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Why are listing agents letting down their clients?

By Simon Conway

Real Estate Agent with Orlando Area Real Estate Services

January 13, 2008 11:18 PM

I am constantly amazed at some of the stories I hear. Yesterday I was showing one of my listings. It is a truly great home - the picture is of the master bathroom and you will find a link to the virtual tour at the bottom of this blog.

Anyway the point is, my clients who live in the home, were out of town and they asked me if I could let the various people in. We actually had three showings of this property in a single day.

Phillips Landing home for sale Showing number one was another Realtor and her client. I gave them the quick tour and then sat quietly in a corner while they went through again and then was available to answer questions.

Showing number two was a delightful young couple who had called me to inform me they were relocating and there were in town for this weekend only and could I show them the house. Of course I could. We had a very nice tour and lots of questions. they were in the house for 45 minutes. At the end of the showing as I was escorting them out, they told me their Realtor was out of town and they had wanted to see two other homes, but the listing agents had said "no - not unless you are prepared to sign papers with me that says I get both sides of the deal".

This is a true disgrace! There are two high end listings (we are talking in the $1.2m plus bracket here) that did not get shown to a couple who are relocating with no home to sell in the next six weeks. How is that serving the best interests of the sellers?

I was stunned when they left - only to be told exactly the same story by the third couple, except they are not relocating, merely buying a home because they just sold theirs!

Now let me make this clear. It is perfectly legal in the State of Florida to represent both sides of a deal. It is called Transaction Brokerage. But it is also impossible to split yourself in two and get the best deal for both clients. This is why I will not do it. Period.

But even if I did not have that ethical stance, there is no way I would behave in the way that these particular listing agents did. Once again they thought about their own paycheck ahead of their clients' best interests.

And of course, the Realtor Code of Conduct says we cannot call those sellers and let them know what their agents are doing. How can that be right?

If you are looking for TRUE representation in the Orlando, Windermere or Central Florida markets, then please give me a call on 407 876 8200.

Here is the Virtual Tour of this fantastic home!

________________________________________________________________________________________________________

Please give me a call if you have questions about the Central Florida real estate market. You can reach me on 407 876 8200. Also visit my web site at http://www.simonconway.net/ or http://www.move2orlando.net/

Also remember to check out my weekly radio show - The Home Team - which airs every Sunday at Noon Eastern and if you are not in Central Florida then you can tune in on line at http://www.540wfla.com/

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Renée Donohue~Home Photography

Savvy Home Pix - Allegan, MI

Western Michigan Real Estate Photographer

OOPS I am editing this reply because I misunderstood you the first time! Yes, I explain that I do not dual agency and I refer out the buyers. I also explain how I qualify my buyers. I then explain with 16000 some agents that there are 16000 different ways to qualify buyers and I don't solicit feedback for that reason. I think it is only fair for me to qualify showings for my listings the same way I work with buyers. I realize this is public and you can view the following on any of my single property sites:

* If you are already working with a Realtor,
please have them call me to schedule a viewing
* If you are not working with a Realtor, please
call 702-580-1783 to schedule a viewing with one
of my Buyer's Representatives. You will be
required to sign a Buyer's Agency Agreement
prior to viewing the property!

Jan 14, 2008 12:19 AM

Daniel J. Brudnok, REALTOR

Berkshire Hathaway Home Services Fox & Roach, REALTORS - Exton - PA License #RS-225179-L / Delaware License #RS-0025038 - Downingtown, PA

SRES, e-PRO,ABR,GREEN,CSP

Simon,

This is a story that is heard too many times...and I am as frustrated as you are. I wish more Buyer's and Seller's would make it a point to take their Agents to task.

Keep up the good fight.

Jan 14, 2008 12:31 AM

Simon Conway

Orlando Area Real Estate Services - Orlando, FL

Nancy - All very well if the agent works in an office with other agents.

Donna - How nice to see you on my blog. I'm sure you've had your baby by now, so congratulations. As for your comments, you could not be more wrong. You state very clearly "I represent the seller". But how are you representing the best interests of the seller if you let one of your listings go unshown because the potential buyers have an agent who is unavailable? You are not trying to solicit their business - they called you. Even in Texas I am sure you are allowed to open up one of your listings to accommodate an interested buyer. And the rest - no I am not allowed to contact the sellers directly, but that part of the code is clearly wrong when sellers are entrusting the sale of their home to lazy agents.

Jan 14, 2008 12:33 AM

Monika McGillicuddy

Berkshire Hathaway HomeServices Verani Realty - Hampstead, NH

Southern NH & the Seacoast Area

In NH, I would have been able to show them the house but would be required to do an agency disclosure with the buyers stating that I represent the seller and not them. Ethically to want two sides of the transaction is not in my seller clients best interest. It would violate the REALTOR code as well as my state law IF I put commission before my clients needs and not showed the house unless I got both sides.

Jan 14, 2008 12:35 AM

Simon Conway

Orlando Area Real Estate Services - Orlando, FL

Hugh - you make some valid points. No I had no time to qualify them so I might have been wasting my time. But I was giving exceptional service to my clients because I was giving them home another chance to sell. Your personal decision not to work on Sunday (by the way, that is the wrong day, but the subject of another discussion on another occasion) is completely understandable. I would only have a problem with it if you did not make it clear to your clients when you go on listing appointments. I know you and I know you do. As for the rest - lazy is simply lazy. We are on the same page on that one.

Dan - Nice to have you on board. I made this a public post deliberately and so I hope your clients and potential clients can see your dedication.

Jan 14, 2008 12:38 AM

Simon Conway

Orlando Area Real Estate Services - Orlando, FL

Monika - Well done to you too. It is legal in the State of Florida, but I do not believe you can cut yourself in two.

Jan 14, 2008 12:40 AM

Don Draughn - Mortgage Professional

High Point, NC

"You can have everything you want in life if you help enough other people get what they want in life." Zig Ziglar

Jan 14, 2008 12:42 AM

Chelle Gassan

RE/MAX Regency and Staged Homes VA - Bristow, VA

NOVA Realtor and Stager

I feel on both sides of the fence here...I agree with you about "dual agency" (as it is called in VA). I don't like it and don't want to be split between two clients. And if somebody called on my listing, I would definitely show it. But I also can't stand agents who know their clients want to go house hunting and don't make it a point to find someone to cover for them. I think they know that they may have to share part of their commission so instead they leave their clients hanging.

Jan 14, 2008 12:49 AM

Simon Conway

Orlando Area Real Estate Services - Orlando, FL

Don - I like that quote! Thanks for your contribution.

Chelle- I agree that buyers agents should not do this, but my responsibility is to my sellers and I will do whatever it takes - and no I won't be claiming anyone's commission. If the particular couple decide to buy this house and were unrepresented, I still would not represent them.

Jan 14, 2008 12:55 AM

Jason Crouch

Austin Texas Homes, LLC - Austin, TX

Broker - Austin Texas Real Estate (512-796-7653)

Simon - This, sadly, is why agents have a reputation for being greedy. I have represented both sides of a transaction before, but I would NEVER require someone to sign a representation agreeement just to view a listing. That is simply foolish behavior.

Jan 14, 2008 01:34 AM

Simon Conway

Orlando Area Real Estate Services - Orlando, FL

Jason- I agree entirely. I hope you saw the comment I made on your blog. We have a LOT in common.

Jan 14, 2008 02:01 AM

Elizabeth Nieves

The Elizabeth Nieves Realty Group - Durham, NC

Bilingual Raleigh - Durham North Carolina Real Estate Team

SIMON- This is so unfortunate. It is this type of behavior that gives the rest of us good guys a bad name. We have to work to overcome what those guys did. Still...when you do the right thing...good things happen. Blessings!!

Jan 14, 2008 09:59 AM

Billy Burke

The Auctionarium - Altadena, CA

CAI - AARE

You are a member of a monopoly.

It's the Chicago real estate mob.

If you don't like the mobs rules, then quit selling real estate.

The system may be broken and totally unethical but by gum its what you signed up for.

The Holy Bible is very clear that you cannot serve two masters.

Dual agency is illegal in 34 States.

You should pick up the phone and call the sellers, show some backbone.

Jan 14, 2008 10:14 AM

Simon Conway

Orlando Area Real Estate Services - Orlando, FL

Thank you Elizabeth

Billy - If I'm a member of a monopoly then how do you get to sell real estate? Also you state very clearly no seller commission, but you do charge an entry fee which you have to dig deep into your website to find. The system that I work is not unethical - and I never serve two masters so perhaps you should actually read the blog entry before commenting next time.

Jan 14, 2008 10:51 AM

Gary Woltal

Keller Williams Realty - Flower Mound, TX

Assoc. Broker Realtor SFR Dallas Ft. Worth

Simon, I don't understand those other listing agents. In Texas we can intermediary agency with an agent representing a buyer and seller. We also have agency disclosure (a notice) called Information About Brokerage Services.

Jan 14, 2008 03:00 PM

Jennifer Allan-Hagedorn

Sell with Soul - Pensacola Beach, FL

Author of Sell with Soul

It is our job as listing agent to show our listings, whether or not we will get double-paid for doing so! What is so hard to understand about that???

I rarely work in the upper-end market, but when I do, I find that I do much more of this. Guess the upper-end buyer agents are too darn busy... sigh. But whether I like it or not, it's my duty. I'm certainly not going to encourage a buyer to dump their agent - doing so will only lessen the possibility that the buyer will consider my listing. Which is in whose best interest????? Uh, NO ONE'S!!!

Jan 14, 2008 05:59 PM

Simon Conway

Orlando Area Real Estate Services - Orlando, FL

Gary and Jennifer - you are both on the right page with this one. Thanks for your comments.

Jan 14, 2008 11:23 PM

Anonymous

Simon:

My comments are not aimed at you or any other agent personally but rather to a system that is broken.

As for my selling real estate using "convential methods" under the broker/agent caste system...

That is something I am locked out of doing unless we bow down and kiss the ring of the Chicago real estate mob commonly known as the National Association of Realtors.

Auctions and auctioneers are excluded from 95% +- of board controlled MLS systems and the few that actually do allow auctions to be included require disclosure of confidential information (secret reserve) to non-fiduciary parties.

My point is (its a sidebar rant) the average person cannot get into the business of selling real estate for others unless they join the NAR and agree to all of the rules such as you have bound yourself to do because of the monopoly.

Because of the NAR monopoly one must also agree to unethical standards such as dual agency, (disclosed or not) while it may be legal in a few juristictions it is totally unethical under any circumstances. imho

As for pricing of our services? Where is your price list on your website?

I am the first auctioneer in the USA to publish a price list and it is easy to find if you go to the sellers section of the website: http://www.reauction.com/sellers/ and simply look at the navigational menu that is on every single page of the seller section.

A clearly marked menu item titled Pricing and Fees on every page of the how to sell real estate at auction is not hidden or "digging deep" to find something that is a requirement to use our services.

Actually my comment as a person who is 100% Sellers Agent was in support of your situation that what you are experiencing is wrong and detrimental to your customers.

Jan 14, 2008 11:28 PM

#28

Rob Arnold

Sand Dollar Realty Group, Inc. - Altamonte Springs, FL

Metro Orlando Full Service - Investor Friendly & F

Simon, maybe I missed it above. If an unrepresented buyer comes to one of your listings and wants to buy, how do you handle it? Do you act as a transaction broker, no broker relationship, or do you find another agent to represent them?

Personally, I love double dipping on my listings whenever possible. It is a fine line to walk though.

Jan 15, 2008 10:58 AM

Simon Conway

Orlando Area Real Estate Services - Orlando, FL

I pass them over to another agent Rob. Financially double dipping is wonderful I'm sure, but I simply do not understand how I can help my sellers get the best deal possible while helping the buyers grab a bargain.

Jan 15, 2008 01:44 PM