Keeping Secrets from Our Clients

Every Day we hear about how today's home buyers are fixated on value.  They're smarter, more sophisticated and have access to tools and information that makes them more informed and astute buyers.  That may all be true but, after reading the engagement agreements of more than a few relocation/referral companies, I've got a few questions about the decisions some of them (and we) are making.

How Come buyers let themselves get mauled by various relocation/referral companies that promise endless "Buyer Benefits" but who deliver only a fraction of the referral fees paid to them by agents who agree to work for huge commission discounts?

How Come undoubtedly intelligent buyers think it's likely that an agent who's giving up 35-40% of their livelihood can provide the same level of care to them as to a client who didn't buy the agent at a deep discount?  Agreements and our good intentions notwithstanding, this is a "touchy, feely" business and it can be difficult to warm to clients assigned to us mostly because we were the lowest bidder. 

How Come so many agents don't care that, under many of the referral agreements, the client "belongs" to the referrer and that the agent is barred from even entering them in a contact database for purposes of solicitation of future business?  If the agent changes offices or opts out of the referral program, those clients are gone forever.

How Come, even though most States have Agency laws that require disclosure of material facts, agents comply with the requirement not to discuss the amount of the referral fee being paid to the relocation company?

How Come, where the relocation company offers financing, agents agree to immediately contact the relocation company, without the buyers' knowledge and consent, if the buyer explores other lenders?  I'll concede that the client could ultimately get a better deal as a result of all this cloak and dagger but shouldn't we be concerned about the sneaking around required of us (not to mention how warmly we'll be received in the future by the local lender who's offer we passed on)?

My purpose is not to heap scorn upon anyone who chooses to work in this environment -  I realize we all gotta make a living.  I guess every now and then the "business is business" mindset makes me a bit nauseous and I need to vent.

For Further Information or to learn about the Mountain Home area and real estate market, please visit me at www.mtnhomejan.com