Full commission just for writing an offer?

By
Real Estate Agent with Alain Pinel Realtors

I'm flummoxed.  Perhaps I naively hold the belief that a receiving a commission inherently implies that that the job for which you are paid is actually conducted.  Call me crazy.

I received several phone calls on my listings this week that caught me by suprise.  I will share the two common themes of those conversations.

#1:  "I would like you to arrange a time for you to meet me and my buyers at your listing."  When I respond "The home is vacant and has a lock box so you can arrange to visit the property any time that works for your schedules." I am told "I only about sell one house a year as a favor to my friends and family so I don't have a lock-box key."

In the big scheme of things, scheduling an hour to have my listing viewed isn't a problem since I was hired to get the home sold.  But think of the big picture.  I think it is safe to assume that this Agent has a full-time job outside of selling real estate.  What if, best case, the potential buyers LOVE the home?  Will he then expect me to be "on call" for the buyer's home, pest, chimney and/or roof inspector? 

#2 from Realtors who work anywhere from 80 - 400 miles away:  "My clients want to write an offer on your listing at [address] but I'm not a member of your Multiple Service.  Could you please send me a copy of the MLS printout, the comparables you used to price the house and your Agent Visual Inspection Disclosure so I can review the conditon of the home?"

Is this Realtor providing top notch (or even average) service to his buyers?  What if was bad at my job and provided old comparables substantiating a higher-than-current market price?  What if I did a poor job completing my Visual Inspection? This out-of-area Realtor has no idea about my professional standard of conduct! 

The question again arises as to who will meet with the buyer's home, pest, chinmey, roof, sewer inspector? Since I make it a business practice to avoid double-ending my listings, I sure the heck DON'T want to create ostensible agency by attending them in lieu of their out-of-area Realtor.  In short, it appears this Realtor anticipates receiving a full commission just for writing an offer.

Wouldn't these buyers be better served by a referral to a local, full-time, professional Realtor who knows the area, can research the price, can personally view the home and can schedule and be present at all of the buyer's desired inspections? 

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Topic:
ActiveRain Community
Location:
California Contra Costa County
Groups:
Everything California
Realtors®
Tags:
buying a home
buyers agent
selling a home
contra costa real estate
listing agent

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Ambassador
287,596
Tim and Pam Cash
Real Estate Professionals - Clarksville TN
Crye-Leike (Sango)

Wendy, it seems as if it would be more appropriate to offer a referral to you or another agent in the area who is dedicated to taking care of the buyer's needs.  You should not be in the position to do the work for the buyer's agent.  That said, i can see your dilema in that you want to take care of your clients and ensure that every opportunity to market their home is explored.

March 03, 2009 08:03 PM
Ambassador
1,801,845
Judi K Barrett
Broker/Owner, Integrity Real Estate Services -IDAB
Judi Barrett~Integrity Real Estate Services~Idabel, Oklahoma

Wendy, I accept referrals from "out of the area" agents, not co- brokering.  I have had too many offers from agents who only want a paycheck and do not do their client justice.  I end up working both sides of the transaction for half the commission.  Been there, done that.  Don't do it anymore. 

March 03, 2009 08:17 PM
Rainer
8,792
JJ Leininger
Makai Properties LLC

I had a buyer call me on my listing asking to see it. When I asked if they were working with someone, then they told me that their agent is on Oahu.  I went ahead and showed them the house. They decide to buy it. Yea! I was happy to make the sale in this slower market.  Their realtor was not keeping up with the escrow, so when I reminded her that the buyer's additional deposit was due at the end of the inspection period, she asked to schedule the inspection and extend the inspection period. My seller agreed.

Well, lucky me! The buyer was doing their own inspection and I got to meet them at the house, again without their agent. Oops, he forgot his ladder and he wanted to go back the next day again. Well, I went ahead and met him at the house the next day. How stupid do I sound here? (I did learn from this and he didn't fall off his ladder) Long story short, a few days later, on the last day of their extended inspection period at 6:00 PM, the other agent faxes me the cancellation notice. No one is at my office, so I find out the next morning.  She did not even give me a personal phone call.

I talked this over with a 30 year agent, and he told me how he handles off island realtors with buyers.  They can refer them to him and he will take just 1% commission on the buyer's side, and give the other 2% goes to the off island realtor, or they can refer to another local realtor, or they can be at the showing. He tells them straight up that he will not show his listings to a buyer with a realtor unless their realtor is present. This sounds good, but how would a seller feel about this? Would they think I am turning away potential buyers if I refuse showings?

March 03, 2009 08:52 PM
Rainmaker
126,712
Wendy Cutrufelli
Contra Costa Realtor
Alain Pinel Realtors

Tim and Pam:  Exactly!

Judi:  Referral, not co-brokering, Amen Sista!

JJ:  I, too, receive phone calls from buyers who want to view my listing either before a contract is written or when in contract, but their agent is not available.  Are you kidding me?  All I can say is "garbage in, garbage out".  A "garbage in" transaction just seems to tie up the property and end unsuccessfully.  It's not even worth taking the house off the market.  There are too many GOOD Realtors out there!

March 03, 2009 09:12 PM
Rainmaker
84,095
Terri Adams-Scott
Realtor, Walnut Creek CA Real Estate
J. Rockcliff, REALTORS

Good post and interesting comments.  Personally, I'm a believer in referrals.  I realize we're licensed in the state of California, but I don't believe we should represent clients within the whole state!  I think it's the lack of educating the consumer in the importance of choosing a Realtor...and understanding what all it is we do...and the benefit to them in selecting a local agent for the area they want to buy/sell in.   I would love to see some of my NAR/CAR dues go to educating the consumer on our profession...other than a generic 'call your Realtor' commercial.

March 10, 2009 04:31 PM
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Rainmaker
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Wendy Cutrufelli

Contra Costa Realtor
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