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I'm a Listing Agent, Not Your Indentured Servant

By
Real Estate Agent with Downing-Frye Realty, Bonita Springs, FL 676419

She sounded this obnoxious on the phone, too.Let me start by saying this: I love referrals. 

Where other do mind them, I don't mind them one bit.  My theory is this:  I can use this listing as a tool to get another listing in the same neighborhood that is all mine, mine, mine or sell a home off the listing I'm offering a referral on, right?  Business brings business.

Here's what I mind about the referral practice:  Ring Ring (this is an agent in Bull Shoals Arkansas who met a lady at a bus stop who knows a person in Bonita Springs, Florida who's electrician is selling their home)

Well, today Ms. Bull Shoals emailed to refer a customer to me.  Little info accompanied the referral.  I explained in a return email that my policy is to do my best to educate the referring agent and the customer and IF I am not able to help them I will gladly GIVE them [the referring agent] the number of a competitor that has a listing in that neighborhood so they have a viable agent to work with.  Pretty nice of me, huh?

Little Ms. Bull Shoals wants nothing of it and doesn't understand what would preclude me from being able to help her customer.  She must take every listing without regard to how it effects her bottom line or the local market in general.

****I support my local real estate market & economy by taking listings that are only priced right - I don't "try it" at a higher price for a few week first****

I explained to her in no uncertain terms that times are tough in some areas of Southwest Florida.  You've not given me a name or even street name so:

  1. I don't know where the home is, it's condition or if it's in a community like Village Walk with 64 other listings behind one set of gates.  Booo!  I'll do 'em, but they have to be serious about it!
  2. I don't know how much the customer paid or got an equity line for and if they're upside down.  I'm not fond of short sales, but I'd happily refer it to an agent in my office who is. 
  3. I don't just take any listing.  There, I said it.  Listings are falling from trees like buckeyes in October.  I have a great marketing plan and only cooperative, educated, motivated sellers fit in that plan.  Meaning:  You have to list it for what it can appraise.  (That crazy "old math" from the history books)
  4. Your home has to be ready for sale - spit shined and maybe you should throw in a warranty, too!

I finally called this woman, who was bothered by my call and asked why I just didn't call the customer for all the details.  I explained this to her:

You want paid, so you have to play. 

  1. You're getting educated and supporting what I have to say or the door is over there~~>
  2. Just because you offered me a listing doesn't mean I need to, have to or want to take it.  It's my business and my business plan.   Besides, I offered to help YOU find someone that would, remember?
  3. I need more than a phone number and a name because our Lee County Tax Roll doesn't seem to think your referral even owns property here.  I'm not calling anyone with NO information to offer them because they can't see me bat my pretty brown eyes through the phone.  Calling someone without any info to offer is like knocking on someones front door naked.

Again, I love referrals.  But if you want paid then you have to play - or rather, work.  Do your homework - do your portion.  Get some info for the other agent and learn some info about the area your referral is trying to sell.  The  agent  to whom you are referring is not your indentured servant and listings aren't that unusually these days.

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Comments(24)

Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate

Yesterday I got a referral from a REMAX agent in Ohio for 5 listings from an investor. One was a 46 Ac parcel of land, plus a bunch of lots in a sub. Three houses about 45 minutes away.

When she called she wasn't sure where they were but felt I was the best person to handle them. I spoke to the seller (investor) and after talking for about 20 minutes said I do not think I'm the Realtor to be working with and why. He said thanks for you honesty.

I immediately called the referring agent back and told her I was not comfortable selling these home and land and gave her 2 names of local people I felt would be most suited to market them.

She was most appreciative.

I am not a indentured servant either !

Nov 27, 2007 08:24 AM
Brian Schulman
Coldwell Banker Residential Brokerage, Lancaster PA - Lancaster, PA
Lancaster County PA RealEstate Expert 717-951-5552
Chris, I like your philosophy.  If the referring agent can't give you good background information, how have they earned a fee?
Nov 27, 2007 08:33 AM
John Occhi
AZ Veteran Notary Services - Marana, AZ
Mobile Notary Public/Certified Loan Signing Agent

Chris,

Well written and amusing post .  I have to agree that I do like referral business - it is found business that I did very little to earn, other than being me.

I also agree that the referring agent needs to do some of the prep.

What I'm not so sure about is how calling someone unprepared is like showing up at a door naked - trust me, try both on me and you will get two very different reactions :-}

Now Have a Blessed Day,

John Occhi, Hemet REALTOR®
Mission Grove Realty

Nov 27, 2007 08:46 AM
Monika McGillicuddy
Berkshire Hathaway HomeServices Verani Realty - Hampstead, NH
Southern NH & the Seacoast Area

I wonder if the potential seller even knew the agent would be taking a referral fee to begin with.

When they haven't bothered to give you full information ...usually they haven't bothered to educate the consumer about the referral process either.

Nov 27, 2007 08:48 AM
Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI
Real Estate Services You can Trust!
Can I send you a referral?  I don't have a name but I remember the phone number....I wrote it on my hand....they said they have a great house been on the market a couple years so everybody knows it!  Less advertising right.....Hi Chris...how come you didn't get a million responses with this post?  It was great and right on too.  I like the "play to get paid".  My wife's sister is looking for a rich man to marry....her saying "no money no honey"!  That one made me laugh too!  Great post Chris.
Nov 27, 2007 10:33 AM
Thomas Weiss
Thomas R. Weiss - West Palm Beach, FL

Chris,

Didn't you know that your supposed to give an Arm, and a Leg, and a Foot...

Nov 27, 2007 10:35 AM
Bob Carney
Taylor-Made Deep Creek Vacations & Sales - Mc Henry, MD
Licensed MD/PA Real Estate Agent
Who's naked?  You mean you can't do ALLL of the work for 75% of the pay...I mean really the phone number works..(I think)
Nov 27, 2007 10:43 AM
Mary Ann Grafft
Keller Williams Realty - Lubbock, TX
Chris--you're so right.  When the referring agent has to ask why you're calling them, they must have known it was not a good referral in the first place.  It's also bad when the referring agent won't get out of the way.  Hope I have a good one to send you some day!
Nov 27, 2007 10:51 AM
Herb Hamilton
RE/MAX Preferred Inc. Realtors - Portland, OR
Real Estate Broker ,CDPE, Downtown Portland

Chris,

It strikes a Raw Nerve with me. I do not care all that much for referrals because of many of the things you have mentioned.

Last year one of my clients told me of a friend that had been unsuccessful in buying a home and suggested I call her. I did and we hit if off. I asked if she was currently working with anyone else. No was her answer. Two weeks later after showing her several properties she wrote an offer. About a week later I got a call from an agent in a different state that said he knew this lady and wanted to give me his information so I could send him a referral.

After I stopped laughing I told him he was insane. I did not get this client from him. He was upset. I told him that if he wanted a rerferral from me then he should give me a client with all of the details. To make it even more palatable and to entice him I told him that I would reduce the referral fee by 5% on the first 2 referrals that he sent as long as they were within 6 months.

Some 30 days later and about 3 days after closing he called again.  He wanted to know where his referral check was. I could not believe this moron. Again he was upset. He called the Buyer and got her upset.

Finaly I told them all that there was nothing more to discuss. I told my Buyer that I had given the agent an avenue to get paid and he had not taken it.

Like I said, I don't care all that much for referrals. I do work them, but like you I have hard and fast rules.

Nov 27, 2007 02:31 PM
Marlene Scheffer
Realty Station - Bremerton, WA
Realtor to Kitsap County, WA

I love referrals as long as, as you mention, the agent can give me a good bit of qualifying information.  thankfully, I have only had the ahppen to me once in ten years, phewwwwww!

By the way, why didn't this get a gold star?  It's an excellent post, great topic, and as always by you, well-written.

Nov 27, 2007 03:28 PM
Rich Jacobson
Fathom Realty West Sound - Poulsbo, WA
Your Kitsap County WA Real Estate Broker
I've made this mistake once to know not to do it again. Especially in this current market, we need as much info up front to adequately assess if the listing is worth our time and energy to take on. Otherwise, it's just another problematic time wasting black hole.....
Nov 27, 2007 03:33 PM
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Chris, Do you really do that? Knock on doors naked? I bet it works every time.

Bill Roberts

Nov 27, 2007 03:46 PM
Mark Horan
Resident Team Realty, LLC & Toni's Property Management LLC - Saint Cloud, FL
"The Resident Chef" - Resident Team Realty LLC &
Chris- Thank you for saying it. Besides, do you really want to pay for a referral that may be a short sale and your commissions may be cut, and you have twice the work?
Nov 27, 2007 04:43 PM
Kris Wales
Keller Williams Realty - Lakeside Market Center - Macomb, MI
Real Estate Blog & Homes for Sale search site, Macomb County MI
I always get that prickly feeling in my neck when the referring agent isn't forthcoming with more information than name and phone number.  Like you, I don't call unless I have more.  For all I know, that person could be on the do-not-call list, or a sales person or or or...Great job with this post Chris. 
Nov 27, 2007 07:59 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel
Referrals are great, if the person being referred is already sold on you. But you have to qualify the person being referred .
Nov 27, 2007 10:21 PM
Maggie Dokic /Indialantic | 321-252-8696
Magdalena Dokic - Indialantic, FL
Selling the beach in Florida's space coast
ah, this is the type of post I've come to expect from you.  Right on Chris!  This doesn't sound like a referral, but rather a lead, and one named M. Mouse at that.
Nov 27, 2007 10:22 PM
Margaret Woda
Long & Foster Real Estate, Inc. - Crofton, MD
Maryland Real Estate & Military Relocation
Your title alone says it all.  And you articulated the thoughts of many agents in your post.  Thank you!
Nov 28, 2007 01:22 AM
Becky Troutt
No longer practicing real estate as of 2008. - Bradenton, FL

"Calling someone without any info to offer is like knocking on someones front door naked."

LMFAO....where do you come up with these things?

Nov 28, 2007 01:52 AM
Carol Zingone
Berkshire Hathaway Home Services Florida Network Realty - Jacksonville Beach, FL
Global Realtor in Jax Beach, FL - ABR, CRS, CIPS
Chris- I completely agree - it's a win-win situation, and you would THINK the other agent would want to appear to know SOME DETAILS about the property -
Dec 03, 2007 07:31 AM
Kathy Clulow
Uxbridge, ON
Trusted For Experience - Respected For Results
Chris - And then there is the agent who refers the customer to 2 agents at the same time just in case one does not get it. Some time ago I went on a listing presentation on a referral and was told they would get back to me as they were having several agents in and then would decide who they would list with. Well I don't have a problem with competition for a listing but when I spoke with the referring agent and was told that they had also refereed it to at least one more agent (who by the way was from out of the area) I was just a little perturbed.
Dec 21, 2007 05:31 AM