Its' free, it's free, I tell you!!

I can't even imagine listing a house without some sort of compensation.  Discounters are one thing...and they're fading out a bit with the current market conditions.  But the injustice that's already been done to this seller is horrible.  He really would have been better off going FSBO!

What will they think of next BB.  You guys have some crazy stuff going on there in S Florida!

John Novak

I agree with you about this practice being a bit twisted.  I guess I need to come to terms with the fact that my business ethics and those of others are not neccessarily the same.  Always learning about the business of my competition is interesting to say the least.

I was with a bigger brokerage firm prior to my present broker and at an awards dinner for the year's rising stars, one of the winners spoke about one of his tactics.  He truthfully listed his own home for sale, but at a much higher price than it warranted.  Since it was overpriced no cooperating agents ever called to show it.  That was OK though, since this fellow's intention was not to sell his house, but just to get buyer calls off his sign.  A good salesperson he must have been, for his sales during that first year of his were phenomenal.  I don't know, I guess I sleep better doing things a little differently than that.

Wow....

Very interesting information...a dollar spent to save a nickel.... 

There is a cost associated with all choices, there maybe a short term gain for a long term loss which is the case here.  Someone very dear to me thinks this way, he will never see the true life costs associated with his short term savings.

The ethical topic here is very enlightening to me.  I really appreciate everytime an agent shares their run ins with fellow "agents" who have such low standards, it helps to know who/what you are up against. 

Thank you

I'm a little late, but I'm sitting here shaking my head back and forth.  I also think there's room for all kinds of business models in our market - but please educate the seller, let them know what you are doing.  The costumers I appreciate the most are the educated consumers - those are the ones I want to work with or at least the ones that want to listen and understand how it works.

I'm late as well... had a six year old's birthday party this weekend. You can figure out the rest. I put this in the category of "huh?" You've done these sellers a huge favor by educating them!

Bryant, an excellent post that generated a great discussion. I have nothing valuable  to add. But, I did want to tell you WELCOME BACK!

This was a really funny post!  I'm still laughing.... I will give it my vote on www.realestatevoices.com if I can figure out how:)

Lola Audu, CRS GRI

 

Bryant, this is an interesting article.  It is a good thing that you did not talk to the seller about "what the previous listing agent did" because you would have been setting yourself up for a slander lawsuit.  I am surprised that no one has pointed it out yet, but this whole article is based on speculation and not fact.  Yes the house did not sell, but that does not mean that the agent was redirecting buyers to other listings.  As you pointed out the commission to the co-operating broker was normal for your area, so selling another home instead of selling his/her own listing would not really benefit them especially if they advertised the sale and the savings that his client reaped.  The would still get the buyers side of the sale and they would probably get the purchase commission on the clients next home.  Having a sign on a property that stays on for 6 months, and only advertises that you are ineffective, is not worth 2 commissions.

Why it did not sell may be a mystery but unless you can prove that this agent is redirecting buyers and not just unlucky, making public statements about what others have done is always a bad choice.  They may have had some calls off of the sign, but most people who call off signs do not know what the house is like and therefore are often not appropriate buyers for that particular home.  Without fiduciary duties it is also easier for other agents to black list an agent or brokerage as they are not liable to their customers if they do not show them a suitable property, for whatever reason.

Now if this is what that agent was doing they are not only unethical, but stupid.  But you do need proof before making such statements.

I have to say that this post and all of the comments really feels like a "Bubble Blog" where people jump on the band wagon before really reading the post and looking at the facts.  Each post seems to feed off of the previous posts that concentrate on an idea not the facts.    There are many good comments about disclosure and ethical behavior but they all assume that the listing agent that you refer to has committed a wrong even though you have given no proof.  Sorry but this is a sad day for AR. IMO

BB,

Home owners may decide this is a way for them to make money.

They can rent their lawn for a realtor sign and charge for the advertising space. 

Now what would we call this business?

www.HomeRome.com

I found your idea about working for free amusing because I read the business model differently.  I saw it as an incentive to market even harder because that's how the money would be made through my finding a buyer or through someone else finding the buyer and I get the seller's buy side.  There are a couple companies here (Minneapolis St. Paul), one that has been here forever, that reduce the seller's agent side of the commission because their goal is to have the buy side.  They have both been quite successful and agents who work for them are extremely loyal and have steady business.

Ahhh, the old bait and switch.  I think there is plenty of that going around.  Here's another one I hear that came out of another broker's/agent's mouth who was looking for a listing: "we have buyers already for your unit"  (remember that when I do residential work it's generally very high end condos - expensive stuff that has a reduced buyer pool size from much of the industry).  I love when I hear that someone told a would-be-lister that one.  "So," I say, "that's great - they will get paid a full co-op commission as the buyer's broker then and I'll contact them as soon as you sign our listing agreement...oh by the way, the last five sellers I've talked to that got told that same thing by that agent and hired him/her to list their property never saw one of those supposed buyers from them after they signed the listing agreement...If they have these buyers already, why don't you tell them they don't need the listing agreement (who wants that dual agent issue anyway) and give them in writing that you'll protect them for the buyer's agent commission.  Then you won't have to hire and pay me, you can just pay a half fee, since they already have the buyers for you."  That wakes a few people up to the reality of the snow job.

If this has already been said in some way, sorry that I didn't care to read through 71 previous comments.   I just felt like adding my own two cents.  You're too popular BB for me to jump in late and take the time to catch up on all the banter...

Gabriel Silverstein

-I hear of the same thing happening in my area.  We have buyers for your property and then nothing.  That ticks off a bunch of people.  I don't see this model working long term--actually that is what I am counting on.  I just need these other agents to continue ruining their name and people will learn who to trust.

Broker Bryant,

Based on your earlier comment that the company's slogan was "Never pay a Real Estate Commission Again" I believe I know who you are refering to.  If I am correct they are not really the tradition real estate brokerage rather more of a Marketing/Advertising company. And, if so,  you have mentioned them in at least one previous post where they made some very misleading statements to their clients about their fees and how they worked or could be credited toward another future listing scenario.  If I am right, I have some first hand knowledge on how they operate. They charge various levels of fees depending on the level of exposure in their marketing and advertising on a subject property. Their operating scenario does  include lead capture and marketing of mortgage services as well.  They control virtually all aspects of the sales transaction.

Sure I would list for free!!

Actually my first big deal was a $3,000,000 house that I sold with a commission of $1 (3% for the buyer agent). A great way to get my sign in a great area and get phone calls from prospective buyers that might like that or another house.

I think it is a great system for hungry newcomers.

 More thoughts like this over at: Blog.FranklyRealty.com 

WOW - What a con...I wonder how bad they they were ripping off the buyers that they did find on the mortgage points and fees, just to make up for doing work for free.