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Agents Beware Buyers Will Go To REALTOR.com!

By
Real Estate Agent with Coldwell Banker Traditions

By Elaine VonCannon, ABR, SRES, REALTOR, Notary, Team Manager

I was leaving my office the other afternoon when I saw a fellow agent in the parking lot.  We stopped and shot the breeze for a while and then I was told about some experiences that my friend has had recently.

It seems there is a firm in our area who's agents call and told my friend that they cannot show her listing if the commission is under 3%, that this is the policy of the whole franchise.

Now, I understand policy.  But let's take a step backwards and relook at this.  If you have clients who get auto email updates on listings from the MLS and they see a home that says it is on the market.  They call you, what will you tell them?

•1.     It is not on the market

•2.    It is under contract.

•3.    You are not going to show it to them unless they make up the difference in the commission rate SO YOU WILL GET 3% OF THE SALES PRICE BECAUSE THIS IS YOUR FIRM'S POLICY.

•4.    You show it and point out all the negative features and try your hardest to make them hate the property.

Ok, now suppose they do not buy any of the above.  Or they drive by the property to see if they like it.  They call the listing agent, as you know we have no control over what Buyers do. They tell a friend or family member about the property and they call the listing agent to be helpful of course and they ask questions about the property.

So you say, I will not put my Buyers on auto email.  I personally do searches myself and send them to my buyers.  Find, BUT WE STILL HAVE THE WEB SITE CALLED REALTOR.COM.  THE BUYERS STILL CHECK THAT OUT TO MAKE SURE THEY HAVE NOT MISSED ANYTHING ON THE MARKET OR THE BEST DEAL GOING.  AND THEY SEE THE HOME ON THE SITE AND CALL YOU, THE LISTING AGENT, DRIVE BY THE HOUSE AND TALK TO THE OWNER WHO HAPPENS TO BE OUTSIDE WORKING IN THE YARD, YOU GET THE PICTURE.

I just hope the agents of this firm has lots of Buyers in case the buyers walk because of the policy of the firm about 3% commission policy.

Joe Virnig
RE/MAX Gold Coast REALTORS, Ventura County, California - Ventura, CA
No Ordinary Joe

Discussions on commisions are very dangerous and ones that mentioned specific amounts are doubly so.  If a company wants to institute such a policy, then they should have their buyer's sign buyer brokerage agreements with their minimum commission stipulated.  And the policy should be clearly explained to the buyer.  If that's covered...so are they.

Jun 27, 2008 12:35 PM
Richard Byron Smith, NMLS #184479
Mortgage Loan Officer, Fairway Independent Mortgage Corporation NMLS #2289 - Chattanooga, TN
Mortgage Loan Officer

My son just today closed on a home purchase. He used me as the loan originator.

But with my strong recommendation he stayed with a good buyer agent.

She advised him, helped negotiate for him, evaluated potential resale, likely repairs, local neighbor concerns.

He looked at Realtor.com. They, and I, worked together to find properties, but she scheduled the visits, went into the listings, inspected the properties, researched the offers. She added much more value to the transaction that just finding the homes on the MLS.

That is what home buyers need. That is what my son needed. Not an agent with access to the internet listings, but an agent that makes their decision process informed and their transaction smooth.

Thanks,

Richard

Jun 27, 2008 12:35 PM
Roseann Annis
Prudential Homesale Services Group - Camp Hill, PA

Elaine, Thanks for your witty and timely blog. Honesty is always the best policy.  REBAC reviews the obligations of REALTORS to clients in terms of commission rates very clearly.  The thorough buyer's consultation covers the variables of commission and explains the options that clients have if the amount offered by Listing Broker is less than what the Selling Broker normally accepts.  As you know, there are standardized forms offering the option for the, the Buyer and Seller to work come to negotiate the commission fee, if needed. Buyers' having access to www.REALTOR.comis a good thing for all of us.

Jun 27, 2008 12:41 PM
Patricia Murray
Premiere Plus Realty Co. - Naples, FL

Hi Elaine --

In Florida -- that is illegal to "not show" for that reason (less than a certain %) - not that we don't see that or actually choose to show others, but we don't or can't say that out loud.  I assumed that was a "national" law for us???? I think I'll look it up - but I can't imagine a franchise to state that if it were illegal. --- hmmm.

  

Jun 27, 2008 12:44 PM
Michael Wolff
Wolff Financial Services - Encino, CA
Your Total Mortgage Advisor!

Um.... Im confused.  You dont want to show a listing because SO commission is less than 3% and your company wont allow it?

 

 

Jun 27, 2008 12:46 PM
Dominick Dina, MA, REALTOR®
Christian Realty San Antonio - San Antonio, TX
GRI, e-PRO, TAHS, SFR, Notary Public

Someone wants to lose their license and go to jail.  Isn't there a law against price fixing?? 

Good luck

Dominick Dina

Christian Realty San ANtonio

Jun 27, 2008 01:02 PM
Elaine VonCannon
Coldwell Banker Traditions - Williamsburg, VA

To: Um @ Wolf Fin........I will show my Buyers any property they are intrested in........this was a story told to me by an agent who is a friend of mine.

To: Dominick: Not price fixing and it is against the law......but the other firm I was told, told my friend they would not show a lsitng less than there part being 3%, they did not say what the whole comission has to be , just what they wanted.

To: Patrica, this is what a friend of mine told me other agents told her when they called her about her listing.......nothing in writting, that one could prove.......

To: Roseanne....THANK YOU.......

To: Richard........YES, THAT IS HOW IT IS SUPPOSE TO WORK, BUT YOU KNOW AS WELL AS I THAT IS NOT ALWAYS THE CASE.........

tHANKS TO ALL FOR READING MY BLOG AND TAKING THE TIME TO COMMENT........

 

Jun 27, 2008 02:19 PM
Tom Davis
Harrington ERA,DE Homes For Sale, $$ Save $$ Buy Today ! - Dover, DE
FREE Delaware Homes Search!, $$ Save $$ - Find Homes! Delaware Realtor

I always ensure customer satisfaction,

Thanks,

Tom Davis

World Class Delaware Realtor

Jun 27, 2008 04:52 PM
Debbie Summers
Charles Rutenberg Realty - New Smyrna Beach, FL

These guys are out of their minds...  I can't imagine not showing a property because it wasn't a 3% commission.  Who's best interests are they looking out for?

Jun 29, 2008 02:52 AM
Elaine VonCannon
Coldwell Banker Traditions - Williamsburg, VA

Debbie,

You hit the nail on the head.....THEMSELVES......Thanks for your comment.......

Elaine

 

Jun 29, 2008 08:30 AM