Can an AGENT sell anywhere in the State?

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Can an AGENT sell anywhere in the State?

The answer is YES, But should they?

To me the correct answer is that an agent should sell where they are the expert.

I am licenced to Sell Real Estate in the Commonwealth of Virginia but that does not mean, I will sell homes anywhere in Virginia.

I will only sell homes in my area and specifically where I am an expert.

I recently had a conversation with a prospect (who had been looking and working with an agent from a different area, about 3 hours from Charlottesville) who asked me to help them look at some homes in my area. They went on to tell me that had been talking (no buyer broker relationship) with an agent from a different area.

Now they wanted to look near Charlottsville and they asked if I could assist them.

"Sure I can, but I do not want to step on any toes, so please inform the other agent that if you buy with me, I will be representing you."

Then I get the call, that the other agent told the prospect, that the agent can help them in my area too. I have seen this before and the prospect felt like they should at least try the other agent (they felt obligated).

I said to the prospect "I hope it works out for you, but if it does not please feel free to call me anytime".

Now had the agent thought about this, they could easily have gotten a referral fee from me. They would not have to drive 3 hours, setup appointments with homes (since they do not have access to our MLS) which will be interesting. Drive around several counties, that they do not even know. Not to mention help negotiate a deal when they do not really know our market.

More important is that the agent (in my opinion) is NOT acting in the best interest of the customer/client. This goes right back to our "code of ethics". see link: http://www.realtor.org/mempolweb.nsf/pages/code

I am afraid, since the market is tighter, that some agents are forgetting they have a duty to their clients and are acting in their own best interests....

When I have a client, who wants to buy in Richmond or Alexandria Virginia, I would not only be a fool not to use a referral agent, I would not be acting in my clients best interests.

(NOTE: These are my opinions, but I feel very strongly about them)

Your Agent in Charlottesville, Virginia
Charles McDonald

Charles McDonald
PRINCIPAL BROKER

Charlottesville Real Estate
Solutions for Buyers and Sellers

(direct) 434-515-1585

Posted by Charlottesville Real Estate on 12/19/2007 04:38 PM

Comments (99)

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Originally posted at: Charlottesville Real Estate: Can an AGENT sell anywhere in the State?

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99 Comments on Can an AGENT sell anywhere in the State?

DEC

2007

Great point. I have done a couple of deals that were stretching the distance; but at least I was in the same MLS area! Don't worry anyone I get going to Charlottesville is getting you! Cheers from Inside-The-Beltway!

JAMES - Thank you! I am a little worried that as agents get pinched, they will forget the clients best interests!

THIS is an EXCELLENT POINT! I can not figure out how you can be an EXPERT on

Commercial
Residential in rural areas
farms
Condos downtown
Historic Homes
Luxury Homes
First Time Homebuyers
Resort Property
Relocations

All at One TIME! Now - okay - maybe you can do 3 or 4 of these - but REALLY! You're an EXPERT? Heck I've met GOLF COURSE SPECIALIST who have NEVER played GOLF!?!

You are SO right about this!! I've had calls from "cousins" or "sister-in-laws" etc. who want to represent the people that I've shown the property to!! I usually come unglued and do some chewing out. Then we had the agent come to our area which she knows nothing about to represent her friend's children. She had to ask each listing agent to let her in the homes since she didn't have access to lockboxes. At the close it almost fell apart because she didn't know the proper people to call about a problem. The listing agent saved the sale but that arrogant real estate agent probably thinks she did a great job of "representing" her clients.

Great post!

Charles, I agree with you 100%. I have seen this also. When the agent gets to the area to show homes and is completely out of his/her element, it must be embarrassing to them. I would go for the referral and have an expert in the area handle it. A Win/Win. Thanks for another great post!

I read these stories and it makes me love being a listing agent that much more. I cannot imaging driving 3 hours away from my market on the chance of selling a house.

Charles, I agree 100%. If you do not know the area, stay out of it. You are not doing the buyer or seller any good.

Great points, it's hard to be an expert everywhere

ELEANOR - that is so true and I have blogged about it before. We can not be experts in everything and everywhere. Be honest with clients....

BARBARA - We totally agree, this is a crazy time and more agents are going to try to play this game..IMO

Very good point. This is what I love about AR, I hear different view points and they make me think..I never thought about it like that exactly.

Thanks buddy! You know you have any of my Charlottesville referrals...lol

Merry Christmas

Absolutely: Refer that Client, the 25% referral fee is 'in the bank' and while that agent is taking your referral out, YOU can be selling in YOUR area where YOU are THE expert! I have actually had agents that live in a neighborhing STATE call me with questions about neighborhoods in my area after having driven their clients around while LOST in Charlotte! Drives me insane! Aren't we supposed to be in the business to provide CLIENT service--not padding OUR pockets!

GREAT post as always!

Debe in Charlotte, NC

KAREN - you are welcome. Even in Fluvanna, the property may be out of my area of expertise.

Charles, this is so unfair to the client. He's expecting expert advice and in Virginia, there's just too much to know in each of the corners of the world we all serve.

Merry Christmas and I like your hat!

P.S.--you'r probaly aware of this news. but just in case--

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Go hoos!

AMANDA - I will drive there for you! What are friends for?!!! lol

DANNY - Well Said partner!

COLLETTE - I would not even try to tell someone I was an expert everywhere. Foolishness I say! lol

VANESSA - Thank you for those referrals!!!

AR gives us a great forum to express our opinions!

If I can't get into the house with my own lockbox, then I am out of my element and need to refer. My in-laws just bought a house in VA Beach with a great agent who really knew the area. My in-laws were thrilled with me for finding her...I could have never done the job she did for them.

Charles, only if you use your back up camera.

DEBE - Thanks! and your point is right on target!!!

JOHN - Not to mention that VIRGINIA is a Caveat Emptor = "let the buyer beware." (Latin) State!!!

GO HOOS!!!!!

CHELLE - That is so true! And then you are doing a Great service and that is whata Real Estate is all about!

AMANDA - LOL!!! you got it!!!!

Charles,

These are more than opinions...they make darn good sense for a professional to espouse!!! Thanks, Fran

If the agent is outside of their market area are they doing a service for a client who has school-aged children? They (client) will see in the long run to find someone more accessible for such a large transaction. It really matters.

Very good point. It is very different for realtors than mortgage professionals. But I do prefer to do loans where I am most familiar with the area and market.

I am a member of 2 MLS systms the Triad and the Triangle basically anywhere in Central NC. I have sold a home in the Charlotte area - it was for a friend we viewed only that home and I went above and beyond. Charlotte is 3 hours away from me.

I recently gave some clients a simple tour of NC to help them narrow their search to my area. Again each property I went above and beyond my due dilegence.

My point - I think the best rule in Real Estate is "It Depends" I definately do not want to show random buyers a townhome on the other side of Charlotte?

I have to agree with Rebecca since she is the only one that seem to feel the same as me. If I can reciprocate with the MLS I can can sell there. It would totally depend on the situation and it would be more the except than the practice. Good post.

Like Rebecca and Rosemary I also sell a lot of truly remote property. Most of my income is from Juneau and Haines (only 60 miles apart but not connected by road) but some of the properties I sell are out in the middle of nowhere. It is a choice I make, in order to see the parts of Alaska that make me want to live here. However, this can be taken too far. I'm in Alaska, for crying out loud. East to west, 2,400 miles; north to south, 1,420 miles. Most of it not accessible, but pockets of civilization all over the state.

Makes me wonder why the Anchorage MLS calls themselves the Alaska MLS and are slowly taking over all the smaller groups in the state. Doesn't make sense at all!

Charles, I agree with you. I think that if you are not familiar with an area, then it would look more professional to refer the client to an agent who is an expert, then get a referral fee. Just my opinion!

DEC

2007

Charles,

I gave your name to an agent in my office to give you a call about Charlottesville, hope she did. I have sold land in the Shenandoah Valley for a client. The reason? Because I also own property there and spent a lot of time there. They wanted to have an agent outside of the area who had a wider reach with the Northern Virginia/Regional MLS than the local area. They felt that someone from "my" area was the likely buyer for the property. Which was true. Would I do the same thing again? Yes for that small area that I am familiar with but not as a general way to do business.

Charles, The answer to your question is an emphatic NO - I have absolutely no intention of selling real estate outside of my area of expertise. I have never understood why agents in my area become licensed in VA, MD and DC. No one will ever convince me they can be that athouritative about that much geography plus the laws are different. Karen Kruschka

FRAN - Agreed!

LATONIA - that is a great point!

NAOMA - Did not think of it so much as a lender issue....

REBECCA - Since you are a member of both MLS's I would imagine that you are educated about both areas. So that makes sense.

ROSEMARY - I am glad that works in your area.

I can tell you if I get someone that wants to show in RICHMOND, Virginia, I feel it is in my clients best interest to work with an expert in that area.

DEBBIE - I would have to guess that your situation in Juneau is a little different than say Seattle or Chicago. I have only been to Alaska once and I could see the difficulty.

ROBERTA - I always try to put myself in my clients shoes. What is best for them? Work with an expert in an area or (I can not even fiish that sentence.....)

CINDY - Thank you so much for the referral!!

I do agree, like any rule, there are exceptions and you have just pointed out a logical one. But just to sell for the business is not in a clients interests, and this is what my post was trying to point out.

KAREN - in a word..... AGREED!!!

Hi Charles,
This is a lesson I learned early on in my real estate career. I had a buyer from out of state looking at a property out of my local area (in my county but my county is very large) and I found out that I could not serve him well in an area I did not know well.

CYNTHIA - I think this is a lesson we all learn sooner or later. Thanks for your comment!

I find it interesting that there is apparently no distinction between "agents" and "realtors" - the CoE doesn't apply to "agents" - only "Realtors," right?

Charles-just as a follow up to my first comment, I made the exception for the Shenandoah Valley twice and don't forsee doing it again. Since it was land there wasn't a house to show and I knew all the right people to make the deal happen. I've referred potential buyers to agents in Stafford County which is only 20 miles from me because I knew they were better equipped to know the neighborhoods then I was. I also dropped my DC license when I realized it was just way to hard to know every neighborhood (and find parking) to give my buyer's the best service.

Why would anyone want to drive 3 hours to show homes in the first place. The gas alone would cost a fortune. Then, if he has no knowledge of the area, how can he work in the client's best interest? Makes no sense to me. I would just make a referral and collect the fee.

CINDY - It is so obvious by your comments that you have your Clients Interests foremost on your mind. I applaud you!

Merry Christmas!

BRIGITA - Exactly!

Merry Christmas!

I closed a transaction in Chester, VA - I work primarily in the Fredericksburg to Manassas to Warrenton area ... these buyers were referred by a good friend of mine - they already had the house picked out - and I wrote the contract, helped with the home inspection and finalized the settlement with the settlement company ...

This was an easy one ... however, if these buyers didn't have the house picked out ... I would have referred them to a local realtor ... I don't know the Chester, VA area well enough to have given them the best representation.

These clients in Chester recently referred someone to me -- another Chester, VA client -- I referred them to a local realtor.

RITA - Makes perfect sense to me!

Charles,

I too would prefer to stay local.....however with my practice 99% referrals these days how do I say No? I make sure that I stay first in my MLS area (TrendMLS is large)......and I do attempt to find a referral Agent to back me up if needed.....and pay for their time and service (this when the Buyer's insist on my involvement)....Listings Never, I stay very local for that.

I agree with you...however yes they can sell. Is it smart? Not at all!

DAN - That makes sense!

JIM - Sure they can sell anywhere, but like you said, is it smart?

Hi Charles, good for you putting the client first,bravo!

KEITH and ROBIN - I am not the only one, look at the comments!!!!

Bravo... You are #1 in my book. I work within my MLS only. I have actually had agents ask could they borrow my lockbox key to show homes in King George and Westmoreland. I gotten so that I have told those agents that my fee is 2.75% and if anything is left they can havethe remainder. Our gas starts off at $2.89 per gallon for regualar.

VANGIE - THAT IS HIGH PRAISE!!! I WILL TAKE, YOU MADE MY DAY!!!

I agree! You should only help you clients in the areas you are familar with. That's what's best for your clients.

Charles,

There is a party going on over at my blog. Its a party for all my associates (present and future). You are invited. see How do you show Appreciation to your Associates? .... with wine and cheese and ..... ! See you there!

Maybe the other agent already works with someone in your area and has an arrangement. That is just a hopeful thought and that they are not doing the best they can because of their need for commission

The MLS area is what makes it hard for an agent to sell across the state when they legally can.

I am with you on this one Charles. It does not work for the buyer, their agent or the listing agent when people try to do this. I love referrals! I get them. I give them. For me, its the only way to serve the client best!

in my area we just became reciprocal with another MLS system which to me is ridiculous. , maybe it would be fine if it was more on a referral basis, but I have agents that are3 hours away asking me for directions to my listings.

I stay in my area of expertise and that's the only way to service your client 100%

DEC

2007

I agree with you. I would go for the referral and have an Realtor in the area handle it. some one have the export in this area. I work the central Virginia area only (Greater Richmond) I will never go outside my export areas.

Charles,

I think the same thing holds true for commercial agents selling residential and visa versa. Maybe I'm a wimp but I don't even want to think about selling commercial property.

DAVID - Makes Sense!

ROSEMARY - on my way!

STELLA - That is a nice thought.

SUSAN - So true, but also do I know the market in say "Virginia Beach" the answer is that I do not.

RENEE - Makes good "Business" sense!

PATTIE - that is interesting. I am not really sure what "reciprocal" with another MLS means. I think it means they can see your listing?

MOHAMED - Just makes good sense to me!

SUSAN - True for me too. I stick to what I do best!

MERRY CHRISTMAS to ALL!!!

It is a very good idea to simply specialize in your area instead of going into areas that you are unfamiliar with. Unfortunately, I learned this the hard way. Thanks for sharing. Maybe someone will learn from your experience and knowledge.

DALE - I sure hope so!

Merry Christmas!

In the state of New Jersey There are approx 6 MLS systems, which service different counties, My Board which is The Ocean County Board, is in the process of trying to create ONE major board for the entire State of NJ , which I think is ridiculous. So we now have agents coming from areas as close as to the boarder of NY and Philly

PATTIE - This will devalue the services of an agent.... IMO... scary stuff!

Charles, It already has. I never go beyond my area of expertise, I would rather refer the client out ,FOLLOW UP TO MAKE SURE THEY ARE GETTING THE SERVICES I WOULD GIVE AND EXPECT IF I WAS THE CUSTOMER/CLIENT

They are starting to talk about combining here too. I can see that the public is not really informed of what this means to them in terms of service...

I think that in the tightening market we are going to see more agents driving far outside their area to sell homes. I get agents that come 60 miles or so to our area to show listings. In fact if you look at "out of area agent" as the selling agent they have sold 169 of the 1323 listings. It does cause problems with access and the calls from them that they are either late or lost, but if they can sell a listing everyone wins.

But it sucks to be them having to drive out for all the inpsections especially when the average price of a home is at 90K

My license says State of Illinois but there is no way I would try to sell to a client in an area I have no knowledge. The referral is just so much easier and the best thing I can offer my client.

BRIAN - You are right on. And I am with you I will not sell in an area where I have "no knowledge"

Charles,

I agree with you. You cannot best serve your client if you sell them a house in an area you know nothing about. I refer to agents all the time in Tennessee and out of Tennessee. Always put your clients best interest first and that includes someone assisting them that knows the area and knows the values of homes in that area. And tell them you are being compensating a little for the referral.

MIKE - That is it, The Client is number 1!!!

Merry Christmas!

I have a friend wanting to buy some land thats about 3 hours away. He asked me to help him, and I do. He is now narrowed down his search and is ready to buy, and wants me to represent him, Im that good I guess.

I finally had to tell him that I have been relying on another agent thats local to gather the info. Though I will be part of the transaction, I have to rely on the expert and take a back seat role. I'll make a small referral fee, thats the least of my concern though. As long as i'm assured that they are well represented, thats future referrals to me in the bank.

The clients main concern was, Chad I like you, thats why I called. I finally convinced him that this was best for him a consumer. Sure I will drive down with him to meet the agent, we can conference call the agent together, the important thing is, all involved in this deal is looking out for the client. His attitude finally changed when I told him, "I will not represent a deal that I have no knowledge about. The money would be nice, but I do not need it enough to screw a client or worse yet, a friend. "

The need for a deal and an ego will clash. Luckily I can walk away, help another agent out, and still make a referral fee in the process.

Charles, I have to agree that although we can sell anywhere in the state, I don't think it is a good idea. How can you do a good job selling a home for or to someone in an area you have no experience in. Here in Citrus County we have a septic inspection ordinance. agents from other areas are unaware of this so it doesn't always get done and then holds up the closing. My belief is you should stick to what and where you know!

Melonie Haag

CHAD - You are an EXCELLENT AGENT!!!

MELONIE - I totally agree!!!

Charles- I agree with you - it is not worth the travel time and you cannot represent your client properly in an area you are not an expert in! Now that we have moved we have already made arrangements with colleagues to cover many things down in our old area for us!!!

Hello Charles, I must agree with you on the fact that we are bound by ethics to "know" the area and the market. Now, I am not saying that one shouldn't sell anywhere else but they would have to do their comparables, research the area and be able to represent their buyer with responsible reason! If they just do the paperwork, to me, they are not earning half the compensation. Thanks for your insight. Deb

DEC

2007

BARBARA and BILL - It is about doing the best for the client!

DEBRA - You have an excellent grasp on it!

We do not go out of our area...not even a couple of miles...we are not experts.

DEC

2007

TEAM - Makes sense to me!!!

Charles:

Unless I am dealing with land that we personally develop...I have 2 counties that I work and 3 others that I venture into every now and then. Those 3 counties are still less than 20 minutes from my office.

It is hard enough keeping up with the market here. I don't believe that I can do a good job outside of my immediate area and I wont do it. Plus, I really don't like driving all over the place.

Merry Christmas buddy! Hope Santa brings you lots of signs with your face on them! =]

JESSICA - That just makes good sense!

MERRY CHRISTMAS!!!

DEC

2007

In most cases, the other agent may feel that they would not get the referral fee. I have experienced this, as well, my client had a home in Bloomington that he wanted to sell. However, I referred the listing of the home to another agent in the area. Well, long story short the agent that I referred the deal to did not follow up with the client so I got no commission out of the deal. Whereas, if I would have done it myself I would have gotten paid because the home did sell.

SERENA - That could happen, not know how your deal fell though makes it tough to figure out.

Excellent point, Charles. I'm licensed to sell real estate anywhere in the State of NJ, but I don't market everywhere in the state. Our focus is the Tri-County area of Camden, Gloucester, and Salem. My wife (and partner) focusses on Camden, Gloucester, and Burlington Counties. But our primary focus is specific areas within those counties. You can't grab everything so you need to focus your effort where you knowledge is bestg served.

TERRY - Focus is key!!!

DEC

2007

When you work with people and it seems you know the neighborhood you look like a star and also customers respect you more

RAJ - I totally agree! Be the expert!

DEC

2007

Could not agree with you more. While the difference between Richmond and Manassas is easy to see, I think agents should tighten the circle even more. In Northern Virginia, there are hundred of little communites and many cities to choose from. I am certain that I could "help" clients in any of these areas. However, I am sure that in some (if not many) local areas, an agent would be able to help the client better. I know it's a business, but we all live by the code of ethics. The public should come first. Referral fees are easy and the client will get better representation.

DEC

2007

SCOTT - Very well said!

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