Two Realtors for the Price of One

Co-Listing Agreements

Realtors share a listing ("co-list") for a number of reasons:

--The homeowner has ties to two Realtors, and doesn't want to offend either;

--The two Realtors work together as part of a "group" or "team";

--One Realtor has the tie to the client, while the other Realtor is strongly established in the particular neighborhood.

It was this latter scenario I encountered recently.

Which made it ironic that, because the "neighborhood" Realtor was on vacation, the co-listing agent and I negotiated the deal without them (I was representing the Buyer).

The experience recalled an anecdote about the Vikings' trade for quarterback Fran Tarkenton, way back when.

On the opening play of the first game following Tarkenton's return, the Vikings' return man ran the kickoff back 99 yards for a touchdown.

Tarkenton supposedly turned to then-head coach Bud Grant and said: 'See, I told you I'd be good for your offense.'

"Playing the Field" vs. Exclusivity

Date Tiger Woods?
"No, Thanks"

If you liked it then you should have put a ring on it
If you liked it then you shoulda put a ring on it

--Beyonce Knowles; lyrics, "Single Ladies"

Many young, attractive singles eschew commitment in order to "play the field": the variety, the excitement, the possibilities all seem to eclipse the quiet(er) satisfactions and responsibilities of a long-term, committed relationship.

The dating world, right?

Well, yes -- but real estate, too, and specifically the world of prospective home Buyers and would-be Buyer's agents.

Realtors have a saying: 'when everyone represents you . . . no one does.'

Home Buyers who think that they're outwitting the system by having multiple Realtors all scour the market for them -- none of whom are doing so with the benefit of a signed Buyer Representation Agreement -- quickly discover that their lack of commitment and loyalty is reciprocated.

Selling Agent Bonuses

Real Estate's "Chicken Soup"

Just another one of those anecdotal observations, based on what's coming through my email in-box, but lately it sure seems like there's been an uptick in selling agent bonuses (the selling agent is what the Buyer's agent becomes once there's a deal).

Sellers accomplish that two ways: 1) by offering a fatter "pay-out," the portion of the commission shared with the Buyer's agent and their broker; and 2) by dangling an actual cash bonus to the Buyer's agent.

Does it help?

Like chicken soup, it certainly doesn't hurt . . .

P.S.: As a Buyer's agent, my practice is to give my clients what's called the "Agent Full" report (unabridged) from MLS, so they see exactly what I'll be paid if they buy any given home.

Buyer Rep Contracts -- Cont.

Leap of Faith, Risks for Both Parties

No, it's not "Buyer Rep Contract" week on this blog, and this isn't going to turn into a serial installment.

It's just that the subject is so seldom discussed, and such a fertile topic.

So here's the last thought (to go with my earlier posts, "Real Estate Representation Contracts" and "Parachuting and Buyer Rep Contracts"):

Signing a Rep Contract does represent a risk -- and a leap of faith -- for both parties.

It's just that the risk comes at different points.

Buyer Risk

For the Buyer, it's up front: 'exactly who is this Bozo/Snake oil salesman/[your stereotype here] who I barely know and who wants me to sign an unfamiliar contract tying me to them for the next decade?'

"What if he doesn't know anything about real estate?"

"Or doesn't work hard for me?"

"Or I can't stand him (or her)?"

Realtor Risk

For the Realtor, the risks primarily come later.

That would be after they've invested a substantial amount of time scouring the market for the client, showing them properties, and educating them about how the market works.

Normally, the pay-off for that investment of time is a commission check (and ideally, some loyalty and down-the-road referrals).

However, if the client never buys, or buys from another Realtor they just met . . . all of that investment is for naught.

Yes, it's a commission business, "that's the way the cookie crumbles" -- blah, blah, blah.

But Realtors ultimately just sell one thing: their time.

Wasting it is the surest way to go broke.

"Out of Bounds" Showing Directions

Showing Directions as
Marketing Strategy

One of the most famous lines in sales is "always be closing" ("ABC").

Less well-known -- but equally important -- is "always be marketing."

I was reminded of that yesterday when I was showing homes to Buyers yesterday in the West suburbs.

"Out of Bounds" Showing Directions

Prior to meeting clients to tour "For Sale" homes, Realtors will typically print a map with all the homes they'll be visiting.

However, once the Realtor gets close to a particular home, it's common to consult the MLS listing info and follow the listing agent's directions.

Which I did.

About halfway through my (especially scenic) drive through Cedar Pass -- a newer, upper bracket neighborhood in Minnetonka -- I realized what the listing agent was up to.

On the west side of the "For Sale" home -- the more convenient and closer approach -- is a neighborhood of older, more modest homes.

On the east side is Cedar Pass.

Best foot forward, indeed.

P.S.: And no, I don't think such a tactic is out-of-bounds (pun intended); it's actually very good marketing!

Is a Vacant Home "Poorly Staged?"

Adding (Feedback) Insult to Injury

[Editor's Note: thanks to fellow City Lakes agent Sheri Fine for serving as a sounding board on this post.]

Is a vacant home "poorly staged?"

Judging by how most Buyer's agents complete showing feedback forms, the answer would be "yes."

But they're wrong.

In fact, a vacant home isn't staged at all.

Saying otherwise is a sure way to annoy Listing Agents, because: a) they're already quite aware that the home isn't staged; 2) it almost certainly wasn't their druthers (unstaged homes typically don't show well, and homes that don't show well . . . are harder to sell).

Adding (feedback) insult to injury, assuming the homeowner is getting feedback directly: the listing agent must now explain to their client why other Realtors seem to be saying that they're doing a poor job.