I have just about had it with agents taking over-priced listings with a pittance for commissions! It's still happening here in good ol' Whitestone, Bayside, Flushing, New York. These agents ruin it for the rest of the professionals who really work for their money. They don't want to invite co-brokes because the split is so low. Can't mention numbers, but you get the idea. Some of these agents do actually sell it themselves, but that's the whole point. And the sellers aren't even aware of what the listing says. In fact, I've seen some expireds who signed up for higher commissions, only to learn, after the fact, that their agent put it on MLS for far less to the selling agent. What a surprise! The listing agent keeps more that the selling agent. Some MLS's have rules that it's 50/50 but not here!
Some of these agents/brokers are "upstanding" professionals in my brokerage community, and they should be ashamed of themselves. Others are just looking to make the phone ring and chances are the listing won't sell anyway. They put up their sign and just let it sit. If it's not priced right, they still get many buyer calls from the sign. Sometimes another agent will sell, (co-broke) sometimes not. I should explain that we are still mainly a seller agency area.
To top it all of, there are approximately 3 for-sale-by-owners in one town alone. And they are getting buyers directly. They ARE selling themselves. The sellers in this area, Whitestone, Bayside, Flushing are pretty arrogant since they feel that they will attract buyers on their own. The market here is not as slow as some other areas of the country, so they still feel that they don't need agents/brokers. Some are expireds who are tired of the BS from agents they used, but the whole marketing plan, or lack of one, was all wrong. If I want to sell my property, don't I want to put it on for an attractive fee?
I would rather take them to another house, and I do. If the buyer insists on seeing a property with a joke for a commssion, I will simply present the offer with the contingency that the deal is based on me getting a certain fee. The trick to this is that you must do this directly to the seller, with the agent and seller either on a conference call or in person. If the seller has listed for a larger fee, the seller will know something's wrong with the conversation. Worth a try anyway. What's the worst that can happen? They say no to the fee but yes to the deal? Don't know until you ASK!
I am just about to start reading the book "Waging War on Discount Brokers" by Bernice Ross. I will get back to you on that!
Discount agents should be aware that they ruin their reputation, not to mention that of their broker, and the entire real estate trade. (As a broker/owner, I have a policy on fees. Anything under a certain number will not be taken as a co-broke) It's just not worth it.
Maybe to some of you it is. That's sad!
