[Editor’s Note: As a long time member of the Rain City Guide community, Ray Pepper has offered to share stories with us about his on-the-ground experience working as a real estate broker with $500 Realty. We’re calling these “Tales from the Dark Side” and today, I’m please to hit publish on the first edition of this series. Please give a warm welcome to Ray Pepper as the latest contributor to Rain City Guide!]
In an attempt to educate the public and fellow agents of the NWMLS I offer an incident dated Sept 2008.
Client Sam and Tim have been Pre-Approved clients looking for a home in Des Moines with a current Buyers Agency agreement on file. They attend Open Houses and call me for showings every month or so. They have been educated on how to advise all fellow agents they are working with an Agent.
Sam found a home driving around and called me from her cell at the vacant residence. It was a Sunday at 4pm and I got the message about 8pm. The voice mail indicated she called the Agent on the sign, to inquire on the price, and as it turned out the agent lived across the street.
As the story unfolds the Agent spent 2.5 hours with our client talking about the home, the history of it, and the wonderful community she has lived in for decades.
I receive a phone call to write an offer on the property Sunday night. I asked my client how they got inside. She stated the listing agent let me in. I asked, ” Did you remind her you were working with an agent?” She said absolutely!
An offer was written around midnight and was promptly sent Monday morning.
The next phone call I received was one that has been repeated before but this time much harsher then I have ever heard. It reminded me of my old female Drill Sergeant at Fort Leonard Wood. ” Listen here Pepper!” “I’m a million dollar producer!” “I’ve seen the likes of you come and go!” “My time is very valuable!” “Don’t speak until I have finished what I’m saying!” “Your clients lied to me!” ” We have a wonderful community here and I don’t think dishonesty is a good fit for our community!” “I’m not here to do your work for you!”
I’m new here to RCG and I believe none of you know me personally. Those who do will attest that there is nobody more sincere, honest, and willing to take any and all slanderous language. I have listened to it for years at the Seattle/Tacoma Home Show and Puyallup Fair. I took it all in as usual. I attempt to never laugh but always educate based on the rules set forth by the NWMLS and the State.
I immediately contacted my clients and told them about the incident and how I had to remove myself from this transaction. My clients stated to me SHE is the liar and the agent “offered” to just walk across the street and show her listing to them. As it turns out while I was on the phone with my clients the listing agent called back for Round 2 of screaming and I continued to listen. I must confess that at times I find this very therapeutic and relaxing. I was threatened to be turned into the NWMLS, the State, and her Broker. I strongly encouraged her to do so.
We all know how this story ends. The Buyer wanted the home. The Seller wanted it sold. The buyers walked because they did not want to have this agent as their neighbor.
It is my opinion the only one who ever loses from this type of behavior is the one who will never know it happened. At last look the house still remains on the market today, this time with a new agent.
Our clients closed on their new home in April 2009.
[photo source: Sir Mervs]
Wow. All professionalism just left her mind there for a while? I have met some crazy people in my day, but luckily I have never had an experience like that with another agent. I have heard some horror stories, but never lived through one myself.
-Tyler
Thanks for the welcome Dustin. I like the picture of the lady walking down the street. Is that the Agent? If so… whats in that bag?
Ray, you continue to do the right thing and good things will happen for you, your company and most importantly your customers! I have been on the lending side for about 7 years now and had my fair share of inexperienced real estate agents – scheduled closings on weekends or holidays (hello, the county is closed and we can not close on that day) and others with hyper-sensitive attitudes, but this one deserves “the wall of shame
Well when someone with a different business model threatens the ‘way it’s always been done’ of course the dinosaurs will be threatened. We’ve seen it with music producers with the advent of filesharing, traditional media with the propogation of blogging, and horse buggy makers when cars were invented.
The fact is, real estate has been effected just as much by the growth of technology as anything, but is one of the last to adapt. Being a customer, I know how to do my own research, I know what I want. I don’t want to pay an agent to drive me around for hours showing me houses they think I might like, and why should I pay a selling agent thousands if the house just went on the market, and all they did was open the door for me.
That’s why $500 realty’s model of ‘al la carte’ service makes sense. I can understand why the selling agent would be upset… but the reality is, the agents who react to the changing business model sooner, will benefit the most.
Well when someone with a different business model threatens the ‘way it’s always been done’ of course the dinosaurs will be threatened. We’ve seen it with music producers with the advent of filesharing, traditional media with the propogation of blogging, and horse buggy makers when cars were invented.
The fact is, real estate has been effected just as much by the growth of technology as anything, but is one of the last to adapt. Being a customer, I know how to do my own research, I know what I want. I don’t want to pay an agent to drive me around for hours showing me houses they think I might like, and why should I pay a selling agent thousands if the house just went on the market, and all they did was open the door for me.
That’s why $500 realty’s model of ‘al la carte’ service makes sense. I can understand why the selling agent would be upset… but the reality is, the agents who react to the changing business model sooner, will benefit the most.
Ray:
Welcome!
Sorry, but I do not understand the basis of this conflict.
While I might speculate that the cause was money, I may be off course
Could you elaborate?
Ray:
Welcome!
Sorry, but I do not understand the basis of this conflict.
While I might speculate that the cause was money, I may be off course
Could you elaborate?
Roger,
It’s pretty easy to spot the “bad attitude” agents. The commission remarks often say:
“Commission to be reduced from 3% to 1% IF Agent is not PRESENT with their clients at ALL showings prior to offer!”.
Completely ridiculous and not enforceable. So it really is just a leopard showing everyone their “dark” spots when they post this in the mls. It’s like saying “Hi, I’m a totally crappy agent for the seller of this house, who is living in the past with my finger stuck in the hole in the dike.”
Ray –
Just let me know if any of your clients ever want to look at any of my listings and I will be happy to arrange a time to let them in.
Jim
Ray-
Thanks for bringing this kind of agent behavior to light. Your buyers’ experience sounds eerily similar to behavior I experienced recently while making an offer on a house. I can understand ‘choosing’ to be (professionally) angry in certain circumstances when you need to get someone off their behinds to perform their side of a contract. I’ve done that myself in my work, but that isn’t what I’m seeing here.
In our case, the seller’s agent called our inspector directly and pressured him (unsuccessfully) for details after a pre-inspection. We should have known to stop there, but liked the home and made an offer anyway. Then the agent didn’t like the offer and completely freaked out on our agent when all they had to do was counteroffer, say “no thanks” or say nothing at all. I have that seller’s agent on my short list and if I run across them again, I won’t be dealing with them. I also made sure to share the story (and the agent’s name) with anyone I know.
I’ve also attended lots of Open Houses lately and have observed more than a few agents losing their cool in response to other buyer’s pointed but still appropriate questions. This ranges from getting huffy and offended up to losing their temper and stalking off.
It seems to me that the term “professional” in Real Estate Professional is losing meaning as quickly as the economy sinks. And I have to wonder, did these agents watch too many episodes of “Celebrity Apprentice” & then decided that was the way business gets done? Um… interpersonal skills anyone? You never see “the Donald” losing his mind and looking like a crazy person do you?
And similar to your buyers, I don’t care how much I like the house. I’m former military and have pretty thick skin; but if I see or hear of that kind of ridiculous behavior, I’ll walk. I’m certainly not going to trust someone behaving that way to handle (or receive the commission for) such an important and costly transaction.
Ray-
Thanks for bringing this kind of agent behavior to light. Your buyers’ experience sounds eerily similar to behavior I experienced recently while making an offer on a house. I can understand ‘choosing’ to be (professionally) angry in certain circumstances when you need to get someone off their behinds to perform their side of a contract. I’ve done that myself in my work, but that isn’t what I’m seeing here.
In our case, the seller’s agent called our inspector directly and pressured him (unsuccessfully) for details after a pre-inspection. We should have known to stop there, but liked the home and made an offer anyway. Then the agent didn’t like the offer and completely freaked out on our agent when all they had to do was counteroffer, say “no thanks” or say nothing at all. I have that seller’s agent on my short list and if I run across them again, I won’t be dealing with them. I also made sure to share the story (and the agent’s name) with anyone I know.
I’ve also attended lots of Open Houses lately and have observed more than a few agents losing their cool in response to other buyer’s pointed but still appropriate questions. This ranges from getting huffy and offended up to losing their temper and stalking off.
It seems to me that the term “professional” in Real Estate Professional is losing meaning as quickly as the economy sinks. And I have to wonder, did these agents watch too many episodes of “Celebrity Apprentice” & then decided that was the way business gets done? Um… interpersonal skills anyone? You never see “the Donald” losing his mind and looking like a crazy person do you?
And similar to your buyers, I don’t care how much I like the house. I’m former military and have pretty thick skin; but if I see or hear of that kind of ridiculous behavior, I’ll walk. I’m certainly not going to trust someone behaving that way to handle (or receive the commission for) such an important and costly transaction.
Sounds like greed and ignorance lost that listing agent her 3% commission, and of course the sellers lost out big time. I wonder how many sellers would fire their listing agent if they knew that they were refusing to show houses to potential buyers just because they were represented by 500 realty or redfin. I know if I ever use a listing agent to sell my house, I would fire them on the spot if I learned of this type of behavior. This is the way the real estate industry will move once buyers and sellers are educated. Keep up the good work Ray!
what is rational about a midnight offer?
Yowza, buyer’s remorse.
While this example of bad behavior is over the top, my experience(as a buyer)dealing with realtors has been profoundly negative. Simply mentioning that you’re working with Redfin results in a 50% chance that your average open-house-hosting realtor will go absolutely bananas.
My favorite rant, which I’ve heard several times now, is that Redfin’s business model (i.e.”kicking back” a portion of the agent commission to the buyer)is illegal, and that I would be committing a criminal act by using their services. Next thing they always say is that Redfin does a poor job of negotiating for its buyers, and so regardless of any “illegal kickback” I receive, I’ll still end up doing better with a traditional realtor–a “fact” which, as far as I can tell, is completely innacurate. I also love how some of them come armed with graphs and charts which they shamelessly spin (i.e. pointing to normal seasonal variation as evidence of larger trends in the market). I feel sorry for uneducated buyers who actually look to some of these folks for guidance.
In fact, I am convinced that the average realtor knows no more (and often less) than the average buyer, yet expects large payouts on each transaction for doing next to nothing–and they’ve got their knickers in a twist because the public is on to them, increasingly endangering their faltering careers in highway robbery. I don’t know Mr. Pepper, but the “a la carte” services his company provides are certainly the future of the industry.
I simply came across this while responding to the escrow comment.
redfin went to Congress to get the law changed. The rebate in a Real Estate transaction was referred to as a “kick back.” It was illegal for many years because of it’s potential for abuse. We have yet to see what this will do to the consumer.
In the 1980s when Sears owned Coldwell Banker and Discover Card they wanted the rebate in a Real Estate transaction. The idea was that you could get discounts on escrow, loans, patio furniture, Discover Card fees or interest. It was called an unfair inducement by the Real Estate community. It would give Coldwell Banker an unfair advantage by bribing clients to use their Real Estate services.
A larger problem has been at the agent commission level. For many years Real Estate agents have tried to keep deals together by kicking in a portion of the commission. The problem is that the commission gets paid after a transaction closes, not before. Using a portion of the commission in the transaction can jeopardize the buyers promise of having the funds available to close the transaction.
More simply put, lenders didn’t want to see buyers getting “kick backs” because of the temptation for abuse.
Let’s use the straw buyer scenario. I want you to buy a house for me. I’m a Real Estate agent who gets a 3% commission. I have you apply for a 3% down FHA loan and kick back my commission to you while funding the rest of the transaction. Afterwards I assume the loan from you.
Many things have changed from those days. Number one was that 0 down loans became common and FHA loans are no longer assumable. Now 0 down loans are frowned upon.
So things change in the business, but the rebate abuse will come and go.
David, where are you getting the information that FHA loans are not assumable?
While this example of bad behavior is over the top, my experience(as a buyer)dealing with realtors has been profoundly negative. Simply mentioning that you’re working with Redfin results in a 50% chance that your average open-house-hosting realtor will go absolutely bananas.
My favorite rant, which I’ve heard several times now, is that Redfin’s business model (i.e.”kicking back” a portion of the agent commission to the buyer)is illegal, and that I would be committing a criminal act by using their services. Next thing they always say is that Redfin does a poor job of negotiating for its buyers, and so regardless of any “illegal kickback” I receive, I’ll still end up doing better with a traditional realtor–a “fact” which, as far as I can tell, is completely innacurate. I also love how some of them come armed with graphs and charts which they shamelessly spin (i.e. pointing to normal seasonal variation as evidence of larger trends in the market). I feel sorry for uneducated buyers who actually look to some of these folks for guidance.
In fact, I am convinced that the average realtor knows no more (and often less) than the average buyer, yet expects large payouts on each transaction for doing next to nothing–and they’ve got their knickers in a twist because the public is on to them, increasingly endangering their faltering careers in highway robbery. I don’t know Mr. Pepper, but the “a la carte” services his company provides are certainly the future of the industry.
I simply came across this while responding to the escrow comment.
redfin went to Congress to get the law changed. The rebate in a Real Estate transaction was referred to as a “kick back.” It was illegal for many years because of it’s potential for abuse. We have yet to see what this will do to the consumer.
In the 1980s when Sears owned Coldwell Banker and Discover Card they wanted the rebate in a Real Estate transaction. The idea was that you could get discounts on escrow, loans, patio furniture, Discover Card fees or interest. It was called an unfair inducement by the Real Estate community. It would give Coldwell Banker an unfair advantage by bribing clients to use their Real Estate services.
A larger problem has been at the agent commission level. For many years Real Estate agents have tried to keep deals together by kicking in a portion of the commission. The problem is that the commission gets paid after a transaction closes, not before. Using a portion of the commission in the transaction can jeopardize the buyers promise of having the funds available to close the transaction.
More simply put, lenders didn’t want to see buyers getting “kick backs” because of the temptation for abuse.
Let’s use the straw buyer scenario. I want you to buy a house for me. I’m a Real Estate agent who gets a 3% commission. I have you apply for a 3% down FHA loan and kick back my commission to you while funding the rest of the transaction. Afterwards I assume the loan from you.
Many things have changed from those days. Number one was that 0 down loans became common and FHA loans are no longer assumable. Now 0 down loans are frowned upon.
So things change in the business, but the rebate abuse will come and go.
We’ll Ray, since you are on the topic….
If the real estate industry wants to clean up it’s act here are two suggestions:
1) AFTER PASSING A THOROUGH BACKGROUND CHECK FOR CRIMINAL OFFENSES REQUIRE ALL AGENTS AND THOSE SITTING FOR A REAL ESTATE BROKER EXAM TO WORK (internship) IN AN ESCROW/TITLE OFFICE FOR A MINIMUM OF 6 MOS. CLOSING REAL ESTATE TRANSACTIONS. GO THROUGH A RIGOROUS PEER REVIEW AND THEN SIT FOR THE EXAM. THIS ONE SUGGESTION ALONE WILL REDUCE BROKERS FROM LITIGATION. You’ll learn a tremendous amount that will be invaluable in your real estate career.
2) Washington State Dept. of Financial Institutions posts publicly all administrative actions against mortgage brokers, loan officers, escrow firms. DFI fines publicly, refers for prosecution and bans the entities in which they regulate, routinely.
What does the real estate brokerages do when agents and brokers do unprofessional things? They get sent back to a compliance class and or fined or both. They keep it from public view within the NWMLS. CHANGE THIS. MAKE IT PUBLIC.
I second this. If this is how mortgage brokers, correspondent lenders and escrow officers are treated, why not RE agents (and mortgage bankers)?
And and a lighter note: welcome to RCG, Ray!
Really where are these postings? Regarding fines and consequences? I wouldn’t even know where to start, except DFI or a .gov site, besides if you don’t know the person or entity would it matter to me?
The reason Real Estate has such a low threshold for licensing is that you just never know who will be good at it. The second reason is that any one can be good or successful at buying Real Estate. Literally, it takes all kinds.
The most successful Real Estate investor I know had less than an eighth grade education. He later lent money and that’s when he needed to be monitored.
Dealing with this guy’s transactions was hard for escrow to do. That’s escrow’s job. Escrow takes all the pieces and puts them into a legal document that can be recorded. That’s not a Real Estate agent’s job.
We have a saying in Real Estate that has been around for thirty years that I know of. Every one should be a Real Estate agent for two years. Their livelihood should depend on it.
You see people at their absolute core personality. There’s laughing, crying, anger, remorse, glee, and exuberance all in the span of a day. It takes a whole different set of skills to put all of this on paper and get it to escrow.
I think banks, lenders, and escrow agents need to be more regulated. There should be much more monitoring and over sight when a set of people can manufacture paper work to reap thousands, hundreds of thousands, even millions of dollars of profit.
A Real Estate commission has to pass through escrow also. In the big scheme of things that commission is a pretty low liability in a transaction.
We are now seeing lenders and escrow agents who have had properties refinanced, or flipped by straw buyers for millions if not billions of dollars in fraud. We are all paying the price for that.
Comparing that type of economic liability to a Real Estate agent’s commission seems disproportional to me.
We’ll Ray, since you are on the topic….
If the real estate industry wants to clean up it’s act here are two suggestions:
1) AFTER PASSING A THOROUGH BACKGROUND CHECK FOR CRIMINAL OFFENSES REQUIRE ALL AGENTS AND THOSE SITTING FOR A REAL ESTATE BROKER EXAM TO WORK (internship) IN AN ESCROW/TITLE OFFICE FOR A MINIMUM OF 6 MOS. CLOSING REAL ESTATE TRANSACTIONS. GO THROUGH A RIGOROUS PEER REVIEW AND THEN SIT FOR THE EXAM. THIS ONE SUGGESTION ALONE WILL REDUCE BROKERS FROM LITIGATION. You’ll learn a tremendous amount that will be invaluable in your real estate career.
2) Washington State Dept. of Financial Institutions posts publicly all administrative actions against mortgage brokers, loan officers, escrow firms. DFI fines publicly, refers for prosecution and bans the entities in which they regulate, routinely.
What does the real estate brokerages do when agents and brokers do unprofessional things? They get sent back to a compliance class and or fined or both. They keep it from public view within the NWMLS. CHANGE THIS. MAKE IT PUBLIC.
The reason Real Estate has such a low threshold for licensing is that you just never know who will be good at it. The second reason is that any one can be good or successful at buying Real Estate. Literally, it takes all kinds.
The most successful Real Estate investor I know had less than an eighth grade education. He later lent money and that’s when he needed to be monitored.
Dealing with this guy’s transactions was hard for escrow to do. That’s escrow’s job. Escrow takes all the pieces and puts them into a legal document that can be recorded. That’s not a Real Estate agent’s job.
We have a saying in Real Estate that has been around for thirty years that I know of. Every one should be a Real Estate agent for two years. Their livelihood should depend on it.
You see people at their absolute core personality. There’s laughing, crying, anger, remorse, glee, and exuberance all in the span of a day. It takes a whole different set of skills to put all of this on paper and get it to escrow.
I think banks, lenders, and escrow agents need to be more regulated. There should be much more monitoring and over sight when a set of people can manufacture paper work to reap thousands, hundreds of thousands, even millions of dollars of profit.
A Real Estate commission has to pass through escrow also. In the big scheme of things that commission is a pretty low liability in a transaction.
We are now seeing lenders and escrow agents who have had properties refinanced, or flipped by straw buyers for millions if not billions of dollars in fraud. We are all paying the price for that.
Comparing that type of economic liability to a Real Estate agent’s commission seems disproportional to me.
Great post, Ray…and great comments! Welcome to RCG.
Hello Ray
While I can appreciate new business models in our industry, and agree that change can be good for all, remember that one size does not fit all. It is about choice, quality and reputation. Those of us that go the full service path pride ourselves in going the extra distance to meet our clients needs. My average commission is $3K after split, I also average over 80 hours per transaction (that doesn’t count all the reassuring emails and phone calls) so do the math what’s my hourly wage? This is more in response to those consumers that think we make such fat money. I work with alot of First Time Buyers and they do need support, instruction and guidance. I love my job and will continue to watch the “ala carte’ model. Good Luck!
Wow……….Yes….thanks everyone. So much to say but I must comment on one observation that really ” Grinds my Gears.”
Ardell nailed it. Its one of my GIANT concerns for sellers. Agents state in their “Agent only remarks section” something like this:
” If agent is not present on 1st showing commission to be reduced to ________.” Or something to this effect.
This is absolute insanity! You were hired to sell their home. Why would you limit any potential sale by putting that statement out there? Do you seriously think it will STOP alternative Brokerages from emerging? You are doing a tremendous disservice to your seller in limiting ANY potential sale.
Who is telling agents to do this? Sellers need all the help they can get NOW and going forward! Do you sell your client by stating “Well, we can get your home sold for just 1% to a selling office if we do this?” Its harming your client? Do you not get this?
Is there an Agent out there who practices this? If so…enlighten me? I’ll be nice. I could search the MLS but I’d rather do it in a public forum.
Again, thanks everyone.
Wow……….Yes….thanks everyone. So much to say but I must comment on one observation that really ” Grinds my Gears.”
Ardell nailed it. Its one of my GIANT concerns for sellers. Agents state in their “Agent only remarks section” something like this:
” If agent is not present on 1st showing commission to be reduced to ________.” Or something to this effect.
This is absolute insanity! You were hired to sell their home. Why would you limit any potential sale by putting that statement out there? Do you seriously think it will STOP alternative Brokerages from emerging? You are doing a tremendous disservice to your seller in limiting ANY potential sale.
Who is telling agents to do this? Sellers need all the help they can get NOW and going forward! Do you sell your client by stating “Well, we can get your home sold for just 1% to a selling office if we do this?” Its harming your client? Do you not get this?
Is there an Agent out there who practices this? If so…enlighten me? I’ll be nice. I could search the MLS but I’d rather do it in a public forum.
Again, thanks everyone.
Wow,…thanks everyone. I wrote a response but it disappeared??
I will try again. Ardell nailed something that needs to be heard…….
In the “Agent only remarks” I see often something like this : “Agent to accompany Buyer on 1st showing or commission to be reduced to…”
This is absolute insanity. Do the Agents realize they are limiting the potential sale of their home? Where you not hired to sell their home? Do you believe doing this practice will stop the evolution of different types of Brokerages that cater to different needs of Buyers?
It is outright irresponsible to limit the potential sale of that home. I assume you sell it to the client as ” Well, if one of these real estate companies come along we can save 2% since they did nothing.” Is there a RCG Agent that can enlighten me as to why this practice is being conducted?
Listing agents…if I may….Do everything you can for your client if its a 100.00 listing or 3%. Get that home sold. You were hired for your professionalism. This practice is AGAIN only harming the person who will never know the difference……..YOUR CLIENT!
I will try again. Ardell nailed something that needs to be heard…….
In the “Agent only remarks” I see often something like this : “Agent to accompany Buyer on 1st showing or commission to be reduced to…”
This is absolute insanity. Do the Agents realize they are limiting the potential sale of their home? Where you not hired to sell their home? Do you believe doing this practice will stop the evolution of different types of Brokerages that cater to different needs of Buyers?
It is outright irresponsible to limit the potential sale of that home. I assume you sell it to the client as ” Well, if one of these real estate companies come along we can save 2% since they did nothing.” Is there a RCG Agent that can enlighten me as to why this practice is being conducted?
Listing agents…if I may….Do everything you can for your client if its a 100.00 listing or 3%. Get that home sold. You were hired for your professionalism. This practice is AGAIN only harming the person who will never know the difference……..YOUR CLIENT!
Hi Ray,
I found it in the spam filter and fished it out for you. If you want me to make any adjustments, just shoot me an email.
Hi All,
Disciplinary actions taken against licensed real estate agents in WA State are a matter of public record and can be found here:
http://www.dol.wa.gov/about/disciplinary/disciplinaryrealest.html
Realtor ethics violations are investigated and enforced through the local county Association of Realtors.
Thanks Jillayne
“Realtor ethics violations are investigated and enforced through the local county Association of Realtors”… gee, that would be kind of like having WAMP enforce ethic violations for local mortgage brokers.
Ray,
What makes that clause totally ridiculous is NO agents ask “how did the buyer see the house?” when they get an offer from all of the other companies. That makes it unenforceable. When we as listing agents get an offer from an agent, we have no idea if their buyer saw the house at an Open House, nor do we ask, nor do we care. So it’s a “boycott” move, plain and simple, and should not be permitted.
Ray,
Loved the story. A great example of a true worthless human.
TPO
Ray,
Loved the story. A great example of a true worthless human.
TPO
While ths story brings to light some issues in the industry-I am not sure Mr. Pepper is the one I need to hear it from. Honestly as soon as I saw that Ray will be blogging on this great website-I was totally turned off. Just wait – follow his stories he killed the TNT real estate section-I don’t have a problem with his business model but I do have a problem with his delivery and constant bashing of real estate agents.
I would like to take your observation one step further: What was the point of this post? Here’s how I read it:
1) My clients were shown a listing by a jerk.
2) My clients made an offer
3) Offer fell through (for emotional/other reasons)
4) People were/are unhappy
5) The “hero” of the story found the clients another house
If the point is that this particular listing agent doesn’t like “alternatives” to a traditional business model (“I’ve seen the likes of you come and go!
James,
I would add, and I shared this with Ray privately before the post came out, that both agents were equally at fault here.
A main rule of representing someone is buffering them from the bullshit that may go on, that is not about the client and their objectives. Agents are often 24/7 and catching them at a bad time or when they are having a bad day is VERY common in this business. Sharing that with clients is like gossiping and not very professional.
I don’t keep secrets from my clients about anything the agent has to say about the house, the sellers, or anything else that is relevant. How they say relevant things is important as well…key words “relevant things”.
But how they treat me or commission issues, should not be a worry point for the clients of either agent.
If the buyer is your client then the agent should be the one calling the listing agent to make arrangements for the buyer to see the house, not the buyer. The agent could ask when there will be an Open House or indicate that the buyer would like to see the house on X day at X time, but they have another appointment. Then see if the agent OFFERS to show it “for” the other agent.
Many, many ways both agents acted “incorrectly” here, or at minimum could have handled it better.
This is a story of how agents (both) can get in the way between a buyer and seller’s objective. That it ended badly for both the buyer and the seller does not speak well for either of the agents who participated in that outcome.
WOW…….. I killed the TNT Real Estate section!! Do I yield that much power? Was it from telling the truth? Don’t you think it was because the TNT has severe financial difficulties and had to lay off staff. Was it Devona Wells who moved on to pursue other goals that caused it to collapse?
Constant bashing of real estate agents? I’m a real estate agent!! We just cater to different Buyers and Sellers with different needs. Everything I have ever stated on the TNT I back to this very day.
BTW did you know the News Tribune just recently called me twice for a statement? They wanted to hear from our buyers and sellers and their experiences with buying short sales and trying to sell their home.
Before you SHOOT me, please make sure you have the rifle pointed at the right guy!
WOW…….. I killed the TNT Real Estate section!! Do I yield that much power? Was it from telling the truth? Don’t you think it was because the TNT has severe financial difficulties and had to lay off staff. Was it Devona Wells who moved on to pursue other goals that caused it to collapse?
Constant bashing of real estate agents? I’m a real estate agent!! We just cater to different Buyers and Sellers with different needs. Everything I have ever stated on the TNT I back to this very day.
BTW did you know the News Tribune just recently called me twice for a statement? They wanted to hear from our buyers and sellers and their experiences with buying short sales and trying to sell their home.
Before you SHOOT me, please make sure you have the rifle pointed at the right guy!
Playing devil’s advocate.
Ardell wrote
“Commission to be reduced from 3% to 1% IF Agent is not PRESENT with their clients at ALL showings prior to offer!
Michael,
Here’s what I told agents when I “made” them remove that clause (as their Broker).
Yes, you can use that clause IF you can prove to me that you hold EVERYONE to that same standard. You have to keep strict and complete records of all buyers who came into the house, from the time you listed it, and who they were with when they saw the house.
That is of course not possible, because agents don’t give other agents their buyer’s name, and many buyers don’t give their names or real names at Open Houses.
So because you can’t prove that every buyer who bought one of your listings was ALWAYS with that buyer when that buyer viewed the house, you can’t enforce that clause ONLY against companies you know to have a “different” business model.
In other words, if you don’t check up on Windermere, and John L. Scott and RE/MAX and Coldwell Banker Bain as to when their buyer saw the house, you can’t simply impose that rule on Redfin and $500 Realty buyers. You must prove you checked all buyers of all of your sold listings with that clause.
If the clause ruled out “viewing at Open Houses”…it could possibly be enforceable. But in its current form, not valid.
wk91,
The beauty of Ray is that he thinks like most buyers and sellers. You would be wise to listen to him. Not because he is always right, but because he often comes from a consumer perspective.
What Ray doesn’t like about some agents is what most people don’t like about some agents. NAR would be wise to interview him if they are sincere in their interest to find out why people “don’t like us”.
A-
Not sure I follow the logic. My point simply was back in the day of his bloging on TNT-it was mean spirited and quite simply his agenda was to garner the free advertising-I know I wasn’t the only one that felt this way. It’s ok to express an opinion….do let me know when the NAR interview takes place…..
wk91,
I don’t know what TNT is.
Tacoma News Tribune
Dustin,
You have moved up considerably in my admiration for your site. Ray is the most eloquent of spokes people we have for alternative Real Estate business models.
I’ll qualify that by saying it was hard to get past the screaming of the message, but once you meet Ray you can feel that he is sincere, and knowledgable.
In my opinion it makes him trustworthy.
Thank you both for giving an uplifting message to the Real Estate Industry.
Dustin,
You have moved up considerably in my admiration for your site. Ray is the most eloquent of spokes people we have for alternative Real Estate business models.
I’ll qualify that by saying it was hard to get past the screaming of the message, but once you meet Ray you can feel that he is sincere, and knowledgable.
In my opinion it makes him trustworthy.
Thank you both for giving an uplifting message to the Real Estate Industry.
Thanks for the kind words everyone.
I was at the Kent Cornucopia Days this afternoon, then a little Dukes Chowder House at Kent Station, and ended my day with “Bruno.” I absolutely loved the entire day with my friends and would do it all again tomorrow if I was not leaving town to go home.
I’m off to Carson City to watch my 80 year old parents play nickle machines at the Carson City Nugget. I will not think real estate for 10 days starting right NOW!
Good night!
Thanks for the kind words everyone.
I was at the Kent Cornucopia Days this afternoon, then a little Dukes Chowder House at Kent Station, and ended my day with “Bruno.” I absolutely loved the entire day with my friends and would do it all again tomorrow if I was not leaving town to go home.
I’m off to Carson City to watch my 80 year old parents play nickle machines at the Carson City Nugget. I will not think real estate for 10 days starting right NOW!
Good night!