Long Island Real Estate Market - Why It Doesn't Pay To Hire A Discount Real Estate Brokerage

By
Real Estate Agent with Douglas Elliman Real Estate in Babylon NY

As I was perusing my local MLS online last night trying to find condos and co-ops so I can knock on doors and say hello, I came across a two-family home in the midst of all these condos and coops. I had to look at the listing three times because I was in such disbelief that a HOUSE listing was in the middle of all these condos and co-ops. It was obviously misplaced which shouldn't happen. He listed his home in July!

So, by MLS rules, I cannot, as a Realtor, try to get him to list his home with me when it's listed with another Broker which was not my intention in the first place.

I called the homeowner and introduced myself. When I told him his two-family home was listed with condos and co-ops he was livid as well he should be. I told him to call his discount brokerage and have them change it. He told me now he knows the reason why no one has called him. I could tell by his tone of voice he was angry, bewildered and disappointed. He said, thank you so much!" and we hung up.

Now, when he told me now he knows the reason why he hasn't received any phone calls, that is not the only reason. A discount agency will not give you open houses, and keep in total communication with you. They won't even have all of your best interests at heart. The Buyer Agency fee is so low, there is NO incentive for other real estate agents to show the home.

You know the saying, "you get what you pay for" and sometimes it's worse than that.

 

Comments (12)

Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Of course playing devils advocate I must say there is no such thing as a "discount" real estate brokerage.  There are different models of service but since commissions can not be fixed there can not be such a thing as "discount" brokerage.  Sounds as if he may have ended up with limited service and that is a different beast all together.

Nov 07, 2009 04:01 AM
Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

I didn't get too much involved wit him since I can't. But he was very angry.

Nov 07, 2009 04:04 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Jackie - I have seen that from time to time as well. As you know, it is NOT just discount brokers who do not hold open houses and communicate .... unfortunately many "full service" and full commission agents will also take a listing, maybe put a sign in the yard, maybe a lock box, and enter into the MLS.  I often wonder .... are sellers really that naive .... or did they just get sold a bill of goods that are not delivered?  I hope you follow up with the sellers and ultimately get the listing!

Nov 07, 2009 04:05 AM
Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

Oh Kathleen..........I plan on calling him!

And yes, unfortunately there are agents that put a sign on a lawn, shoo the open houses, and have very little or no communication.

I don't think sellers are naive. I just think it's others talking the talk and when someone is really good at that, why wouldn't a seller believe them? I find most people are nice and smart. And sometimes you can get snowed without realizing it.

Nov 07, 2009 04:11 AM
Dan Tabit
Keller Williams Bellevue - Sammamish, WA

Some limited service companies collect a fee upfront, spend 10 minutes loading the data that the seller has provided without verifying its accuracy and order a sign.  They have no vested interest in whether the house sells or not, they have their money.  Is it any wonder why they have a huge ratio of canceled and expired in comparison to sold?

Nov 07, 2009 04:29 AM
Stephanie Frost
Home Team Realty - Ocala, FL
CDPE, SFR

It doesn't always hold ture by any means, but generally "you get what you pay for".

Nov 07, 2009 04:38 AM
Karen Kruschka
RE/MAX Executives - Woodbridge, VA
- "My Experience Isn't Expensive - It's PRICELESS"

Jackie  I have to agree with Cindy about the term "discount broker", but I am not certain you should even had told him about the listing error - you should call him and,if not fixed, call yourMLS

Nov 07, 2009 05:52 AM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Jackie, I think our MLS needs an overhaul.  I don't understand the lack of pictures or descriptions that are accurate.  I think if they had stricter regulations on it and people to reinforce it that would certainly help the market here.  I feel very sorry for that seller and hope he gets it corrected asap!

Nov 07, 2009 11:39 AM
Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

I have in the past faxed over a copy of a listing to MLS that said the listing was available and it would turn out the home would be UC. Unfortunately I see that from time to time.

Around here we call them discount brokerage because that is how they advertise themselves. Doesn't matter because they say they offer everything under the sun when in fact they do not.

I am keeping an eye on that listing and will call MLS if it's not fixed by Monday.

Nov 07, 2009 11:40 AM
Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

I agree Carole but my local MLS seems to depend upon us agents to report errors on listings. We have a fax# to send those listings over and fines are imposed. I see so many listings that have a few pictures when we can actually have 12. It's detrimental to have blurry pics and hardly any. I know as a buyer, I would pass up the listings that had blurry and lack of pictures.

Nov 07, 2009 10:58 PM
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

Jackie...Not sure if you were "Permitted" to contact them at all. Did you ask your broker first before making that call?

Nov 07, 2009 11:42 PM
Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

I spoke to my broker after the call. I wasn't going after the listing, just pointing out the error. He thanked me and that was the end of the call. :)

Nov 08, 2009 04:03 AM