Thursday, December 18, 2008

Insanity vs. the “Code of Ethics”

Here's an ACTUAL e-mail I received earlier today from the owner of a home that is listed with another broker and about to "expire". (I've changed the name of the brokerage for obvious reasons):

"We are the owners of the above home for sale.  Our current listing agreement with 1a2b3c Realty will soon be expiring and we are shopping around for a reduced real estate commission.  What's the lowest percentage commission you would be willing to list it for?"

An analysis of similar homes to theirs clearly showed they were at least $100,000.00 over-priced!

On how many different levels is this situation ABSURD?

Please don't get me wrong. I'm not just frustrated with the mindset of the homeowners. What possessed the real estate agent to take that listing at that price in the first place? What was the Broker/Manager thinking when they permitted this disservice to their client?

Now, 6 months later, these misguided folks are shopping for another brokerage based on "lowest commission percentage" via the internet! The saddest part of this tragic story is; it's not over yet. They will succeed in finding exactly what they are looking for; a brokerage to take their listing, at their price, for the lowest commission. Another 6 months will pass, without anyone looking at their home, and the cycle will continue…unless…

Unless we as an industry remember and practice the REALTOR "Code of Ethics" by being honest and professional! Let's STOP the insanity one e-mail at a time. Here's a copy of my response:

Thank you for remembering and considering Coldwell Banker Flanagan Realty.  Unfortunately, to enter into a "service agreement" based solely on the amount of the real estate commission would be another disservice to you; the first was an agent and brokerage listing your home at "that" price in the first place.

Please understand, I'm not trying to insult you or your home, but an analysis of your model, in your Village, clearly shows your home was "overpriced" for the current real estate market by at least $100,000.00.

I'm confident your home is far superior to other models in your village but just as the stock market determines the current value of any particular stock, the real estate market determines the current value of any particular home.  So, attempting to market and sell your home above the "market range" would be like trying to sell penny stocks for a dollar.

Re-listing your home based on a reduced commission will only lead to more frustration and disappointment for everyone involved.  May I ask, "Why are you attempting to sell your home?"  "Where would you like to move to?"  And, "How soon would you like to get there?"

Please feel free to post your comments.




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