This month’s question was submitted by Jacqueline Parrillo of Mercantile Bank:
You are taking prospective buyers to look at homes and you come into a subdivision where you are showing one listing that has a real estate firm representing them and on the same street is a For Sale by Owner or one of these reduced-commission companies. Your customer asks to see it. How would you handle this situation?
“I would call the by owner to see if they agree to co-op with me if I bring them a qualified buyer and the discount broker as well. If they don’t agree to the co-op and my buyer still wanted to see the properties, I’d show them the property anyway. If I don’t, someone else will and they can always call the owner directly. It is a risk I take when I work with buyers. If you keep up with the seller you may end up with the listing if the home doesn’t sell by showing an interest in the property.”
-Loraine Drinkwater, Watson Realty
“I would show them what they want to see regardless, because at Davidson Real Estate ‘We value people first, before, over and above everything else.’”
-Dottie Lay, Davidson Real Estate Inc.
“I would call the listing agent or seller and ask if they would allow me to show their home or listing at a co-op fee. If they don’t, I would tell the buyer and ask them to consider the pros and cons between new construction and an existing home and let them decide what they want to do.”
-Diana Howard, Watson Realty
“I would comply with the customers wishes including showing all listings and negotiate my commission as part of the purchase and sale agreement. A content customer will return in the future.”
-Edgar Wynne, St. Johns Realty Group
“In response to this month’s question, I’d offer to call the unrepresented sellers to set an appointment and the same for the discounted listing. With the unrepresented sellers I do not worry about the ‘do not call’ law since I’m not soliciting their business.”
-Larry Atwell, Vanguard Realty Inc./GMAC Real Estate
“I have had that happen to me multiple times. Luckily, it was always with prospects I had been working with for a while and had a good relationship with. They wanted me to make the calls because they weren’t paying the commission and they were ‘out-of-towners’. I have had two transactions that involved one of each of those scenarios. Often the For Sale by Owner seller is willing to pay a reduced, or half of a commission, so Realtors should not shy away from those opportunities. And they should look at them as opportunities. Yes, they require a little more work, but can be worth it in the long run. Both parties appreciate your extra effort and it can lead to new business through referrals.”
-Carol Glover, Prudential Chaplin Williams Realty
“I would respectfully call the owner or listing agent of the For Sale by Owner or the discount broker and make an appointment to show my customer. We must all be as professional as possible and act with as much integrity as possible. The customer may not even like the home once she sees it. Whether she does or not, you shouldn’t compromise your own reputation. This customer may refer someone to you in the future because you were a class act!”
-Lana Atkinson, Watson Realty Corp. Mandarin North office
“When this happens to me, I take the high road and tell the buyer that I will be happy to call. I tell the seller or agency we saw their sign when we were seeing the one across the street listed by Norville Realty and hoped we can make arrangements to see theirs as well. The rest of the conversation depends on the reply. If they say ‘Oh yes, we’re working with Realtors,’ I set it up and negotiate a commission. If they say ‘No way’, I tell the buyer they are not working with any Realtors and she/he will have to set it up themselves. If they want any comparables, etc., I will be glad to get that information. Occasionally they say ‘Sure, just put your commission on top of my price.’ Please note this is what I say, which is not necessarily what I want to say. Another thought on For Sale by Owners or discount brokers, I also weigh the price range, the co-op fee they are willing to pay, because I know I will be doing easily twice the amount of work necessary for just one side of a transaction, and selling my own listing while doing both sides of that transaction.”
-Toy Scott, Norville Realty
“I call the unrepresented seller and make an appointment, negotiating the commission as part of the appointment.”
-Jon Singleton, Watson Realty Corp.
“I would arrange for a showing and take my customer to view the property. If it turned out to be the exact house the customer wanted, I would assist them in the purchase.”
-Donna Kowalenko, Keller Williams First Coast Realty
“I believe in building long-term customer relationships. Therefore, I show my customers everything in the market that fits their needs. Most customers will go back to see a discovered For Sale by Owner on their own. So, I call the owner/lister, ask about co-oping and make a showing appointment. It builds better customer loyalty and will be more likely to get future referrals.”
-Paul Gruenther, Vanguard Realty Inc./GMAC Real Estate, Neptune Beach