Selling Agent - Conflict of Interest

[serpentman]

What is the name of your state? Ohio

I just learned that my selling agent has listed his own property in the same community as our house, which has been on the market for 4 weeks. The house he has listed is very comparable to my own. He has listed it $2500 under my current asking price. I feel this is a conflict of interest. Do I have any recourse? Can I switch agents?

[lcannister]

Talk to the agency Broker/oner/manager and discuss the issue and ask him or her what can be done in thi situation.

How long has the agents house been on the market, and how long has yours? You even broach the topic with the agent?

[serpentman]

I definitely plan on discussing it with the agent first. My house has been listed for 4 weeks. His has been listed for 2 days.

[nextwife]

Every house is different- different neighbors, different improvements, different landscaping, different views, different lot layout. I don't see this as a problem at all. He'll be picking up MORE calls from buyers interested in homes in your neighborhood, and obviously he can't sell his house to more than one of them.

Any buyer that isn't interested in his home is a potential buyer of yours and vice versa. A buyer that likes your area may dislike something about your home, or someone who wants the area may dislike something about his home- in either case that buyer can be introduced to the other house as an alternative.

Remember, different buyers have different priorities, and price alone is not all there is. Having walked through many homes with many buyers, I can tell you that you can't presume that two similar homes in the same neighborhood would be viewed as just as acceptable. Sometimes it's a big dining room set they won't give up that will fit in one, but not the other house, or the closet system in one that's not in the other, or the cat smell in one and not the other. Maybe the one house is not in the same school system, or the tile in one bathroom is a color they just love-or just hate. Or the buyer has always wanted rose beds, and the one house is too shady. Whatever, your house is NOT his house and his house is not your house.

[serpentman]

I originally thought the same as no two houses are the same. I realize that no one truly "sells" a home. If a buyer likes it they like it and if they don't, you can persuade them to like it. More or less I feel I am in competition for his marketing efforts.

A week ago I asked him to hold an open house for my house that has been on the market for 3 weeks. He responded that he was booked for the next 3-4 weeks. I discovered this last night that he has an open house scheduled today for his house which has only been listed for 2 days.

[nextwife]

Originally Posted by serpentman

I originally thought the same as no two houses are the same. I realize that no one truly "sells" a home. If a buyer likes it they like it and if they don't, you can persuade them to like it. More or less I feel I am in competition for his marketing efforts.

A week ago I asked him to hold an open house for my house that has been on the market for 3 weeks. He responded that he was booked for the next 3-4 weeks. I discovered this last night that he has an open house scheduled today for his house which has only been listed for 2 days.

Honestly, very few homes sell off the open. Why? Because most buyers going through opens are not qualified to buy the house they are seeing. The qualified buyers are usually out viewing specific homes through a broker that meet their needs. My dad was in RE twenty years and said he very rarely sold off an open. Same for myself. Opens help brokers connect with buyers, whom they then find homes to show. In my experience, many who randomly come through opens are looking at homes that they would not buy.

His open will HELP you, as he may get names OF OTHER PARTIES INTERESTED IN BUYING IN YOUR AREA. If I had my house on the market, I'd RATHER have a broker who had other listings in the area from which he's getting buyers.

[serpentman]

You make a good point. I guess the fundamental issue remains on where his marketing efforts are focused. If someone likes my house for the price, they'll buy it. However, I am already getting the impression that the total of his efforts consists of listing us in the MLS.

We had our first showing on Thursday. I called him the follow afternoon to see if he had any feedback. His response, "I haven't check my email yet, do you want me to call the other realtor?". To me, the answer would be blatantly obvious.

[moburkes]

Originally Posted by serpentman

You make a good point. I guess the fundamental issue remains on where his marketing efforts are focused. If someone likes my house for the price, they'll buy it. However, I am already getting the impression that the total of his efforts consists of listing us in the MLS.

We had our first showing on Thursday. I called him the follow afternoon to see if he had any feedback. His response, "I haven't check my email yet, do you want me to call the other realtor?". To me, the answer would be blatantly obvious.

He doesn't make a dime until your house sells. However, you aren't his only customer. But, since you've signed a contract, you won't be able to get out of this one so quickly. Also, in this market, homes are staying on the market longer. Don't expect miracles.

[serpentman]

All very valid and helpful responses. However, no one seems to be concerned with his conflict of interest. I specifically asked for an open house and he chooses to hold one for himself instead. His house has been on the market 2 days, mine almost 4 weeks. It makes me concerned about what is happening "behind the scenes".

I realize he has a vested interested in selling both properties and that he has multiple clients. However, I also have learned that he has already purchased a second home. Now that he is carrying 2 houses, which will hold a higher priority, mine or his?. I have yet to see any ads in the newspaper for my house, his was in today's paper.

I feel at this point, for 6% of my selling price, I have bought a listing in the MLS and that's about it.

[moburkes]

You may have. If I were an agent, and I was selling my own house, I would give it extra efforts. Did you research the agent first?

[serpentman]

Yes and no. He sold my good friend's house. His house had been on the market 6mos when he switched to my current agent who sold it in 4 weeks.

When he listed mine, he said he was fixing his house up to sell. Looking back, I should have pressed harder on the issue. I assumed it was a project or a flip. I wasn't aware it would be listed in the upcoming months. Unfortunately, this is our first attempt at a sale and we are getting a first hand lesson on what to ask.

[LindaP777]

OP, you can always drop your price by $2500 (or better yet, $3000).

I'm sure he had his open house scheduled well ahead of the day you asked him if you could have an open house. If you had asked him when you listed your house, I'm sure he could have scheduled an open house for you by now. You can always ask him to host your own open house and ask him to promote it.

I personally don't see it as a "conflict of interest". There are often multiple houses for sale in the same neighborhood, and several often by the same Realtor. As nextwife points out, the same buyer will probably favor one house over the other. The difference of $2500 isn't that much, but lower your price if you think it is.

[lcannister]

Open House = complete and utter waste of time. I have heard he following reasons for attending an open house

1. Looking for decorating ideas
2. Looking to see which house to burgularize
3. To see neighbors house inside
4. To pick up a trinket that might be left lying about, 2 people attend one distracts agent other searches on their own

The people trapsing through are lookers and very, very, very, few buy from an open house.

[4Labs]

OP there is no conflict of interest. Having been a Reatlor for many many many years, open houses are used to attract buyers, not to obtain a sale. Same with ads. Ads cost alot of money, a call comes in on the ad, the caller is not interested in that house afterall, the caller gets switched to something else he may like better or agent asks if he needs assistance finding something else. If the caller says yes, the agent has gained a new client. This is how we make money.

You are correct when you say you have paid 6% to be in the MLS because that is where your qualified buyers are going to come from, but if your house doesn't sell, you don't pay a fee....so essentially you just got exposure in the MLS for nothing. The MLS can also hurt you because if your house sits on the market for months and months without a sale, there is a record of it.

The only time a conflict of interest would occur with your present agent is when your agent has brought you a buyer that he is also representing. This is called a dual agency transaction. I am sure you can see, in a transaction like that, your agent knows your personal motivations and also those of the buyer. In a situation like that, its very easy to have a conflict of interest.

Good luck on your sale, and remember....open houses and advertisements do not sell well priced houses....the market does.

[PghREA]

Originally Posted by 4Labs

OP there is no conflict of interest. Having been a Reatlor for many many many years, open houses are used to attract buyers, not to obtain a sale. Same with ads. Ads cost alot of money, a call comes in on the ad, the caller is not interested in that house afterall, the caller gets switched to something else he may like better or agent asks if he needs assistance finding something else. If the caller says yes, the agent has gained a new client. This is how we make money.

You are correct when you say you have paid 6% to be in the MLS because that is where your qualified buyers are going to come from, but if your house doesn't sell, you don't pay a fee....so essentially you just got exposure in the MLS for nothing. The MLS can also hurt you because if your house sits on the market for months and months without a sale, there is a record of it.

The only time a conflict of interest would occur with your present agent is when your agent has brought you a buyer that he is also representing. This is called a dual agency transaction. I am sure you can see, in a transaction like that, your agent knows your personal motivations and also those of the buyer. In a situation like that, its very easy to have a conflict of interest.

Good luck on your sale, and remember....open houses and advertisements do not sell well priced houses....the market does.

I totally agree.