A couple of years ago an agent and I were laughing because his client asked him if he was showing him all of the listing. “Of course, why would I not show you all of the listings?”, he replied. Yes, indeed, why not?
When the market was hot this was even more common because inventory was low and it was hard to find a good house. When I would show listings someone would ask why I didn’t show the house across the street. I would reply that it didn’t fit their criteria or it was probably pending. They sometimes seemed unsure. I actually upgraded my Realtor key so I could look up listings on the fly and show them I was right. I didn’t want them questioning my integrity.
Though it wasn’t something I considered or did, I knew that there were some agents that wouldn’t show homes if the commission was too “little”. Even an $8000 commission was deemed too little by one agent because it wasn’t the right percentage, though $8000 is much more than a typical percentage on an average price house, so I find that silly. They are thinking they can find another house with a bigger commission. I believe you find the best home for the client but I’m just crazy that way.
I never really gave it much thought until I pulled a batch of faxes and found this, which was faxed from a real estate company fax machine.
I was furious even though it wasn’t my listing. I was furious for two reasons. One because the agent sent it and thought that bullying anyone in the office was within their right but the real reason I was furious is because I am 99% sure that the agent hasn’t told their client that they don’t show homes below a certain commission point.
The first statement in the Realtor Code of Ethics says,
When representing a buyer, seller, landlord, tenant, or other client as an agent, Realtors® pledge themselves to protect and promote the interests of their client.
This client and all of the other ones working with this agent have no idea that houses are being hidden from their search which I believe to be a breach of Realtor ethics and just common sense.
Some agents have a Buyer’s Service Contract which states that any home with a commission below X%, the buyer will make up the difference. Other agents take what is given to them by the listing. And then there are agents who won’t show homes with low commission. I showed a home that had a $500 commission because it fit the client’s criteria. They didn’t buy it though.
For each agent, this is their personal business to run how they see fit within the rules and laws that govern us. Even though 6% is thrown around a lot as the typical listing commission, some people charge 7% and more. I don’t care if an agent won’t show a house because of the commission, the color of the house, or any of the other myriad of possible reasons as long as they disclose it. They are being honest and upfront allowing the client to decide. But that’s the thing, they think they will lose the client and money.
It’s two weeks later and I am still pissed. Still pissed that clients are treated like that and they don’t know – and I can’t do anything about it but write in my blog. I also imagine them reading this and laughing at my naivete.
I have always felt this is a service job, not a sales job. If you have a sales job, you have to sell your client on you. I provide service to my client trying to do the best for them.
I always hope that dishonest agents will be drummed out of the business but they always find more suckers. The people who I thought would be out of this business are still here and there are plenty more that give Realtors a bad name by doing stuff like this. Luckily I know some great Realtors and hope there are more of us than the others
Is your agent showing you all of the homes or just the ones they want?
3 thoughts on “Buyer’s Agents And Ethics: Is Your Agent Hiding Houses From You”
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Great post Mike. I've seen this problem way too much. You never know what your client is going to like. If we represent a buyer, we commit to look after their interests. I've shown houses I thought my clients would totally hate and was wrong, wrong, wrong! Although it is something that we all look at, the Buyers Agent Commission should not be a factor in whether a property should be at least submitted to a client for their consideration. My only hope is that there is a majority of agents who actually feel the same and not just speak the same. The only way to gain trust with buyers (and sellers) is to be honest and open. Thanks again for your thoughts.
Great post Mike. I’ve seen this problem way too much. You never know what your client is going to like. If we represent a buyer, we commit to look after their interests. I’ve shown houses I thought my clients would totally hate and was wrong, wrong, wrong! Although it is something that we all look at, the Buyers Agent Commission should not be a factor in whether a property should be at least submitted to a client for their consideration. My only hope is that there is a majority of agents who actually feel the same and not just speak the same. The only way to gain trust with buyers (and sellers) is to be honest and open. Thanks again for your thoughts.