DH relocated to Florida from Indiana a few months ago and this past week I was down there searching for homes, having recently sold our current house. The realtor we chose came to us via the USAA referral program. I'm not exactly sure of the details, except that we get $1000 for going through USAA. Made sense to us, especially since we didn't have a referral from anyone else.

I went through listings in MLS prior to my visit and the realtor cut about half out for reasons such as "short sale" and location. She planned to show me those during my first two days. Since it cut my list down to about 18, I went through MLS again and widened my criteria. I copied down the addresses and MLS numbers and gave them to her the first day I met up with her, and I asked her to show me those.

Once again she knocked off a large amount of homes, for the same various reasons given before. After my thrid day, I realized I still didn't know about a few of the homes I had requested to visit, so she pulled out the list of addresses I had given her. I saw that she had notes next to each address, and one that I was asking about in particular jumped out at me -- the address was crossed out and "2%" was written next to it. She quickly stuffed it back in her folder when she noticed I was looking at the paper and began taking notes on another piece of paper.

Since she had told me this particular house was a short sale, yet she had 2% written next to it, I decided to drive by the house to get the selling agent's number. I called and was told the house was definitely NOT a short sale. I asked about the schools, the size, etc. -- all the things that were part of my criteria -- and it still fit. Then I asked about commissions, and she confirmed with me that it was 4%, 2 for each agent. She said the majority of houses listed are at 6% total.

After that, I bought a map to hunt down a few others I had asked about that day. Two that I was told that were in bad locations were in fact in neighborhoods she'd already shown me, and one that she said was either short sale or contingent -- she said she couldn't remember which -- was most definitely neither, which I confirmed with the listing agent. The other 3 I checked out did fit with her "poor location" description.

Clearly she's not been telling me the truth. I only asked that first agent what the commission was on the house, but I'm thinking that a lowered commission may be why these and other houses she dinged are the reason why I didn't see them, not for the reasons she told me. Can she do that? I always knew some agents wouldn't actively show lower commission homes, but I'm really flabbergasted that she would lie about it! To date we've found only one house that we think we like with all things considered and we told her we wanted to bid on it, but I'm not sure if it will go through (just learned it's on a septic system, which explains the soggy ground ). Other than that, anything we remotely like is at the very high end of our price range, which I'm not even sure should even be part of our price range.

My husband isn't riled up like I am about this -- he said she's taking a loss in her commissions by us going through USAA, so he says he understands why she wouldn't want to show lower commission homes. But if we hadn't gone through USAA, choosing her as an agent would have been extremely remote. In my eyes, any loss in her commission to USAA is the cost of the referral.

Can she do this? It just doesn't seem right.

How do you know she is losing money by being a USAA referral? Obviously, there's a "deal" structured there somewhere, but do you really know what that deal is? Every deal has a payee and a payor and there is perceived value of some sort for every participant, but often the structure isn't as clear as you think.

I can't answer your question about the ethics of this particular realtor, but if I were in this situation, I would be calling USAA and asking them. USAA has a desire to be seen favorably by it's members so is this realtor meeting the goal of USAA?

A house is too much of and investment for too much money to go any further if you're not comfortable. I don't like what you've explained AT ALL.

I would get to the nitty-gritty with this realtor before this goes any further. If something smells fishy to you, it may be. Like I said, I don't like what I'e heard so far.

Let's put it this way, what good is a realtor who can't -- WON'T -- show you the houses you want to see and on which you're going to spend YOUR money -- hard earned I bet.

She works for YOU. And you need to set her straight.

Now, you'd need to ask a realtor how to get out of the contract you may have with her. Hopefully she'll let you out of it, since she feels you may want her to work for less commission she may be glad to let you go.

But if she won't show you houses you want to see -- you need to have a talk about who works for who.

Did you sign a contract? Frequently, buyers do not. And even if you do, you can sometimes ask the Broker to move you to another agent. I had a somewhat similar experience years ago with a "buyer's agent" with whom I did not have a contract. I would not waste any more time with her and would choose another agent. Pay full commission and demand full service. She is wasting your time as well as lying to you and behaving unethically, in my opinion. I wouldn't trust her during the negotiation process to represent my best interests.

AC is absolutely right. Get out now.

I utilized USAA's referral service on my first home purchase and was nothing but happy. They were incredibly helpful with the move, financing and everything associated with a relocation. I would contact USAA and ask for another agent. USAA should know you are unsatisfied, and why.

USAA takes off at least 30% off the top of the gross commission. After that the agent pays probably a 6% franchise fee and the split with their broker.
The agent should have gone over how she gets paid prior to taking you out. I know they are not allowed by USAA rules to talk about the rebate. Call USAA and let them know your concerns.
I'm a USAA member and USAA movers advantage certified agent.

Somethings smells rotten in Denmark to me about this.
The bottom line is you are not comfortable with this agent.
I'd call USAA and tell them your concerns and ask for another agent.
They need to know about the ethics of the one you are using right now.

I am familiar with USAA movers advantage and I have been happy with them. JUSt send an email to your rep from USAA and tell them your concerns. I am sure they will give you another referral. You can also see if you can get a referral from a person here or in Florida, perhaps they will be a USAA agent
I imagine you have not signed a contract with the agent, Have you?

I'm not familiar with the USAA program and don't know if the agent is prohibited from steering clients away from low commission rate homes or not, but lying about it in order to cull those homes from your list is unacceptable and unethical behavior.

I would tell her exactly what you have found out about those homes she claimed were short sale or contingent and tell her that she has lost you as a client for not being forthright.

Just move on, don't worry about the 1k USAA rebate. Get an agent you are comfortable with, this one is clearly not the one.

what part of FL are you moving to? I have an awesome one, if you are moving to Cape Coral

Also, do you all think it is very common for realtors not to show a home b/c of lower commission? Our home is listed w/ 2% comm..(the norm is 2.5...but we think that giving the .5 percent to the buyer is better than lining an agents pockets)..maybe that is why its not selling? ergh

All Realtors belong to the NAR (National Association of Realtors)
Make sure you are dealing with a Realtor not just an Agent.

There is a National code of ethics that All Realtors should adhere to. Then there are, State Code of ethics as well.

Any Real Estate Agent Lying is an unforgivable offence!

I would drop this Agent like a HOT Potato!!!!

If you have a good Realtor they can save you money, it's all in their experience, writing of the contract, and your agent truly knowing & understanding there local market.
That $1,000 you think you are saving could cost you thousands more if you do not have a Professional Realtor, that is truly working for you and your best interests.

In PA were have a Buyers Agency contract, when you find an agent you feel comfortable with this is the way to go. Again be careful some agents like to make this contract for a long period of time. When I meet with a client for the first time I strictly make it for that day. This is to insure we are all comfortable with each other. Then if we decide to continue to work together I do a 30 day contract. If I can't find you what you are looking for in 30 days then either I am not doing my job or your expectations are unreasonable. This way you are sure you are getting the very best service from that Realtor, and they are guaranteed there commissions, again this can be written into the offer of a home should the commission be less than they are willing to work for (Say the difference between the 2% & 3% you spoke about.)

Our Pa code says:
a (2) is very clear!

§ 35.292. Duties of licensees generally.
(a) The following duties are owed to all consumers of real estate services and may not be waived:

(1) Exercise reasonable professional skill and care.

(2) Deal honestly and in good faith.

(3) Present, in a reasonably practicable period of time, all offers, counteroffers, notices and communications to and from the parties in writing, unless the property is subject to an existing contract and the seller/landlord has agreed in a written waiver.

(4) Comply with 68 Pa.C.S. Chapter 73 (relating to Real Estate Seller Disclosure Law).

(5) Account for escrow and deposits funds as required by section 604(a)(5) of the act (63 P. S. § 455.604(a)(5)) and § § 35.321—35.328 (relating to escrow requirements).

(6) Provide consumers with the information in section 608 of the act (63 P. S. § 455.608) at the initial interview.

(7) Disclose, in a reasonably practicable period of time, all conflicts of interest and financial interests as required in § 35.283 (relating to disclosure of interest).

(8) Advise the consumer to seek expert advice on matters about the transaction that are beyond the licensee’s expertise.

(9) Ensure that all services are provided in a reasonable, professional and competent manner.

(10) Keep the consumer informed about the transaction and the tasks to be completed.

(11) Provide assistance with document preparation.

I hope this helps!

Darleenhallett.com

This message has been edited. Last edited by: darleenhallett.com,

Regardless of how this woman is getting paid, she's clearly looking out for her best interests rather than yours, and potentially cheating you out of the -home- you want to buy. This is un-freaking-acceptable on so many levels.
For her, this is a few weeks of work. For you, it's the place you're going to live, and it should NOT be determined by the cut she gets of the sale price. It doesn't matter if she's getting jacked on commission - she'll have other clients. You are buying one home and have this chance to get it right. Ditch her.

As reported in our newspaper today.

"USAA honored for customer service

Recently, USAA, a Fortune 200 financial service company serving military personnel and their families, was honored by BusinessWeek as the top Customer Service Champ for the second consecutive year. To celebrate, the USAA Foundation has donated $15,000 to the Colorado Springs USO to provide support and resources for the men and women in the military."

It sure sounds like you've got an unethical agent. I would ask the referral company for a new one, and tell them that this time you want someone who will show you ALL the houses YOU want to see. Then I would tell the old one why you're not going to use her and file a complaint with the local real estate licensing board.

I was a relo too, so I can sympathize with being on a short schedule and wanting to make every moment count. Best of luck to you!

As everyone said - PLEASE let USAA and that agent know you have a huge problem with how things are going. I would absolutely confront the agent and tell them that you want to see the houses you want to see - and if there's a problem with that, you're going to move one. This does seem unethical to me, and I wouldn't tolerate it. Now, I thrive on confrontation - but you really can't let this continue. Your family needs a home.... Please let us know how it goes....

Yes, face the issue head on. She did not have to accept the buyer lead. This is considered a referral, a blessing. Referrals are a part of our mainstream income some months. Referrals come from everywhere - other Realtors across the land, USAA and other relo companies and networks. A certain "directed" referral fee is expected and agreed upon.


The referral fee is deducted from the top of the commission that comes into the Realtors' office, which of course would cut into a Realtors commission. Known fact.

Just because of that fact is no reason for the agent to be "select" in which properties the client is shown. It is not her right.

I know some agents who cringe when they draw up an offer for a short sale, because you never know when or if you offer will even be acknowledged by the lender. Some lenders are impossible to work with...blaming other in-house departments for delays in responding. I don't believe the lenders have trained their employees to process "the foreclosure market".
Part of the glut of the market.
However avoiding showing short sales, if the client desire to do so.. is not only dangerous to their reputation but dangerous to their license.

I do however believe an agent should explain short sale, pre-foreclosure, foreclosure and inform the client of the process. If time is of the essence, the buyer, with that information, may want to avoid short sales, etc. as it is possible that a month will go by before you get an answer in their offer. It should be the client choice. Some buyers come in town for the weekend to shop and leave town knowing negotiations are complete, and that is what they want to accomplish.

quote:

I always knew some agents wouldn't actively show lower commission homes,

Sorry to hear what you were/are going through.
The agent that sold my home initially tried to pressure me into paying 7% commission (she had 7% pre-checked off on the listing agreement form!). She said that realtors were more likely to show the home ''if it was worth their time''. I declined her advice and only paid 6%, but the whole episode left a bad taste in my mouth about how some realtors operate. I hope you find a realtor that you are comfortable with.

Just saw this. I've purchased six homes so far(with and without a spouse) in my lifetime. I've never been shy about telling an agent that if I wasn't shown what I wanted to see, another agent would be glad to do it. I also do a lot of looking on my own even before I select an agent. By the way, if there's a house I want to see, I never contact the selling agent because the selling agent is working for the seller, not for me. The last house I purchased was done with someone who operates strictly as a buyer's agent.