What a time appropriate post. I am experiencing a similar situation here. The neighbour isn't actively selling their home, but is approaching the agents and mentioning that she would sell. I'm not sure if she's offering a commission, but it's still a frustration. My listing is now under contract, and during the inspection, the neighbour indicated a possible mold problem. This is a problem she would have any knowledge of, and neither the tenant nor the owners were aware of it. Come to find out, the buyer is black, and the neighbour doesn't want her as a neighbour. One other agent that was approached had clients who were Middle Eastern, so it seems that the neighbour is prejudice. Now I question myself as to whether I inform the other agent of the neighbours’ views? I want to warn them that she may be intentionally trying to jeopardize the sale, but I don't want to scare her client away. Thoughts or comments?

Going out on a limb here and risking personal injury.  LOL. I disagree. I think the FSBO has every right to invite potential clients into their home regardless of how they found it. It is a part of the job that really stinks, but I don't think we can stop it other than warning the showing agents. I think if you called the police they would laugh. It is kinda like driving down the highway and seeing a McDonalds sign for the next exit. You take the exit to eat at McDonalds; however when you get close to McDonalds you see an Arby's and decide to eat there. Should McDonalds call the police?

Alan, I don't think I would say a word about my opinion of the neighborhood in regard to race or prejudices. I would give the showing agents a heads up that they may be approached by the neighbor, and let them determine their own opinion.

Brian, I agree with you. And, I would never suggest that agents from my office and friends from other offices portray themselves as agent with customer to preview the home at different hours (traditional supper time is always good) and engage the neighbor in a useless exchange of hopes and dreams. Nor, would I suggest that anyone offer a gift certificate to the agent who can make the homeowner cry when told by the person in toe that her house was in need of a complete make over. That, I’m sure, would violate the Realtor “Code”. But, I have been told by the bat girl that I should just be nice and stop thinking about making a living. Unfortunately, I have no living parents to sponge off of; so, Seller Beware! (It use to be Buyer Beware, but I’ve changed with the times). Who do we represent again?

I have to agree with Brian.  If the other Agent's Client wants to see the FSBO and can work out an arrangement for payment with the Buyer, then it really is the Client's perogative and the other Agent's responsibility.

As far as the neighbor's possible racism, it sounds as though it's an opinion and we don't give those.  

I would have asked the FSBO "If you hired an agent to market your home, knowing that when it sold you would be paying a commission, how would you feel if the FSBO seller next door was trying to to save money and profit off of your dollar?"

I would continue to warn the showing agents, even suggesting that they carry a commission agreement contract with them, if the FSBO agrees to pay the showing agent should the buyer want their home, then I would show it.

It sounds like the FSBO is desperate!  

Yes it sounds like the FSBO is desperate and maybe a little weird. Ok, alot weird. I would certainly warn each agent that shows it about the neighbor.

In my opinion, all the agent would have to do is let MR WACKO know that appointments are scheduled and they are off to their next appointment. Get the FSBOs name and phone number and let him know they would be glad to make arrangements to show their prospects his house with an appointment set up in advance. At that point, any of the agents could negotiate something with him without the buyers being present, over the phone.

He needs to be taught how it is done. It doesn't sound like there is much love between you and him so another agent may be able to work something out.

I would call the police and report harrassment. Of course, I know how the police would respond here and don't know how they would do it there. I have connections.

Alan,

I wouldn't say a thing to the potential buyers agent. That might be jeporizing the sale and then your seller may have an issue with you. I would say it isn't a material fact. Talk to your broker or the company lawyer to make sure that is the fact in your state.

Now, the FSBO neighbor? hmmmm...I really don't think you can do a thing about them and what they are doing. But, maybe try to teach them a lesson. Hold an open house and find some friends and other agents in your office to help you out. Have them walk up to the FSBO's house ring the door bell, as the owner opens the doors from your listings lawn, yell over to them to come check out your listings it is better and costs less. Then have your friends say "Sorry, got to go check that one out" and have them leave.

See what happens? Could be fun!

So there you go, Mr. Discount Broker! All the advise you need to get that FSBO in line. You have made my day! Thanks.

BTW - I love your talking head.

It's a big problem in Florida, FSBO's do take a free ride off the traffic that comes down the street from agent represented homes. We pay for the Ad in the paper not them. I would ask for advertising costs from them.

I have had a FSBO have me over and make as if they want to list. Then they say at the end well "let us think about it" and every week I get a call asking if I have buyers for their house. I ask are you ready to list? They say "not yet we are just waiting to see if you get buyers.

I get buyers from posting the home in my office and other ways, I am not going to do that without a listing agreement. Even if the FSBO said they would give me a commission your not protected by FREC when it comes to earnest money or other things that come up if you represent the buyers. Now that I am not sure of but it could get sticky.

FSBO's are hard to convince that realtors are not preying on them and they would be a victim if they paid a commission.

Melissa~

I agree with Brian (sorry).  Legally they can invite anyone into their home so I am not sure the police will don anything other the ask them to refrain from the anger they are displaying.

I think the situation sucks and it is sad that the buyers agents are being put in this position.  I think Todd is right.  warning the buyers agent is just going to cause a situation like the blow up you experienced.  The party may have wanted to take a look.  That agent may be able to negotiate 3%, you never know.  I think it is sad that they are using your buyer agents but the seller may fire you if you start a stink with the neighbors.  They after all live next door for the time being. A FISBO has the right to sell their own home as anyone does.  They may be using a sad tactic but don't hate on them for trying.  You definitely lost any chance of listing the home in the future (not that you would want it since they are weirdo's).  

Sorry you guys are in a bad spot.  Wish I had a different opinion.  I would say that they sound a bit nuts so stay away from the crazies for sure.  

I also believe the FSBO has every right to poach.  Gotta love her determination.  It might be worth telling the seller what their old neighbor is up to.

Don't teach the woman any lessons! Todd is on a sugar rush from his Lucky Charms cereal.  Don't warn agents about the kook next door!  We all interact differently with people and somebody may get her to list.

I hope the real issue here is that the FSBO neighbor is "yelling and screaming".   I would have a real problem with that, and the embarrassment I'd feel if it happened to me with clients present.

Were I the listing agent, I definitely would let any showing agents know that there was a FSBO next door that does not offer commission and that the seller had been know to approach other agents and their customers and often it got heated.   I know if I were on the other side (the buyer's agent) I'd appreciate the heads-up.

Lucky Charms, I thought it was cappuccino. Anyway poaching is a good word, and I guess you are right, legally they have the right to do it even if it is not ethically right in my book to waves your arms at a agent doing his job. What if other sales people did that. Go down Wall Street and see all The Brokers waving there hands dressed up like dollar signs.  Well I do see the Taco waving at me from the street next to the big Donut.

Melissa

Alan, if that person is not a party to the contract and if they have no material evidence to mold conditions, the court would probably consider that tortuous interference "Tortuous interference is the unlawful interference into one’s contractual or business affairs."

See http://www.oracle-training.cc/t_webstalker_185_tortuous_interference_.htm

Otherwise, just shoot them

I have to agree with Brian as well. I don't think you can tell the FSBOs that they can't contact people who come to see your listing. Not to mention, warning the showing agents up front about the way this FSBO acts is nice from you but you may want to be careful what you say. You never know how it's going to come back and bite you. This is a country that sues anyone for anything.

If I remember correctly (if I can remember anything at all!), some 80% of FSBOs wind up listing with an agent because they were unsuccessful in selling their own home.

I think that the FSBO is doing more harm to himself than good, and is certainly showing how desparate he's getting in trying to sell his own.  But that's his problem, not mine.

As for FSBOS trying to "freeload" off other listings in the area, so what?

To me, the answer is carry a "FSBO Agreement" that he must sign if he wants me to show his home to my clients. No signature, no showing! And if he yelled and screamed at me for not wanting to show his listing, I'd be sure to say something like: "I'm glad to hear that you already sold your home!" It's pointless to get into any kind of shouting matchwith him. And, he can't FORCE me to show his home!

And, yes, I advise other agents wanting to show the listing about the FSBO next door.  They can take whatever action they want, but at least I made sure they're aware of the situation.

Looks like this post made it to the housing forum on Craig's List:

http://forums.detroit.craigslist.org/?forumID=6&all=Y

It says at the bottom to read more at agentsonline.net but I couldn't find it there.

FSBO's do not have a right to poach on the fruit of my marketing.

They can invite people off the street, by posting a sign or flagging them down.  However, approaching those whom are selected by my marketing, and trying to change the game is interfering with a client.

They may not interfere with a client relationship.  Interfering with contracts is a TORT crime.  

Suggest this also represents disorderly conduct.

I think I would talk to the seller. It is their neighbor. Give them a flyer to give her, or a marketing sheet, something. Tell her that she needs to get her own real estate sign and showings. That she is acting so unproffesional who would buy from her?  And as far as prospects viewing, who would want to live next door to this person? Initiative for the seller to approach her. It is like a barking dog next door. Drives off the buyers.

If her home is similar, she too can list about same price and sell and show the professional way, instead of standing out on the curb all day.

Probably nothing illegal about this activity but it's a good example of how an ignorant person can hurt themselves. I'm sure most buyers would be scared to enter the guy's home. Talk about tacky. It's pretty pathetic.

We had a FSBO in one of our neighborhoods who actually had magnetic signs printed up and stuck on their car.  Complete laughing stock of the neighborhood.  I think they had to move to Alaska after that.  Needless to say, after about a year of that, they ended up going with a full service broker.

- Radley / Atlanta

The biggest problem I see here is: how many buyers would be interested in living next door to Mr. Couth-Challenged?

The next door neighbor may or may not be committing tortious interference. But what they are doing, without realizing it, is stigmatizing the neighbor's listed property AND THEIR OWN.  Dee dee dee.