It’s the same story at every open house. Without fail there are the same types of people. The “I’m looking for someone else” buyer, the “I have an agent, but do you have any other listings to show us” buyer, and recently the “I don’t have an agent so I can get a deal because you’re not splitting commission” buyer. This is one of the bigger issues in our market right now. Low inventory, first time home-buyers and double ending listing agent. Let me start by saying I’m not against it and a ton of work goes into doing a deal solo just with the liability alone of dual agent/disclosures. The commission is deserved when done ethically and honestly but if you think about it the seller wants the best price and terms while the buyer wants the lowest price. This poses a problem in itself.
The issue I have is the ethics of having an un-split commission on the line. As much as anyone says they are doing what’s best for their clients, when you stand to make between $15-20k on one transaction it’s hard not to end up in the grey area. Agency disclosures or not, most people still don’t realize that when they don’t have an agent, the listing agent represents the sellers interest alone. So no matter how close you get and great they seem to you, the client representation is not there. Here are a few of the roadblocks I’ve been currently facing. I’m sure there’s a lot more out there that other agents can add to the list.
Roadblock #1 - One of the bigger things I’m seeing is agents making properties difficult to show. No Shows Til Next Week, Temporarily Off the Market, No Shows Til Broker Open House, seems to be common in the description remarks right now. Yet, if my buyers call directly they’ll have no problem getting to see it on the listing agent alone. These agents basically want MLS exposure but have no interest in working with another agent.
Roadblock #2 - Then we have agents that are dissuading you from putting in offers. They won’t let you present directly to the owners (and don’t even know what a letter on file is), and when you tell them you have an offer they already have offers over listing price. In most cases they buyers walk away frustrated without putting their offer in. In some cases they’ll put it in anyway which leads us to number 3.
Roadblock #3 - The worst offenders have you make it through all the obstacles they’ve put up and then just doesn’t present offers from agents to the sellers. So even when you get past these blocks the seller never hears it at all or presented the way it should be. If it’s a hot listing no one will ever know, especially if you have other offers that are close in price. These are tough allegations to prove and enforce which is why it’s been open season for shady agents in this market.
My question to the buyer is would you rather have representation from an agent dedicated to represent your interests or think you’re getting a deal from an agent that has a double commission on the line?
Anthony Grosso
www.grossoproperties.com
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