Posts Outside Blog
There is nothing wrong with a conversation, but you initiated the contact. As soon as you found out it was listed you should have backed away. I personally wuld also have called the listing agent to tell them what happened and to inform them they were about to lose their listing. That would have been the ethical thing to do.
8:00am • #12

Technically I did make the initial contact.  The info on the fsbo site was not old.  They were never fsbo, she said she put it on that site b/c the agent wasn't advertising their house and they need a quick sale.  When she told me she had an agent I ended it there.  I said oh sorry, I didn't realize you had listed your house... have a great day.  She called me back.

You're right though James.  I'll definitely check the MLS before calling anymore fsbo's to avoid anything questionable happening.

I'm going to talk to my broker today to find out whether that's just the way she wants things done or if that's what she thinks the rules say.  If that's just the way she wants it done then I'll go with it.. no questions asked
8:58am • #13
1,374,641 Points 151 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master
I lay out the groundwork and encourage my clients to advertise where I do not if they feel they should.  I also advise them they will be inundated with calls from other Realtors if they do not put my information in there.  You seemed to do everything right and call on the 7th to see if all is well with your potential client.  GO for it!
9:04am • #14
202,804 Points 3 Featured Posts Outside Blog
Shaun, keep us updated.  I have a seller I did a listing appt with a year ago...he signed on with someone else, the listing expires the end of this month...he e-mailed me last week and asked me to take over the day it expires...He instigated the conversation and I jumped on it...I would of never jumped in first.  My think is I've got it all in writing as the contact has all been by e-mail.  I e-mailed him a listing contract late last night.  He'll sign it and get it back to me later this week and we'll be all set for October 1.
9:07am • #15
SEP
05
2007

Well here's my update...

I'm going over there at 6:30 this evening to list thier house.  I'm hoping to get them a quick sale..

The houses in the neighborhood are around the 1400's in living area and are going for around $100/sf

This house had the garage closed in by the previous owner, bumping them up to 1881 living area.  We are pricing it at $154,900 (84.35/sf). 

12:48pm • #16
SEP
06
2007
 Congratulations.  It definitely helps to get out there and stir up the pot.  I hope the house sells quickly.
2:17pm • #17
SEP
10
2007
407,406 Points 106 Featured Posts Outside Blog

Shaun,

Be careful with psf pricing. If a home is larger than average, your psf should be lower. Pricing by psf is really misleading, IMHO. I'm stunned how many markets use it as a primary pricing method.

7:52am • #18


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Shaun Ramos

Denham Springs, LA

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M.A. Allen Realty Group

Office Phone: (225) 791-5377 x 239

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