Above is an actual notification we received yesterday (contact info redacted and emphasis mine).
This post isn’t a rant about part-time real estate agents. Let’s face it, the Phoenix real estate market – along with much of the country – has been pretty rough of late. Many agents have left the business altogether. Others have picked up part-time jobs. And there is nothing ever wrong with having multiple income streams (heck, I do).
I know some brilliant agents that have second jobs. Those that handle it well have plans and systems to cover for them when they are not available for real estate. Maybe it’s a partner or team member. Maybe they are selective about the clients they take on, or the areas they work. Those that handle it well place real estate first, and their other job second.
But when the real estate sales job takes a distant second, when you can only help someone in the evenings – and apparently not on a Sunday – when you have no plan to have your client covered 24 x 7, then it is the client that suffers.
The person that sent in this showing request assumed this was our listing. It happens all the time. Someone searches for homes on one of our sites and doesn’t realize that we display all the homes available for sale, not just homes we have listed. Had this been one of our listings, of course we would have arranged to show it. But it’s not, and this person is already working with an agent so we can’t show it.
(And for the record, we would not expect someone in an existing agency relationship to give that up if we were to show one of our listings. In fact, I don’t like to serve as a “dual agent” – representing both the buyer and seller in the same transaction – so I’d encourage this person to work with their agent. There are however, some listing agents that would try to undercut the buyer’s agent. Believe me, it happens all the time.)
Here we have a home buyer that is obviously very flexible, and is interested in a $180,000 home. An ideal client by any definition. Yet they are searching for homes on a site that doesn’t belong to their own agent, and they are reaching out to what they think is the listing agent, trying to view a home they are interested in. They are setting up their own showing appointments.
What is their agent doing?
Working some other job I guess. It’s plainly evident that the agent they are using doesn’t have a home search enabled web site, nor have they instructed their client on the potential issues of dealing directly with the listing agent. It looks safe to assume the agent has not set their client up on a dedicated “client portal” that the MLS provides.
It makes one wonder what else they aren’t doing for their client.
How many potential homes is this buyer going to miss out on because their agent isn’t available? What happens when this buyer calls a listing agent that has no problem “stealing” them from their current agent? How is this evenings-only agent going to be present during the day for an inspection? How are they going to be at the title company for document signing? What if they do get under contract and something goes wonky with the inspections, the escrow, the appraisal, the lender, or any of the other dozens of things that can jeopardize a real estate transaction? Will the part time, no coverage in place “agent” be able to get away from his “real job” in order to hold the transaction together?
For his client’s sake, I hope so.
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[shaking my head in utter dumbfoundedness]
I just got a text last night from someone that I know is working with another agent. It went like this, “Hey Shar can you send me a list of houses in the Tempe area @ 150K. We’re back to square one. Stuff keeps falling through and it doesn’t seem to be moving along quickly, it’s hard because Agent X lives in Pinetop.” SERIOUSLY?
I was just sharing this with my sister and lamenting it. She suggested that you start a showing business. $100/house? $250/hr? Might be a thought…
I agree with everything you’ve said, but unfortunately, the problem isn’t just with part-time agents. It never ceases to amaze me when I find listing agents who still figure all they need to do is get a listing agreement signed, post the listing on MLS (often without even 1 photo) and stick a sign out in front of the property. You have to chase them down to extend offers and get signed copies of docs for your file. I called on 20 properties for a client, 9 of the agents didn’t bother to return my calls. Then there are the buyer’s agents who get a signed buyer/broker agreement, point their clients to the REALTOR.com site and to some open houses, never explain anything about the home-buyer procedure, but want a commission if the buyer requests assistance from another agent.
There are some very dedicated part-time agents who work diligently and ethically for their clients and some really lousy full-time agents who are only interested in making a commission. Fortunately, with the downturn in the economy and housing market, there are at least fewer of them out there.
Jay, I think you worked hard to be so kind about the “agent” in question. If this agent hasn’t educated the buyer, could it be they don’t know?
If they can’t be available, do they understand the contract? Can they look up a listing? Why is their broker allowed to keep his license?
To the part-time agents, if you aren’t available, and if you aren’t capable, at least partner up with an experienced agent. You will have to share the commission, but your clients will be properly served and you will minimize your exposure to lawsuit and liability.
**Jim Little´s last blog post..Heros, Enough Said!
Although I give people the benefit of a doubt, this is a classic case of an unfit licensee. I feel that it is our responsibility as licensees to notify the ‘buyer representative’ in the transaction, or their broker, and let them know that they aren’t providing the services to meet the needs of their client. Not only is this a bad representation of our profession, but it reflects on the reputation of the Broker who is “The Agent”. If nothing else, the Broker-In-Charge could find an alternate during the licensees unavailable hours.
A wise man once told me “..as a real estate agent, we should provide the best service that we can provide to our client. Our clients are compensating us for the service we provide and we should give them more than is expected without stepping beyond our scope of knowledge.”
**Brian´s last blog post..Week 7 – The Coop | Gamecock Tailgating
I can understand agents needing to work part time right now to ensure they can pay their own bills, but really, when the part time job-to help offset the lower real estate income-starts to become the MAIN job, and deemed more important than the real estate job, maybe that is the time to re-evaluate whether you truly want to be a Realtor or not. In that situation, the client is suffering majorly for the poor commitment on behalf of his/her agent. I hope they don’t miss out on a great home just because their realtor is too busy as his/her other job. What a shame.
I hate to be too quick to judge, but in this case, if the agent can’t meet at all during the day to show homes, sign contracts, or even call other agents to set up home showings, then it sounds like that agent doesn’t need to be in business…
My first impression in those cases is that the buyer’s “agent” is a friend or a co-worker with a real estate license on the side who said, “Hey, if you find a home you want, I’ll write up the offer for you and I’ll give you X% of my commission.”
The buyer is not necessarily a victim of a “bad” agent. The buyer may very well understand and accept that he will get reduced service in return for getting a commission kickback from his agent.
We know the buyer is being penny wise and pound foolish but he doesn’t. Nevertheless, that is the buyer’s decision.
When I bought my first home in the 1980’s I did some foolish things that I thought were very clever at the time.
**John Wake´s last blog post..Phoenix median home price UP $5,000 in May
Would they hire a part time doctor, or lawyer? Jay you are too kind to this agent, if this buyer called me and didn’t have a signed agency agreement, I would have a new client!
I’m sorry, if you aren’t a competent, serious, full time agent, please get out of the business… you are hurting your clients!
**Marvin Jensen´s last blog post..Salt Lake’s Civic Campus Concept
It is amazing to see that a client would put up with having to do all the leg work herself-what is her agent getting paid for?! She should be demanding great customer service, and it looks like she isn’t getting it. Also, she is probably missing out on viewing some great homes, which is a shame for her and the sellers.
**Leon Blenky-Miami Beach Luxury Homes´s last blog post..Acqualina Condo Hotel In Sunny Isles Beach Presents Great Wine Tasting
Unfortunately, I had to drop the agent for my home because of this issue. I would have loved to keep him, but he had just taken on too many real estate jobs at the same time, while trying to balance another job. I just couldn’t to it all on my own!
I guess it’s a double edged sword. Maybe this realtor’s client is a friend of the family. Maybe he only does 1 deal every 6 months, so he does need that extra income stream. The realtor is probably not intentionally and potentially dropping the ball. However, true, the client may be missing out on other opportunity. We’ll never know. Tough situation though
You are violation the NAR code of ethics
Article 15
REALTORS® shall not knowingly or recklessly make false or misleading statements about competitors, their businesses, or their business practices.
This agent should report you
“Anonymous” –
Really? What did I write that was “false or misleading”?
Did I name the agent? I don’t even know who the agent is.
Fact: the agent’s client reports that their agent “is only available evenings”.
Fact: the agent’s client requested a showing for a Sunday. They also indicated they could “pretty much make any day work”.
Fact: the agent’s client wants to see the home as soon as possible.
Fact: the agent’s client is searching for homes on my site, not their agent’s site.
Fact: the agent’s client is reaching out for assistance to see a home because their agent can’t help them.
If we’re going to quote the NAR Code of Ethics, let’s not leave this part out:
Emphasis mine.
How, exactly, is this agent protecting and promoting the interest of their client?
If an agent wants to “report me” for what I wrote, they are more than welcome to. My primary board is the Southeast Valley Regional Association of Realtors (SEVRAR) and my license number is BR552965000. Information on filing an ethics complaint can be found at: http://sevrar.com/ProfessionalStandards.aspx
By the way Anonymous, YOU can also report me. Assuming you are an agent, just check the “another Realtor” box in the appropriate section of the ethics complaint form. If you are not an agent, you could check the “other” box and write in “concerned citizen”. SEVRAR will take your complaint seriously, and investigate your allegations.
Jay,
Was this a joke? I’ve read through this article and its comments twice and I still can’t see where you would have even been close to a violation of the code of ethics. I guess people still cant help but to go around starting problems.
Kind of hard to besmirch one’s reputation and commit said ethical violation without naming or providing obvious hints as to their identity. If anything, the agent owes you a steak for no latching on to his/her wayward client. As to making false or misleading accusations … interesting interpretation.
People say the silliest things on the internet.
Accidentally cloaked on the above comment.
**Paul Slaybaugh´s last blog post..The Feedback Fallacy
A lot of people are making tough choices in this economy. However, with some creative thinking, the client shouldn’t have to suffer.
**stephanie (LSL/Bold Avenue)´s last blog post..Sweet new birthday cards!
I love your “bring it!” attitude.
One observation, based on my own client research, my buyes are using 5 to 10 sites interchangeably on their house-shopping. I DO NOT BELIEVE THAT THIS HAS ANYTHING TO DO WITH LACK OF LOYALTY, but basic consumer-habit. I provide a trackable site for search and ask that they use that, and they do, but they also use a lot of other sites and services. There is good information on Trulia and Zillow that they should look at, and there are sites that promote open houses, and any of these can be rabbit holes to find new information and maybe new sites. We (real estate agents) can be quick to think that this is breaking some form of loyalty (and this request to show a property IS crossing that line for sure), but when I shop airfare, I’m on six to ten sites myself. That’s a $300 purchase. The emotions of the marketplace right now are pretty super-charged, and with a week like last week (rates going from 4.75% to 5.8% in 16 days, then back to 5.3%?) buyers – especially the first-timers – can be given a little slack for freaking out and thinking that they’re days of buying a deal are getting precarious.
None of this takes away from the macro-point that you make: that a part-time anything is a part-timer. Forget the doctor or lawyer argument, I wouldn’t go to a part-time ski tech, mechanic, electrician or landscaper. As a full-time professional, I share your frustration with having to dedicate loyalty to a large client base AND politely re-direct pseudo-leads back to their place of origin. It takes a lot of time and it distracts my focus. There is nothing worse than a “lead” that is not a “lead. Kind of like my listing I showed last Wednesday that came in through Realtor.com and in the three hours in-between they had lunch and signed an agency agreement with a different agent.
Moving on..!
**Benjamin Day´s last blog post..2655 Silent Rain Drive, Colorado Springs, CO 80919: $248,000
Benjamin –
I agree completely that people use multiple sites for searching. And there is nothing wrong with that. What amazes me is how many home searchers come to our site and when they chose to save a search, they put “My agent referred me here” in the box for “how did you find us?”.
And that’s OK. I don’t care who uses our home search. Personally though, I can’t imagine directing a client to another local agent’s site. And if I were a home buyer, I’d have to sit back and think “Huh, why is MY agent sending me to some other agent’s site to look for homes? Shouldn’t I be able to look for homes on my agents site?”
What I *really* don’t get is why these agents that do this don’t just use the tools available in the MLS to set their clients up on a direct search? The only thing that even remotely makes sense is that they don’t know how to do that. And there again, if I were a client, I’d have to question my agents capability.
With the current market conditions – 55-60% of sales being REO’s that go under contract in a matter of days – this poor Buyer is up a creek if the Buyer’s agent has such limited availability. Check out the good REO’s and within a few days, these listings have multiple offers. So maybe they opt for a short sale instead. Is this agent willing to follow up weekly for weeks/months to make sure the offer doesn’t fall though the cracks? What about during escrow when the lender needs “a helping hand” or the inspection uncovers some problems?
Real estate is far from a part time business right now…let’s face it. It’s a lot more than opening a few doors and knowing which blanks to fill in on the contract. It seems to me that is the point of the ethics codes…to make sure we are serving our clients as true professionals should. Jay, your example illustrates this very well.
**Kristin LaVanway´s last blog post..Five FAQs About Phoenix Summers
I’m sorry part-time ends in half the results! To get the best representation for one of your most important decisions you want to be sure to work with a full time broker/agent hands down! I agree Jay, you made some very valid points! Part-time agents need to work with a partner and/or team!
Jay, I tweeted my response to just your post & am pleased to see your very prompt response in the comments. This is just one of many examples of why I point to your blog when someone asks me what a good real estate blog looks like. It’s beyond great content – it also includes your approach/attitude/intention to the process.
Best,
An
**An Bui, DocuSign Social Media´s last blog post..DocuSign At Mid-Year NAR
I would think that a client that wants to get into see a home that bad, the agent would jump on it to make him/her self available to show it. That is how referrals and money are both made. I agree, that there are many trying to juggle different professions trying to get throught economic times, but I think it would be benificial for the agent to set up a team (like many of you said) and have some sort of split worked out so that it creates a win win all the way around. Thanks for the comments.
**Brewer Caldwell´s last blog post..Brewer Caldwell is the BEST
The Internet has allowed consumers to shop around whether they have agents or not. It’s ironic that with more than 80% of buyers searching on their own first, many agents still don’t have their own web sites and don’t know what IDX is.
If you are going to be a part time agent, make sure that you at least leave some time that works with your clients schedule to meet their needs. After all, they are paying you for a service, they are paying you to help them find and buy/sell a home. It only makes sense that if you are going to be in the business part time, accomodations must be made.
**Portland Real Estate´s last blog post..Washington Park: NW Portland
Too funny! This is where the buyer needs a little education, like who not to use as a real estate agent!
**Colleen´s last blog post..Kennewick WA Homes for Sale
Jay, some agents just can’t go full time in this market. I do agree that the client suffers but it’s up to them to choose their agent wisely. Would you hire just anybody to do a home renovation? Obviously not, you’d meet with him, look at past work, etc. The same should be done with a Realtor.
**Brantford Realtor´s last blog post..How’s Your Credit Score?
“…but it’s up to them to choose their agent wisely”
Agreed. But it’s also up to the agent to explain to the client what their availability is, how they will handle things when they aren’t available, etc.
Maybe this agent did that. I don’t know. It’s hard to imagine an agent saying, “I can not help you during the day, or on weekends, and I’ve got no other coverage for me during those hours so you’re pretty much on your own”, and someone still choosing to use them.
But stranger things have happened.
Jay – We run into scenarios like this all the time. Unfortunately, real estate is not a business that CAN (nor should) be a “part time” job. Real estate is an all or nothing career, and if you can’t afford to do ALL, then do nothing.
I agree with Ben that it is not a lack of loyalty … but there is no such thing as part-time fiduciary commitment, and an agent who cannot be there for their client (within reason) is not acting in the client’s best interest.
**Mariana´s last blog post..Old Colorado City and Westside Colorado Springs Homes: Real Estate Market Report for May 2009
Maybe I was too quick to judge this part time agent.
In all of my years of licensing and continuing education I have never been lectured on what system/or strategies to sell real estate. In this business you have to learn from your mistakes and trial and error is a major part of that. Unfortunately, not everyone has the knowledge that they should have. The important thing is that this part-time agent licensee didn’t misrepresent his client.
I must applaud Jay for posting this topic because it is one that is not addressed in most classrooms. It is up to the Broker In Charge to control the quality of his/her agents, not the licensee. In any case, real estate is too demanding for most part timers.
**Brian´s last blog post..Week 7 – The Coop | Gamecock Tailgating
I for one would agree with more stingent laws to being an agent. Make the fees higher as well, folks, your running your own business and your clients deserve your full attention. The last time I looked, referral business is where it’s at and this only happens to full time professional agents.
The scary part is that some over-eager agents would still set up the appointment and show the property… only to find out at the house that they already have an agent. No wonder this business burns people out!
**Doug Francis´s last blog post..Yes, the buyers are out there… but move-in-ready homes aren’t
Report you. That’s funny. You could have easily taken over that client (which would have been better for them) and sold them a property. Instead you took the high road.
**Charles´s last blog post..Las Vegas Housing Market: Foreclosures Down, Sales Up
Jay, I have been following your blog consistently over the past couple of months, and I just absolutely love it when Mr. or Ms. Anonymous a.k.a. I have the code of ethics memorized starts beating you down. Great response to them!! It always makes me chuckle.
I started out my career as a part time agent while carrying a M-F 9-5 job. It was hard. I did set expectations up front with my clients as to my availability — luckily at that stage of my career it was mostly friends and family members. It was incredibly hard to juggle it all and luckily Real Estate got busy enough for me to ditch the other job and make RE my full time career. Now I wish there were more hours in the day to get everything done! My guess is the agent was a friend or family member of the client (as others have guessed as well) and the buyer thought they were doing their friend a favor by having you show them the home. You know, saving them time and all.
I have a lady who has called me now 3 times wanting to see a home — not my listing — that her sister-in-law THE REALTOR found for her. But she lives so far away, the lady laments. But yes, when I question her, the sister-in-law will be the one writing the contract. Well, perhaps the sis-in-law should make the drive to show you the home since she’s the one representing you and thus getting the commission. Oh and did I mention that the home is a foreclosure that will not qualify for FHA or conventional financing, only cash…of course which she doesn’t have…
Deja vu. I can’t relate how many times I have experienced this same scenario, Jay. The funny part is, if these people get to you on the phone, they usually start out by defending their agent and his/her busy schedule-and it’s not just the part timers; many high profile agents just don’t seem to have time to show their “clients” property. Even with the number of stellar agents available who are willing to attend to their clients’ every need, these customers choose to work with with agents who provide marginal service at best. Who taught these consumers to have such low expectations of real estate professionals?
There is nothing wrong with having a part time job to supplement home sales right now; however, the problem is when that part time job keeps you from your full time job. That home buyer needs to look for an agent that will actually be working for her, and the agent needs to decide what job he wants to have.
It is completely fine to have multiple streams of income, but its not right when its to the extent that it makes the client suffer. The client is important and its a shame that the client is treated in such a way.
Celina Home Builder
Interesting post and comments that bring up all kinds of emotions for me. In some ways this feels like Realtor bashing. And then I think of how much of my job is done in the evenings and weekends, to accommodate my working clients’ hours. I think that as a community and profession, we need to realize that there are many agents that have taken on second jobs to keep their homes and feed their families. We live in challenging times, and (call me Pollyanna) we need to work together to support each other and our clients.
I know this is bit off-point, but I think there is so much more to being an excellent agent and good match for a client, than whether a Realtor is full or part time.
**Dru Bloomfield´s last blog post..Waking up to Beauty
As a part-time agent with a primary job, I work with a partner part-time agent whom can work day-time clients where i work them night-time. We split the weekends. It is very difficult otherwise to provide clients with proper care and attention.
As a part-time agent with a primary job, I work with a partner part-time agent whom can work day-time clients where i work them night-time. We split the weekends. It is very difficult otherwise to provide clients with proper care and attention.
Its a sign of the times but it gives us all a bad name. You cant even work 9-5 if you want to do the job properly.