I don't go head to head with other REALTORS for listings very often. Mostly, I work from referrals, but the other day I arrived and found out I was being compared to another REALTOR. I did my best dog and pony show, and at the end I asked them to make a decision. That was when I was caught off guard. The people said they would make more money using the other REALTOR. So, I explained that reducing the commission usually results in less service, and in this market it was not a great idea. Then they surprised me by saying, "No you are charging the same commission." So, I assumed the other agent was recommending a higher price, and I explained that anyone can overstate the value to make the return look better, but my comps were based on reality not wishful thinking. Then they surprised me by saying, "No they are recommending the same price as you." At this point I was curious. So, I asked if I could look at my competitor's net sheet. Almost every closing cost was understated by 40-50% (including taxes, recording fees, and promulgated title insurance rates). I then sat back very confident, and said "Well you should use me because I am not going to lie like this agent has." Another listing is in the coffer.
I am a third generation REALTOR, and I have been practicing residential real estate for 15 years. I am skilled at residential resale, property management, and residential investing & distressed sales
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Good job.. Over and over again I see agents trying to just get a listing and not offering to be of service in the SALE of a home.. and over and over again those listing hang on the market .. the seller all the time feeling like it must be "their" home
Unfortunately this is what happens in a market where there are too many agents that only think about the commission! I feel people are my first concern and money second
Interesting. Way to go! Good thing you kept asking questions!
There's got to be something unethical or illegal about intentionally misrepresenting those costs to the seller. In my market a lot of sellers are bringing money to the closing. What if they don't have enough in the bank when they get the true costs a few days before the closing? The deal could die or agents are kicking in commission to keep it from dying at the last minute. Unfortunately I know agents who would do this, banking on the co-oping agent being willing to kick in something to make it work.
You know what....I never talk about a competitor on a listing appointment...I do my thing...and may the best man/woman win...I have lost a listing to an agent who overstated the asking price....it's odd how sellers don't realize that just because the agent says it.....it doesn't mean it will sell for that....
Sad as it is, my experience has been that many (maybe most) Realtors don't have a clue as to how to prepare a net sheet. Why this isn't really stressed in the pre-licensing classes (at least here in Florida) is beyond me. You have to get to the Broker's classes before you are actually tested on completely configuring a net sheet. Things that make you go "Hmmm . . . "
Great use of the phrase dog and pony show by comparing it to the interview 3 Realtor advise so often given to sellers!
Good for you to take a stand. I just like when the ones who lie get caught up with!
Matthew: Congratulations on picking up another listing. While pointing out the difference in the closing figures, I probably would have stayed away from calling the other agent a liar. You could have simply stated your knowledge of tax rates, and settlement fees, and perhaps mentioned that the reason for the difference may be that the other agent is inexperienced. I don't like to talk about other agents disparingly, no matter what I feel about their business practicies. I won't stoop to that level.
Chris Ann - Seems a little difficult for me to believe that you would have passed up the opportunity to say the other agent lied if you are willing to say I stooped (after all I am the one who told the truth).
Robin - This is very true. I try to stress this to my agents. Mistakes on net sheets erode confidence at the very time when the clients need to feel everything is going the way their agent said it would. Additional training at the prelicense level would be a good thing to protect the public.
Mary - Glad you caught that!
Greg - Me too.
Konnie - I usually don't refer to any other companies as a comparison, but in this situation I just had to figure it out.
Eric - thanks for the comment
I love that you won!!! That is the best! Great job! Side note, wonder why this auction is posted as a comment above? I think I saw something about it somewhere that this some sort of weird spam or something but not sure.
Cristal - Yes I thought I had removed all those but I guess this one made it throught the crack, but it is gone now. Again I have fallen victim to canned meat.
good for you and congratulations for your fortitude. Best of luck with your listing.
Matthew - Honesty wins out! Good work. It's hard competing with slime.
Matthew: After taking the listing, the next step should be to inform the other agent's broker. I kind of go for the West Point honor code" I will neither lie, cheat or steal nor tolerate anyone who does."
If the Realtor Code of Ethics is to mean anything, we must weed out our own rotten apples.
Matthew, Good for you. It's nice to know that honesty does pay off in the long run. Congrats and Good Luck.
I would have never thought to reduce the closing cost to get a listing. what a shame . This crap makes us all look bad.
Good for you! I am always shocked by what goes on out there, whether intention by with lies or unintentional with ignorance. Nice to know it pays to be honest and informed!