Why do Some Agents Throw Sand in the Sandbox?
I recently read through the latest post titled, "New Agents and Misinformation" by Chad Boge, the co-founder of FSBOHOMES. As a former real estate broker, I instinctively began to de-bunk and defend the real estate agent...After 40 years in the business, old habits are hard to break. 'That's not completely accurate' my inner voice screams. 'No Way! - that's not how I ran my offices when I was the managing broker.' My inner voice was assuring me as I read. I believe my agents always treated the 'for sale by owner' sellers with kindness and respect when prospecting for future listings. They understood and respected the sellers who were attempting to sell their home by owner and realized that there's a place in the real estate sandbox for a number of different models to succeed.
Since joining FSBOHOMES eleven months ago, my perspectives have significantly expanded - unfortunately, not all of my new enlightenments are positive. Allow me to explain:
In my primary role at FSBOHOMES, I work directly with the seller. Helping them understand, set up, and establish all the various pieces that FSBOHOMES provides, and how they would utilize these pieces during the marketing of their property. So during this initial phase, it's only natural that, over the course of several conversations, we develop a trusting business relationship which oftentimes cultivates to a level of candid rapport. Knowing firsthand as I do, that a real estate agent's business model oftentimes includes 'approaching' For Sale by Owner sellers (FSBO's) as a possible source of new listings, I give the sellers a real-world heads up that once they go live, they will be contacted by a flurry of agents. Oftentimes I'll reflect back and share nostalgic stories about when I used to train and coach real estate agents on the various techniques and dialogues they could use when approaching the 'FSBO' sellers. For example, some agents will reach out to see if the seller has a backup agent, in the event they decide that going 'by owner' just wasn't as easy as they thought it would be. This first approach is primarily focused on making an introduction and beginning to build rapport. Some agents will offer to do a complimentary CMA for the seller to see if their pricing is in line, again attempting to build rapport and trust. Other agents will reach out, asking if the seller would be willing to work with an agent who has a potential buyer for their home - in other words, would they be willing to pay the buyer's agent a commission. Some agents, who don't have a buyer, will reach out to the seller and ask if they could 'preview' the property. Claiming that they 'like to stay current as to what's on the market, and that they would like to add the seller's home to their potential inventory of homes that they could show future buyers'...of course if the seller is willing to pay a commission. As I'm sharing these various agent approaches with the seller, I constantly remind them that the decision to work with an agent is entirely up to them.
For fun, I encourage the sellers to start a tally sheet. Keep track by writing down how many agents approach them, include when and how they approached them, and what was the reason or 'theme' of their initial contact. I ask the sellers, "Which category of agent approaches do you think you'll have the most of?" The sellers usually go with the category where the agent has a buyer and would like to know if they'll be paid a commission. I concur with the seller; 'Yes - that's the most popular category'.
A cold slap in the face of reality.
What I didn't see coming, and where my aforementioned paradigm shift occurred, was in the fact that I missed a whole different 'theme' of how some real estate agents approach sellers who are attempting to sell their homes 'by owner'. This unforeseen category would be titled the 'angry agent approach' and would include initial comments to the sellers such as; 'You're foolish and stupid to attempt to sell your home on your own without a licensed agent' and 'you'll never get top dollar, negotiating without an agent'. Or one of the more absurd rants that an agent dropped on one of our sellers: 'How dare you (seller) think that an agent is going to come in and take on both sides of the transaction when only being paid on the buyer's side'.
What makes these angry agent comments especially chilling, is that I personally know some of the agents who were lashing out directly to our FSBOHOMES seller clients! The seller would call me and ask; 'do you know 'so-and-so' with 'abc realty co'?' Given that I have a four-decade history in the industry, often my answer was 'oh yeah - I knew them back in the day when we both worked for 'x'' 'Well let me tell you what they just said to me!..." The seller would then begin to unload the last agent rant that they just received, oftentimes ending it with; 'this is why I don't like working with real estate agents!' It's hard for my inner voice not to feel a tinge of frustration as I calmly reply; 'I understand'.
The upside is that, while there are some immature, disrespectful cutthroat agents in the mix, they don't represent the majority. There are plenty of mature respectful agents who understand that, as the industry continues to expand, modernize, and evolve - there's room in the real estate sandbox for multiple business models. In my humble opinion; At the end of the day, no matter which model you align with, and whether or not you agree with that model, treating each other with kindness and respect should be a core behavior when dealing with others...period!
FSBOHOMES helps homeowners enjoy a simple, modern home selling experience and save thousands of dollars in the process. Our average customer saves over $15,000. With billions in real estate sold and over $75 million in commissions saved, FSBOHOMES has a proven track record of delivering the results today's home sellers are looking for. Why would you pay thousands more for an outdated and overpriced system when you can do it better yourself for less?