Today I had the misfortune of calling At Home Realty out in Allston looking to bring a client to one of their listings in Coolidge Corner. I gave my usual schpeel, and asked when we could show it to them and was astonished with what was said next by my greedy counterpart..."I won't co-broke that." For those unfamiliar with the lingo--co-broking is when an agent splits his or her commission with a cooperating agent who brings in a tenant (i.e. a buyer's agent in sales).Now, it's definitely not the first time I've heard this from a real estate agent in Boston, but this time was especially unnerving to me because the apartment was listed for $3,200. At a "full fee" this agent stood to make the ridiculous commission of $3,200 and would not accept a 50/50 split--I guess because $1,600 just isn't enough money to make for posting a listing on craigslist (which is 100% free) and doing a couple of showings. Keep in mind that when this agent took the listing from his trusting landlord, he accepted the fiduciary duty of finding his client (the landlord) the best tenants and at the best price for the landlord, period. By telling me that he won't co-broke with me, he is turning away my prospective tenant (who is well qualified and ready to pay the full rent amount, mind you) and the landlord will have never even known that they had the chance to rent it to my clients. This is clearly a breach of their fiduciary duty, unless they got express written consent from the landlord to turn away clients from other agencies, which is impossible--no landlord would ever accept those terms.
This is everything that is wrong with rentals in Boston, and it makes me sick to even be a part of it.
From now on I will write a blog entry highlighting each and every company that I encounter that will not co-broke a rental in order to bring ethics back to real estate in Boston.
I agree...DOWN WITH COMMUNISM
ReplyDeleteI disagree with you.
ReplyDeleteFor 1/2 commission, you cant promise your person will rent. So its worth it for the broker to just post a few times on craigslist and find their own renters. You provide no significant value worth 1/2 commission.
...which brings me to my next point. Is a landlord hiring a listing agent just to post on craigslist (which is still free, is it not)? The significant value that I provide is a renter willing to pay full price...i.e. demand for their property. I'm not paid the 1/2 commission unless the person rents, so what promise is needed? If the listing agent gets their own client to fill the vacancy-great! But they shouldn't, and are ethically bound not to, turn down potential renters just because it affects the amount of money that they make. What if my client was interested and so was one of the listing agent's clients directly, causing a bidding war that results in a higher price for the landlord?
ReplyDeleteA listing agent who clings to their one listing like they will never get another, is one who will never make any money. You take the bird in the hand and move on to the next deal, period.