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Hello . . . question for the Buyer agents: assuming the commission percentages are equal, are you less likely to show your buyer a home that is listed through one of the discount brokers? If so, why?
Assume for the moment that there is no seller Agent, just the seller, so you'd have to work with the seller directly.
I really don't look at the commission line when I'm making appointments anyway .... BUT ...
I wouldn't NOT show a home in this situation but I will say they are more difficult to show - and if there are a lot of available properties, it might not make the cut for that reason.
If I have to make an appointment with the seller, odds are I'm going to get voicemail and have to wait for them to call me back ... which, in my experience, could take over 24 hours. And if I'm looking for a quick show, that won't work.
I really don't look at the commission line when I'm making appointments anyway .... BUT ...
I wouldn't NOT show a home in this situation but I will say they are more difficult to show - and if there are a lot of available properties, it might not make the cut for that reason.
If I have to make an appointment with the seller, odds are I'm going to get voicemail and have to wait for them to call me back ... which, in my experience, could take over 24 hours. And if I'm looking for a quick show, that won't work.
Thanks for your feedback. In my case, I would be using the Centralized Showing Service for appointments (for the very reason you mention).
So you've closed on listings sold directly by the seller? Any problems?
I really don't look at the commission line when I'm making appointments anyway .... BUT ...
I wouldn't NOT show a home in this situation but I will say they are more difficult to show - and if there are a lot of available properties, it might not make the cut for that reason.
If I have to make an appointment with the seller, odds are I'm going to get voicemail and have to wait for them to call me back ... which, in my experience, could take over 24 hours. And if I'm looking for a quick show, that won't work.
I agree with Chuckity - no self-respecting BA looks at their 'pocketbook' before the needs of their clients (buyers). They evaluate their buyer's criteria and show them all properties that meet their needs. It is important though that a buyer agent can show the property in a timely manner, so if your schedule permits for the times when agents have clients and want to see the house in a short period of time, then that IMO needs to be factored in. Yes, there are showing instructions with your scheduling service (As example: you need 6 hour notice) but if a buyer agent has a buyer 'now' that wants to look at homes, then they'll focus on homes they can show 'now'. Just make sure you and your house are 'ready' for instances like that.
On problems when there's a buyer agent representing buyer and the seller doing a FSBO, I assume you would have an attorney to handle everything on your end? The challenge I've had with FSBO's is that sometimes the seller doesn't have all of their ducks in a row (I'm not directing that at you, so please don't take me wrong), but when I've dealt with situations like that sometimes it really turned into a nightmare for everyone - both buyer and seller. So IF you're doing a FSBO, have a good RE attorney who can handle things for you, and if limited broker situation that they'll do the same thing to make it an easy process for both you and the buyers. Good luck!
Last edited by JustJoy; 08-01-2009 at 03:46 PM..
Reason: addition
How honest do you think the agents will answer this question...?
I had an agent in the past who told me that she was called many times prior to a showing and the first question was how much commission they would get...not if they could show the home...
I've had a few closings where the seller was a FSBO. I have to be extra careful, of course, to make sure that everything's done correctly, because chances are better than average that the seller doesn't really know the ropes and I have to protect my client's (that would be the buyer's) interests. Only problem is that some seller's don't seem to get that I'm not working for them, I'm working for the buyer, and if they want an agent to represent them they should hire one, not try to piggyback and get me to represent their interests over my clients.
But mostly it's not a big deal.
So, the answer is, yes, I'll show a FSBO and I'll show a limited representation listing (which are two entirely different beasts, by the way, if you have limited representation, even if it's just to get the listing on the MLS, you have representation as far as the buyer's agent is concerned and that severely restricts their interactions with you legally).
As for bentlebee's comment, a quick look at past posts should be sufficient to indicate that there's more than a little bias there, go figure. Here, we don't contact the listing agent in almost every case for showings, we call the seller directly, so even if we were so inclined, the question of the commission wouldn't come up, and in any case, it's on the MLS (not so we can check first to see if it's worth it but so that it's in print what was offered in case there's any question at closing).
How honest do you think the agents will answer this question...?
I had an agent in the past who told me that she was called many times prior to a showing and the first question was how much commission they would get...not if they could show the home...
Commission is listed in the MLS listing.
If they had to ask, I bet they were asking IF the seller would pay a buyer's agent commission, not how much.
In North Carolina, where the OP is posted, current law requires us to inform our clients if the co-broke differs from the agreed-to "expected compensation" documented in the agency agreement.
So:
1. I look at commission.
2. If it varies from the agreement, I tell my clients.
3. They know whether they will be paying commission to me out of pocket, or can also gain an inkling as to whether they are being steered to high BA commission properties.
I don't mind working with FSBO's.
But if they behave stupidly, or arrogantly, there is enough inventory out there that it is not necessary to subject my clients to the vagaries of FSBO sellers who do not demonstrate the capability to consummate a transaction.
In our case, the buyer, on the buyer's rep, agrees to a certain percentage. However, if, say, the buyer agreed to 3%, and the coop on a particular house was 2.5%, we're more than likely not going to go after them for the additional .5% - we'd rather have a happy client who uses us or refers to us down the road than the .5%. So I simply don't look when I'm finding possibilities for clients - it doesn't enter into the search criteria.
I always look at the commission offering. I have buyer agency agreements and need to inform my buyers of any unacceptable commission offerings.
I have shown many a limited service rep listing and only had trouble with one. He was going to be trouble with or without an agent though. I think most agents could care less, but there will be some that won't show them because they think there is some increased liability on their part. There are some agents that won't show commission offerings of less than 3% even with an agent on the other side. You know...you just need to be reasonably accomodating for showings. Be polite and honest when asked a question, and you'll be fine. There are some unprofessional agents and there isn't much you can do about them, so don't worry about them and move on.
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