Ignore him.  He will be out of business in no time.  One lawsuit or slip up and he will be broke (if he isn't already).  This is an expensive business to be in and there is a lot of liability too.  We are compensated for what we are worth.  I know I am worth 6%.  Apparently he does not feel he is.

Discount brokerage means discount service.  This is a SERVICE Industry.  The will not survive

If I were in the same mood that I am right now, I would have asked him to step into the hallway and bashed his nose.  Where's that bat guys?!?

In reality, in my normally sane mood, I would then have immediately gone to the board office after all the papers were signed and filed a complaint with the board citing violation of the COE Article 15, SOP 15-2. I would also have asked my client to be a witness for me and provide some sort of written statement about the incident and all the hoops YOU had to jump thru make the deal work.  The closer or attorney, whomever handles your closings, is also a witness to this rude and crude person's behavior.

"Article 15

REALTORS® shall not knowingly or recklessly make false or misleading

statements about competitors, their businesses, or their business

practices. (Amended 1/92)

• Standard of Practice 15-2

The obligation to refrain from making false or misleading statements

about competitors’ businesses and competitors’ business practices

includes the duty to not knowingly or recklessly repeat, retransmit,

or republish false or misleading statements made by others. This

duty applies whether false or misleading statements are repeated in

person, in writing, by technological means (e.g., the Internet), or by

any other means. (Adopted 1/07)"

As a general strategy it is advisable to educate clients up front, before anything is signed and any action is taken. It will take a much better presentation than we have historically given. What we are doing is educating clients about all these scenarios, and about representation, about different models, about levels of service, about costs of doing business, about free market enterprise, etc -- it is a daunting task sometimes, but, educating clients upfront helps them understand the flims and flams of the business. It sounds like your clients understood. That's good. But even at a discussion at the closing table, it may be a good opportunity to pontificate on the realities of the real estate business.

We have been too silent in the face of those who who use our model as the whipping boy without listeners getting the full picture.

I am not against discounters, but I am growing weary of their constant denigration of the "6%" as a way to justify what they do.

As we have said here time and again, there is no 6% model of doing business -- commisssions are negotiated daily in thousand and thousands of transactions. I don't crow about giving a seller a 4% commission and try to make other realtors look bad after we have negotiated, I just do the deal and offer the selling agent a good split, take what's left and go on to the next deal.

My main problem with "discounters" is their contant criticism of the "traditional" agents, then their alligator tears when we strike back with facts. They have tried to place themselves as the victims of the old guard, but from what I have seen they have framed themselves against tradition and are the main ones leveling criticism against other agents.

I think I would done as you had.  Keep silent and talk with your client later.  It is unfortunate he felt inadequate and needs to puff up his self-esteem by bashing someone else.  You took the high road.  You are a credit to all of us.  Keep it up.

I think a position of strength is always better.  Strength comes from silence not ignorance when a potential lawsuit could be on the horizon.

This guy will be out of business in no time. If his clients are willing make up the difference at closing, that alone does not speak well of him.

Arthur, I have been in those situations where there is so much you could say that it is hard to know where to start. I believe sometimes there is a time to be silent and let others make fools out of themselves.

And... then there is time to let them have it with both barrels.

Arthur: Why would you want you and your client in the same room with the other side, at the same time to close???? RECEIPE FOR DISASTER!  Maybe in some parts of the country that is the way it is done, but I don’t want my client anywhere near anyone from the other side EVER, let alone to close.  One wrong word could sink your ship.

Joe: No doubt you are right about this guy, but what is he doing as a director?

Mike:  Seems like every thread get to read (which isn’t many, too busy) you are there, and you seem like a solid thinking guy.  Your statement “My main problem with "discounters" is their constant criticism of the "traditional" agents…” puzzles me a bit.  Guess I need to get out more.  Could you please provide me some of that “constant criticism”.  I am not here to defend this agent Arthur encountered at all (Velda is right, he should be gone), but other than a conciliatory “I am not against discounters, but I am growing weary of their constant denigration…” every once in awhile, you can not find much on these threads that is not “constant criticism” of the “discounters”. I am a discounter, because I feel that a Wal-Mart in real estate services is needed and is part of our future.  Traditional real estate will always be here, but if our industry is truly market driven, sooner or later, someone hungry to build business is going to try to do the job at a better price. That is the nature of business and it is what makes it great. The consumer wins, at least for a while, if the competition is keen.  Of course, my fondest dream is to build our business to the point Sam did, but my daily task is to emphasize our service, that we feel is as good or better than any in our market at any price, and work hard to prove it.

You did the right thing. Sometimes we run into people like that. It's a good thing you're a professional...

Arthur said

''I chose to sit there in silence. ''

That was the best thing you could have done Arthur.

and you know the rest, do what you gotta do!

Vance

Well Done Arthur!

I would have sat there also Arthur, Your board sucks.  I would have to dig out my old voice recorder next deal I had with him.

Well, Troy, you don't have to look too far -- just read your own website.

I probably wouldn't have sat there. I would have said something to add context to his strawman argument.

Arthur, I agree with the posts here applauding your silence, that is probably the best way to handle such a situation. Luckily here, the two sides never meet. At closing, it's just the buyers and sellers lawyers handling the paperwork/negotiations. If you do run into this agent again at closing and he starts again, maybe try saying " you're comments probably aren't suited for this environment, maybe we could meet at your office to discuss it further, did you want to call your son first to make sure he's done with it???? Or would the supermarket work better for you?" Maybe not professional, but I'd be tempted to say it.....

I'm not sure I agree that this (_|_) clown will be out of business soon since it's true that turds float to the top and this guy sounds like a big, smelly, riddled with corn turd! LOL

I looked @ Troy's site and honestly didn't see any criticism about traditional agents.  The closest thing is "do you think it costs too much to sell a house" or something like that.  Presentation of a possible issue and a solution does not criticism make.

oh boy - that was graphic, Scott <giggle>

Arthur, I would have done as you did ... would simply ignore it and talk to my clients afterwards.

Joe, ... "Discount brokerage means discount service" ... it's not about the type of service ... it's about the professional (or in some cases no so much of a professional) who provides the services. ... don't we all like discount services in one way or another?

... for example, I never take my car for an oil change to the dealer that charges e.g. $30 or more ... I take it to our local place that does oil changes and similar smaller jobs and I pay about $70 for a DISCOUNT card that gives me 6 oil changes ... that's less than $12/ oil change ... they still do a great job, they check my car for all kinds of issues ... no appointments needed, I can just come in on a first come first serve basis .... and I could go on and on with the list of products and services we all use and most of us are happy any time we can save a buck. So what is wrong with people wanting to save on selling real estate?  ... as an agent who no longer has to split 50/50 as I did when I started in this business, I can pass on the money I don't have to give to my broker onto the clients and we can be all happy.

I would have probably asked him to step outside for a moment and had a civil conversation with him.  And, might have mentioned the ethics issues that he was in violation of.

And, I think you're correct ... don't ever have him in the same room with you for a closing.  Luckily ... we don't generally do joint closings here.  So, don't run into this problem.

This isn't so much about "discount brokerage" as it is about common courtesy, dignity and respect.

It's perfectly appropriate to be gracious when someone slips and says something rude without thinking, or when frustration gets the best of them. When someone pulls this kind of stunt which is intended to embarrass it's perfectly appropriate to say, in the most polite manner possible, "excuse me, but I find your comments to be terribly rude. Could we please get back to the business at hand?"

Maybe I don't understand the dynamics of the whole "closing" thing as we do things very differently in Canada but it feels really, really right to call a bully when they are intentionally rude and it can teach them a lesson which they'll never forget. I can almost guarantee you that you wouldn't find yourself in a similar position with the same agent again.

I see nothing wrong with the way you handled it but I don't think for a moment that confronting him would have been unprofessional.

Micheala, I'm in the same boat as you.  I no longer need to split my commission with a broker and it gives me alot of leverage to close deals.  I take hits sometimes but they are usually made up as referrals from the client on how I helped them out and how professional I was.  I do both discount and 'traditional' sales and varies on the client and situation.  For the discount side it is geared towards FSBO who are willing to try it themselves.  If they ever decide to go for a traditional services when they are tired of trying to market their house I'm first in line.  If they do switch up to a commission based I credit the amount the paid for the flat listing towards my portion of the commission so they are not paying twice.

Belinda,

"JOHN HENRY (founder of Freedom Realty Goup,LLC) started down this path as more of a crusade than a business venture. John felt that with the escalating prices of homes, charging a certain percent to help a home owner sell it, almost always ended in an enormously unfair burden on the Seller. Ergo, freeing you from the high cost of selling your home is our mission, but we are also committed to giving you all the information that you need to make the important decisions ahead. In contemplating selling your home, you need the very best current market information in order to assess its highest potential value, we will provide that for you free of charge. "

"enormously unfair burden" is an enormously unfair criticism.

It would be the same if I put on my website, "Any agent who only charges $2995 to sell a house is doing you an enormously unfair disservice."

Ok, I can see your point there, but it's just business.  Remember how upset I got because I thought folks didn't believe I was not a "limited services" agent because my broker is considered a "discounter?"  I was being over sensitive...

I've never met John Henry, but I heard that when he was a little boy, he sat on his father's knee...

Sorry to hear that your local board doesn't have any %6!!&.  I was on our Grievance committee for 2 years and then Professional Standards Committee for 6 years.  I never cared if the person across the table during a hearing was an officer or director or just from a tiny office that never involved themselves in board activities.  They all got a fair hearing out of me and then when it was over, it was over- never to be discussed again.  

Get involved with your board and get on these committees.  It is quite interesting and eye-opening.  The worst hearing that I ever had bad feelings about was an arbitration hearing with quite a chunk of money involved.  Took 2 days and was very complex.  I've even had to chair a hearing before...never want to do that again...although handling that gavel does give one a sense of power.