Do you know that the Realtor who you have your house listed with is actually still earning their living as a Realtor? That was the concern recently voiced and posed to us by a concerned agent in Poinciana, Florida.
“In Central Florida, for example, over 50% of real estate agents are not actively working their listings. (That’s an approximation based on the number of agents who never return my calls and/or are know to now have full-time jobs doing something else.) Seems to me that there is something inherently unethical about REALTORS who don’t disclose to their customers that they aren’t working full-time to sell their properties.”
While I understand that this agent is probably a bit frustrated with her Central Florida colleagues and may be embellishing a bit, this comment gave me reason to ponder the implications of her statement.
A real estate agent approaches a homeowner and seeks to obtain a listing, prepares a listing presentation, and obtains a listing, all the while knowing that they will only be working part-time to sell the homeowner’s property. The homeowner, of course thinking they are hiring a professional, would probably not think to ask this “professional” if they are only in the game on a part-time basis.
Obviously this is not something the part-time “professional” is going to offer or disclose willingly, so therein lies the dilemma. Is there an inherent misrepresentation if an agent does not inform the homeowner that they are not earning enough of a living as a real estate agent and is not a full-time agent?
Does the homeowner have the right to know in order to make a fully informed and properly represented hiring decision that could possibly involve the signing of a binding contract?
In reviewing the National Association of Realtors Code of Ethics there seems to be some evidence to support the notion that an agent should indeed inform a homeowner of their status as a part-time agent.
Article 12 REALTORS® shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations. REALTORS® shall ensure that their status as real estate professionals is readily apparent in their advertising, marketing, and other representations, and that the recipients of all real estate communications are, or have been, notified that those communications are from a real estate professional.
In a real estate market that provides its own challenges, should a homeowner not be entitled to know whether or not a real estate agent is truly making his or hers best efforts to sell and market their home?
Is this why so many calls to agents go unanswered? Is this why so many offers go without a response? I wonder with so many agents leaving the business, how many have stayed, only to be working in a part-time status?
How many have taken listings and already have moved on to their “day job” never informing the homeowner of their career change?
In this litigious climate wherein lawyers are lining up to take shots at Realtors, should agents be giving homeowners more lawsuit fodder?
As I am not an agent, and in light of recent articles I have written that have been seen as inflammatory, I am going to step back and just ask the questions this time. My opinion does not matter in this regard, I don’t have a listing with an agent and I am not a Realtor. I am however very interested to hear from other real estate professionals as to what they think about this. I’ll reserve comment for a follow-up article.
I would also like to hear comments from consumers as to what they think about this. When you hire an agent, do you think you are hiring a full-time professional? What would you think if you found out that the Realtor you had hired had another day job?
We won’t even ask the question as to whether a “part-time” agent should be entitled to 3%-4% commission on a second job gig…not yet anyways.
What say you all on this?
The correction of the real estate market not only involves houses, Realtors too!!!!
I’m a full time Realtor but I’m also an Investor , I personally won’t give my listing to a part time realtor. Now we can see who is who out there .The REAL REALTORs and I mean it will be the only one’s to succed in this market.
This is Great!!!!
Rob
Your resolve to put all real estate agents out of business is becoming borderline obsessive not to mention redundant. The first few articles I dismissed as a coincidence… perhaps a matter of timing since I don’t visit your site every day. It has become apparent that you seriously have a personal vendetta against REALTORS!! I challenge you to publish an article on real estate agents that is POSITIVE. Just one.
Your quote from the REALTOR code of ethics was used erroneously. Article 12 is not referring to the full or part time status of the agent. It is not addressing the agents employment, familial, or socioeconomic status at all. It is simply stating that we are required to introduce ourselves as a licensed agent in phone communications for example. It means that we can’t hang out a generic “for sale by owner” sign or place an ad that does not disclose our status as a state licensee. Agents are not required to disclose that they are only in the business part time.
You obviously wear many hats yourself Barry… you have perhaps three or more part time jobs?!? Are you performing each of those at half throttle? I know for a fact that’s not the case. I also know that it would be impetuous to assume that you are not capable of wearing all of those hats competently. I give you full credit for your considerable capabilities Barry. Surely you too understand that while there are slackers in every profession an experienced agent like myself could easily handle a few listings with the full competency on a part time basis. I am a full time REALTOR with 13 years experience, and i enjoy regular accolades from my clients. I am insulted that you would choose to put the word professional in quotes when referring to a real estate agent. I don’t take it personally I just think you need a few more disclaimers for we highly effective agents! You gotta give us our props along with the smears. I like you Barry. I think you are brilliant, but i like you better when you wear the hat of the part time short sale guru!!
Best,
Dean
Dean thanks for your comment.
I have the neither the desire nor time to devote to try and put agents out of business. I do not have any vendetta against Realtors either..I don’t use superlatives.
We know the industry is over-populated with sub-par performers. That you must agree and that you can not refute.
I in no way misquoted the COE. To say so is erroneous. The pasage inquestions states…
“Article 12
REALTORS® shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations. ”
I, and MANY agents we have spoken to agree that not working full time is a representation that should be made. The fact that one is not required to make such disclosure is, IMO, not grounds for such convenient omission.
Your challenge is moot as you obviously do not listen to our radio show. I know this because if you have then you would not be able to make the statement that you have or issue a challenge that was lost before you were done typing your comment.
Thank you for your compliments and I am sure if you are successful that you indeed would run rings around the sub-par performers.
How’s this, why don’t you come on the show and discuss your feelings and we’ll give you an opportunity for debate?
FYI…If you are on our blog, you would also see we have a number of guest bloggers who are prominent agents in their local areas.
Like I said, the superlative has never been used and would never be used.
Let me ask a question…
If a full-time agent has 50 listings, are they doing a better job marketing those listings than a part-time agent with 5 listings?
Or is it more important to focus on what is actually being done?
Hi Lane..I could care less…the point of this article was whether or not the Seller had a right to know and whether or not the agent should offer said disclosure.
That is the question at issue here.
The current market conditions will result in a much needed “shake out” of borderline “realtors” who sometimes take 24 hours or more to answer a voice message or e-mail IF they answer AT ALL.
Personally, a cell phone is my main voice line and I answer 99% of calls by the 3rd ring. When someone calls, they expect to speak with the person they call, not a clerk, secretary, or a machine.
Good riddance to the hair dressers, nail technicians, cab drivers, bar tenders, etc. who work as part time “realtors”. The profession will be MUCH BETTER without them.
I think the article was really good. I know I’ve called for appointments to show homes and never got a return call. I sometimes learn the Realtor is working another job. Well, sometimes I feel like working another job too but after putting 10 to 12 hours a day it’s kind od hard. But, if I didn’t return all my calls to other Realtors and to my clients, maybe I could work another job too. I firmly believe a buyer or seller has every right to know their Realtor is full time or part time. How many prople would go see a part time doctor or lawyer if they knew? Not many would be my opinion. I wouldn’t, so I think a disclosure stating if a Realtor was part time or full time would help the client make a more educated decision on who they want to work with. I have been in real estate for 16 years and I didn’t go get another job when the going got rough. We are supposed to be professional, it’s time we acted professional.
Dora..thank you for your comment and I support your assertions.
The Realtor’s performance should be what matters, not whether he/she is working full-time or part-time. Our office has a mix of full-time and part-time agents. None of our clients are neglected. We have a licensed Realtor, answering our phones seven days a week, so someone is always available to handle showing appointments and answer inquiries. I know full-time Realtors whose office phones are always answered by voicemail and I’ve sometimes wasted as much as a day trying to get a showing appointment for their listings. I believe that most clients would prefer a part-time agent who responds to their needs over a full-time agent whose office is under-staffed or is otherwise unresponsive.
I think the underlying question is not if a client should be informed about the realtors full time or part time status. I think the question at hand is if the work “owed” to the client is being done. To use the analogy a few posts above, yes, I would see a part time doctor. It doesn’t matter how many hours are being worked. What matters is if the agent is performing according to what the job description requires and as an agent, the job description requires you to be available for the sale of real estate.