This month’s question was submitted by Brenda Perkins of New Homes Realty:
“Here is a touchy situation... I have had a couple of experiences as a buyer’s agent where my buyers have seen a For Sale by Owner and told the seller they were working with an agent, only to be informed by the seller that they are real estate “professionals” and they won’t pay a commission to an agent as they can handle the transaction or, if they do, they want to cut the commission and are usually uncooperative throughout the whole transaction. I was told when I became a Realtor, we should respect our fellow Realtors. Whenever I sell a property I own, I always pay the other Realtor a commission and treat them with courtesy. It seems like a double standard. Many Realtors don’t mind receiving, but when it comes to paying they can be the worst to deal with. It does not speak highly of our industry regarding how Realtors treat other Realtors.”
”I’m always concerned that sellers are hiding something if they’re not willing to cooperate with ‘another’ professional, and my customers usually feel the same way. I’ve also encountered problems with non-multiple listing service ‘reduced service’ listing brokers refusing to negotiate a commission in a sales contract, requiring the selling agent to release their customers to save the contract.”
-Jon Singleton, Watson Realty Corp.
“There is not much you can do on For Sale by Owners. Right or wrong! This has been happening since the beginning of the business. When it comes to money people are sometimes not at their best. Anyway, you just have to chalk it up to experience and move on to the next rainbow and hope your clients appreciate all your hard work and buy a home that will earn you what you put into it!
-Jacqueline E. Parrillo, Mercantile Bank
“We need to make sure that sales associates understand that just because they are dealing with a Florida licensed real estate person that does not mean that they are a Realtor. The term ‘Realtor’ describes a licensed person that is a member of national, state and local associations. The term ‘Realtor’ means that we subscribe to a higher standard of practice. If you are not dealing with a Realtor then please understand that the same rules do not apply. My thoughts are that the rules should always be the same, but they are not. If they are not a member of the same multiple listing service system that you are a member of they do not have to cooperate with compensation. Obviously if the property is not in a multiple listing service system, no offer of compensation is there. We as Realtors need to educate the consumer on the uses of working with a Realtor as opposed to just a Florida licensed real estate agent. Please make sure that you always ask the licensed person, ‘Are you a Realtor?’ If we educate our consumers about the concerns of not using a Realtor, then the consumer will think twice about even approaching a For Sale by Owner. We can’t control what sellers will do, even if they are licensed. If you feel that the licensed sales person is in violation of Florida Law, Chapter 475 then you do have some recourse. Please remember that the Code of Ethics and Florida Law are different. We as Realtors need to be informed. Please take a class at your local board for more information.”
-Teresa Mecurio, Re/Max 100 Realty
“What kind of image do we project to the public if we For Sale by Owner our personal properties and refuse to co-op with another Realtor? I believe we should always be ready to co-op with another agent.”
-Bonnie Siecker, Century 21 Dames Point Realty Inc.
“I’ve never had this happen to me. But, I believe that agents who think ‘small’ will ultimately appear ‘small’ with their own customers. It’s best to hold to your own higher standards and it will pay off for you and our industry in the long run.”
-Paul Gruenther, Watson Realty Corp. Jacksonville Beach
“[That story represents] greed – pure and simple. This is an easy in, easy out business. With the availability of closing services and marketing channels, plus the speed of which transactions are completed, the situation is ripe for abuse. Know who you are dealing with, manage the prospect, keep a stiff upper lip and don’t take it personally.”
-Jeff Kern, Embassy, Jacksonville
“It is a touchy situation. What’s the difference between ‘legal’ and ‘ethical?’ I was originally licensed in another state, where it was illegal to advertise or sell real estate without disclosing up front that you were a licensed agent (Not after you already had the fish reeled in and say ‘Oh, and by the way...’), even if it was your own property. I find that I am calling more Fore Sale by Owners, just to get the recording at the real estate company that is selling the house. Apparently, it is legal here to mention it ‘after the fact,’ but I still feel it is bordering unethical. I like to think that I am a professional, in a professional business. When any real estate agent/company does not appear to be upfront with the prospects, it makes all Realtors look sleazy. It also causes an image to the general public that they don’t need a Realtor to sell their property because what they see are the For Sale by Owners selling in their neighborhood. We need to work together if we ever want Realtors to be viewed as respected professionals, as we deserve!”
-Carrie Richter, Davidson Realty Inc.
“Yes, in my 10 years of real estate I’ve seen where Realtors put their personal home for sale and working with a buyer you want to show all available, hopefully the professional agents should list it with the company they work for. Practice and do to others like you want to be treated. It’s hard when you follow up with a For Sale by Owner and it’s a Realtor, it’s almost embarrassing. Their broker should work with them and have guidelines so everyone comes out happy.”
-Diane Ward, Century 21 A1A Realty
“This is a touchy situation, indeed. We have sold several of our own properties in the past year and kind of felt like we didn’t need to list them because we are agents. In fact, with the first one we sold we didn’t list and did have a few calls from buyers who said they were working with an agent. We explained to them that we were agents and preferred to handle both sides of the transaction ourselves, but it just didn’t feel ‘right’ saying those words. After a few weeks of the usual hit-and-miss calls from unqualified buyers, showing it ourselves all the time, etc., and feeling like hypocrites for not listing, we did what we felt was the ‘right thing’ and listed it. Naturally, it was shown a lot in the ensuing days and we had a contract within a week. We just had another home that we were remodeling to sell and in the final stages of the remodel we threw up a For Sale by Owner sign to see what would happen. Again, we got all kinds of unqualified buyers wanting to see it. Once the work was done we listed it. It was shown continuously and we had several offers within five days. Not only do we believe that listing our own homes is the ‘right thing’ to do, we know it is the ‘smart thing’ to do. As for agents who do prefer to go For Sale by Owner, there is no reason to be discourteous with fellow agents and their buyers. A simple explanation is all that is needed and even ask for their contact information with the promise to call them first if they change their mind.”
-Tim and Susan Fennell, Century21 Atkins Realty Inc.