Several weeks ago I took a call from a FSBO who wanted to tell us that they would pay a commission to any Realtor inside our company who would sell their home located in Pembroke Pines, Florida. The home was a 3bed,2ba,2CG pool home and they were asking $365,000 for the home. As faith would have it I had a buyer who I was working with who was looking at homes in this range. I had the FSBO sign an agreement that any client we bought to their home we`d be compensated a 3% commission.

I took our buyer to the home the next day to view it. The couple who were selling the home seemed nice, they gave us a tour of the home.We partied friends and the buyer and I left.

I called the couple a few hours later and told them that the buyer wasn`t interested in their home, but the home showed very well. I told them I`d keep my eye out if we have any other buyers for their home.

I received a call yesterday from the FSBO. They wanted to ask me a few questions. They wanted to know why we as Realtors weren`t showing their home more!

The conversation is as follows:

FSBO: What do we need to do in order to get more Realtors to show our home? Besides you, we had one other Realtor show our home and that was it.We went out of our way to call every Realtor in the area. What`s wrong with you people? Don`t you like to sell homes?

Me: Interesting question, have you thought about listing your home with a Realtor?

FSBO: Why? Realtors aren`t going to do anything different than my husband and i, we can sell our home, we just need Realtors like you to help us!

Me; The market is slow, there aren`t many buyers as there once was, dealing with a professional at least insures that you`re home is being marketed properly.

FSBO: We`ve had NO BUYERS call us, my husband and I are really concerned about the way Realtors conduct business. You`re not helping us too well....

Amazing, "I`m not helping them too well".

They admit they`ve had no buyers call them directly, that i was the only other Realtor to show their home and I`m not doing anything for them!!!!

It`s hard to believe that we as Realtors need to be blamed for everything!!! Message to any FSBO who may wish to sell their home."Hire a Realtor, at least that way you can blame someone!"

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Published Sunday, May 20, 2007 6:58 PM by FloridaListForLess Realty Edit
Filed under: coaching realtors in pembroke pines florida [Edit Tags]

LOL

I would have told them to raise the commission might make a difference.

I might tell them something like: "I show my own listings first, I show other listings from my company second, I show listings of other MLS agencies third; if my buyer still hasn't found a home I show FSBOs last!"

Obviously this seller has some nerve. I probably would have told them not to expect a Realtor to show their home if they aren't willing to cooperate with one to list it with in the first place. I also wouldn't want to be doing twice the work for half the commission either.

I'd explain to them that there are a lot of things people can do to sell their own house. They can try any or all of them but looking at "how houses actually sell" most buyers will come out of the mls.

Really? Where I come from, that would be unethical. We show properties that fit the buyer's requirements, it's irrelevant who is listing those properties.

Loan Diva,
Can you chance show everyone where in the COE that is unethical?

I have never found anything in COE that states what order you show properties to a client.

Just explain how the MLS works, and how they are not on it! Calling a bunch of brokerages does not do the same thing.

-jeff

I would have told them flat out that agents don't want twice the paperwork for the same amount of commission.I would have also told them that with a glut of houses on the market agents search for properties in the mls and do not go looking for fsbo's.I would them tell them commission doesn't matter it's what they net and I would show them the Nar statistics where you NET more listing it with a realtor rather than getting no activity and reducing.

I would tell them if I don't sell it you pay me nothing so all the risk is on my side not yours.You have been going fsbo,how has that been working for you?If it's not working you try something else.

If they are realistic they will appreciate being straight up with them,if they aren't realistic move on.I also would have told them that without representation agents don't owe them any duty to show there home PERIOD.

It sounds like some very misinformed sellers.

Loan Diva,

It is not unethical to show FSBO's last after everything else. It is also not unethical to not show FSBO's at all! I am not required to show a FSBO to a buyer. I am not required to show any home I don't want to show to a buyer. If I were required to show EVERY home that fits my buyer's needs, I would be showing way more homes than I do. FSBO sellers can take a hike if they think that I am going to hunt down buyers for them without holding the listing. I don't work for free or "half-price".

NAR statistics say that sellers net an average of 16% more money when listed with a Realtor as opposed to selling by FSBO. I would share that with any FSBO seller. I would also tell them that when buyers are remotely interested in a FSBO home, they will be more likely to lowball the property because they know the seller is trying to save the money that would have been paid to a Realtor anyway. So there goes all their big savings now to the buyer instead with a much lower net amount.

that just doesn't make sense. as a buyer, why would I care about the seller's arrangements? I am going to offer what I am willing to pay or what I perceive the market value to be, regardless.

Unless you're representing that buyer under a buyer's agent contract, you do NOT owe that duty to a potential buyer. You would owe that duty to a seller under a listing agreement.

Ok, here's a hypothetical question for anyone. You have a buyer (no buyers agent agreement), and you are aware of two homes for sale. One home is listed with your office, the other is listed with another broker. Which one will you show the buyer first? Does it even matter which one you show first? Is it ethical to not tell the buyer about one of the homes?

A seller's home is the center of their universe. If there's a problem, it has to be someone else's fault. It's the seller's ego vs. reality.

I would show them hot sheets on both and let them choose which home they want to look at, or ask if they want to see both. Which one gets shown first depends on the location.

And I wouldn't show a FSBO to someone unless I had a signed contract with the FSBO stating that he/she will pay me commission if I bring a buyer. That's just dumb - I will not work for nothing!