While filing an ethics complaint on a Realtor I wanted to
see just how much of a problem this was and if it was everywhere. I was amazed
at what I found, the issue is everywhere and just as bad. So then I asked
myself, why are there not more ethics complaints filed so we can get rid of
these agents. Fear of repercussion, hopeing they will get caught by someone
else, turn the other cheek or a combination of all?
These unethical agents not only give our profession a
bad name, it hurts the consumers on both sides of the transaction. These
deceitful practices cost the seller money because the property will sell for
far less than what it is actually worth. The home usually takes a longer
time to sell, sometimes months. Their goal, these unethical agents,
is to submit the deal that has them with all the home’s buying and selling
commission by dissuading other agent’s buyer's from making offers on your
home. .
I found this info on the net that I thought may also help
the public to identify these habits;
Only One Photo
These agents will often use just one photo on the multiple
listing website. Often, the photo will be of extremely low quality – a
low quality view of the exterior or unappealing shot of a messy
interior. Disreputable agents do this so that when other agents or
prospective buyers see the property on the internet, it looks so bad they have
no desire to see it.
The listing agent will then go on to hold several open
houses, hoping to find a buyer without agent representation. This way, he
or she will find her own buyer for the home. Some agents go so far as to
have beautiful photos of the property on their own website, but they won’t be
posted anywhere else on the web.
Making Your Home Uneasy To Show
These shady listing agents won’t respond to showing
requests. They ignore calls and e-mails from other real estate
agents. They will never be available at the time requested. The
agent may cancel or try to reschedule the appointment at the last minute, often
just within an hour of the scheduled time.
First, this keeps buyers represented by other agents
out. Second, it can cause the frustrated buyer to think their agent is
not on the ball. The buyer will then contact the listing agent
directly. In real estate parlance, this is known as “going direct”.
As the buyer simply wants to see the property, out of frustration
he lines up appointments directly with listing agents, not realizing he’s
giving up adequate representation on his part.
This two-pronged attack enables the listing agent to double
their commission, while reducing other neighborhood agents market
share. The unethical agent then becomes the so-called “neighborhood
expert”. The agent’s signs and ads will appear everywhere, and often
seems to represent all the buyers and sellers in the area. The agent
becomes the “go-to” guy or gal. The truth is, they’re flattening home
values out of their greed.
The Bait & Switch
The listing agent tells potential buyer's agents and
their clients that the property has no offers. They say to make “any”
offer. This is a hint that there is little interest on the
property. They want the other agents to think that even a low-ball offer
might be accepted.
The buyer is more than happy to offer a low amount of
money. After all, they will save thousands and get a great deal on the
home. Meanwhile, the listing agent may have their own prospect with
a higher offer. The unethical agent then uses the low offer to convince
the seller that their offer is the best they will get.
By comparing their offer to an even lower offer, they
has made thier low offer look attractive. All the while, the buyer would
have actually offered more but didn’t because he was led to believe that they
could have gotten the home at a low-ball price. It’s classic, don’t be
duped.
No Other Offers This happened to me just
over a month ago
This is one of the most deceitful techniques they
use. This occurs when the listing agent simply does not show all the
offers submitted to the seller. So despite offering more money than other
buyers, filling out all the paperwork, writing a letter saying how much you
love the property, putting up an earnest money deposit, the buyer doesn’t have
a chance. Your offer never makes it into the hands of the seller.
The seller has no idea you were interested in the property. He or she
doesn’t know that you would have paid more than the offer he accepts.
This is, of course, a breach of the fiduciary responsibility that an agent holds
to his seller. It is also a breach of the realtor’s code of
ethics.
When interviewing agents, ask them what percentage of their
sales are from when they represented both the buyer and seller. For
ethical agents, the percentage will be fairly low, as they’re interested in
selling homes and not by doubling their commission.
There are many good, ethical agents who are willing to work
hard to sell your home. The majority of REALTORS are honest. Do
your home work and find someone you can trust.
www.AntonelliRealty.com