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Integrity! It's mine and you can't take it away from me!

By Bryant Tutas

Real Estate Broker/Owner with Tutas Towne Realty, Inc and Garden Views Realty, LLC BK607690

December 12, 2006 08:44 AM

OK, is every one tired of hearing me talk about Range Pricing yet? Well, if it helps, I'm tired of writing about it, BUT, yep, always has to be a but, I have had several conversations going over the last couple of months about Range Pricing and how it works and why the majority of Realtors just don't get it. And you know, that's OK with me. I've tried everything I can to get people to understand it but it seems I am just talking to a closed mind. A mind that refuses to open up and explore different ways of doing business. But that's OK too.

I really don't expect everyone to get and I certainly don't expect everyone to like it or want to use it in their business. Frankly, it's to my advantage if you don't use it. And of course, if NAR gets their way, I may not be able to use it anymore, either. However, I can assure you that I will come up with another innovative and aggressive way to get my properties sold. Change is good and I am up for the challenge.

BUT, there's that but again, I am getting very frustrated with folks who think my business practices are deceptive, unethical and illegal. I have to say that hearing that just flat out p....s me off. Anyone that knows me or has ever done business with me knows that I am about as far from being unethical or deceiving as you can get. I take being a Realtor very, very serious and I always place my customer's and client's needs ahead of mine. I couldn't do it any other way, it's not in my nature. I value my integrity. Integrity is the one thing I have that no one can ever take from me. I own it and I'm in complete control of it.

So, when I hear someone telling me that I'm unethical and deceiving, it bothers me and it bothers me a lot.

I did not invent Range Pricing. It was not my idea. Range Pricing started out if California about a decade ago with Prudential Realty. I did however embrace the technique and I was one of the first Realtors in Florida to implement it and I will go out on a limb here and say I could possibly be the leading expert on Range Pricing in the country. If not, I'm close to it.

Anyway, for the past 10 years I have been using this pricing technique and have been doing it EXACTLY the way NAR and our MLS said to do it. Using the low price as the list price and placing the appropriate remarks in the remarks section of the MLS was not my idea. The policy related to Range Pricing was put down by NAR and our local MLS. It was researched by the NAR and MLS attorneys and it was them, not I, that created the verbiage to use in a listing. It was also them, not I, that stated I could use ANY figure within the Range as the list price. This LIST price was determined at the sole discretion of the Seller and his Realtor. Now of course, as you know, NAR and the MLS have flip flopped on their earlier ruling. After establishing my business by using this technique and helping hundred of Sellers and Buyers achieve their goals, MFRMLS has changed the ruling. This in my opinion is because of their ignorance about Range Pricing and their inability to "get it". And I'm OK with that too.

One of the commenters, on my post the other day, took the time to call NAR and ask them about the new ruling. NAR actually had the audacity to say that by using the low price as the listing price "brokers have been abusing the concept of Range Pricing". So let me get this straight, by handling Range Pricing EXACTLY the way NAR stated it should be used 10 years ago, I have been abusing the concept. PULEEEEEZE. They are the ones that flip flopped, not me. If NAR is so concerned about ethics and violations why don't they look into the Realtors that take listings 50% and more over market value? How about looking into the Realtors that will take $350 to place a property in the MLS and then just abandon the poor Seller? How about taking a real hard look at dual agency? Why not make the requirements to become a Realtor a little more difficult than writing a check? How are any of these things "looking out" for the consumer?

So why don't they look into these things? I'll tell you why? Because it would upset to many Realtors to change these things and it would cost NAR money. Range Pricing only affects a very small minority of Realtors. In my local MLS today there are 56,000 active residential listings and only about 1,200 are Range Priced. A very, very small percentage. So who cares? My Sellers care and I care. That's who.

Here's a fact for you: In the hundreds of closed transactions, that I have completed using Range Pricing, I have not had one single Seller or one single Buyer complain about Range Pricing. Not one!!!!!!!!

So really, all I ask is, please do not call my business practices unethical, deceiving or illegal. Call them what they are, innovative, aggressive, controversial and looking out for my customers and clients. And that my friends, is all I have to say about that. FOR NOW:)

Here are a couple of great articles on Range Pricing, not written by me.

http://www.ricedelman.com/planning/home/rule17.asphttp://

www.northsandiegorealestateonline.com/Pages/RangePricing.aspx

http://realtytimes.com/rtapages/20030821_variable.htm

*******THIS POST WAS JUST EDITED TO CHANGE FAR TO NAR *****

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Nick M.

Certified Residential Appraiser- West Palm Beach Real Estate - West Palm Beach, FL

Realtor-Appraiser in West Palm-South Florida Real Estate Appraiser

Bryant, I like your ideas.. "why don't they look into the Realtors that take listings 50% and more over market value? How about looking into the Realtors that will take $350 to place a property in the MLS and then just abandon the poor Seller? How about taking a real hard look at dual agency? Why not make the requirements to become a Realtor a little more difficult than writing a check? "

They all make perfect sense. Thos NAR people are hipocrites!!

and the MLS trying to enforce Aritcle 6 is reeediculoussss. We're are the seller's rights?? What if they dont approve of the other terms?? let me know if TLW needs more ammo to back you up! ;)

I'll 'see' you all tomorrow.. rough day. bye bye.

Dec 12, 2006 12:29 PM

Jeff Belonger

Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ

The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Bryant.... after reading all of the comments, Nick takes my comment. At least the one in regards to realtors that take listings above the actual value. I know realtors aren't appraisers, but they should be able to have a good idea of what that house is worth. This is not the market of 8 years ago...or even 3 to 4 years ago, where you had people paying more than what it was worth...more than what it was appraised for and paid the extra in cash.

So...without pointing the fingers at NAR, why don't they go after those that do over price a house..knowing damn well. Sure...maybe trying for $10,000 more...okay, I could live with that... but $50,000 or more....come on.

Broker..... good post.

Dec 12, 2006 01:18 PM

Carole Cohen

Howard Hanna Cleveland City Office - Cleveland, OH

Realtor, ePRO

Bryant, I don't see any reason why you can't win this one....you do bring up a good point though, money and MLS systems. Frankly if they keep their noses out of it, why do they have to spend money? They are the ones stirring the pot. As for over pricing, that will go on until I am long gone. When the market started to level off and everyone was getting scared, I suggested we all add on 100,000 to each listing and make everyone think we were in Beverly Hills. For some reason no one liked that idea

Dec 12, 2006 01:43 PM

Anonymous

Lee Burg

MLS are not public utilities. They are privately owned and operated under a licensing agreement by NAR. There are a set of rules. Live by them or challenge them and if you lose pay the price. If you win reap the reward. If you do not have the balls to stand up to them then shut up. At least BB plans to stand his ground and stand up and challenge their position. I give him all of the credit but also do not believe he will prevail, but I do respect his efforts.

Dec 12, 2006 02:07 PM

#13

Byeloth Hermanson

Keller Williams - Vancouver, WA

Dare to be different and they will attack. Really like your range pricing Bryant, it's good stuff and I'll have to try it on my next difficult listing. Thanks again.

Dec 12, 2006 02:52 PM

Randy L. Prothero

eXp Realty - Hollister, MO

Missouri REALTOR, (808) 384-5645

Interesting idea. I would be afraid of confusing all involved and having my client upset in the end.

I don't have a problem with it.

I think people should be able to price their home as they want and then let the market decide.

Dec 12, 2006 07:06 PM

Jeff Turner

RealSatisfied - Santa Clarita, CA

Bryant... you'd think NAR had more important things to worry about. I did not understand the range pricing issues until I read your posts. And, as I've said before, it makes total sense to me now. I have no idea what your chances of winning are if you fight it, but I know exactly what they are if you don't.

Dec 12, 2006 10:51 PM

Bryant Tutas

Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL

Selling Florida one home at a time

Thanks for all the comments everyone.

Lee, standing up is something I do well. I rarely if ever dispute anything unless I feel very strongly about it and think I have an opportunity to make a change. My wife is a past director of the MFRMLS and is very much aware of how they function. We also had the opportunity to go up against FREC about 10 years ago and not only did we win but we were responsible for having a state law challenged and changed. So it can be done. It wasn't cheap but it paid off in the long run. I'm a simple man and I live a simple life but I do have a problem when folks tell me how to conduct my business. At this point there is no dispute. I'm just continueing to do what I do and waiting to see how it unfolds. I have however already made contact with a couple of big time brokers that also use Rping as I do and we are all in agreement. So this is not something I have to handle by myself.

Dec 12, 2006 10:54 PM

"The Lovely Wife" The One And Only TLW.

President-Tutas Towne Realty, Inc. - Kissimmee, FL

Just So Everyone Knows. This is not new to us.

As a past Director for our local MLS (MFRMLS) I am aware of how these new rulings take place. They are 'normally' the result of one or more groups of Realtors complaining. Sometimes the MLS will change something just to shut everyone up. :)

Another thing you should know is that the Law that we fought with FREC (Florida Real Estate Commission) saved thousands of Realtors heartache. The Law was unjust and it needed to be addressed. So we addressed it. We were RIGHT and the LAW was changed. We are RIGHT this time too. :)

It doesn't matter how much it costs to fix this. We will fix it. We are not the only ones who have noticed the paradox between NAR and MFRMLS. :)

TLW "The Lovely Wife"...I Borrowed One Of My Husbands Steel B**LS. LOL. ROAR!

Dec 12, 2006 11:46 PM

Ann Cummings

RE/MAX Shoreline - NH and Maine - Portsmouth, NH

Portsmouth NH Real Estate Preferrable Agent

I used to work for a company in this area that a number of years ago tried using VRM (value range marketing-what it was called back then), and it never really took off here. It was never really completely explained to us, so that caused us to not be able to really utilize it as well as it could have been used. Other local agents didn't understand it, because we didn't ourselves. Our MLS tried to work with us on it, but it fizzled out at some point.

Ann

Dec 13, 2006 12:52 AM

Bryant Tutas

Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL

Selling Florida one home at a time

Ann, misunderstanding is the biggest issue by far. It really is just a very very simple technique to "trick" the computer into finding the listing more often. That's it. It doesn't affect what a buyer can offer or what a seller will accept in any way. It's all about exposure. So simple yet so misunderstood. Sounds a little like me:) Maybe that's why I like it.

Dec 13, 2006 01:02 AM

Tony and Suzanne Marriott, Associate Brokers

Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ

Coldwell Banker Realty

Speaking of overpricing....I was asked by our Designated Broker - at our former franchise alliance last year - to "help" out an agent who was having trouble with one of their listings. Trouble?? How about a list price of $380K on a property for which several sold comps in the previous 120 days pegged at $240K!! Needless to say - the list price was adjusted and the property sold. Never did get a copy of the CMA that supported the original list price!

Dec 13, 2006 01:06 AM

Anna Lukyanova

Century 21 Sundance Realty - Daytona Beach, FL

It has nothing to do with integrity. We are supposed to be professionals and give our professional opinion on, for instance, the value of the property. So, who defines the price of the property? Not us, realtors, but the buyers and the sellers. The price is something that a buyer is willing to pay for the property and the seller is willing to accept. All we (realtors) do is facilitate the transaction, so all we can do is give a price range to a buyer or a seller of what a particular home is worth. They decide on a specific number. Nothing to do with ethics but the very simple issue of customer service! It is not up to us make decisions for them. It is THEIR CHOICE!

Dec 13, 2006 04:45 AM

Bryant Tutas

Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL

Selling Florida one home at a time

Hey Anna, not sure if you are in agreement with me or not but I am actually in agreement with your statement. It's ALWAYs between the buyer and the seller. I've never met a Realtor yet who could price a home to the dollar. So why not use and acceptable range? It really makes more sense to me. My technique does nothing more than get them in the door so the negotiations can begin.

Dec 13, 2006 04:54 AM

Tim Maitski

Atlanta Communities Real Estate Brokerage - Atlanta, GA

Truth, Excellence and a Good Deal

Bryant,

I totally understand range pricing and really hate the concept for one reason. From what I gather, the intent is never to actually sell it for the low price. It's a technique to trick the computer to show your listings in a search for lower priced homes. If the intent is that the low price is actually the seller's bottom line, and he would actually consider selling it at that price, then I have no problem.

My kids sometimes play the game where they say something outrageous and then laugh "Made you Look". I don't like the trick personally so that is why I wouldn't do it.

Just because one can legally do something according to the rules doesn't mean that one should do it. Just because you do something that I don't doesn't make you unethical. It's the technique I don't like, not the person.

Do the ends justify the means? I never thought so. But to each his own.

But how low can you go in the range pricing? Can I drop it all the way to $100,000 and get even more lookers? Maybe we need to eliminate pricing altogether so you have to look at everything on the market.

Dec 13, 2006 09:25 AM

Gabriel Silverstein

Angelic Real Estate, LLC - New York, NY

SIOR

BB, I just posted my newest thoughts on how to avoid the MLS Range Pricing Police. Go get 'em with guns blazing, but in the meantime, work around them, don't let them crash your party and mercilessly HURT CONSUMERS (i.e. your seller clients).

Dec 13, 2006 01:01 PM

"The Lovely Wife" The One And Only TLW.

President-Tutas Towne Realty, Inc. - Kissimmee, FL

Don you just won the BINGO prize! Range Pricing equals A Marketing Technique :) Sweet, Short and Simple. Hooray you won! TLW...ROAR!

Dec 14, 2006 02:45 AM

Ken Smith

Suburban House Hunters - Arlington Heights, IL

Range pricing isn't really used in our area so the agents here would never care. I just don't see why it matters, there isn't harm in using the low price (unless you create alow price that is just way to low) so why waste your time and efforts on something that effect so few people. Guess they have to do something to show they are worth all those dues/fees that they collect.

But you are so correct about them not wanting to do anything that would cost them money. Lets face it if they really cared about the consumer there would be more then just learning the law to get a license. If they really cared there would be a national minimum standards for agents to follow.

Dec 15, 2006 03:43 AM

William Collins

ERA Queen City Realty - Scotch Plains, NJ

Property and Asset Management

Bryant,

You have done a great job of educating those who did not understand the concept and enlightening those who held prejudices for the practice.

I agree with Anna Lukyanova, we are facilitators who's primary job is to market the property. When we supply the seller with a CMA, it is a value range marketing piece. With disclaimers in tow, making it available to the buyer, gets more mileage out of the CMA. The objective is to get buyers to look at the property, present an offer and find the price point that satisfies both parties. Nothing deceitful or underhanded about the means to the end. Simply good marketing!

Dec 16, 2006 11:23 PM

Jeff McIntyre

Coldwell Banker Professionals - Owosso, MI

Bryant, I am sure it is in another blog of yours...but could you send me the verbage required in your listings regarding the range pricing?

Very interesting topic that I brought up a while back to my broker. I am serious about introducing this to my market place but want all the knowledge and/or info necessary to make it successful.

Thank you....and JUST BE YOU! That is all we can do!

Apr 13, 2008 05:59 AM