Do realtors/brokers realize when they refuse to co-broke they are only hurting the sellers?

Asked by R Wright, NY, Mon Mar 11, 2013

Over the weekend in the Queens area, I called up several realtors to show their listings to my my client. Unbelievably, of approximately 23 realtors called, 19 informed me they could not show the house and 2 outright told me they did not co-broke. If they cannot show the houses why is it listed? I suspect that everyone is trying to be greedy here.

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14
Javier Menes…, Mortgage Broker Or Lender, Melville, NY
Thu Mar 14, 2013
I disagree with Realtors doing this, UNLESS the sellers agree to keep the listing exclusive for a short period of time because the listing agent believes he/she may have a buyer for it who will come in at a reasonable offer. Other than that, the Realtors are simply not doing what is best for their sellers, and honestly speaking, not even what's best for themselves. There is no way that an exclusive listing has better chances of selling over a house that's listed in MLS. The more units you move, the better you're doing for yourself. Just my way of thinking.

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Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
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Woodbury, NY 11797
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(516) 606-9648
2 votes
Jim Olive, Agent, Key West, FL
Wed Mar 13, 2013
It's always interesting to hear how things work in other parts of the country. Here in Key West we don't have lockboxes, you have no choice but to call the listing agent to set up a showing and 9 times out of 10, they will be there for the showing. I realize that adds a level of difficulty, but it also allows the listing agent to market their product and highlight the benefits. It is uncommon for a buyer's agent to know the property well, so this works great.
And, YES, we have some agents who do everything they can to stall on showing their listings, presumably to secure the whole commission for themselves. It's NOT RIGHT, but it is human nature. I've been "stood up" several times by the same agent for showings ("oh, I'm sorry, I forgot we had an appointment").
There are several problems with this practice...it DOES cheat the seller, as well as the buyer. But worst of all...it is against the code of ethics. Whether you're a Realtor or just an agent, you should live by a code of ethics. I honestly wonder how some folks can sleep at night knowing the things they have done for a buck!
1 vote
Marcia Spenc…, Agent, Newburgh, NY
Tue Mar 12, 2013
Yes, finally someone has the courage to Address this issue, my philosophy is a part of something is better than nothing... Share you are representing the seller...



Best Regards,
Marcia Spencer, Broker
PLATINUM ROYAL PROPERTIES, INC.
Ph: 914.361.5994 | 914.396.3416
Fax: 845.784.5898
email: marcia@platinumroyalproperties.com
1 vote
Marcia signs referral agreements and then does not pay. I had to obtain a court judgement, won, and still have not collected.
Flag Tue Sep 10, 2013
Actually Marcia agrees to co-broke and then does not pay. I had a court ordered judgement against her for failure to pay a referral fee.
Flag Tue Sep 10, 2013
Gail Gladsto…, Agent, 11743, NY
Mon Mar 11, 2013
Unfortunately, many Realtors work for themselves, not the consumer.

The only way to nip this in the bud is to police our own industry. If a property is on multiple listing, the Realtor is REQUIRED to co-broke.

Call LIBOR and file a complaint.

If you are truly unhappy with working in a wild west show, it is up to you to stop it from happening. File a complaint!!!!!!

LIBOR is 631-661-4800. The complaint goes through a few processes without your name being disclosed to anyone...please do it! If for no other reason than to help protect the consumer.

gail@GladstoneGroupRealty.com
1 vote
Tim Moore, Agent, Kitty Hawk, NC
Mon Mar 11, 2013
Let me understand, you have clients that want to see a house so I am assuming you are a real estate agent. Are you not a Realtor that belongs to the local MLS in that area? It is my understanding that all homes listed on an MLS must agree to co-broke with other Realtor members. I know they do not have to co-broke with non-members, so are you saying that you are a licensed agent but not a local Board of Realtors member in that area of the state?
1 vote
Hi Tim - I am on the Westchester County MLS, but do you believe the seller would agree with this type of behavior?
Flag Mon Mar 11, 2013
Lynn Blair, Agent, New York, NY
Thu Feb 18, 2016
Reading through all these comments I am absolutely amazed that no one appears to be saying you not only should co- broke a sale because it is in the best interests of your client ( in this instance, the seller) but because it is the law. I can not imagine why your client would be delighted that you got an in house sale by not exposing the listing on the open market! If the seller is your client, then your fiduciary (loyalty) is to the seller receiving the best price and terms in the shortest period of time. This mandates your exposing the listing on the open market immediately; odds are, the best price and terms are not being held in your pocket. RE agents are agents for others-- not themselves. In my 30+ years of real estate brokerage I have never encountered a listing where it suited the seller not to expose the listing to as many potential and viable buyers as possible; I have encountered countless real estate agents who made that choice not to expose the property on the open market because it suited their own interests-- to keep most of the commission pie for themselves. You must always remember that brokerage is 'doing what is the best interests of another for a fee.'

If NY were not a dual agency state, and could only represent the best interests of the buyer or the seller-- but never both at the same time!-- we would have less of this, clearly unethical, many times illegal type of behavior. If half a commission pie were all you were in for, odds are you'd be marketing that property quickly and to the greatest number of cooperating agents as possible!
0 votes
JoAnn Kepler, Agent, Agoura Hills, CA
Wed Jun 17, 2015
Often, when this occurs - it is my belief that the Listing Agent (LA) has offered a special deal to the seller. If the LA sells their listing, then they double-end the deal and therefore, they offer the seller a reduced commission (SCA). Shaving off 1-2% means a lot to sellers (and buyers) and they lose sight of the bigger picture. I would suspect that the type of client that goes direct to the LA is often one of our louse clients that is not appreciative or loyal. That type of client will potentially screw the seller, too. Like a predatory animal.
While we all love the idea of double-ending a deal, this particular exclusive practice drastically reduces the sellers chances of not only attracting all the buyers for their market, they now have less opportunity for a multiple offer. They are penny-wise and pound-foolish. The LA is PWPF to keep other REALTORS from their listing... just to attempt paying less commission.Besides that, why would a REALTOR make his/her colleagues mad? Our clients ask to see the house and we can't show it to them. Most of us work so hard together and the nicer our relationship environment is, the smoother our transactions are. This helps the seller, as well. More competition and a smoother transaction. Why in the world not advise your client that in the long-run, this practice only hurts their sale success? Last note: I certainly would feel differently about this LA, if they were in my turf!
0 votes
Caleb, , New York, NY
Sat Nov 9, 2013
According to the fiduciary rights of an agent, an agent MUST relay to the seller any offer that is made. Otherwise, they are not filling their duty and therefore can be reprimanded. In other words, selfish people are also breaking the rules. Absolutely ridiculous.
0 votes
Javier Menes…, Mortgage Broker Or Lender, Melville, NY
Thu Mar 14, 2013
I mean no disrespect if anyone does this or ever did, but I feel almost the same for Realtors who also want to do mortgages as well, which really doesn't happen much anymore.
0 votes
Martina Ryan, Agent, Bayside, NY
Tue Mar 12, 2013
If the properties are not on MLS then sometimes the listing broker does not want to co broke as they usually like to sell these properties within their office. 19/23 seems very high.
0 votes
Terry Koraha…, , 11358
Mon Mar 11, 2013
Hi R Wright, unfortuinately that happens quite often. That is why Buyer's brokerage started. If you are coming in as a buyer's broker- you should not be denied access.. Even exclusive listings are to give you access. Call me with qualified buyers on my listings anytime. Terry 718-614-3167 or tkorahais@elliman.com
0 votes
Hi Terry. I have saved your info and certainly will. Thanks.
Flag Mon Mar 11, 2013
Tim Moore, Agent, Kitty Hawk, NC
Mon Mar 11, 2013
It sounds like Mr Wright has contacted the listing agents of properties asking them to show his buyers the property they have listed. I am under the assumption that he is asking them to do this because he is not a member of that Board of Realtors and so does not have a lockbox access key to their lockbox or they are in other areas not close to the listing. I have been contacted by agents like this from time to time asking me to open my listing so their buyer could see it, of course without their buyers agent even being there. I can see where a listing agent might not wish to do that since it makes the listing agent a dual agent or it opens them for a lot of confusion since the buyer is apt to ask a question and they will wonder if they are now a dual agent or a sellers agent or what.

My personal opinion is the buyers agent should be with the buyer if a house is shown otherwise how are they properly representing that buyer. Mr Wright could refer the buyer to a local agent and just take a referral fee, but it sounds like they want more. I am guessing here.
0 votes
Tim you have reached a couple of unfair assumptions. I would NEVER send my clients to a listing and not be present. I also mentioned previously that I am from the Westchester County MLS.
Flag Mon Mar 11, 2013
Anna M Brocco, Agent, Williston Park, NY
Mon Mar 11, 2013
You can consider reporting them to the Long Island Board of Realty; unfortunately sellers may not even be aware...
0 votes
Sally Grenier, Agent, Boulder, CO
Mon Mar 11, 2013
I'm not in your area, and not familiar with your term "co-broke". If you are the buyer's agent, why can't YOU show them the house?? Why would you want the listing agent to show the house to YOUR client? Doesn't sound like they are being greedy. Sounds like they just don't want to do the buyer's agent's job!
0 votes
Sally some of the homes had lock boxes while others did not. Nonetheless, in the cases mentioned I had to arrange with the listing agent the best time to show my client the unit.
Flag Mon Mar 11, 2013
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