I am sick and tired of the intense rivalry between independent sellers (aka For Sale by Owners or FSBOs) and real estate professionals. Agents refuse to show FSBOs, and FSBOs refuse to pay any commission to an agent with a buyer. Both claim to sell faster and for more money, and both base their arguments on stereotypes, half-truths, and skewed statistics. Honestly, this kind of immature behavior is downright counter-productive to both sides. I mean, c’mon, people – we all have a common goal – to find the perfect homes for buyers and to sell properties quickly for top-dollar. We essentially have the same job – so quit your bickering and act like professionals!
Case in point, while preparing for my upcoming FSBO seminar, I stumbled across a particularly scathing article on fsbo-kc.com (http://www.fsbo-kc.com/MLSDisadvantages.asp), claiming to deliver the “truth” about the MLS (Multiple Listing Service). Once again, instead of presenting clear, objective evidence, I found myself reading the same bitter and biased news as always.
Pearson says: “Sellers are required to pay a buyer’s agent commission.”
NOT TRUE! Commission is always negotiable. If you make it clear that you are not paying buyer’s agent commissions, that agent will need to work out a payment plan with their client. It is traditional for the seller to pay the commission, since they are the party profiting from the transaction, but this is by no means set in stone. The beauty of contracts is that you can rewrite them to suit your needs!
Pearson says: “Buyer’s agents will never offer you full price.”
My response… “DUH?”
The entire role of a buyer’s agent is to work for their client’s interests. Part of those interests is getting the lowest price possible of course. Many agents offer a price lower than the listing price in hopes of (here’s the magic word of the day) … negotiating. First, it doesn’t take an agent to do this – un-represented buyers will do the exact same thing. Secondly, the agent, in a way, is just the messenger. The agent can advise their client on an offer price, but it is ultimately the buyer’s decision. Please don’t shoot the messenger here by blaming agents for their client’s poor decisions.
Pearson says: “It is basically impossible to cancel a listing agreement.”
Again, this is blatantly false. In many cases, all you have to do to get out of a real estate contract (if you’re dissatisfied with service) is tell the listing agent. If they are a respectable, ethical agent, they will realize that it is better to let you out of it than to fight you for the remainder of the contract, and it could be in both your best interests to let you either pursue a different agent or sell independently. There may be some situations in which you could still be responsible to pay an agent commission even if you cancel your contract, but these are simply for the protection of the agent and not anything sneaky or unethical. If you have questions about your listing contract, feel free to ask for clarification.
Also, don’t feel like you have to sign a six-month or longer listing agreement. Like I said, contracts can be rewritten to suit your needs, and if you are more comfortable with a 3 month or even a 30-day listing agreement, that is definitely workable. Letting an agent know your concerns upfront can help alleviate any tension and help them better serve you.
Pearson says: “Most agents don’t sell their own MLS listings.”
First of all, it is illegal in most states for an agent to sell their own listing to their buyer client. It is called dual agency and it forms a conflict of interest and an ethical dilemma for the agent. Simply put, it is impossible for the seller to get your best price (usually higher) and the buyer’s best price (usually lower). It is impossible to save you money by selling “as-is” and ask for the improvements the buyer needs. It is a moral quandary and therefore much easier when it involves a different buyer’s agent.
Secondly, what are the chances that, of all the properties available, their buyer client’s needs and wishes align perfectly with what your home has to offer? Definitely possible, I’d say, but far from likely.
Pearson says: “MLS listings remain in the database indefinitely, and days on market (DOM) is always visible, which hurts your bargaining power.”
Is it just impossible to put yourself in the position of the buyer for five seconds? Most people selling their homes, whether independently or with assistance, are purchasing a different home. Wouldn’t you like to have this kind of information at your disposal to increase your leverage as a buyer? In all honesty, this has very little to do with agents and more to do with basic economics and the psychology of buyers and sellers. Yes, you have different interests. But, it is possible to come to a satisfactory conclusion for both parties.
By the way, what is the alternative, would you just prefer to lie about your past sales prices or how long you’ve been on the market? Does it just irritate you that the MLS holds people accountable and makes it harder to be dishonest? If this information was not available, would you claim that agents are trying to cover it up?
What I dislike most about this article is that it makes all real estate professionals out to be sneaky salespeople just looking to earn a buck. Pearson's article begins "what agents and brokers don't want you to know," and then describes common-knowledge and legitimate, ethical practices in a negative light, which is simply unfair and downright manipulative. Why would an agent or broker hide something that is legal and ethical as if it was something to be ashamed of?
Dale Pearson make MONEY off of people hating real estate agents. That is why he feels the need to spread vicious, false information about their profession -- because the more people he aligns against agents, the more people sell on their own, and the more people use his products and services. Everyone has an agenda.
GIVE THEM THE TRUTH, MR. PEARSON!
People make better decisions with more information, but it is impossible to make good decisions based on false information. Let consumers make their own decisions, based on unbiased, truthful information, rather than half-truths, twisted statistics, and hidden agendas.
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