I recently came across Real Mart Realty's website. Real Mart Realty is a discount broker in my area which in the past has just dealt with listing houses on the MLS for a fee, but the seller basically sells their house on their own. Well recently we are seeing customers coming to our open houses that say they are working with a Realtor from RealMart Realty. So I decided to check out their website. Basically what happens is, the buyer is pretty much on their own, and they go to open houses, saying they are working with a Realtor from Real Mart. If they like the house and put an offer in on it, and they get the house, and let's say the buyers commission is 3%, Real Mart will pay a rebate to the buyer of 2% and keep 1% for themselves. Paying rebates to buyer's is now legal in New Jersey. However, on this website, there is a section called Buyer's Tools, and how to get a 2% rebate. Here is the link to this page: http://realmartrealty.com/BuyerFAQs.aspx#Top
If you look at paragraph 8, last part, Real Mart is telling their clients not to disclose they are getting a rebate because it might affect the negotiations. Isn't this un-ethical? Don't we have to abide by Full Disclosure? However, now that I know this, if a potential customer has a Real Mart agent, I will know they are getting a 2% rebate, mention this to my seller, and we can adjust our negotiations accordingly.
If you look at paragraph 9, it states that if there is no open house at a house that a buyer wants to see, to use the "Wrong Address Approach" and go to the house, meet up with the home owners and say that you thought they were having an Open House and that you must have gotten the wrong information from Realtor.com . Isn't this a lie? Check out this link, and read paragraph 9: http://realmartrealty.com/BuyerFAQs.aspx#Top
ISN'T THIS UN-ETHICAL? DOESN'T IT VIOLATE THE CODE OF ETHICS THAT WE AS REALTORS SUBSCRIBE TO?
I am curious to know your thoughts.