I don't go head to head with other REALTORS for listings very often. Mostly, I work from referrals, but the other day I arrived and found out I was being compared to another REALTOR. I did my best dog and pony show, and at the end I asked them to make a decision. That was when I was caught off guard. The people said they would make more money using the other REALTOR. So, I explained that reducing the commission usually results in less service, and in this market it was not a great idea. Then they surprised me by saying, "No you are charging the same commission." So, I assumed the other agent was recommending a higher price, and I explained that anyone can overstate the value to make the return look better, but my comps were based on reality not wishful thinking. Then they surprised me by saying, "No they are recommending the same price as you." At this point I was curious. So, I asked if I could look at my competitor's net sheet. Almost every closing cost was understated by 40-50% (including taxes, recording fees, and promulgated title insurance rates). I then sat back very confident, and said "Well you should use me because I am not going to lie like this agent has." Another listing is in the coffer.
Good job.. Over and over again I see agents trying to just get a listing and not offering to be of service in the SALE of a home.. and over and over again those listing hang on the market .. the seller all the time feeling like it must be "their" home
Sad as it is, my experience has been that many (maybe most) Realtors don't have a clue as to how to prepare a net sheet. Why this isn't really stressed in the pre-licensing classes (at least here in Florida) is beyond me. You have to get to the Broker's classes before you are actually tested on completely configuring a net sheet. Things that make you go "Hmmm . . . "
Chris Ann - Seems a little difficult for me to believe that you would have passed up the opportunity to say the other agent lied if you are willing to say I stooped (after all I am the one who told the truth).
Robin - This is very true. I try to stress this to my agents. Mistakes on net sheets erode confidence at the very time when the clients need to feel everything is going the way their agent said it would. Additional training at the prelicense level would be a good thing to protect the public.
Mary - Glad you caught that!
Greg - Me too.
Konnie - I usually don't refer to any other companies as a comparison, but in this situation I just had to figure it out.
Eric - thanks for the comment
Matthew: After taking the listing, the next step should be to inform the other agent's broker. I kind of go for the West Point honor code" I will neither lie, cheat or steal nor tolerate anyone who does."
If the Realtor Code of Ethics is to mean anything, we must weed out our own rotten apples.
Matthew, Good for you. It's nice to know that honesty does pay off in the long run. Congrats and Good Luck.
I would have never thought to reduce the closing cost to get a listing. what a shame . This crap makes us all look bad.
Good for you! I am always shocked by what goes on out there, whether intention by with lies or unintentional with ignorance. Nice to know it pays to be honest and informed!
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