Deplorable is the only way I can describe the recent behavior of real estate agents in the Rochester market. I must surmise the behavior I am about to describe is in response to the many homes we are selling for low commissions. Our America’s Choice/2.5% Real Estate Direct 1% combination program truly offers more than is offered by agents charging 6 or 7% and it is working better. Homes are selling faster, for more money, and with less cost to sell.
The owner of 611 Hosta Circle in Webster is selling her $270,000+ home using America’s Choice and the 2.5% Real Estate Direct combination program. She is offering 2% to buyer’s agents though the MLS. In contravention of the rules of the MLS and I submit, in violation of NYS and Federal anti-competitive statutes, an agent showing her home on behalf of the buyer directly demanded that she increase her offer to 3%. The seller was mad, angry, among other things. We wrote to the broker, one of the largest in Rochester, to complain, but, as usual, the broker did not even respond. Next, we have been told that another agent had the audacity to call her directly while she is listed with us to tell her she would not be able to sell by offering only 2% and that she should get out of her listing with us to list with him. Again, all of this is in violation of the rules, but some people do not believe it applies to them.
Happily, I can tell you that this house is now under contract for over $270,000 with 2% to the buyer’s agent as agreed. Further, our seller received exemplary service from her agent, Susan Payne. What do these agents have to say now?
The same kind of story was reported by the seller of Neros in Webster. In fact, it was the same agent described above who told him he couldn’t sell without offering 3% to buyer’s agents. This agent gets around to our clients; I wonder how many homes he has listed and sold recently. Hmmm. Our seller on Neros sold in 4 days with the buyer’s agent getting 1.5%. You can read his testimonial on my previous post.
Want an even more egregious story? Our seller at 25 Olde Tavern in Greece is using America’s Choice to sell. She was working with Angie Palluconi, one of our agents at 2.5% Real Estate Direct, as a buyer’s agent. She put in a full price contingent offer on a home listed with a very well known agent at one of the large brokerage firms. The listing agent and the seller put in the contract that they would only accept our buyer’s full price offer IF SHE LISTED HER HOME FOR SALE IN THE MLS AND OFFER AND PAY 3% TO A BUYER’S AGENT. Again, I submit this is more evidence of anti-competitive behavior perpetrated at the expense of both the seller and buyer. I wrote to the broker but again received no response. I am in the process of documenting each of these events for use in later proceedings.
Our buyer was so upset that she said she would never buy a home listed with that company. She couldn’t believe that they were trying to dictate to her how to sell and trying to force her to capitulate to the “typical” 3% offer to buyer’s agents. One week later our seller did in fact sell her home with 0% commission through America’s Choice. She is now in the process of buying our America’s Choice/2.5% Real Estate Direct home at 167 Orchard Park Boulevard. Thus, the seller of 167 Orchard Park Boulevard is selling a $249,000 home for 1% commission.
I understand we have 11 contracts this week in Rochester that have sold through the America’s Choice/2.5% Real Estate Direct 1% program. No wonder some agents are upset. They might be upset that they are not getting the listings, that the public is not buying their story, that they are not ENTITLED to 3% on every deal, and that buyers don’t need them to find homes . But this sentiment in no way condones the type of behavior exhibited above. It is hot in Rochester, NY.
