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STEALING Clients or JUST BUSINESS ?

By: Lonn Dugan
Saturday, June 16, 2007 8:17 PM

I am pretty solid on what is my answer to this, but thought I would throw it out there for discussion.

True Story:

I got a call yesterday, from a seller who wants to know if one showing in 57 days is normal?  And she asks, do I think SHOWCASE HOME Status at Realtor.com is an important marketing feature. 

I answer her questions, then ask.. WHY are you asking me this?

Turns out she is listed with another agent in town, wants a second opinion about market value and wants better marketing.  Her agent told her to go with somebody else if she wants to. 

I tell her I would never call a listed seller, nor recommend the firing of a listing agent, but if that is what she wants to do, would be glad to answer questions.  I can gladly respond to her inquiries but cannot call her back after this call is over.  She has to call me.  

She asks more questions, I answer.  Based on her interest in my marketing plan, I make an appointment to visit with her next week and show her what I do to sell houses.   

AM I STEALING ANOTHER AGENT'S CLIENT?

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Comments

Mark Cohen, Broker
Member Since '03

Mark Cohen, Broker said:

You are not yet stealing a client because she called you first.  Answering her questions on the phone is OK because she called you first.  But she is still contractually attached to the other agent even though she is not happy.  I think she has to first fire the other agent before you can ethically go to her home or talk to her in your office about listing her property.  Maybe you should ask your broker for his opinion.

June 16, 2007 6:40 PM
Larry Bertok
Member Since '06

Larry Bertok said:

Hay Lonn I think you need to be careful on how you handle this one. I had the same think happen to me and I called the listing agent and talked to him. It was Steve S. He had told me the sellers are hard to work with and if they wanted to list with me, then go do it. I think the important thing here is if the seller is calling you about the other agent I would wonder how they would treat you as well. I would call that agent and let them know what is going on before you meet with the seller.

June 16, 2007 6:45 PM
Sharron and Steve Lobman
Member Since '06

Sharron and Steve Lobman said:

Surprisingly, Larry stayed on task with this blog of Lonn's!

June 16, 2007 6:50 PM
Mary Welch
Member Since '04

Mary Welch said:

As soon as she told me she had her house listed with another agent I would have told her please keep me in mind when your listing expires and I would be more than happy to help you. Thank you, have a nice day.

I think this is what I would have wanted you to do if it was my listing.

June 16, 2007 6:50 PM
Jana  Davis & Marcia Demerjian
Member Since '05

Jana Davis & Marcia Demerjian said:

I got lamb blasted by a listing agent for just telling her client to ask her his questions.  How dare I talk to her client.  All I could think was that someone wasn't have a good day.  Or she was just mad to realize that her client was asking other agents his questions and not her.  

Jana

June 16, 2007 7:20 PM
Mary Welch
Member Since '04

Mary Welch said:

Jana, I hate it when I get blasted with lamb. I'm sorry, I just thought that was funny. Is it land blasted? I really don't know. You can pick on me too, we are family. lol

June 16, 2007 7:27 PM
Carmen and Jeff Bills
Member Since '07

Carmen and Jeff Bills said:

I agree with Mary, if it is listed property you are on moving ground as far as ethics and agency. If they wish to switch agents they must not be under contract with another agent FIRST. Then they are fair game to market and get the listing.

June 16, 2007 7:29 PM
Belinda Walker
Member Since '06

Belinda Walker said:

I believe the term is lambasted, but I like lamb blasted much better.

June 16, 2007 8:42 PM
Jana  Davis & Marcia Demerjian
Member Since '05

Jana Davis & Marcia Demerjian said:

Where did that saying every come from anyway?  :)  Wait till you all pick up more of my made up words. Got a whole family who does it so not my fault, something in the genes.  My favorite has to be one of my sisters when she was describing my husband years ago she told someone that he was very sportsual.

Jana

June 16, 2007 8:52 PM
Belinda Walker
Member Since '06

Belinda Walker said:

That's funny!  My mom says "flustrated."  I think it's a combo of flustered and frustrated.  My most famous wording is "ustacould."  Instead of "I used to be able," it's "I ustacould bend over and touch my toes."

June 16, 2007 8:55 PM
Jana  Davis & Marcia Demerjian
Member Since '05

Jana Davis & Marcia Demerjian said:

Here it is Bee is correct!

lam·baste(lm-bst)

tr.v. lam·bast·ed, lam·bast·ing, lam·bastes Informal

1. To give a thrashing to; beat. See Synonyms at beat.

2. To scold sharply; berate.

June 16, 2007 8:56 PM
Belinda Walker
Member Since '06

Belinda Walker said:

I think being blasted with a lamb would accomplish the same thing.

June 16, 2007 9:00 PM
Jana  Davis & Marcia Demerjian
Member Since '05

Jana Davis & Marcia Demerjian said:

I like both of those.  Kids make up the best one, my son use to call regular = regafull, I caught myself using that once ordering fries for him at McDonalds.  My daughter said shirtles instead of shoulders, etc.  Oh and not to forget garde garde go = motorcycle.  I think we have strayed from the subject LOL  Bet Lonn is getting flustrated!

Jana

June 16, 2007 9:06 PM
Gene Carey
Member Since '03

Gene Carey said:

Article 16 Standard of Practice 16-6 states the following:

When Realtors® are contacted by the client of another Realtor® regarding the creation of an exclusive relationship to provide the same type of service, and Realtors® have not directly or indirectly initiated such discussion, they may discuss the terms upon which they might enter into a future agreement or alternatively, may enter into an agreement which becomes effective upon expiration of an existing exclusive agreement (Amended 1/98)

Nowhere does it say that these discussions cannot be made at the sellers property. How else would you be able to arrive at your suggested price? During these discussions, you would need to ask about the type and term of their present listing agreement. You would not want to encourage them to cancel the listing but that is still their option/decision and they need to speak with their current agent to find out what the procedure would be (do not supply them with a blank cancellation agreement!). The above SOP simply says 'upon expiration' which could come earlier than the day originally agreed on between the listing agent and the seller. For example, it might be modified to 'expire' 30 days after giving written notice of a seller's desire to cancel.

If you steer clear of encouraging them to cancel early, you will be within the Code. Keep GOOD written records!

June 16, 2007 9:16 PM
Shelly  Constantz
Member Since '07

Shelly Constantz said:

Gene, thank you for that.  

We had this discussion at the office recently, and I said a consumer (the seller) has a right to discuss the selling of his home with whomever he/she wishes (as long he/she initiates the conversation).  And by NOT being open to discussing than we as agents are creating a situation that could actually be illegal.  It is late, and I have to remember the term, but basically we are stopping free enterprise and there cannot be any agreement (ethics, rule, etc) that precludes the consumer (seller) from that free enterprise.

By saying I will not talk to you until your listing is expired, I believe you are actually creating a situation with the seller that is harmful to them.  They would have to take their home off the market for several days, weeks while they interviewed.  then relist.  Missing potential buyers in the meantime.  Rather, if they are able to interview while listed, as soon as it expires they may relist with whomever they choose.

Broker called the attorney and I won the argument.

Shelly

June 16, 2007 10:34 PM
Tracie Cope
Member Since '05

Tracie Cope said:

Be very careful, perhaps the other told them to list with someone else if they want because they are unreasonable.  We had a situation last year where listed sellers contacted us and told us they had already told their listing agent that they were getting a new agent.  We went and listed it, tried to get them to reduce the price and they would not.  One of our previous clients had suggested they calls us, and we didn't want to let them down - so we took the overpriced listing.

From the beginning, they were demanding and picked on absolutely everything - despite putting the property on REALTOR.com as a showcase listing, doing a virtual tour, extensive online marketing, several front page print advertisements and jumping through hoops to keep them happy - they have now filed a complaint against us.

We knew they were going to be high maintenance, we thought we could handle them and we were wrong.

As for made up words and phrases:

My dad always said "Wouldya don't!"

My mom would say "Sh*t Far, Save the matches" or at least I thought that's what she said, until I heard it as an adult and it's not "Far", it's "fire"???  strange still, but at least it explained the matches.

Some words my kids used and we still use them sometimes, even though they're 13 & 16:

DD:

hopter-copter = helicopter

bemato = tomato

bemote = remote

porch-a-lean= trampolene

DS:

pluter = computer

pluke = puke

(say really fast) picklepicklepicklepicklepickle = pickle  I wonder if he thought it was like tickle?  tickletickletickle?  LOL

June 17, 2007 6:20 AM
Cathy  Clark
Member Since '06

Cathy Clark said:

Made up words"  from my daughter - pootfrints=footprints

cousin - dadert (dessert) and fuppy (puppy).She pronounced all "p's" as "f's" when she was very young.  Us older cousins always made her say hockey puck!  She was the youngest and got picked on a lot!

June 17, 2007 6:38 AM
Gregory Bain
Member Since '03

Gregory Bain said:

So, Lonn? What's the answer? Are you stealing the customer, or, just good business?

June 17, 2007 8:23 AM
Dan  Grammatica, e-PRO
Member Since '05

Dan Grammatica, e-PRO said:

what do you blast your lamb with, lemon? :)

Lonn, they called you, go for it.

Your well within your right to discuss it with them at that point.

Besides they said the other agent said it was OK.

You can even call the other agent and tell them, hey your seller called me and said you didn't care, is that true?

If not, I don't think I'd deal with the seller anyway.

They may be high mantenance.

good luck,

June 17, 2007 8:57 AM
Gregory Bain
Member Since '03

Gregory Bain said:

Come on, Dan. You remember Lamb Chop! It was a blast.

http://youtube.com/watch?v=jTCu6k-ci-o

Well, that link might be for an older audience. Looks like the same Lamb.

June 17, 2007 9:08 AM
James Smith
Member Since '03

James Smith said:

A seller called our office while I was on phone duty and had a question as to why there was no showings on her property. She asked how we market properties and I gave her the run down.  She asked if I would be interested in listing her property as she felt her agent was not doing a good job. I asked her for the address of the property and I looked it up in the MLS; right away I knew for the neighborhood it was about $12,000 over the market for the area.  I asked the seller when was the Listing period over and she said in a couple of weeks.  I told her she should relist with the current agent and reduce the price by at least $10,000.  She replied her agent had told her they needed to reduce the price and if I believed that would work she would try it (short version of the conversation).

I call the listing agent and told her of my conversation with her seller.  She thanked me several times.  I had notice the license number of the agent and knew she was a rookie and figured she might have been scared to press the seller to reduce the price.

If the seller had insisted I would have listed the property but only at the lower price.

June 17, 2007 9:10 AM
Gene Carey
Member Since '03

Gene Carey said:

That was very commendable of you James but is unlikely it will happen in reverse and it also doesn't pay the bills. The rookie probably had at least 6-months to approach the subject of a price reduction or speak with his/her Broker as to what needs to be done to get the property sold. Then again, it may be just a part-time job for them and they spend very little time learning the business or showing up in the office.

http://www.montgomerycountymd.gov/content/hhs/phs/drawingtheline/images/money.gif

June 17, 2007 10:31 AM
Mary Welch
Member Since '04

Mary Welch said:

James, that was a little over the top, even in my ethics book. I would have taken the listing after it expired and I think you missed a good opportunity.

But you know, sometimes you just have to do what feels right and I think maybe you went with a gut feeling on that one. And like you said, if she would have really wanted to change agents you would have gone through with it.

That rookie should be counting her blessings BIG TIME. And, your kindness will come back to you.

June 17, 2007 10:45 AM
Ginger Fawcett
Member Since '06

Ginger Fawcett said:

Call me the cynical one here but over the yearas I've been jerked around and have had customers and agents outright lie to me, cheat, and steal business so I have gottened a bit hardened to the process.  If someone called me I would first find out why they didn't like their other agent (is it the agent or the sellers) and if I thought I could get their home sold I would meet with them.

I don't think that a lawyer would call the current lawyer and give him a heads up he was about to be fired.  I don't think a computer salesman would call his competitor and tell them that their customers thought they were doing a lousy job and that now he had a chance to pick up the business.  That just seems a little crazy to me.  

I know, I know...what comes around goes around.  But you didn't go after this business.  Someone thought you were a viable alternative to an agent they clearly were unhappy with.  That should be taken as a compliment.  I would have met with them plain and simple mainly because the other listing contract may eventually expire and you would be the first person to come to mind.  As far as suggesting how they might get out of a contract, well I wouldn't touch that with a ten foot pole!

June 17, 2007 11:15 AM
Beth Larsen
Member Since '05

Beth Larsen said:

We can always count on Gene to do the homework!

I also agree with Shelly. I believe the term you were looking for is "restraint of trade".

The consumer has a right to shop where they wish. As long as you didn't initiate contact...it is only good business and good manners to service their request for more information.

June 17, 2007 12:26 PM
James Smith
Member Since '03

James Smith said:

Gene,

A lesson I learned a long time ago I apply to life in general.  The lesson I learned was to never lend any money that I expected to get back. If I lend money and I get it back I am happy, but if I don't it is as I expected. I am very careful about what and how much I lend.

A long way to say I do not expect to be treated the same as I did the other agent, but if I am it will be a happy day!

Mary, I did do a gut check there, and from what I could tell the only thing different I could do was reduce the price to where it should be.  

June 17, 2007 2:27 PM
Lonn Dugan
Member Since '05

Lonn Dugan said:

Gene - thanks for chapter and verse.  You are all pro Gene and should be commended for being a straight shooter!

Gregory: I say... in answer to the question - It's Legalized Stealing.  

Client is probably high maintenance.  But she knows what she wants, and she is right.  That's OK.  I can handle high maintenance clients.  I eat FSBO's for breakfast.

And yes, Ginger, what goes around comes around.  You win some you lose some.  

Like Gene says, when the day is over, you got to pay the bills.  I will lose clients now and then, for no good reason, and I will gain some...  perhaps for no good reason except being in the right place at the right time, and knowing the code of ethics well enough to engage when money is waved around.  

FYI:  Money is not everything, and I probably would not have considered this except she said her own agent told her to get somebody else.

Could just be a personality mismatch...  Client sounded well informed and potentially delightful, actually.  She wants marketing and she wants the price right.  She wants showings, and offers.  I can help her with that.  That's my job. Wish some of my current clients were as interested in selling as this one is!

June 17, 2007 9:32 PM
Belinda Walker
Member Since '06

Belinda Walker said:

best kid made up word from my son who was probably 8 yo.  pachina.  I'll let you figure out which body part to which he was referring.

June 17, 2007 11:10 PM
Tim and Susan Fennell
Member Since '06

Tim and Susan Fennell said:

Mr. James Smith -

I applaud your ethics!   You are my kind of people. ;-)

TF

June 18, 2007 5:57 AM
Radley Reiff
Member Since '04

Radley Reiff said:

It is unethical to solicit listed business but if a property owner asks for your opinion, no reason why you cannot respond.  That happens but I usually touch base with the other agent anyway.  Lot of times the other agent is also frustrated.  Also, I usually let them continue to advertise it and agree to give them a more than typical co-op if they sell it.  That way, everybody ends up happier than before.

June 18, 2007 7:08 PM
Joe Schutt
Member Since '06

Joe Schutt said:

Well, as I was reading through I had all of these thoughts and ideas in my head, but by the time I got to the end...ALL of them were stated as I would have stated them! Not stealing, just business. It happens all of the time. As long as you didn't go after it you are fine. We are all professionals and we should be doing our jobs to the fullest extent. If the other agent was not, that is not our problem. If it is that there was a personality issue, can't help that either. It is just the way it is.

So, for my word...there might be some CONCERNMENT down the road for some people, but not for others.

June 19, 2007 6:59 AM
Gene Carey
Member Since '03

Gene Carey said:

Hmmmmmm.................a new word for Webster's Dictionary? Nope! It's already there! (but you made me look!)  :-)

June 20, 2007 7:05 AM
Joe Schutt
Member Since '06

Joe Schutt said:

Wow Gene, a few years ago that was not in the dictionary. Very cool!!

June 22, 2007 6:20 AM

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