Some folks never learn!  Yikes!

Yes, Pat, they are on drugs or smoking something!  So, I need to know . . . . . are you going to show it anyway??? or wait till they get a REAL agent?  I see a nightmare ahead for anyone that shows it now.

Wow, Patricia.  Do you think their listing agent truly explained to them what their choice means? 

Richard, Yes! Yikes!!

Debbie, I'm waiting for the listing agent to email me back.  And I'm pretty sure he is a real agent who offers the option of limited service to his clients.

And Lisa, if he didn't explain it to them, the email I just sent him that he is forwarding to the seller explains it very nicely.

Thanks for your comments! 

Nice post... I am pretty sure I would not be wasting my time on this one. If you want me to sell your house, pay me...

It is amazing that we are still seeing this kind of thing in today's market, however many times it's an economic choice by the seller who is looking at the prospect of having to bring money to the table to close.  Yes, it's a really bad marketing strategy, and yes, it probably shouldn't be represented in a co-op MLS system. I would imagine that there is something going on with the seller behind the scenes and I really hope it's more than greed.

Patricia - i had to deal with similar situation with Foxtons. I showed the property and similar ones, but my client liked the one from Foxtons better. In this market it's surprising agents are still take such properties to market.

UNBELIEVABLE!  We can only hope the seller did not understand his options....

In Alabama Sub-agency is rarely used, but we work as Buyers Agents or Transaction Brokers if the buyer chooses to not sign an exclusive Buyers Agent Agreement.  I recently saw a listing similar yo what you have described in that it offered a commission to a Transaction Broker and none to a Buyers Agent.  It did not meet my client's needs so I didn't contact the listing agent to see if it was a mistake.  My other thought was that the seller did not want anyone advising the buyer, only doing the paperwork.

Incredible, Patricia!  What's the motivation here?  Is this a case of penny wise and pound foolish?  Me no understandee this stuffee.  I'm guessing the listing agent has stated the benefits of the alternatives, since it is in his/her interest as well?  This is a head scratcher.  Just like the client we turned down because he wouldn't remove his KISS (thought you'd appreciate this reference) posters on one wall of his man cave, and the nudie posters on the other wall.  He was surprised we wouldn't help him, poor boy.

Cheers, from Kensington!

    Jaynee
 

Gary, I didn't, although his price is the lowest in the entire subdivision.

Chris,  If he's going to pay someone a brokerage fee, pay it to a buyer broker and not a sub-agent (which is practically non-existent in this part of the world.  At least cooperating with buyer brokers will bring real market exposure.

and Faina, sounds like Foxton's is in financial trouble.  I read it right here on Active Rain this morning.

Renee, you make a good point - although in this day and age, buyers almost always have agents because the inventory is pretty daunting right now, and they usually don't want to deal directly with a seller.

and Jaynee, I'd say penny foolish and pound foolish!  And yes, a man cave can present major obstacles to sale.  I had one with a naked guy torso lamp, and I won't even say where the thing lit up. 

Not that I have been in the business too long, but I am not sure if I have even heard another story like this. These people must not get the process of selling a home and how agents get paid.

It sounds like the listing agent did not explain why subagency is no longer a "preferred" method of bringing a buyer.  Or perhaps this seller has a grudge of some sort.  I have encountered a few small-minded folks who just don't like the idea of offering commission to the buyer's agent, even if it's in their own best interest to do so!

Let's hope the only reason the sellers went with this agent's plan is because they could not afford to play the buyer's agent. Then again I am sure the seller's agent could have worked in his commission and the buyer's agent commission somehow.

Patricia, The only thing that has changed recently is that the limited service agreement spells out what the listing agent will not do.  I never do any of those tasks that are the listing agent's responsibility, Karen

Getting paid or not getting paid aside, sub-agency to me is fraught with peril.  I avoid it.  As a human, I have a hard time not favoring one side or the other.  Some people say they can.  They are better agents than me.

Roy, you're right- they don't get it!

And Eric, I spoke with the agent, and he did not sound at all schlocky.  I think the problem is a know it all seller who didn't listen.

Hi Pat,

How timely,  I just got an email this morning from a listing broker and in big red letters it says BUYERS  BROKER MUST COLLECT THEIR OWN COMMISSION. My first thought why is he emailing me. Then I thought I would have to include my commission as part of my buyers offer with their permission. 

The seller can take it or leave it. It is up to the seller not the broker.

Mana, I think the seller believes he should only pay for an agent who represents him alone - which is actually the way things used to be.  Like a lot of agents (until fairly recently), this seller has not kept up with industry practices.  

Karen, I'll confess that, to keep a deal together for my buyers, I will do the listing agent's job.  I figure I'll get paid by future referrals - often from the sellers who used the limited service agents!  They might use them, but they won't refer them!  

And Chris, you are so entirely right!  I usually have a zero subagent and whatever for a buyer broker.  I've done it - only because I've been around forever and it used to be the way things were done all over the country, and I'm convinced that way of doing business affected our reputation as an industry.

Thanks for your comments! 

Ah! Mitchell!  I have dreams of moving back to Manhattan and selling Upper East Side penthouses, but there are so many urban legends about how you all do things!  Like no MLS, all open listings, sucking up to the doormen!  Gee, maybe I should move back and get a job as a door person!

That sucks. If you didn't read that closely and were looking at only the listing, that could be mistaken for something you'd want to show. Good thing you read it closely and called the agent to see if it was a typo.

Pat, lol, I tried sucking up to my own doorman only to find out he has a real estate license. Doormen are paid well they clean up at Christmas and they have a really good union.

I've never seen a female doorperson. We have a female senator, police officers, firefighters but no doorpersons.

These types never cease to amaze me. What are they thinking? I guess we're all in this business as a hobby, not as a source of income for our families? I'd sure like to see the showing stats on that listing! Can we say ZERO?

I just ran into this yesterday and have left a message with the listing agent and an email with them to see if they meant to do that or if it was a mistake.  I wonder if I will hear back from them.

Have you guys considered the following idea--it hit me like a major epiphany the other day: commissions may come from the sellers side as an accounting function, but it its added into the sale price--The Buyer actually pays both sides' commissions.  (I think this statement is linked to your blog in some way)

Hmmmm. was the listing in the MLS? In CA, and I do believe it is a policy throughout the U.S., MLS policy states that, in order to list on the MLS, thier must be an offer of compensation. No compensation....no MLS entry. For all intents and purposes, without co-operative compensation, the "listing" becomes a true FSBO. Regardless, something like that has no place in the MLS. If that one appeared in our MLS, it would be removed immediately.

Sellers like this can kiss my you know what.  I don't bother with them, and you've brought up a good point about reading the listing carefully.  Unless a buyer asks specifically about the property, I don't even bring it up.  If the sellers are that tight with their money, they've probably been tight with maintenance money, meaning they've done their own maintenance and on the cheap.  However, if the buyer want to see the property, I will show it regardless of the commission. 

Will people ever learn?  NO, probably not.

Come on.  Aren't we all here to work pro bono?  We make WAY too much money for doing almost nothing.  Why shouldn't sellers expect (in a Buyer's Market no less) that we'll work for free for them?

Chris, to my knowledge there is no uniform MLS rule that applies to the entire United States that prevents an MLS listing from offering zero to a buyer's broker.  Bizarre as it may seem, as long as they offer compensation to somebody, they may be in compliance. 

Area Boards vary in policy widely, depending on local practices and State/municipal laws.  Maybe it's too bad we don't have a national MLS..

Patricia -- if it's any consolation, I've experienced the same thing you're going through in Wisconsin.

And they are probably wondering why the house has not sold.

Lane - if everyone worked pro-bono there would be no site!

i am surprised to read about this. I have seen agents charge very little for submitting info to mls , but the co-op fee is more.

Seems to me they wasted their time getting the home put on the MLS. They really need some good advice. Whats thier name I'll call them. :)

Patricia, Your post struck home: Very timely information!  We are in business for a reason: to stay in business, to earn an income for ourselves, our families.  Thanks again! Angela Clark Graviss

Stacey, you learn early on to act like you're sure something totally outrageous must have been a typo! 

Mitchell, we'll probably see a female president before we see a doorwoman at the front door of a Manhattan coop!

and Ryan, it's probably had zero showings, and the seller is probably bad-mouthing his agents.

Virginia, I did hear back from the agent immediately.  He's yet to hear from his seller.

Suzi, You're right - it's included in the sales price the buyer pays and deducted from the seller's proceeds.  So figure that one out!

Christopher, yes, it was on the MLS, and there was an offer of compensation - just not to buyer brokers, which is what virtually all of us do in the area.

and Patsy, I didn't show it, and if I wound up selling it, I'd include have the buyer pay me with a seller's credit at closing.  But I would try to avoid showing it at all - this type of seller sends a message: "Sell my house and I'll spend the next few weeks making you crazy!"  No thank you.

Lane, I stopped doing "pro bono" work when I left the employ of Ralph Nader - they threw a "selling out" party for me when I left.

Eric, I think you're right.  And he did offer compensation.  Just not to me.

and Eric, I sent the listing agent a sweet email that he forwarded to his seller explaining this may be while the house's listing period is putting our days on market statistics out of whack!

LOL...The one lousy picture tells it all... I see it all the time... always means bad news...

I don't think I understand what a subagent is...I haven't heard of that in CA. I saw a commission on $1 before in the MLS.  I didn't call on it to see if it was a mistake or not.  It was a bank owned property and I rarely hear back from agents who list bank owned properties.

My guess is that the seller paid the agent an up front fee to place the home on the MLS, and the list agent probably doesn't give a hoot if the house sells or not.  The seller thinks he knows more than he does, and the list agent didn't care to tell them as they got an upfront fee for doing practically nothing.  This reminds me of buyers that won't choose a buyers agent and try to get a truckful of agents to help them find a house.  Oh ya, I'm going to spend time looking for a house for you while you may be looking at a house with another agent this minute!  We're not bounty hunters...and we don't work for free. 

Sounds to me like FSBO on steriods, or what else can I do to make it more difficult to selli my home

Hi Patricia,

Your post had me chuckling all the way through! I know it's oh so true, as I've experienced some of the same stuff myself, but it sure did make me laugh to read it the way you wrote it.  I sometimes wonder if the agents who do just 'as the seller said they wanted' ever offer up any advice to those sellers at all.  If they did, they clearly won't offering any advice that would be in those sellers' best interest.

Thanks for the laughs!
Ann

This is not a new trick it is really an old trick!  They want the entire commission for themselves.  That is how this works!  They will double dip the sale themselves because no one will want to show it.  Instead of doing an Exlusive Listing, they seem to want their cake and eat it too!  There is a method to their madness.  They want to have it in the MLS system and pay no commission!  That is so they can pocket the sale and doubel dip it!   I awlays advise my buyers of what is going on, they usually choose not to see the home.

This is crazy.  It would be interesting to see if it ever sells and how much the selling agent got.

WOW, everyday surprises me. What were they thinking ??? Wait, they weren't thinking.

I came across an agent that was doing this once, and figured out her sales stats!  She double dipped over 45% of her own listings.  It was her seller that explained to us how it worked.  No magic!  Good people cannot forece themselves to be so deceptive!

Collecting a commission through the contract from the buyer isn't a problem. 

What I want to know is, what listing broker would want responsibility for sub-agents.  I wouldn't pay a sub-agent. 

Yuck - So what did you do?

I thought if a listing was on the MLS, it had to offer a commission to a buyers agent, otherwise, it was just a sign in the yard...I recently ran across a listing similar to that in our MLS, no commission to the buyers agent...I probably won't show it unless someone twists my arm..

Under this trick they never have to.  That is why a lot of foreclosure properties offer a lot less than market commissions so that no one will want to work with them.   Im the Atlanta area the newest thing is that on foreclosures.  "THE SELLING AGENTS COMMISSION WILL BE DETERMINED AFTER THE CONTRACT HAS BEEN RATIFIED! "   Who would be so stupid to write an offer not knowing if you will be compensated????? Hello????  Anyone home???  Does it make sense to you?  What botehers me a a lot of my freinds more is that you print of a lot of listings to show, and never really pay attention to the commission part.  We do have a form taht we use in Atlanta that can be used prior to writing a contract to have the commission clarified.

And they'll still be wondering in 6 months why their home hasn't sold.  I've found that these limited service agents don't even explain the consequences of some of their decisions.

It doesn't matter how long it takes, they already factored that in! 

Patricia- We do not have subagents here. I tell my buyers that if they want to see a home where I get less than what my fee it; they will need to compensate me for the balance. They have no problem with that. IN fact, my buyers give me bonuses at closing, disclosed on the HUD of course. Katerina

Patricia, thank heavens I don't see any of those around here. In this market, that would be extremely stupid!!!

Wow! I'm surprised this agent didn't tell the seller that who would want to show a property that they won't get paid on! I don't know to many people who like to work for free!

Wow ... one wonders if that home will ever get anyone inside.

Patricia, I am hoping you are not planning to work for free.  I know you are smarter than that.  Interesting what some people will do to get a listing.

Some sellers are just too smart for their own good.  This one probably has been reading a few real estate how too books.