Choose your agent with care

A problem that I thought had gone away has reared up again. Here's the story and my interpretation. A listing client of ours whose home has not sold in the approximate 75 days of listing, and frustrated by the seeming lack of interest or progress, called two different agents, each working for major franchises and each top producers in the Chico market. Since his property is listed for a flat fee with us and 2% to the selling mls agent, each of these people told him they don't show properties listed at 2%, and each of them of course angling for the listing. They in essence assured him this is the reason his property hasn't sold. There are so many problems revealed here I'll try to treat them individually. First, I suppose, the message would appear to be that these agents are too valuable or too important to show property at what they view as a reduced percentage. This is a very important character revelation about these agents. They say that in all cases and at all times their first and only consideration is themselves, always with their interests placed ahead of those of their clients. That should be a show stopper all by itself. Why would anyone want to do business with someone who was primarily looking out for themselves? That consideration aside, let's look at the legalities and ethics involved. When a property is listed on the MLS, every member agent becomes an agent for the property owner and owes the duty of representation to that owner. The member doesn't have a greater or lesser duty to any property owner based on the amount of money the property owner has agreed to pay. Discriminating between properties based on agents financial interest is a violation of board rules and a violation of Dept. of Real Estate regulations. In other words, a license losing proposition. It is also an ethical and legal violation to withhold from a client information about a property which might fill their needs because of the agents concern for compensation. If this attitude exists in the head of your chosen agent, how in the world can you tell you have had the opportunity to compare all of the homes in your range of price or interest. If you are only shown the ones that pay your agent the most you may very well have been denied access to some dandy buying opportunities. The behavior of these agents in telling a prospective client that they won't show properties unless the commission percentage is high enough boggles my mind on two counts. First, the need to appear important is so pervasive that it over-rides the fear of punishment for the illegality of the behavior, and second, what is the actual meaning of the statement. 2% of a $300,000 house is the same as 3% of a $200,000 house, so is the money not important? Only the perception of self-worth? Where is the client in all this?
Those of you who have read my blogs in the past are aware that I believe the use of percentages to arrive at a fair price for the services of a real estate agent are nonsense in the first place, but to arbitrarily arrive at a figure and then decide that dignity won't permit the use of any other number is truly ludicrous. We're in a service business and the client is our only concern. Those who forget that do so at their peril.
We naturally hope you'll select us for your real estate business; listing, buying, mortgages, etc., but for those who don't; ask many, many questions, and if you're a buyer, insist on a list of all the properties in your range of interest.

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