|
Home > Archive > Real Estate Agents > June 2006 > Is this normal?
You are viewing an archived Text-only version of the thread.
To view this thread in it's original format and/or if you want to reply to
this thread please [click here]
|
|
|
|
My wife and I are considering building a home. We have a lot in a
subdivision we found ourselves and already bought. We happened to see
a nice, newly constructed home in the style we wanted so we stopped to
ask the real estate agent that had it listed for information about the
builder. She offered to arrange a meeting with the builder (who we
like and would like to use) but the realtor is now trying to take a
commission on the deal. Is this normal? I have a real problem with
paying someone a commission on the home we build just because she
called the builder to let him know we were interested in talking to
him.
Thanks for any info.
| |
| darrenli516@yahoo.com 2006-04-18, 3:21 pm |
| I don't want to say that this situation is normal, but it may have to
do with what kind of relationship the realtor has with the builder. The
builder may very well pay the realtor a commission when the realtor
refers a construction job. But there is no way I can see that the
realtor could charge you the buyer a commission unless you sign a
contract of some sort with the realtor.
Darren
| |
| Steve Foley 2006-04-18, 5:21 pm |
| Were you upfront with the Realtor telling her WHY you wanted to meet the
builder?
"tyu" <dfh> wrote in message
news:ft7a42tapc36kn2mqhjs3jo64ernu3ldnj@4ax.com...
>
> My wife and I are considering building a home. We have a lot in a
> subdivision we found ourselves and already bought. We happened to see
> a nice, newly constructed home in the style we wanted so we stopped to
> ask the real estate agent that had it listed for information about the
> builder. She offered to arrange a meeting with the builder (who we
> like and would like to use) but the realtor is now trying to take a
> commission on the deal. Is this normal? I have a real problem with
> paying someone a commission on the home we build just because she
> called the builder to let him know we were interested in talking to
> him.
>
> Thanks for any info.
| |
| homan4 2006-04-18, 8:21 pm |
| "tyu" <dfh> wrote in message
news:ft7a42tapc36kn2mqhjs3jo64ernu3ldnj@4ax.com...
>
> My wife and I are considering building a home. We have a lot in a
> subdivision we found ourselves and already bought. We happened to see
> a nice, newly constructed home in the style we wanted so we stopped to
> ask the real estate agent that had it listed for information about the
> builder. She offered to arrange a meeting with the builder (who we
> like and would like to use) but the realtor is now trying to take a
> commission on the deal. Is this normal? I have a real problem with
> paying someone a commission on the home we build just because she
> called the builder to let him know we were interested in talking to
> him.
In our area many builders cooperate with real estate brokers. They will pay
for referring customers, and that is about all the work an agent has to do.
Particularly with the slow down in new construction, we have had a parade of
builders give their pitch at our weekly office sales meetings doughnuts and
all. Builders have working arrangements with real estate brokers and
agents.
The concept of brokerage is to bring two parties together and be paid for
doing it.
Here are a few questions:
You stop to ask a doctor for some free health advice, should he give it for
free to a non patient?
You stop to ask an accountant for some advice on preparing your tax return,
should he give it for free to a non client?
You stop to ask a lawyer some advice on a personal legal issue, should he
give it for free to a non client?
You stop at a auto repair shop and ask the mechanic some technical questions
on repairing your car yourself, should he give it to you for free without
being paid?
Do you ask the people at the box office to let you in to the game for free
because you just want to check the score?
Do you have one of those "special" boxes for cable or satellite so you don't
have to pay?
What if your employer asked you to work without being paid?
Do you get my point? Are any of the above "normal?" No. It might be
normal to have separation anxiety regarding your hard earned money, but, it
is still "normal" and might I say ethical, honorable and decent pay for
value and services rendered.
What is the big deal about a professional being paid for providing
information? To be honest I have a real problem with all the grubs and
moochers in the world who think they are the only ones who should be paid
for the work they do.
| |
|
| Yes - we were very upfront with why we wanted to meet the builder - we
told her it was for him to build a house for us.
On Tue, 18 Apr 2006 19:31:47 GMT, "Steve Foley"
<steve.foley@DELETE.att.net> wrote:
>Were you upfront with the Realtor telling her WHY you wanted to meet the
>builder?
>
>
>"tyu" <dfh> wrote in message
>news:ft7a42tapc36kn2mqhjs3jo64ernu3ldnj@4ax.com...
>
| |
| Steve Horrillo 2006-04-19, 10:21 am |
|
On 18-Apr-2006, "homan4" <homan4@cox.net> wrote:
>
> In our area many builders cooperate with real estate brokers. They will
> pay
> for referring customers, and that is about all the work an agent has to
> do.
> Particularly with the slow down in new construction, we have had a parade
> of
> builders give their pitch at our weekly office sales meetings doughnuts
> and
> all. Builders have working arrangements with real estate brokers and
> agents.
>
> The concept of brokerage is to bring two parties together and be paid for
> doing it.
>
> Here are a few questions:
>
> You stop to ask a doctor for some free health advice, should he give it
> for
> free to a non patient?
>
> You stop to ask an accountant for some advice on preparing your tax
> return,
> should he give it for free to a non client?
>
> You stop to ask a lawyer some advice on a personal legal issue, should he
> give it for free to a non client?
>
> You stop at a auto repair shop and ask the mechanic some technical
> questions
> on repairing your car yourself, should he give it to you for free without
> being paid?
>
> Do you ask the people at the box office to let you in to the game for free
>
> because you just want to check the score?
>
> Do you have one of those "special" boxes for cable or satellite so you
> don't
> have to pay?
>
> What if your employer asked you to work without being paid?
>
> Do you get my point? Are any of the above "normal?" No. It might be
> normal to have separation anxiety regarding your hard earned money, but,
> it
> is still "normal" and might I say ethical, honorable and decent pay for
> value and services rendered.
>
> What is the big deal about a professional being paid for providing
> information? To be honest I have a real problem with all the grubs and
> moochers in the world who think they are the only ones who should be paid
> for the work they do.
I think the fact that the Realtor wanted "to arrange a meeting" should have
tipped them off. Do you think if they simply asked who the builder was, and
the Realtor told him, and they looked up the builder, would the Agent be
entitled to a commission for simply dropping a name?
--
Warmest regards,
Steve Horrillo, Realtor / C.Ht.
MLS Training http://BrokerAgentTraining.com
Join EXIT Realty http://over100percent.com
| |
| Steve Horrillo 2006-04-19, 10:21 am |
|
On 18-Apr-2006, tyu <dfh> wrote:
> Yes - we were very upfront with why we wanted to meet the builder - we
> told her it was for him to build a house for us.
Why didn't you just ask the name of the builder then dial 411? Once you let
the Realtor do the job that you can do yourself you are entitling them. She
shouldn't even know your last name if all you wanted to know was the name of
the builder.
--
Warmest regards,
Steve Horrillo, Realtor / C.Ht.
MLS Training http://BrokerAgentTraining.com
Join EXIT Realty http://over100percent.com
| |
| homan4 2006-04-19, 8:21 pm |
|
"Steve Horrillo" <usenet@stephenhorrillo.com> wrote in message
news:jmq1g.31971$Jk3.19838@bignews5.bellsouth.net...
> I think the fact that the Realtor wanted "to arrange a meeting" should
> have
> tipped them off. Do you think if they simply asked who the builder was,
> and
> the Realtor told him, and they looked up the builder, would the Agent be
> entitled to a commission for simply dropping a name?
>
Do you show homes or give out information to any unqualified stooge that
walks in the door? Our stock in trade is information. Should we give
information to buyers unless they let me qualify them first? It is not too
hard to find the name of a builder if you know where to look. If you want
my help, pay me or let the builder pay me. What is so hard to grasp about
that?
If you ask a doctor for casual medical advice and he sends you to an
examining room, is that a tip off or is he just being professional? At that
point you have the choice to use his service or move on somewhere else. Why
is it that if an agent is doing their job and looking to be paid for it he
is a creep? The real issue is agents who give out too much information to
people who don't want to pay them for it.
When I first read the post I thought the agent was a little too hard, but,
after some thought I realized how much money I was loosing by talking too
much and not asking enough qualifying questions first. I don't meet with
prospective buyers for the fun of it, and I commend the professionalism of
this agent for recognizing the opportunity for a pay check and not
volunteering information which could make money for them.
| |
| Steve Horrillo 2006-04-20, 1:21 am |
|
On 19-Apr-2006, "homan4" <homan4@cox.net> wrote:
> When I first read the post I thought the agent was a little too hard, but,
>
> after some thought I realized how much money I was loosing by talking too
> much and not asking enough qualifying questions first. I don't meet with
> prospective buyers for the fun of it, and I commend the professionalism of
>
> this agent for recognizing the opportunity for a pay check and not
> volunteering information which could make money for them.
Agreed. So how should this Agent have qualified this person so that they
felt as if they were actually done a service? I still feel it sounds like
the Agent wants money for nothing. I liken it to an Agent sending a buyer
unescorted to a seller then claiming procuring cause. I think the Agent
should, as you say, be asking the prospect questions to qualify them before
connecting them with the builder and hopefully pre-qualified the builder
before recommending them.
I get what you're saying about becoming more vigilant about not volunteering
information. If it's done the right way they won't feel as if you're a mooch
standing between them and the information. They'll feel you've done them a
service. The key IMO is as you say, ask qualifying questions rather than
simply dropping a name then running to the source for a hefty paycheck. (if
indeed it happened the way. We're only hearing one side of the story)
--
Warmest regards,
Steve Horrillo, Realtor / C.Ht.
MLS Training http://BrokerAgentTraining.com
Join EXIT Realty http://over100percent.com
| |
|
|
"Steve Horrillo" <usenet@stephenhorrillo.com> wrote in message
news:1ID1g.10875$iB2.991@bignews4.bellsouth.net...
>
> On 19-Apr-2006, "homan4" <homan4@cox.net> wrote:
>
>
> Agreed. So how should this Agent have qualified this person so that they
> felt as if they were actually done a service? I still feel it sounds like
> the Agent wants money for nothing.
Isn't that what we do best?
| |
| homan4 2006-04-20, 8:21 am |
|
"Steve Horrillo" <usenet@stephenhorrillo.com> wrote in message
news:1ID1g.10875$iB2.991@bignews4.bellsouth.net...
> I get what you're saying about becoming more vigilant about not
> volunteering
> information. If it's done the right way they won't feel as if you're a
> mooch
> standing between them and the information. They'll feel you've done them a
> service. The key IMO is as you say, ask qualifying questions rather than
> simply dropping a name then running to the source for a hefty paycheck.
> (if
> indeed it happened the way. We're only hearing one side of the story)
I agree, perception is reality. I guess practice and professional
development are the keys to shaping the consumer's opinion. Think of this,
The sales person gets paid for selling. If this agent left the impression
they would only give this information to qualified serious buyers, and did
not provide it the customer would have complained as well. The word mooch
is a good one, but, I think it describes the person who wants something
(information) for nothing.
| |
| homan4 2006-04-20, 1:21 pm |
|
"Steve Horrillo" <usenet@stephenhorrillo.com> wrote in message
news:1ID1g.10875$iB2.991@bignews4.bellsouth.net...
>
> Agreed. So how should this Agent have qualified this person so that they
> felt as if they were actually done a service? I still feel it sounds like
> the Agent wants money for nothing. I liken it to an Agent sending a buyer
> unescorted to a seller then claiming procuring cause. I think the Agent
> should, as you say, be asking the prospect questions to qualify them
> before
> connecting them with the builder and hopefully pre-qualified the builder
> before recommending them.
>
> I get what you're saying about becoming more vigilant about not
> volunteering
> information. If it's done the right way they won't feel as if you're a
> mooch
> standing between them and the information. They'll feel you've done them a
> service. The key IMO is as you say, ask qualifying questions rather than
> simply dropping a name then running to the source for a hefty paycheck.
> (if
> indeed it happened the way. We're only hearing one side of the story)
>
BTW, when a person goes to a builder's sales office or model home, there is
a sales person paid by the builder, who gets a salary, plus a commission if
he makes the sale. Why no problem with that?
| |
| Steve Foley 2006-04-20, 4:21 pm |
| This really depends on who "is now trying to take a commission on the deal"
from.
If they want compensation from the buyer after the fact, I think they are
out of line. If they went to the builder and said:
"Hey, I held an open house for you, and because I did, you have another
customer, how about a commission?" I think that's reasonable.
"homan4" <homan4@cox.net> wrote in message
news:zMN1g.43714$EA3.31585@dukeread10...
> BTW, when a person goes to a builder's sales office or model home, there
is
> a sales person paid by the builder, who gets a salary, plus a commission
if
> he makes the sale. Why no problem with that?
>
>
| |
| homan4 2006-04-21, 9:21 pm |
|
"Steve Foley" <steve.foley@DELETE.att.net> wrote in message
news:huQ1g.10$5q4.3@trndny03...
> This really depends on who "is now trying to take a commission on the
> deal"
> from.
>
> If they want compensation from the buyer after the fact, I think they are
> out of line. If they went to the builder and said:
>
> "Hey, I held an open house for you, and because I did, you have another
> customer, how about a commission?" I think that's reasonable.
From the original post it seems that the agent wanted to set up an
appointment for them to meet the builder. The usual procedure to obtain a
commission from a builder, is to accompany the buyer on the first visit and
register with the builder. Some builders absorb my commission as a cost of
selling. Others, and I generally do not work with them, tack the commission
on top of the cost of building, and jack the price to the buyer up.
But back to the broader issue of compensation, with full up front
disclosure, there is nothing wrong with expecting to be paid for your
services. For me I have set some personal minimum standards. For one I
don't work with buyers unless I am sure I am going to get paid, by someone.
Again I ask the question, Is it right for the public to expect me to work
for them for free?
All the information about filing your income tax is available from the IRS.
You can contact each federal district court and get copies of rulings and
interpretations. You can get copies of the appeals court and supreme court
rulings from the courts as well. If you make a modest investment, you can
buy this information from RIA or CCH that is if your local public library
does not have them. Or you can hire a CPA who knows the details on the
issues you have, or at least where to find them quickly, and had enough
knowledge and experience as to what they mean and how they are applied. Yes
a good CPA knows the shortcuts in the research process, and gets paid
handsomely for this knowledge. I doubt an accountant would volunteer to
resolve a critical issue on a tax return for free, and would rather expect
to be compensated for the preparation of the full return.
A good realtor knows the market and how to find information quickly, and
should be compensated for that. If there are any realtors out there who
make it a practice of giving up the information that provides their
livelihood, contact me, I have a load of time wasters to send your way. No
sense both of us should starve.
| |
| agsf_57@yahoo.com 2006-04-22, 1:21 am |
|
tyu wrote:
> My wife and I are considering building a home. We have a lot in a
> subdivision we found ourselves and already bought. We happened to see
> a nice, newly constructed home in the style we wanted so we stopped to
> ask the real estate agent that had it listed for information about the
> builder. She offered to arrange a meeting with the builder (who we
> like and would like to use) but the realtor is now trying to take a
> commission on the deal. Is this normal? I have a real problem with
> paying someone a commission on the home we build just because she
> called the builder to let him know we were interested in talking to
> him.
>
> Thanks for any info.
Just register for free at one of the title companies and do a free
title searchof the house. It will list the builder's name. Then you can
easily do a search on the builder if it isn't in the title report. Here
is a website:
www.chicagotitle.com
As long as you didn't sign anything with the RE agent, you should be
fine.
Regards...
| |
| Steve Horrillo 2006-04-22, 1:21 am |
|
On 20-Apr-2006, "homan4" <homan4@cox.net> wrote:
> The word mooch
> is a good one, but, I think it describes the person who wants something
> (information) for nothing.
There's no reason they both can't be mooches. Don't they flock together? 
--
Warmest regards,
Steve Horrillo, Realtor / C.Ht.
MLS Training http://BrokerAgentTraining.com
Join EXIT Realty http://over100percent.com
| |
| agsf_57@yahoo.com 2006-04-22, 2:21 am |
|
homan4 wrote:
>
> A good realtor knows the market and how to find information quickly, and
> should be compensated for that. If there are any realtors out there who
> make it a practice of giving up the information that provides their
> livelihood, contact me, I have a load of time wasters to send your way. No
> sense both of us should starve.
I don't know if I can agree with your stance on this subject. I believe
a successful sales agent is one who goes out of his/her way to solve
his customer's issues and problems. If the sales agent was nice enough
to go out of her way to locate the builder and provide the phone number
to these people, I believe she would have built up a new
friend/customer. Maybe something along the lines of "You know, as real
estate agents, we make a commission by introducing builders to people,
but you guys are new to the neighborhood and I want to help you out.
Let me get your number and I'll call you with the information." I am
willing to bet that if the OP were to need a real estate agent in the
future, chances are they would use this agent.
My leads come from referrals from people who I actually helped instead
of trying to make the quick buck.
Regards...
| |
| homan4 2006-04-22, 8:21 pm |
|
<agsf_57@yahoo.com> wrote in message
news:1145681925.091527.120900@g10g2000cwb.googlegroups.com...
>
> I don't know if I can agree with your stance on this subject. I believe
> a successful sales agent is one who goes out of his/her way to solve
> his customer's issues and problems. If the sales agent was nice enough
> to go out of her way to locate the builder and provide the phone number
> to these people, I believe she would have built up a new
> friend/customer. Maybe something along the lines of "You know, as real
> estate agents, we make a commission by introducing builders to people,
> but you guys are new to the neighborhood and I want to help you out.
> Let me get your number and I'll call you with the information." I am
> willing to bet that if the OP were to need a real estate agent in the
> future, chances are they would use this agent.
Do you really believe that crap? Hey, I know that if I was looking for an
agent to sell my home or find me a home I would want the most aggressive
agent I could find. One who recognizes opportunity and marches right in.
Our industry has too many folk who think they have to "bond" with people.
They spend hours building rapport, and no time selling or doing things to
make money. I am not saying don't be nice, but I am saying this nonsense
of spending 4 hours doing a listing presentation, bringing cookies and
ordering out for pizza just to "build rapport" and get a seller to list, or
showing 492 homes to
an unmotivated buyer and buying breakfast lunch and dinner for them for two
weeks is way
too outlandish.
If a prospect asks me about a particular home, I first qualify them,
determine their intentions, and then I am glad to discuss the home with
them. It is the stupidest thing I have ever heard of to pass up a paycheck
and work for free in hope that the people will remember what a nice guy you
were and send all their friends to you to grub more free service. I am a
professional, that means I get paid for my work.
> My leads come from referrals from people who I actually helped instead
> of trying to make the quick buck.
You can have the worst closing in history, and a month after the people are
in their new home they forget the emotion of the transaction and just
remember how you helped them. The key to referrals is to stay in touch, not
to give your services away for free. In order to stay in touch, you need
their information. If someone is looking for free information, they most
likely won't give you their information.
| |
|
|
"homan4" <homan4@cox.net> wrote in message
news:Ssy2g.4009$iF3.355@dukeread01...
>
> <agsf_57@yahoo.com> wrote in message
> news:1145681925.091527.120900@g10g2000cwb.googlegroups.com...
>
> Do you really believe that crap? Hey, I know that if I was looking for an
> agent to sell my home or find me a home I would want the most aggressive
> agent I could find. One who recognizes opportunity and marches right in.
> Our industry has too many folk who think they have to "bond" with people.
> They spend hours building rapport, and no time selling or doing things to
> make money. I am not saying don't be nice, but I am saying this nonsense
> of spending 4 hours doing a listing presentation, bringing cookies and
> ordering out for pizza just to "build rapport" and get a seller to list,
> or showing 492 homes to
> an unmotivated buyer and buying breakfast lunch and dinner for them for
> two weeks is way
> too outlandish.
>
In fact, I think that kissing XXX is the best way to be seen as a kiss-XXX.
Think about it...
| |
| Steve Horrillo 2006-05-03, 7:21 pm |
|
On 2-May-2006, "corky" <s022233@admiral.umsl.edu> wrote:
[color=darkred]
If you can't build rapport withing 5 minutes, you're screwed!
--
Warmest regards,
Steve Horrillo, Realtor / C.Ht.
MLS Training http://BrokerAgentTraining.com
Join EXIT Realty http://over100percent.com
| |
| Ryan Dean 2006-06-16, 1:25 pm |
| [This followup was posted to alt.real-estate-agents and a copy was sent
to the cited author.]
In article <ft7a42tapc36kn2mqhjs3jo64ernu3ldnj@4ax.com>, tyu <dfh>
says...
>
> My wife and I are considering building a home. We have a lot in a
> subdivision we found ourselves and already bought. We happened to see
> a nice, newly constructed home in the style we wanted so we stopped to
> ask the real estate agent that had it listed for information about the
> builder. She offered to arrange a meeting with the builder (who we
> like and would like to use) but the realtor is now trying to take a
> commission on the deal. Is this normal? I have a real problem with
> paying someone a commission on the home we build just because she
> called the builder to let him know we were interested in talking to
> him.
>
> Thanks for any info.
>
Did you sign anything?
--
Ryan Dean
REALTOR, SOFI, HCOA
American Way Real Estate
710 S. Jefferson Ave.
Cookeville, TN 38501
RyanD@American-Way.com
www.RyanDean.HomesandLand.com
Direct (931)529-1712
Office (931)646-4010 ext. 2160
Fax (931)858-5570
|
|
|
|
|