06.18.08
Selling Colorado Springs Real Estate with a Great Listing Agent
I was recently talking to an acquaintance who had his house listed with another Realtor for sale and for lease. The idea was they would work together and move forward with whatever prospect they came across first (buyer or renter). The family was moving out of state and they wanted resolution quickly so they wouldn’t have to pay two mortgages after their relocation.
While they were working together, I received a call from a tenant in our area who was interested in the house. She had attempted to contact the office of the listing agent to schedule a showing, but was declined. They told her that she would not be able to see the home unless accompanied by a real estate agent. When she called me, I agreed to show her the property. Afterwards, she completed an application and awaited an answer. I called the listing agent several times to see why the application wasn’t being processed. He explained that the family was trying to decide whether to allow cats (since this tenant had one). Eventually, the tenant had to go find another rental property since a decision wasn’t being made and she had to move out of her current rental.
When I was talking with the homeowner about the situation, he was shocked to hear that an application was submitted. His agent NEVER TOLD HIM about the tenant. I explained how interested the tenant was and how she was disappointed that her interest wasn’t answered. Furthermore, the homeowner said that they had NO concerns about having cats in the property (since they already have two cats residing there).
What happened here? First of all, their real estate agent who was bound to work in a fiduciary capacity for them, violated their Exclusive Right to Sell agreement. He failed to keep their interests at heart. He was only looking out to make the bigger commission on the sale….and not the lesser commission on the lease. He cost the homeowners lost rental income and peace of mind. They are stressed now about not having someone in the house when they move. IMHO, this real estate agent should be reported to the real estate commission.
So, what are the responsibilities that a Realtor has to a client when they enter into an Exclusive Right to Sell listing agreement? Here’s an excerpt from this Commission-approved listing agreement:
BROKERAGE SERVICES AND DUTIES. Brokerage Firm, acting through Broker, shall provide brokerage services to Seller. The Broker, acting as either a Transaction-Broker or a Seller s Agent, shall perform the following Uniform Duties when working with Seller:
A. Broker shall exercise reasonable skill and care for Seller, including, but not limited to the following:
- Performing the terms of any written or oral agreement with Seller;
- Presenting all offers to and from Seller in a timely manner regardless of whether the Property is subject to a contract for Sale;
- Disclosing to Seller adverse material facts actually known by Broker;
- Advising Seller regarding the transaction and to obtain expert advice as to material matters about which Broker knows but the specifics of which are beyond the expertise of Broker;
- Accounting in a timely manner for all money and property received; and
- Keeping Seller fully informed regarding the transaction.
B. Broker shall not disclose the following information without the informed consent of Seller:
- That Seller is willing to accept less than the asking price for the Property;
- What the motivating factors are for Seller to sell the Property;
- That Seller will agree to financing terms other than those offered;
- Any material information about Seller unless disclosure is required by law or failure to disclose such information would constitute fraud or dishonest dealing; or
- Any facts or suspicions regarding circumstances that could psychologically impact or stigmatize the Property.
Real estate agents who do not follow these obligations need to be held accountable. The Exclusive Right to Sell is an agreement that has obligations to both parties. It is not okay for the client to hold up their end of the agreement, but not the agent.
As I work with my clients as their listing agent I pledge to do the following: “1. Promoting the interests of Seller with the utmost good faith, loyalty and fidelity. 1. Seeking a price and terms that are acceptable to Seller. 3. Counseling Seller as to any material benefits or risks of a transaction that are actually known by Broker. ” These items are also part of the listing agreement.
Let me know if you’d like a free packet about the services I provide as a listing agent.
