![]() |
Real Estate News and Advice |
December 4, 2009 |
|
|
|
|
|
Should Listing Agents Show Homes To Other Agents' Buyers?
by Blanche Evans
Technology and our culture of offloading responsibility to cut costs are all contributing to a new work ethic - or lack of ethic depending on whose side you're on. But the complaint that is beginning to surface is that more buyers than ever are looking at MLS-listed homes without their "agents" at their sides. These buyers are driving by listed homes, calling listing agents for appointments, touring builders' homes, and knocking on sellers' doors demanding to be shown inside. One would expect such aggressive actions from unrepresented buyers, but what about buyers who say they have an agent? Whether or not these buyers are under contract or not is another story, but suffice it to say, represented buyers importuning listing agents for showings are becoming more common. They are letting listing agents know they are represented by giving their agent's names or presenting their business cards. And that's where the controversy begins. If these buyers are unaccompanied, are they truly being represented? Should listing agents, who have sworn to sell the home to the seller, show houses to buyers represented by other agents? Should buyer's agents allow their clients to look at homes unaccompanied? For many agents, the questions begin with the freewheeling Internet. The Internet as a medium is allowing buyers to see more information about homes than ever before. Homes are displayed like jewels on sites like Realtor.com, HomeAdvisor and Homes.com. Technologies such as virtual tours even allow buyers peeks inside the interiors, and in some cases, thanks to VOW and IDX sites, buyers can see the whole MLS inventory in detail, except for showing instructions. Buyers can even view comparable home sales online and value their "home," for comparison's sake. It's fun for buyers who have never previously been allowed such access to listing data before. Once upon a time, the MLS book was given to them, but only in the company of their agent, and comparables were only discussed with serious offers. Today, the Internet allows the same browsing in richer detail, privacy and anonymity. This change has created a new attitude in buyers - they are more demanding, and less respectful of traditional seller and agent protocols. And because their listing data often comes from a third-party like a real estate portal or an MLS site, rather than their own agent, there is a disconnect taking place between the buyer and his/her own representative. They think they don't need a representative and if they do, they don't want the agent underfoot. Agents are already complaining that buyers want to do everything on their own, but they don't seem able to find a way to bridge the distance created by the buyer's attitude. Except to give the buyers what they want. If they want independence, they can have it, but the agent can use the opportunity to offload some responsibility, too, and still make money in the bargain. "By finding agent sites that offer IDX or VOWs, I could search for homes for my clients anywhere, and, if they saw it and liked it, could write the offer on my computer and e-mail it to them for signature - all without leaving my house," says Vicki Lloyd. "The reason that buyers go along with this, is because they often will receive a rebate of about one-third of the commission for agreeing to work that way, essentially 'earning' part of the commission." Then, if the buyers find a home they want, they get their own agent to write the contract. If you are the type of agent who sends your buyers on their own to look at homes and then you get involved when it's time to write the contract, you may be in for some surprises. Lloyd says that some listing agents are starting to catch on - and are noting in the agent remarks of the MLS that co-op commission will be reduced by a certain amount if the listing agent is used to show the home to buyer. "We also see "co-op commission offered to MLS members only" in the agent remarks section," says Lloyd. "I believe this is the result of out-of-area agents (and agents who don't have lockbox keys) telling their clients to call the listing agent when they see a house they like." In a world where profitability is as much about what you can offload onto others as what you can make, more people will begin to examine the fairness of certain actions. "If the listing agent takes away two-thirds of the co-op commission for showing the house to the buyers, it should eventually discourage that practice," says Lloyd. But what seems even more fair is getting control of the buyer from the outset, and explaining that everyone's time is money, including the listing agent's, and that your job as their agent is to get them the home they want. But if the buyer is more concerned with saving money or retaining their independence, an ethical dilemma can arise. While some agents will continue the practice in the interest of serving their buyers' wishes to save money and retain their independence, others will find themselves stonewalled by listing brokers who don't want their agents doing someone else's work. "I think this is mainly the result of the availability of the technology tools that make it so easy for anyone to become fairly familiar with a market at a distance," explains Lloyd. "I, personally, would not write an offer on a property that I hadn't shown to my client, but knowing how easy it is, I can see the temptation." Published: August 29, 2002 Use of this article without permission is a violation of federal copyright laws. Related Articles:
|
Real Estate News Network
Today's Real Estate Outlook
Spotlight
Today's Headlines
|
|||||||||||||||||
| ||||||||||||||||||
|
for Agents
Readers' Choice
|
||||||||||||||||||