Re: A realtor would be a fool - Posted by eric-fl
Posted by eric-fl on February 08, 2001 at 09:02:14:
I think you misunderstood the intent of my post.
You stated - "What is the best price and terms on your house? I will bet you do not start the conversation with your “bottom line” best price. "
Speaking as a Realtor myself, I fail to see the difference between my “not starting with my best price”, and the typical listing. Almost no listings are listed at the bottom line price either. Yet, Realtors take prospective buyers to see these houses all day long, without ever having talked with the listing agent, let alone the seller. How much more do they know from the listing printout than they do from me? They might know things like year built, loan balance, taxes last year, etc. But that’s all public record, anyway. Or they could just ask me, I’ll tell them. Some sellers might not, but I will. As I said in another post on this thread, I really don’t have anything to hide.
As for the Realtor needing to be paid, I completely understand that. It has been suggested elsewhere in this thread to bargain down the commission, something I have never done. Also, they know I am an agent as well, before coming out. I reveal this at “first substantive contact”, as required by Florida law, which to me means, during the phone call. The conversation typically goes something like this: “Now, Eric, let me ask, would a 3% commission be acceptable?” Me: “Of course, that’s no problem at all. I actually have a license myself, though I own this house myself, it’s not a listing. I understand you need to get paid, I think we’ll all be on the same page when you come out to see the house”.
As for having an agreement in writing with me, that’s fine, but they don’t need that before coming out. Though you are right, there should be an agreement to protect their interests from the outset. It’s called a buyer’s broker agreement. I know you know what that is, as do most agents nowadays. But they don’t typically do it. Why? Because the Florida legislature basically changed the law a couple of years ago, and now, almost by default, the implied agency relationship is one of transaction broker, which severely limit’s the agents liability. Good for agents, bad for consumers. I think it was a bad legislative decision. The general public holds a low opinion of agents, and that’s not the way to clean up the reputation. Most agents don’t sign an agreement that explicitly defines a fiduciary responsibility, because the law says they don’t have to. Yet, if the agent wants to guard against an end-around between me and their buyer, they could simply sign a buyer’s broker contract. Of course, that would then hold them to a higher standard of accountability with their buyer. Perish the thought!
As for Realtors buying on their own account, your right, many do. But these situations I was referring to were not that. It was very obvious, the few times this happened to me, that there was clearly no buyer, and that they were prospecting. Besides, if they were buying on their own account, why not just say that at the outset? So that they could create a fictitious shill that they might “have to check with” as a negotiation tactic? If I discovered someone doing that, it would strike me as disingenuous, and make me less flexible in my dealings with them. If that’s what you mean by “no deal at all”, then you’re right, I guess it’s not a deal. Please take your money elsewhere. As I get older, I have come to understand that some things are really more important than money. I would rather sell for a few thousand less, and have dealings in good faith, than vice versa, any day of the week.