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"If listing agent shows home for buyers agent, listing agent may reduce buyers commission"

By
Real Estate Agent with RE/MAX Compass 0524642

According to the Houston Association of REALTORS® it is policy that an agent may not place the following language under Agent Remarks:

"If listing agent shows home for buyers agent, listing agent may reduce buyers commission"

I understand the Listing Agents frustration. A buyer calls and says "their agent is out of town/touch or on vacation" but that they want the listing agent to show the property..... AND eventually uses THEIR agent to write up their offer. It's without question a very heated subject amongst REALTORS®. Agents despise when an out of town agent instructs their buyer to "go call listing agents"and that THEY will write up the offer. Listing Agents view the buyers agent as being lazy and undeserving of their commission.

But isn't it the Listing Agents job to show their listing to anyone that so desires?

No.

The Listing agent has a duty and fiduciary responsibility to represent their sellers best interest. That said, Listing Agents are like any other agent. They're busy. They're running a business. They can't drop what they're doing and race all over town to show properties to every single person that calls. They have to pick and choose how they run their business with QUALIFIED BUYERS.

As a deterrent Listing Agents have been adding verbiage in the MLS that only agents can see that reads:

"If listing agent shows home for buyers agent, listing agent may reduce buyers commission"

You can't do this on the Houston MLS. Doing so could cause you a fine and repeated violations could cause you expulsion as a member from HAR. You can't use random and unapproved language to threaten agents, regardless if you are frustrated with agents who work 7 hours away.

 

Posted by
Greg Nino
Realtor
RE/MAX Compass 
Direct & Text 7 days a wk: 832-298-8555 
 
 
Realtor since 2004
Mediator & Arbitrator for the TX Assoc. of Realtors
Member of the Professional Standards Committee for the TX Assoc. of Realtors
Arbitrator for the Comptroller's office for the State of TX for Arbitration of Property Tax Values

 Member of the RE/MAX Hall of Fame & Platinum Club

 

The information contained in this blog is believed to be reliable and while every effort is made to assure that the information is as accurate as possible, the author of this blog, and its comments disclaim any implied warranty or representation about it's accuracy, completeness or appropriateness for any particular purpose. All information is copywritten and the property of Greg Nino.  

Comments (19)

William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Greg,

Having a bad day are we?

There are/were very few agents I'd trust to show my clients anything!

But, I have a big problem with the idea of letting a buyer go for the little effort required to show my own listing! Shuning that buyer certainly isn't taking care of your fiduciary!

It's a crumondrum!

Bill

Feb 17, 2012 07:31 AM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

We have this put in our MLS all over the place, wonder if it's legal & someone just hasn't flagged it yet? I have to say I've never thought about it until now.

Feb 17, 2012 07:35 AM
Steven Cook
No Longer Processing Mortgages. - Tacoma, WA

Greg -- obviously it was getting out of hand if the MLS had to make a rule about it.  If people still do it, even after the rule is made, they are the ones with the problems.

Feb 17, 2012 07:41 AM
Brenda Mullen
RE/MAX Associates - San Antonio, TX
Your San Antonio TX Real Estate Agent!!

Getting a home sold and a buyer to closing is much more than just showing the property.  That being said, a buyers agent who just sends their buyer to the listing agent is a knucklehead and lazy, (unless something is truly going on). 

Not much we can do about that if we have a ready, willing and able buyer whose agent is absent for the showing,  Sometimes we just need to grin and bare it...(sucks though).  

Feb 17, 2012 08:55 AM
David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

Interesting I have not heard of this and if that were my Realtor then that would be the EX Realtor and the one who showed me the property or someone else who took the time to help assist me would get the biz and commish.

Feb 17, 2012 09:19 AM
Doug Rogers
RE/MAX Coastal Properties - Destin, FL
Your Real Estate Resource!

I'm happy to show my listing for another agent, if he/she tells me in advance. Life happens, and my goal is to get that listing sold. But agents who always have something come up? Not so much...

Feb 17, 2012 10:12 AM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Greg - Depending on the situation, I'm willing to show it.  However, in some cases this is just annoying, especially if the agent isn't familar with the area, doesn't want to come for the inspection, walk through, appraisal, etc.  In which case, it seems we should be able to cut commission.

Feb 17, 2012 10:27 AM
Jordon Wheeler
The Jordon Wheeler Group - Fairburn, GA
J W Group Real Estate Sales and Service

Greg,

You pick the best fights to blog about. LOL!  I have seen this language on show Georgia listings in the MLS but not sure if MLS considers it a violation.  I will have to check.  Best of success to you!

Feb 17, 2012 10:45 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Greg, We recently closed a listing just like this.  Buyer claimed buyer's agent had a "death in the family".  Could have been true, could have been a big fat fib.  We showed it (and we know he looked at other properties without her).  "They" wrote an offer without her stepping foot in the property.  I'd swear she gave him a blank contract and he filled it in and then she signed it without checking it.  Lots of blanks and omissions.  Regardless, our listing is sold and she got paid....how much she rebated the buyer we don't know.

Feb 17, 2012 11:14 AM
Michelle Gibson
Hansen Real Estate Group Inc. - Wellington, FL
REALTOR

Greg - I've never seen any agents in my area put language like this in our MLS, then again a majority of listing agents will not show property to a buyer who's already working with an agent even if it's their listing.  If my schedule allowed I'd be open to it, but they'd have to jump through the same hoops that my clients do.

Feb 17, 2012 11:29 AM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

I don't do it within my MLS, but I do it to agents who are outside my MLS and I can and I will.  It's crap. 

Feb 17, 2012 12:07 PM
Eric Michael
Remerica Integrity, Realtors®, Northville, MI - Livonia, MI
Metro Detroit Real Estate Professional 734.564.1519

I'll show my listings to other buyers agents people, as long as I can verify they're legit purchasers. Not wasting mine or my sellers time "just because."

Feb 17, 2012 12:55 PM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

I understand the frustration, especially if the buyer's agent never shows up for inspections, etc. It seems to me that reducing the commision would be fair as long as fair warning was given. Guess Houston MLS thinks differently.

Feb 17, 2012 04:48 PM
Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

I never see these comments in my MLS but would be pissed if I did. I don't take on too many buyers at once because I want to be able to show them houses. That is what they hire me for. I've had agents call me to send their buyers to my OH and will I honor it. Of course I would honor it but I am not going to drop what I am doing to show my listing to buyers that have a lazy agent.

Feb 17, 2012 08:34 PM
Coral Gundlach
Compass - Arlington, VA
Real Lives. Not Just Real Estate.

I never see comments like this in our MLS.  I do not get all twisted out of shape when I show one of my listings to someone who has an agent.  It doesn't happen that often and actually the 3 times in 8 years I have done it, they've bought the house and the agents were all pleasant to work with.    I do see it as my duty to my sellers to show it.  Yes the idea of giving half your commission to an agent who is either checked out or on vacation  stinks, but it's not always the case that they are bad.  Sometimes a buyer gets impatient and has to see a listing when their agent is out of town, sick with the flu, with other clients, etc, and it does not make that agent a "bad agent" or lazy or stupid.

Feb 17, 2012 08:48 PM
Dianne Goode
Raleigh Cary Realty - Raleigh, NC
Realtor/Broker

I've never seen such a statement in our MLS.  If I'm out of town and my buyer wants to see houses, I pay another agent in my office to take them out for me.  I expect other buyer's agents to do the same.   That said, in case of an emergency situation. I would certainly help out a fellow agent if I could.

Feb 18, 2012 07:43 AM
Greg Nino
RE/MAX Compass - Houston, TX
Houston, Texas

Dianne,

You pay other agents? How much? Just curious.

Coral,

Luck you. I see them every so often. I don't get all twisted about it either, but have. I had an agent 6 hours from my listing tell her buyer that he should just call on listing agents and she'd write up the offer. come to find out the buyer was getting a full rebate from his agent. the agent said she wasn't going to drive down here for "nothin" In Texas we have minimum service laws, especially if you have your client sign a buyers rep agreement. The agent is legally bound to "represent" their client and be there for him. An agent cannot be effective and provide a reasonable level of svc if he or she is laying on the couch 6 hours away. A buyer meets a listing agent and it's likely the buyer may say or do something that could accidentially show their cards or harm negotiations on their own end. Buyers will ask questions they wouldn't ordinarilly get to ask if they had an agent. A listing can and will use this information to better position the seller, not the buyer. A listing agent can do this and still be ethical. At the end of the day it's not wise to sign a contract with your buyer and then cut him loose to go find a home. It's a bad practice....... according to our real estate commission and Association. I've asked.

 

Feb 19, 2012 01:01 AM
Sussie Sutton
David Tracy Real Estate - Houston, TX
David Tracy Real Estate for Buyers & Sellers

I too would also pay a fellow agent to show my listing if needed. But I have good REALTOR friends and most would not take the funds. They know I would do the same for them.

Feb 19, 2012 11:45 AM
Richard Weeks
Dallas, TX
REALTOR®, Broker

I think this rule applies to all MLS.  Most agents just never take the time to read the rules and regulations.

Feb 26, 2012 10:16 PM