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I have been talking with a friend who has had a house for sale for over a year. She is using a company from the next town (13 miles away) since that company doesn't have an office in our little town. Her listing is almost up and she got a cold call from an agent that works for the local "national" realtor company. There are only 2 realestate offices in our town, both national chains. This agent asked her why she used an "out of town" realtor and told her that his office wouldn't show anyone's house that didn't use an agent from our town unless they absoulutely had to so she should keep that in mind when choosing to renew her listing.
While I'm not surprised by this attitude and am pretty sure this is shared by both companies in town I do have some question about ethics of doing this.
Now that I think about it that would explain why I've had NO showings from the "in town" realtors, only from the next towns over.
The "out of town" realtors have been showing up around here more and more, providing better commission splits since they are willing to negociate where the locals are not and providing somewhat better service.
If I'm understanding you correctly, the local Agent has violated two rules. First, calling a seller who is still actively listed with another office (how did she know it was expiring? Those dates usually don't show in the MLS). Boycotting violates NAR and MLS standards, not to mention one or two laws.
I have been talking with a friend who has had a house for sale for over a year. She is using a company from the next town (13 miles away) since that company doesn't have an office in our little town. Her listing is almost up and she got a cold call from an agent that works for the local "national" realtor company. There are only 2 realestate offices in our town, both national chains. This agent asked her why she used an "out of town" realtor and told her that his office wouldn't show anyone's house that didn't use an agent from our town unless they absoulutely had to so she should keep that in mind when choosing to renew her listing.
While I'm not surprised by this attitude and am pretty sure this is shared by both companies in town I do have some question about ethics of doing this.
Now that I think about it that would explain why I've had NO showings from the "in town" realtors, only from the next towns over.
The "out of town" realtors have been showing up around here more and more, providing better commission splits since they are willing to negociate where the locals are not and providing somewhat better service.
Have your friend call the guy back asking for clarification on his statements, and record the telephone conversation. May not be able to be used in court, but it will probably cost him his license.
I agree with the 1st 2 replies and I would have your friend call the agents broker and the dept. of lic. and explain the phone call. while the actions of this agent have violated a several codes I am appalled that anyone within this businesss would even say such a thing . If I was your friend I would be extremely thankfull that he did not have them as his agent
I would suggest that your friend call her current broker. Let the broker handle this and maybe get the "local boys" to play fair. If the brokers get involved, they've got a lot more clout and can get the local NAR boards involved and put a stop to this unethical practice of boycotting (and address the violation of soliciting an active listing of another company). If the local board of REALTORS gets involved, you better believe there will be some severe disciplinary action against the "good ol' boy" local companies and they'll be monitored closely from here on out.
DON'T call the local company broker and complain. That will just tip him off - this needs to be taken care of by people with the power to make the locals make some changes!
While they might be "violations", you have to consider "life in a small town". It doesn't seem very wise to use an out of town agent in such circumstances.
While they might be "violations", you have to consider "life in a small town". It doesn't seem very wise to use an out of town agent in such circumstances.
I would agree with you in most instances. Unfortunately no agent in the 2 realestate offices in town will break from 6% no matter how expensive the property and how little they do. I have had experience (not always pleasant or above board) with both offices and most of the agents in them and that's why I went 13 miles outside of town myself.
Why my friend went to a company out of town I can only guess but I'm thinking she wanted to use an agent that was not affiliated with a national company, more sole owner and local.
I am guessing that what this agent said was the feeling of the office and the one other competitor as well since this is a small town.
The following is NOT meant to insult RA's as a whole because I've met some that really earned their keep and some very upstanding agents on this forum but a statement of the business model as it now exists.
The information that she shared with me just reinforces my general feeling that the RE business is a borderline RICO statute violation in most states at worst or a monopoly at best and that companies collude with each other to manipulate commissions and stifle (or completely kill) non-agent competition.
I hate the fact that it's almost impossible for me to FSBO my house, even if I pay 3% to the buyers agent because I'm cutting an agent out of one side of the deal, that I can't sell to a local agents buyer (I do believe what she told me, it makes sense) because I dared go to an agent 13 miles away that I thought would do a better job, that I would dare suggest a cut in commission to a local agent etc. I will talk with her about at least letting me know who the agent is.
Sorry about the vent...... I just wanted to see what y'all thought, maybe I'm not nuts after all....wait, maybe I am?????
Wow...what a perfect opportunity for some industrious licensee to open up shop.
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