Here's the story.
Saturday evening I got an email from REMAX's website in regards to my condo listings. This person also sent emails to a couple of other REMAX agents. (If you didn't know REMAX's website traffic is 2nd only to Realtor.ca for Clients looking to Buy. Far superior to any other real estate company and you consider a REMAX Realtor to sell!).
Anyways... I talked to Client G. and agreed to show him my units and they were very open and upfront with me that they were going to be seeing a couple of other units with another Realtor. Now honesty I respect. It is so much more refreshing than those who are nice to you and don't mean a single word! Anyways, after our showings, which by the way, lasted over an hour... they asked me to come back in the evening to put an offer on my colleague's listing. I said sure! This was going to be a multiple offer situation. A bidding war.
If my colleague tried to represent both the Buyer and the Seller in this situation... it would have blown up in his face. You see Multiple Representation can be quite a mine field... who are you going to be loyal to? The Seller or the Buyer? Read what happened next!
My Client G saw a couple more condos with another Agent T.
Anyways... that evening their offer was not accepted and so they asked me to put an offer for another unit they were more serious about on Monday.
Here's the shocker. My client forwards me an email from Agent T in which Agent T. was letting my client know that he can get my client the listing he showed at a price of $260K. Though it is currently listed above $275K. Now I get it why some in the public don't trust Realtors!
Agent T is obviously trying to make a deal. It does not say anywhere in the email he will be cutting his commission to do so or if the Seller has instructed him to disclose this information.
Being the specialist at Tridel's Metrogate buildings... Solaris 1 and Solaris 2. I noticed
- Agent T's listing has been on the market for a month.
- Agent T's listing is at minimum $10K over priced
How can you sell a unit when you aren't effectively pricing it?
Instead of educating the Seller to Market Value and pricing the unit right so that you can get maximum exposure. Agent T is using desperate measures and disclosing information that should not be disclosed!
A lot of Sellers are trying to cheap out on the Selling Commission by trying to offer Listing Agents 3.5% commission. Think about it- if the listing agent is willing to cut their commission, what else are they willing to cut? Yes "your pocket" and their effort to try to sell your home or condo.
What should have Agent T done?
1. Do a thorough market evaluation and ask his client to price the unit at Market Value... in this case would be around $265K.
2. Market the condo on his websites, blogs, fanpages, email to active agents, youtube, open houses, etc. (this takes time and effort and if they are only getting 1%... they won't be putting this effort in)
3. Now negotiate the best deal for your client.
Buyer's aren't unreasonable if they are educated to the true market price. They will make an offer that is market value. My client who bought a condo, offered $263K on a $265K listing (which was already priced right to sell). My client would have paid $265K but saved $2K as their offer was accepted. Now if they tried $260K on this unit it would have never been accepted. Especially since I educated them to the fact that I sold the same unit for my client 9 stories higher for $270K in the same week.
So folks I can understand the frustrations many sellers have and I was personally shocked that Agent T would disclose his clients price and motivation in an email. I know a lot of crazy stuff happens out there... but this is the first I've seen it in writing.
Even in the multiple offer scenerio with my colleague- I did not discuss his client's minimum price of my client's max price or motivation or what the competing offers were as this would be unethical. I don't work that way.
Anyway, I'd like to hear what you think and if you are looking for a Real Estate Team that works for you, speaks the truth to you and your willing to pay them a decent commission to properly educate and represent you, then give us a call and let's see if we can work together.
Jess Jagpal, Sales Rep. 416-312-9742 or Jas Jagpal, BSc. York. Broker : 647-272-6629
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