Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I am truly looking for an honest answer. I currently have my home up for sale by NEXTHOME; it is based in Ohio and is a company that charges 995.00 to list my house; If a buyer is represented by a realtor, I pay 4% commission, if a buyer is not represented by a realtor, I don't pay more than the 995.00. Showings are booked by calling a voicemail phone number and leaving a message, and I show my house, I also have a lockbox for those that would like to see it while I'm not home.
Now, here is my question: As a realtor, do you show all houses that might interest your client? or will you bypass those that aren't for sale by a "real" realty company like Nexthome? Will you show a house for sale by a Howard Hanna for instance, and not show your client my home because of it being listed by a company that will only pay 4%?
My house has not had a lot of activity and I don't know if it is the market, or the fact that I've chosen NEXTHOME and it is possibly being "boycotted" for lack of a better word, by Realtors.
I'm REALLY looking for honesty here; I'd like to get my house sold - THANKS
That is an almost impossible question except for a knowledgable local. It deals with facts and prejudices that only those working the area will know. I routinely show Help-U-Sell homes as they do a reasonable job for the seller and pay a reasonable copay. But I will not show a FSBO unless it is a very, very good match even if the guy is offering a reasonable copay. The reason is I know I will have to do all the work in that situation and have a non-knowledgable guy on the other side.
If the RE Agents don't think they will get full support and a reasonable copay they will stay away. From your description I would think the copay is not an issue.
Finally it is not rare for RE Agents to dislike particular business models. For some years the conventional agencies pounded buyers brokers. I can't tell what it is like in your area though...and a lot has to do with how the outfit inovolved handles other RE Agents and how it advertises.
According to the NAR Code of Ethics, a realtor representing a client must put that client's interests ahead of his own. This would include showing any home (on the MLS) that a prospective buyer wishes to see, regardless of the commission.
I'm not familiar with Nexthome, however there are a number of discount brokerages across the country. What I have noticed with some discounters is that they take only 1 photo of the home for the MLS. A full service agent in my area would typically post 10-12 photos plus a virtual tour. In a slow market where buyers have so many homes to choose from, that can make a big difference in whether a buyer and/or his agent would choose to tour your home. Also, with the Internet being the primary way buyers begin their home search, if your home isn't being marketed extensively on various websites, this could also be a drawback to getting the maximum number of showings.
Also, as you mentioned, it could be that your real estate market there in Ohio is really, really slow right now.
According to the NAR Code of Ethics, a realtor representing a client must put that client's interests ahead of his own. This would include showing any home (on the MLS) that a prospective buyer wishes to see, regardless of the commission.
It does say that, and I believe that most agents do it. As for the original question the honest answer is a definate yes on showing a home like that because it sounds to me like the agency is paying out the normal amount to the selling agent which is why you're paying the $995 without a selling agent, and 4% with. The payout usually depends on the price of the property (as does the commission sometimes). The problem with you not getting showings is because the agent isn't working for you. It cost money to market a home and the MLS is just one means of doing that. What are they doing to get agents through your house. Are they holding open houses? I'll bet not unless they have you manning it. Are they hosting an agent open with lunch? I'm sure not. Are they getting the home on other offices tours? I doubt it because they probably only have one office. Using a full service broker will cost you more, but in the end they bring you a higher sale price.
This is a simple precaution. Over the years I have heard of any number of neat things in the CofE. But when I look for them I can't find them.
So if you wish to quote the Realtor CofE...have a reference handy.
I would charitably describe the rest of your discussion as Realtor marketing. In my reasonably good sized market more than half the listing agents put it in the MLS and then wait...
Article 1
When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve REALTORS® of their obligation to treat all parties honestly.
Article 3
REALTORS® shall cooperate with other brokers except when cooperation is not in the client’s best interest. The obligation to cooperate does not include the obligation to share commissions, fees, or to otherwise compensate another broker. (Amended 1/95)
In an agency relationship (written, signed by all parties) the terms of the relationship are spelled out. Including, but not limited to the fees one party pays or is obligated to pay.
I am a practicing real estate broker in Denver, Colorado, this is how I explain it to prospects:
"I am happy to show you any available property on the market. It's up to you to decide whether to spend your time and view it in person, and then, if you would like to make an offer. I get paid when you close on your new property, for a job well done. I can get paid by you, or by the seller, or by the listing broker as listed in our MLS. Most of the time, I get my full fee from the listing brokerage, and there is no further obligation on your part. But, if my minimum fee is not met by the seller or the listing company, I'd like to agree upfront with you how you would like to handle the balance. I would suggest that in your offer to purchase we ask the seller to pay the difference as a closing cost credit to you, and then you pay me. Would that be okay with you?"
If there is no written agreement between the parties, the I am free to show them whatever properties I want. (I don't actually do this, because if you don't hire me, I don't work for you.)
And sometimes the reason for not showing those properties with the list them and leave them companies...is the PITA factor. If I feel that the brokerage or seller will be uncooperative, and there are many other properties for sale, I may skip a few. Buyer's do not need to see every available house on the market. Just the ones that closely meet their needs.
Last edited by 2bindenver; 05-04-2007 at 08:17 AM..
Ahhh..so it is in the agency relationship is it? And not in the CofE?
And given that the agency relationship varies from effectively none to "take better care of the client than myself" we can't really say whether an agent is required to show a particular house can we?
In Nevada the default is a true agency relationship. We really do not have an option for transaction brokerage. There are people who use buyer broker agreements but they are rare. And virtually none provide for payment by the buyer if a minimum copay is not achieved. Practically we do not get into the agency relationship until a contract is being written or a buyer brokerage agreement signed.
Note also Article 1 makes no mention of commissions, says nothing about the Realtors own interest and is generally not enforcable. To enforce a CofE violation you need to cite a particular standard of practice. This has been well discussed over many years in many forums. It is not a CofE issue.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
