Can You Do That in Hoboken Real Estate?
Categories: About Realtors, For Buyers, Hoboken Condos
I had a curious request from a friend and colleague the other day. He used to be with us at Century 21 but now works at a very small agency here in Hoboken. He had been working with some buyers and they were very interested in seeing some properties over the weekend but he is going on vacation. After trying to get someone from his own agency to cover for him without success, he asked us if we could possibly do it. He offered to repay the favor going forward.
Normally, properties are listed on the MLS by a seller’s agent and any other agent who brings a buyer splits the commission with the seller’s agent. Sometimes the seller’s agent sells it him or herself and keeps the whole commission. Normally an agent shows properties to buyers and, if the buyer makes a purchase, the agent gets half the total commission.
Occasionally, we agents do what is called a referral. That means I have a buyer who, for example, has given up on Hoboken and wants to look in the ‘burbs’ where I don’t work. I recommend the best agent in Montclair and refer my buyer to that agent in exchange for typically 25% of that agent’s commission. That is my referral fee. Or an agent from NYC may send me a buyer and I pay the Manhattan agent 25% of my commission for the referral.
What my friend was asking me to do was basically the same thing. He would refer his buyer to us for a limited time. For the week while he was on vacation, we would show his buyer some properties and we could have agreed that if they purchased one of the home we showed the buyer, we would earn the commission and my friend would be compensated whatever amount of referral fee we had agreed upon.
Yet in Hoboken real estate circles this is unheard of. No one does it, to my knowledge. I suppose part of the reason is the fear that the buyer will want to keep working with me, for example, and not go back to the referring agent. People are often resistent to change. I think this is one of those situations where no one has done this so it’s assumed it can’t be done. It’s just another referral. It would make life easier. There’s no real reason I know of why it couldn’t or shouldn’t be done. I’d be curious to know what you all think.
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Is That Hoboken Condo For Sale by Owner?
Categories: About Realtors, For Buyers, For Sellers
It May Look Like It Is But What If It’s Not?
This past Saturday my buyers told me they were going on Sunday to see a property at an open house which was a “For Sale By Owner”, or FSBO”. I took a look at the flyer they had picked up for it. Guess what? Even though it looked like a FSBO and was written like a FSBO it was most definitely NOT a FSBO. The flyer actually had an MLS number on it. But there was no agent name, no brokerage company identified, nothing else that would indicate that this seller was represented by a real estate agency.
I recognized the address from seeing the property hit the MLS as a new listing just a few days ago. That means that the sellers had, in fact, entered into a formal contract with the listing agency to pay them a 5% commission in exchange for selling their home. Furthermore, the agency, by putting the property on the MLS, had contractually agreed to give half of that 5% commission to any agent who brings a buyer for this home.
I decided to accompany my buyers to the open house. Outside the property was a very home-made looking “For Sale” sign with no identification of the brokerage or listing agent. It looked very much like what you’d see on a FSBO. Inside were the husband and wife with a bunch of cookies on the table and more of the same flyer. They were showing people around and answering questions. No listing agent in sight.
So why does all this matter?
- If you are a buyer and think you are buying directly from the seller with no agent involved, wouldn’t you consider that in the price you offer and what the sellers should be willing to accept? After all, the seller, you would think, if selling without an agent is not handing over 5% or so to a broker.
- If you are a buyer who had been working with an agent but think this is a FSBO might you not choose to go there alone? Without your agent? FSBOs are not always willing to compensate agents who bring the buyer. Some will specifically state on their materials “3% paid to buyer’s agents” but not all. Usually the seller is hoping to save the 2.5% on the sell side AND the 2.5% on the buy side (or whatever the percentage may be). So even buyers who look at MLS-listed properties with an agent often go to the FSBO on their own, especially if it looks like their buyer’s agent isn’t going to be paid anything
The biggest mystery to me though, is why would a seller ever be willing to pay 5 or 6% to list a property with a purportedly “full-service” brokerage and then prepare his or her own marketing materials, signage, and host their own open house? That is one very un-savvy seller. If you’re paying tens of thousands of dollars for service from a brokerage you should get it! These sellers must be clueless.
This all seems to me to be very deceptive and possibly unethical. Is it an attempt by the broker to trick buyers into thinking there is no agent involved and the sale is being handled directly by the owners? Will this broker, who gets the sellers to do all the work, swoop in and pocket both sides of the commission?
Does this sound kosher to you?
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What’s On Your Hoboken Open House Playlist?
Categories: About Realtors, Hoboken Condos
A Little 4th of July Frivolity
Whenever I host an open house for a seller, I typically tune their TV to a classical music station so that beautiful, elegant music fills the unit. “Class up the joint”, as my Uncle Louie would have said. Sometimes, however, the unit is vacant so in order to provide some auditory enjoyment, I bring my iPod and a docking station. For just such occassions I’ve created an “Open House Playlist” with a selection of house-themed music. But just because a song is entitled “Home” it doesn’t make it appropriate for an open house playlist. Songs called “Home” by Barenaked Ladies, David Byrne & Brian Eno, Foo Fighters and Sheryl Crow all work. “Home” by Collective Soul (and “House We Used to Live In” by the Smithereens) rock out just a little too much, and “Home” by Depeche Mode is on the depressing side as is “Your House” by Alanis Morrisette. “Black Coffee in Bed” by Squeeze is playful and fun. “Burning Down the House” by Talking Heads… not so much.
Here are some more songs I have on my Open House Playlist:
Our House (Crosby, Stills, Nash and Young)
Can’t Find My Way Home (Blind Faith)
Pink Houses (John Cougar Mellencamp)
Glass, Concrete and Steel (David Byrne)
Let me Take You Home Tonight (Boston)
Homesick (The Vines)
Home Again (Carole King)
Long Way Home (Norah Jones)
Homeward Bound (Paul Simon)
OK HREN readers. Let’s hear from you. What songs would YOU put on your Open House Playlist?
Happy Independence Day Everyone!
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