This is me in today’s Republic (permanent link), another chance at infamy:
Escape clause would help all
Believe it or not, this can be a rabble-rousing column.
Sometimes I write about the perils of dual agency or why the buyer is actually paying for everything in a real estate transaction or why buyers as well as sellers should negotiate their agent’s compensation. While these ideas might seem simple and obvious to you, in fact they are hugely controversial within the real estate industry.
When I write a column like that, my day will be punctuated by testy calls from angry Realtors and brokers.
Oh, well.
The slim justification for our real estate licenses, and the earning power accruing thereto, is service in the public’s interest.
Too much of “the way things have always been done” in real estate strikes me as being of great benefit to the brokers and the agents, but of no benefit – or even of actual harm – to buyers and sellers.
Here’s another one, sure to make the phone lines light up:
There should be a firing clause in every employment agreement.
Brokers want employment agreements because we work “on spec.” That is, we don’t get paid until we produce the agreed-upon results.
That’s a good thing. It keeps Realtors motivated.
But an exclusive employment agreement with no exit clause traps unhappy buyers and sellers with an agent who may not be producing any results or who simply may not be a good fit personally.
This is language that will suffice:
“This agreement will be terminated upon written notice by either party.”
With this clause, the broker can fire the clients, too, if that seems wise. But the important point is that clients can get out of an unhappy situation if they feel this is necessary.
Their goal, as buyers or sellers, is to achieve their real estate objectives. Buyers and sellers are not buying and selling real estate for the benefit of Realtors or brokers.
Giving consumers the power to escape an employment agreement when things just aren’t working out is the best service of their interests.
I am much constrained by the space limits of the newspaper. I wrote here on the same topic in a fuller form.
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Douglas says:
You sir, are a breath of fresh air on the Planet Real Estate. As I’ve traveled across the Southwest and Deep South considering communities to purchase our retirement home, I’ve been exposed to the noxious atmosphere of BS and pure ignorance of Planet Real Estate.
Having dealt with “realtors” who could not schedule time to meet with me due to conflicts with their kids soccer game, “realtors” who, upon checking their credentials after they dodged a few qualifying questions, are not licensed realtors at all, and “realtors” whose entire vocabulary consisted of “it’s a hot market and now’s the time to buy”…..it is great to see there’s a true professional or two left in this industry. Your observations and comments are insightful, honest, and valuable to us who are qualified, serious buyers in today’s market. Keep up the good work…..
I ended up on this site purely by accident by following a few links in Real Estate Blog sites…..and am glad I did.
Best wishes and I’ve got the site bookmarked for future reference.
September 2, 2006 — 12:18 pm
Greg Swann says:
Well, bless you, sir. You have my word that we will will do our best to live up to this encomium in every way. Good luck in your house hunt, and if I can be of service in any way at all, please do not hesitate to call upon me.
September 2, 2006 — 12:24 pm