Profile picture for KMD33

Do Buyer's Agents avoid MLS listings with "flat fee" brokers (really FSBO)?

I am considering using an online flat fee service for listing my house ($800-$850K) in Seattle. I have been told that even though I am willng to pay the buyer's agent the full 3% that agents will avoid showing their buyers my house because they want to deal with a "professional". In this price range, I have to be sure that I am not excluding that group of buyers who are represented by agents. Is this really true? Am cutting down my exposure even though I am in the MLS?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 28 2007 - US
We think we've answered this question for you!
 
 

Replies (77)

Profile picture for pinksandbaby
I think no, but they may just be me. I'm doing it that way and I've had a fair amount of showings. I'm in NY and we have lawyers do closings, so agents are not that vital to the transaction (No offense people)
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 28 2007
Profile picture for pinksandbaby
I did ask a few point blank and they said they had no problem with it. I assure them we are on the up and up and will play fair!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 28 2007
I don't know how your market is, but my guess is that in most areas right now, agents will respond to a listing priced correctly and bring their buyers through just the same.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 28 2007
Profile picture for pinksandbaby
yep, a sale is a sale
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 28 2007
Profile picture for robin398
Even though you are offering 3% the buyer's agent has to split that with his brokerage. There are agents who won't show a listing for less than that because they can make more money showing a different home to their buyer. Also, brokerages will negotiate the commission.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 28 2007
It shouldn't matter. I don't even look at who the listing agent is prior to looking at a listing.

If you've over-priced the house, that will affect things, but that's also true if a legitimate agent over-prices the house.

Do make sure you get both a sign and an electronic lockbox for your dollars. Otherwise it's a complete ripoff.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 28 2007
It really depends on the Realtor. Some say that they end up doing the work for both ends when a transaction involves a "flat fee" service company then a professional Realtor. But, if your home is priced right and they have a buyer looking for those specifics I can't imagine any Realtor not going the extra mile.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 28 2007
Makes no difference to me at all.
My buyer-exclusive services are available on flat rate too -- and hourly -- daily -- and of course the usual percentage. It's only fair sellers get to hire anyone they want. As Kary said, I don't usually notice the lister unless it's someone I really love or never heard of before.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 28 2007
Absolutely I show them, but I know agents that don't. The reason they don't is mainly due to what Kimberly said, you end up working both ends.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 29 2007
Profile picture for joannab3884866
Robin said:

“Even though you are offering 3% the buyer's agent has to split that with his brokerage. There are agents who won't show a listing for less than that because they can make more money showing a different home to their buyer”

…but wait a second…all I have heard on these threads is that Real estate agents wouldn’t do this because it would be unethical. This is steering, isn’t it?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 29 2007
Profile picture for robin398
Joanna. Go back to the thread where I gave you the definition of steering.

Also read the rest of the current paragraph in this thread.

Please stop making generalizations of people. I am referring to a mentality of some agents. I don't do this.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 29 2007
Steering has to do with race, religion, nationality etc. of a neighborhood. I think you may be misunderstanding what the term means.

But to answer your question no it is not steering, it is simply unethical.

DeShonna Randall
Atlanta, GA.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 29 2007
Profile picture for Alan May
...I would certainly show it... If it's a house that suits my client, why wouldn't I? It's my obligation to my buyer to show them everything in the market (regular, FSBO, or flat fee) that fits them.

Joanna said:
<<all I have heard on these threads is that Real estate agents wouldn’t do this because it would be unethical. This is steering, isn’t it?>>

Joanna... you've also heard us answer (more than once) that the definition of "steering" is to "funnel people into or away from an area based on socio economic or ethnic reasons". No... "this" would not qualify as steering. It would be unethical and illegal based on current Real Estate Laws... but it wouldn't be steering.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 29 2007
Profile picture for mc222
We've sold our last 3 houses FSBO (in Seattle) using a flat fee MLS. Since the listing shows the listing agent's name, most of the buyer's agents weren't aware that it was a FSBO. Our listing agent faxed out our Form 17 on request and even told me he would receive any offers and turn around and send them to us. We were also able to rent a NWMLS lockbox from them, so we didn't have to be present to show the home (the last two houses were vacant). All of this for around $400 -- a great deal!

Once an offer was presented, we informed the buyer's agent that we would be handling the transaction ourselves. We were prepared, having done our homework. We had already opened title, and negotiating was a breeze because it was all face to face. All three of our FSBO sales went very smoothly and I'll never do it any other way!

Good luck.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 29 2007
Profile picture for robin398
When I answer questions, I tend to play the "devil's advocate". I look at both sides of a situation. I was married to an attorney so that perspective has rubbed off on me. My intention is to answer honestly.

I am referring to a mentality of some agents who will not show an FSBO because of commission.

I don't do this. Would I show Pink's house? Yes. Would I refer people to an FSBO? Yes and have done so. Has my firm shown FSBOs? Yes.

Like the other agents have said it is unethical not to show an FSBO. It is all about the house and if that house has what your customer wants then it needs to be shown.

Tend to your customer's needs first then earn your commission. That is what was taught to me by my family who have been in the RE business.

Just my 2 cents. Let's move on.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 29 2007
Profile picture for joannab3884866
.....it's clearly steering.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 29 2007
joanna, the definition of steering has been told to you time and time again.

Directing a particular race to a certain neighborhood and away from others.
An example is a real estate broker steering a black family away from a white neighborhood. This action is illegal
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 29 2007
Profile picture for Alan May
<<it's clearly steering.>>

well, I suppose you can call it "steering"... (like directing a car in one direction or another)... but it is not the legal definition of "steering"...

.... and, Joanna knows that.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 29 2007
Profile picture for joannab3884866
Once again, I will provide all with evidence of the definition of steering. Please pay attention this time.

This is an excerpt from a report released in April 2007 by the Federal Trade Commission and U.S. Department of Justice:

“As discussed in more detail in Chapter IV, brokers have certain incentives to "steer" consumers toward those homes that offer the highest cooperating broker commission payment and away from homes listed by brokers known to charge home sellers discounted commission rates. In this manner, brokers can take advantage of their superior knowledge of market conditions by steering clients away from home listings that otherwise match the criteria identified by the consumers, but provide lower financial gains for the broker than other homes”.

But feel free to continue spinspinspinning……
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 29 2007
oops, that reminds me...laundry!!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 29 2007
that isn't the legal definition of steering, but keep up the good work....
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 29 2007
lmao mpal
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 29 2007
Profile picture for Alan May
sorry... Joanna...
.... your "excerpt" is certainly an example of bad real estate... I don't think any of us will argue with you that some agents do that, and that both you and I would like them to be removed from the industry...
... but your excerpt still doesn't qualify as the legal definition of "steering".

YOU, please pay attention this time.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 29 2007
When I google up "real estate steering," I get a Fair Housing website that starts with the following:

"If you have a real estate license, you know the definition of steering: the illegal funneling of home buyers to a particular area based on the desire to keep the makeup of that neighborhood the same or intentionally change it. Racial steering receives the most complaints, but the practice is not acceptable for any reason."

Maybe "steering" to obtain a brokerage benefit contrary to the client's interests and needs should get another word.
"Guiding?" "Channelling?" "Cheating?"
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 29 2007
Profile picture for Alan May
Steering:
Illegal practice of limiting the housing shown to a certain ethnic group.

Real Estate Dictionary

Steering:
An illegal practice of limiting the housing shown to a certain ethnic group.
Example: Though the minority couple wanted to be shown all available rental housing that they could afford, the unlicensed person steered them from certain neighborhoods.

and here's the link if you'd like to check the reference:
http://www.answers.com/topic/steering?cat=biz-fin
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 29 2007
trust us Joanna, it's one of the questions on the RE exam
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 29 2007
One day a couple years back, a polite & nicely dressed Black couple came in to check on homes for sale. They didn't care about the price, commuting distance, or whether/not they could have horses. Showed them pix of everything on the market and gave them a map with the properties marked so they could drive around -- as we do all visitors.
Sure 'nuff, read in the paper a couple weeks later that some local Big Brokerages got cited by the Housing Dept for racial discrimination in RE practices. The folks were scouts for the Housing Dept, and claimed they were told there was "nothing in their price range," while white buyers in the office at the same time were given the showing book.
Some people never learn.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 29 2007
Profile picture for Alan May
that's the problem, marci....

... if you've been following the bulk of Joanna's posts... she doesn't trust us... and, in fairness to Joanna, the realtors she's dealt with haven't given her much reason to.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 29 2007
true almay, all 75 that she interviewed were all untrustworthy
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 29 2007
In short, yes. Sometimes it's annoying when the seller doesn't know what they are doing, because you get caught in the middle. That doesn't happen that often though. Also, if the seller doesnt' know what they are doing, the unscrupilous (sp?) buyer's agent can take advantage of that. As a seller make sure you fully understand all the deadlines, contingencies, and what they mean to you.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 29 2007
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
Related Discussions
How to get rid of cooking smell while selling your home
Profile picture for Jose Smith Jr
Latest reply by Jose Smith Jr
12 hours ago | 11 answers
Carpet Allowance vs. Replacement
Profile picture for J.C. Mernin, Jr.
Latest reply by J.C. Mernin, Jr.
1 day ago | 21 answers
MLS My Home has poor service
Profile picture for zuser20140520104303205
Latest reply by zuser20140520104303205
2 days ago | 4 answers
SHOULD A SELLER PAY THE BUYERS CLOSING COSTS? What you need to know...
Profile picture for PeteSchneider
Latest reply by PeteSchneider
2 days ago | 19 answers
I quitclaimed my house to my ex wife when we got divorced, but my name is still on the loan.
Profile picture for sunnyview
Latest reply by sunnyview
3 days ago | 12 answers
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.