Best Practices Tip--Refer your relative/client-don't press a bad situation!

Real Estate Agent with The Kelly-Norman Team Keller Williams RE

I know times are tough for many a Realtor out there in real estate land. We are tempted to work outside our areas of expertise because we really NEED a transaction to close! But as the old guru once said, "Always want a deal but don't NEED a deal!" I see way too many Realtors working either out of their area or out of their area of expertise as they desperately need a deal! I hear it all the time and the excuses range from, "They are one of my best clients and absolutely won't work with anyone but me!", to, "It's my cousin, she only works with family!".

  I see folks coming up to my area who cannot acess the MLS, can't get into the home as they don't have a suitable MLS keypad but insist they can perform and REPRESENT their client with the highest form of standard of care. I don't belive it! My market  is dominate currently by the REO/Short-Sale with homes under $500,000 generating multiple offers and overbids. I see Realtor/Agents coming into my marketplace askng for a combinatin code to get into an REO I have for sale (we don't give these out as this compromies the security of our MLS and is strictly for Vendor/appraisal work), or insist I SHOW their clients a property! They then send me an offer, NOT TO THE GUIDELINES specified in the MLS confidential remarks (because they've never seen them!), based on NO local knowledge or market conditions because THEY NEED A DEAL!!

  What of our client's needs? Does their buyer deserve this treatment? They are NOT alerted to the hot new listings, are fumbling around in the dark relying on a relative or Realtor/agent NOT keeping their interests in mind and at the fore of the transaction. So why not refer and get a 25% fee for insisting their clients work with a local expert! I have had Realtor's/Agents I've networked with for years call me out of the blue to have me "show" their client a property, ask me for "comps" and what price they should structure the offer!!

  When our prices went through the roof across the Bay Area we had this happen all the time as Realtor/Agents felt why refer when I can get half!! Now with prices tanking the agents are repeating this because they are NOT closing any deals in THEIR market area!!  I know I'm venting but this lack of standard of care infuriates me!! Your thoughts?


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Tim Monciref - Austin, TX
Over 2,000 homes sold…..

Never ever lose your focus in any market.  If the listing is more than 10 miles from me it is being referred.  If it is a relative it is definitely being referred.  The biggest error agents make in down markets is changing their focus.

Jan 03, 2009 04:43 PM #1
Tim Taggett
Temecula - DC Self Inc - Temecula, CA

Michael -


I have seen some of the very same things for both counties I work in here in Southern California. In fact had an agent today that was talking to me about one of my listings and still asked me what brokerage I work for, after telling her 3 times I still had to spell it out for her. It is all in the MLS and that property is pending with back up offers and yet still she asked about showing it and about putting in an offer. What I don't understand is if she really has these 2 clients she claims to have that want a place there is why she does not bring them to one of the other 22 listings in that community. Granted I have 1 of only 2 REOs all the rest are short sales but come on. After spending too much time on the phone with her telling her what appliances were in the place I was just waiting for her to ask for me to write the offer too.


As it has been said for years..... the cream of the crop rises to the top!


God Bless and Try Not To Stress TOO MUCH!



Jan 03, 2009 04:55 PM #2
Peter Testa
Nationwide Homes - Danbury, CT

I see it all too often & with even greater consequence in situations where a Realtor takes a pre foreclosure client & the agent has no Short Sale Experience or Training. Learning the ropes at the expense of someone elses livelihood is irresponsible & unethical. The client inevitably goes to foreclosure all to often. I know times are rough but leave Short Sale negotiations to the Agents who can complete the transactions successfully.

Jan 03, 2009 05:04 PM #3
Paula Swayne
Dunnigan, Realtors, Sacramento (916) 425-9715 - Sacramento, CA
Realtor-Land Park, East Sac & Curtis Park -Dunniga

Hi Michael!
I couldn't have said it better myself!  We have been experiencing that same thing here, in Sacramento....and the agents aren't from Sacramento County!  It's funny that you write this tonight.  I have a client that has been receiving e-mails about active listings for about 2 years.  She finally contacted me a couple of days ago and wants to look at a property north of Sacramento, listed for $24,000.  Now, you and I both know that the neighborhood this house is in is not going to be great...and probably not real safe.  I have been trying to decide how to handle this.  There is no specialist for the area...and even a 3% commission (let's see...$720) is not worth my safety.  My husband has offered to go with me, which I will probably do, since I don't see another way out. However, if we get there and I really don't feel safe, I will call her and back out....and suggest she do the same!

Jan 03, 2009 05:26 PM #4
Barbara Delaney
Park Place REALTORS, Inc. - Roanoke, VA

Dear Michael,

This is not just California! It is not just short sales, or the like.

An agent in Roanoke was strong-armed by an agent out of MLS--way out! The Roanoke agent showed the property to the buyer. The buyer has a real estate relative from out of the area. The relative agent said, I want full commission, or they will buy something else.

The Roanoke agent will have to do all the work. The other agent gets paid for doing nothing.

Oh, Dear!


Jan 03, 2009 06:01 PM #5
Robert May
Robert W May - Lethbridge Real Estate - Lethbridge, AB
Real estate consulting

I refer every client that I believe I cannot effectively close to the best of their expectations.  Often relatives are the worst clients of all, lol.

Jan 03, 2009 06:21 PM #6
Julie Chapman
DR Horton - Ormond Beach, FL
New Homes Sales Ormond, New Smyrna, Daytona Be

What I find is agents who try to take on commercial and business opportunity that are neither experienced nor qualified.   

Jan 03, 2009 11:45 PM #7
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