Comments on: Show Me the Money! http://blog.redfin.com/blog/2006/11/show_me_the_money.html Redfin Corporate Blog Sun, 22 Nov 2009 20:09:04 -0800 http://wordpress.org/?v=2.8.1 hourly 1 By: Molly Hadley http://blog.redfin.com/blog/2006/11/show_me_the_money.html/comment-page-1#comment-2551 Molly Hadley Tue, 05 Feb 2008 02:03:06 +0000 http://devblog.redfin.com/blog/2006/11/show_me_the_money.html#comment-2551 Well there are rules of professional ethics realtors are regulated with by the depts. of licensure in their state. Violations are handled by the Real Estate Commission and hefty fines and forfeiture of license are the punishment for violations. Furthermore, MLS's also have a fining capacity for listing violations. Realtors are ruled by ethics and punished for violations and its unethical to imply otherwise while purporting to be a real estate professional. Some listing agents and sellers beleive that other realtors greed gets them to show properties with an incentive. It's generally a tactic of desperation and in my experience has no effect on the sale of the property. I've seen it used most in a downturning market but have seen it seldom work. Guess what guys, there really aren't that many slimy manipulators forcing unsuspecting lambs to purchase properties they neither want nor can afford regardless of offered incentives. Incentives work when they are offered to the buyer but again they usually are an indication of desperation on the seller's part and a good price is the real incentive. Finally, bonuses and incentives as well as commissions are listed on both the mls and the sales offer. Your dirty little secret is neither. By the way, I notice you indicated your flat rate is based on what you call the traditional 6% commission. When I was licensed and practicing I was required to tell my clients my commissions were fully negotiable and I took commissions from 3.5% to 6% depending on the specifics of that negotiation. Telling a client I had a fixed commission or colluding with other brokers to set a fixed commission was illegal subject to legal prosecution. I also disclosed my exact duties and resposnibilities via a written broker's disclosure notice prior to entering any property discussions with clients. Perhaps California law is different but if you are saying you are "for em" and not "agin em" why are you setting a fixed commission rate when it shouldn't exist? I think you offer something new but I don't know why you feel the need to bash a whole profession, it's not exactly like you are a non-profit. What were you're earnings last year? My guestimate is $40-45 million? I understand you think you are in competition with traditional brokerages but "can't we all just get along." Perhaps we can serve our customers well, work together, and all enjoy the benefits of a strong real estate market, including decent compensation. I think you may want to woo a few of us old time practitioners in your ascent lest you need us when you yahoo. Well there are rules of professional ethics realtors are regulated with by the depts. of licensure in their state. Violations are handled by the Real Estate Commission and hefty fines and forfeiture of license are the punishment for violations. Furthermore, MLS’s also have a fining capacity for listing violations. Realtors are ruled by ethics and punished for violations and its unethical to imply otherwise while purporting to be a real estate professional.
Some listing agents and sellers beleive that other realtors greed gets them to show properties with an incentive. It’s generally a tactic of desperation and in my experience has no effect on the sale of the property. I’ve seen it used most in a downturning market but have seen it seldom work. Guess what guys, there really aren’t that many slimy manipulators forcing unsuspecting lambs to purchase properties they neither want nor can afford regardless of offered incentives. Incentives work when they are offered to the buyer but again they usually are an indication of desperation on the seller’s part and a good price is the real incentive.
Finally, bonuses and incentives as well as commissions are listed on both the mls and the sales offer. Your dirty little secret is neither.

By the way, I notice you indicated your flat rate is based on what you call the traditional 6% commission. When I was licensed and practicing I was required to tell my clients my commissions
were fully negotiable and I took commissions from 3.5% to 6% depending on the specifics of that negotiation. Telling a client I had a fixed commission or colluding with other brokers to set a fixed commission was illegal subject to legal prosecution. I also disclosed my exact duties and resposnibilities via a written broker’s disclosure notice prior to entering any property discussions with clients. Perhaps California law is different but if you are saying you are “for em” and not “agin em” why are you setting a fixed commission rate when it shouldn’t exist?
I think you offer something new but I don’t know why you feel the need to bash a whole profession, it’s not exactly like you are a non-profit. What were you’re earnings last year? My guestimate is $40-45 million? I understand you think you are in competition with traditional brokerages but “can’t we all just get along.” Perhaps we can serve our customers well, work together, and all enjoy the benefits of a strong real estate market, including decent compensation. I think you may want to woo a few of us old time practitioners in your ascent lest you need us when you yahoo.

]]> By: Cronk http://blog.redfin.com/blog/2006/11/show_me_the_money.html/comment-page-1#comment-288 Cronk Fri, 17 Nov 2006 18:41:07 +0000 http://devblog.redfin.com/blog/2006/11/show_me_the_money.html#comment-288 Wow! It's about time someone WSJ has finally exposed these nasty real estate agent tricks of the traditional trade. Hopefully NAR will crack down and force all agents to become Realtors where ethics are a high priority. Would be great to focus next on mortgage lending practices and car dealerships. Thanks Redfin! Wow! It’s about time someone WSJ has finally exposed these nasty real estate agent tricks of the traditional trade. Hopefully NAR will crack down and force all agents to become Realtors where ethics are a high priority. Would be great to focus next on mortgage lending practices and car dealerships. Thanks Redfin!

]]> By: Kevin Boer http://blog.redfin.com/blog/2006/11/show_me_the_money.html/comment-page-1#comment-287 Kevin Boer Fri, 10 Nov 2006 21:43:54 +0000 http://devblog.redfin.com/blog/2006/11/show_me_the_money.html#comment-287 Good on you! This is the sort of transparency that is sadly lacking in our business. Expect irate phone calls from a number of Realtors about letting out this dirty little secret! Good on you! This is the sort of transparency that is sadly lacking in our business. Expect irate phone calls from a number of Realtors about letting out this dirty little secret!

]]> By: Rob McGarty http://blog.redfin.com/blog/2006/11/show_me_the_money.html/comment-page-1#comment-286 Rob McGarty Fri, 10 Nov 2006 21:00:39 +0000 http://devblog.redfin.com/blog/2006/11/show_me_the_money.html#comment-286 Hi Stewart, That is a good point. Probably not very likely without collusion between the seller and buyer's agent--like a deal with the for a commission credit equal to the value of one year's worth of homeowners' dues. Thanks, Rob Hi Stewart,
That is a good point. Probably not very likely without collusion between the seller and buyer’s agent–like a deal with the for a commission credit equal to the value of one year’s worth of homeowners’ dues.
Thanks,
Rob

]]> By: Stewart Aaronson http://blog.redfin.com/blog/2006/11/show_me_the_money.html/comment-page-1#comment-285 Stewart Aaronson Fri, 10 Nov 2006 20:44:10 +0000 http://devblog.redfin.com/blog/2006/11/show_me_the_money.html#comment-285 I'm glad to hear you pass along free homeowner's dues to your buyer clients. I'd be interested to know, however, how an agent could possibly NOT pas along free homeowner's dues to their buyer clients. I’m glad to hear you pass along free homeowner’s dues to your buyer clients. I’d be interested to know, however, how an agent could possibly NOT pas along free homeowner’s dues to their buyer clients.

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