Sometimes you don't get what you pay for. A homeseller finds that a discount-proffering real estate agent hasn't done much for the attractive commission he's charging.

Blanche -- Good morning. I just read one of your articles on low comp realtors after becoming disgusted with my realtor.

Here is my situation. I lived in and renovated a house in Houston over the last 17 years. It is in a closed in subdivision. Every room in the house has been completely renovated professionally. The yard is very nice. The upgrades have been done with high quality materials affordably. I paid for a professional appraisal done before listing the house to appropriately determine an asking price. The house is on a busy residential street. The realtor I signed a 3 month contract with has not shown the house more than once (of which the buyer couldn't even qualify) to anyone since he listed it. While he agreed to list my house for 5 percent instead of the typical 6 percent (which he offered, I didn't).

There was nothing that he stated he would not do for the slightly reduced commission. There is nothing stated in the contract that states he is the only one who can bring buyers to the table.

He had promised to have some open houses for prospects and also for realtors. He gave me the impression that he knew a lot of the realtors in the area since he used to work in a local office. Well, he had one open house that he showed up late for and he stayed only about and hour and a half. A few weeks later, he held an open house for realtors which I also attended and he only had two of his buddies (also realtors), but he had to keep calling them, begging them to show up. He went on vacation one week without even bothering to stock the dispenser in the front yard with brochures. He has not stocked the empty dispenser in about a month. I had him e-mail me initially what he was going to use for a brochure and I ended up printing up my own to stock it. He hasn't called me since before labor day weekend. The house is listed on HAR.com and MLS.

Now I understand that one of the greatest areas of exposure a house can get is to be listed on the MLS system. On the other hand, the next realtor I hire will be very well connected in the neighborhood, and I will pay the full 6 percent.

This experience has only dimmed my view of the real estate industry even further. Granted not all realtors are as unprofessional as this guy is, but people like this deserve to get a wake up call that they either need to get out of the business or conduct themselves appropriately.

Since this is obviously unacceptable, does this warrant filing a complaint against the realtor with the TREC? My contract with him runs out on 10/22/05. I will most certainly interview highly qualified realtors for the next listing.

Sincerely, Disgusted Homeowner

Realty Times responds:

Dear Disgusted:

It should state in your listing package and agreement what the Realtor is going to do to list and sell your home. Otherwise, you don't have accountability in the contract, only promises.

If your Realtor has not done the things he promised to do, the appropriate place to complain is to the Realtor's broker. Your contract is actually with the broker, not the broker's agent.

It doesn't make sense that a Realtor would voluntarily lower his commission without some kind of discussion, so go back in the tape reel of your mind to that conversation and the answer for why he is doing so little for you might be there.

It could be that he thought the house would sell with little effort on his part. Or it could be just the opposite. He could have known the house wouldn't sell easily, but he put his sign in the yard anyway with the hope that the discount would keep you from asking too many questions or making demands on his time. For whatever reason, he wanted the listing ---more listings makes him appear more in demand as a professional, even if the listings aren't selling right away.

What's interesting is that you've had so little interest in the house despite its upgraded features. That suggests that it might be overpriced for the current market. The key word here is "current."

A market can spin on a dime. In the time it takes to file a listing with the MLS, some change can occur like higher interest rates, a large employer closing a facility, or the sale of another home nearby to change the market value of your home overnight.

You might have had some contingency that put off the market. Are you closed or open-minded about most terms like closing dates, etc.? For example, you can say a house is to be sold "as-is," but that scares buyers off. They might believe you are trying to hide something when all you are really trying to say is that you don't want to do repairs. Might be smarter to let that come up in negotiations rather than state it up-front.

At this stage of the game, it's appropriate to ask for a re-evaluation of the marketing strategy for your home. You need to find out pronto why people aren't showing your house. Ask immediately for a new comparable market analysis. Has some other home in your neighborhood sold recently for a lot less than you're asking?

There are usually three reasons a house sells -- location, condition and price. You say you've upgraded and the house is close-in, so your problem is likely neither location or condition (unless you have terrible taste,) so that leaves price. Could it be you've overpriced for the neighborhood? Is the neighborhood in transition and you're ahead of what people are spending? The way to find out quickly is to lower the price and see if that generates any interest.

Realtors bill themselves as service providers, but putting a house in the MLS hoping that another agent will show and sell it is minimal service at best. The listing agent should actively work to sell the listing in numerous ways besides relying on the MLS. They should be networking with other Realtors and working to develop qualified buyers.

From the clues you've given, it's a good guess that your Realtor was out of his comfort zone either by neighborhood, type of home or price range. The fact that he couldn't get anyone to come to the broker's open house suggests that he's not in touch or possibly on good terms with the Realtors who work your neighborhood. That's not good because networking is an important part of the marketing of a home.

But no Realtor is going to waste time previewing a house that is overpriced. They prefer to spend their time on deals they know they can make, so pricing is crucial to getting Realtors to show your home to their buyers. That's what makes your Realtor showing the house to an unqualified buyer such a waste of everyone's time. No Realtor should be taking strangers into sellers' homes without making sure they are qualified to purchase.

Sometimes the comparables can show that you're in the right price range, but for whatever reason, buyers have simply stopped shopping. It can be temporary as they get kids back to school, or take winter vacations, but if it goes on and on, then the only way to attract a dwindling pool of buyers is lowering the price, improving curb appeal and offering incentives, if that's legal in your state.

If after doing all of the above, you don't get anywhere, your listing agreement will be finished and you can interview other Realtors for a fresh marketing perspective. Here are a few suggestions:

• As you saw for yourself, local experts in your neighborhood are best, preferably from a firm with a strong relocation department that attracts and serves lots of buyers. What you don't want is a "listing" specialist who does nothing but build an inventory of listings in the hopes a few will sell. You need someone who will actively work to get your home sold.

• Don't bash your previous Realtor. It will spoil your negotiations with the new Realtor and make you vulnerable to hiring the first Realtor you meet. Make yourself interview at least three.

• Ask the interviewees what they specifically would do to sell your home besides place it in the MLS, or in an ad.

• The Realtors will know this is an "expired" listing so there is no pretending it hasn't been on the market before. Ask what can be done to remove any "stigma" that may be attached to the listing.

• Ask for an honest opinion -- why didn't the interviewees show this house to their buyers? Why do they think this house didn't sell? Most Realtors will say price; if so, make them show you what they mean with comparables, not toss off price as the answer.

• Ask if the Realtors are currently working with buyers and what their buyers are telling them they want in a home. Is there anything else you can do to make the home sell faster and for the highest amount?

• Pick the one you think has the most desire to sell your home.

These should be enough to get your home sale battery recharged.

Published: October 11, 2005

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