When you hire a REALTOR© to Sell your Home
I attended a great all day program yesterday in NJ called “HearItDirect” where professional real estate practitioners had the chance to sit and listen to a panel of REAL buyers and sellers explain their experiences in either buying, or selling a home with an agent recently. It was quite enlightening of what they felt was important and how they determined who would either list or help them find their next home. If any of you have to chance to participate in this program, it is highly recommended.
A topic that has baffled me for years now which did get quite an emotional response from the audience was when a buyer informed us that he had contacted the LISTING agent to view a home, even though he knew he did not want that agent to represent him with the purchase if in fact it was the one he choose to buy since he already had a working relationship with a buyer’s agent who was out of town. The moans and groaning from the audience members were deafening! One of the comments I heard from a fellow REALTOR© sitting behind me was, “What, we work for free?”
EXCUSE ME…………!?!
YOU DO NOT WORK FOR FREE….YOU ARE THE LISTING AGENT! Your brokerage has signed a listing agreement for a negotiated percentage of the sale price to be paid when the closing takes place! Out of that negotiated percentage, you and the owner of the home have agreed to pay another brokerage a certain percentage of that amount, if in fact, they represent a buyer who wants to purchase that property!
In New Jersey, unless your brokerage has an EXCLUSIVE LISTING AGREEMENT (which are very rare with residential listings) and have actually signed an EXCLUSIVE RIGHT TO SELL……you ARE NOT WORKING FOR FREE! When a potential buyer contacts you for a showing, you should go in with the same enthusiasm and energy level that you had when you thought you might be getting BOTH sides of the deal (buyer and seller) thus collecting the whole agreed upon percentage of the commission instead of the agreed upon commission for taking the listing side only!
Is this a delusional mindset that has somehow taken over the industry in years past? Have we forgotten when we sign that listing agreement that we are working on behalf of the sellers? Is it not OUR responsibility to price correctly, market, and put in place all the tools currently available on behalf of the SELLER to expose their home to a potential buyer including participation with the local MLS to attract other agents with a buyer? If a buyer happens to want to see inside the home, when their agent may not be available during a certain time frame, we refuse to participate? Are you kidding me? There seems to be a complete disconnect of their original listing agreement with a home owner….and the attitude when contacted (although I do not feel it happens very often) from a buyer, who for some particular reason cannot set up a time to view with their own agent!
Now do not get me wrong, I agree that having both sides of the deal can be financially rewarding, but in all honesty, when you display negative feelings toward assisting a potential buyer that is represented by another agent, YOU ARE NOT DOING YOUR JOB for your client, and I am sure the homeowner would be be quite surprised….".a potential buyer, and you refused to show the home, or did it begrudgingly...? I thought you were trying to find a buyer for my home?"
And open houses?
Most seller’s on the panel agreed they did not like them, nor did they seem to work. Most buyer’s like to go through open houses to actually “interview”agents! So listing agents, if in fact you are using open houses as a source for future business with buyers as we all do, and we are not willing to reduce our commission with the seller of that home for these prospects who will produce our future income,I think we need to reassess our role as representing that seller as their listing agent and greet every potential buyer with professionalism AND enthusiasm!
We do not work for free. When the home is sold, we are paid our agreed upon listing side amount. If by chance the selling side is another brokerage, we have done what we said we would do from the start. Treat all potential buyers with respect, keeping in mind who you represent, and who is in fact paying the commission.
Opening up a home to show a potential qualified buyer, even though you may not represent that buyer, is PART OF YOUR JOB, and NO, you are not working for free!
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