I’m selling at least two houses this weekend, so I’m catch as catch can. I want to write a very involved Realty Reality story, too, so my Saturday is much enriched. Here are some other riches:
Realty Thoughts ponders the differences between the Inman shows and NARdiGRAS. Here’s one that pops out at me: So far, almost no news has broken at NARdiGRAS.
Both The Real Estate Bloggers and Real Central VA draw attention to The Real Estate Journal’s expose on agent bonuses:
The best defense for buyers may be to insist that agents disclose the compensation being offered on any property under serious consideration. That way, consumers could negotiate ways to share anything that goes beyond a normal pay day for the agent — or at least take the incentives into account in assessing the agent’s advice. But few consumers raise such questions. Daniel Ruben Odio-Paez, a broker in the Washington, D.C., area who operates a real-estate search site, www.tbhse.com, says he believes “most buyers have no clue how their agent is being compensated.”
“‘Ethically, if you are representing the buyer and taking the buyer to a place where you are getting an increased commission, the right thing to do is tell them,’ says Danny O’Sullivan, a senior vice president with Long & Foster Real Estate Inc. in Fairfax, Va.” Ya think? In September, I wrote on Arizona’s laws regarding agent bonuses.
Jim Duncan at Real Central VA is in love with the improvements to GoogleBase announced at NARdiGRAS. I’ll withhold judgement. Even so, its seems inevitable that we are to be XMLated by The Borg. This bodes ill for smaller players, I should think.
Marlow Harris at 360Digest is trading maps for money in a very astute analysis. How hi is Seattle’s tech?: I don’t know of a single map interface at a Phoenix brokerage.
Joel Burslem at The Future of Real Estate Marketing doesn’t like Cyberhomes. Who can blame him?
Finally, The Real Estate Tomato is spreading the spaghetti sauce: Jim Cronin has started TomatoBlogs.com, a turn-key real estate weblog vendor. Pre-launch blogs: The Realty Doctor, The Silver Bee and Sacramento Real Estate Voice. All WordPress, and it looks like the Tomato might be hosting them. I’m not the product endorsing type, but I have a great admiration for what Jim has done with The Real Estate Tomato. If you’re an agent or other real estate professional looking for a weblogging solution, TomatoBlogs.com looks like a good place to start.
Technorati Tags: arizona, arizona real estate, blogging, compensation for buyer representation, phoenix, phoenix real estate, real estate marketing
Phil Hoover says:
I agree with your thoughts on bonus commissions, as I have mentioned in my previous posts:
http://www.boiseblog.com/journal/2006/9/25/the-mother-of-all-incentives-.html
http://www.boiseblog.com/journal/2006/9/16/buyer-agent-incentives-in-the-boise-real-estate-market.html
It is unthinkable that a buyer’s agent would wait until closing to disclose that they are receiving a bonus commission.
November 11, 2006 — 8:41 am
Erik says:
I completely agree on the Real Estate Tomato. Funny name, but it really has been executed well. Growth on that “platform” can rival Active Rain if done right.
November 11, 2006 — 8:51 am
Jim Kimmons says:
Greg:
On the bonus issue, I’m way over to one side. I can’t figure out how a bonus can be offered to a real estate professional with the expectation that it will bring about a different behavior…..and that it be ethical.
I can only assume that the offering of a bonus means that the listing broker/seller wants me to act differently with regard to the job I do for my buyer client and the properties they are shown. Or worse, they want me to “push” a property at them.
Since I cannot do either, I MUST disclose bonuses early on and pass them to my client in total (or in any legal way they wish it to be handled). I can’t see any other way that they might not later possibly feel that there could have been bias on my part.
November 11, 2006 — 5:29 pm
Jim Cronin says:
Greg,
It is an honor to receive such kind recognition on our launch, from someone I admire so much.
A ton of work has been put into TomatoBlogs, not only as a product, but more importantly as a service. I truly appreciate your encouragement and stamp of approval. First addition to the TomatoBlogs blogroll: BloodhoundBlog!!!
November 12, 2006 — 3:09 am
Greg Swann says:
> A ton of work has been put into TomatoBlogs, not only as a product, but more importantly as a service.
It shows, as does your graphic sense. Turning real estate weblogging into a turn-key, value-added, vertical-market product should be a big win. Your clients can just hop on the pony and ride. Very slick.
November 12, 2006 — 6:44 am
Doug Quance says:
I think I might have found a winner…
I searched our MLS yesterday, and found a co-broke of 20%! New construction 4 bed 2.5 bath listed at $270K.
http://brokersfirstrealty.com/2006/11/12/commissions-incentives-and-ethics/
It’s no typo… the listing agent spelled it out in the public remarks…
November 12, 2006 — 6:51 am
Liz Patrick says:
The whole point of a bonus is to affect the agent’s actions. I understand the argument of disclosure to CYA but we offer additional co-brokerage all the time and it’s a powerful incentive.
February 2, 2007 — 4:47 pm
Greg Swann says:
> it’s a powerful incentive.
Incentive to whom? For what?
If a buyer’s agent is “incented” by the seller, whose interest is he serving? Whose interests is he betraying?
February 2, 2007 — 4:53 pm
Jim Kimmons says:
An addition to my previous comment. I just wonder how those in our business can wonder at the annual surveys that show us only a step or two above used car salesmen (no offense to them) in the respect and trust categories.
If a service is worth x%, then how does it become worth x% + a $5000 bonus when no “bonus services” are performed….at least not for the buyer client. If it was worth the greater amount to begin with, then a buyer broker agreement could have spelled that out.
Whether these bonuses continue or not, it’s just plain subterfuge to not let the buyer know very early in the process instead of at the closing table. And when they’re told, I would expect them to want to take it or share in it. Oh…maybe that’s why we don’t tell them.
February 2, 2007 — 5:29 pm