Jason Bramblett Real Estate Show Podcast
Jason: Good morning. You are listening to the Jason Bramblett Real Estate Show. Hope your Saturday is off to a fantastic start. We are digging into all things real estate today. And of course, we are going to dig into do who is working for you? That is a question when you went to sell your house. Did you hire the right agent? These are questions that you need to know, especially if you are thing about hiring one in the future. Maybe you hired a free agent instead of actually a listing agent or someone to sell your house. We are going to dig into what does that mean? What is a free agent never heard that before? Well, you will get educated today as we walk through this process and we have some wonderful information from our state government that I will share with you. It will not we are going to save it to the end. That way you do not crash your car go to sleep on me, but it is very interesting in how some of these agency Ships are set up. if you plan to sell your house in the future, you want to make sure who you are hiring what they do for you, and we are going to dig into all that and your calls your questions. You can go to Jason Brown would.com or give us a call five five three zero seven nine six at the office Keith. Good morning, sir. I hope that everything is well with you today. I getting over the cry, but that is alright, it is it is that time of year is the season right it is that time of the year. It is what we deal with crud in real
Speaker 2: estate. this Seems like an obvious answer, but I guess I need to ask this because I do not know. I hired a guy to sell my house. He works for me,
Speaker 1: right? Yeah. Well, so there is one way we could put that through the test. The key is let's do that. Let's put it to the test. most owners, , really when considering to sell their house. They think well, I am going to hire an agent obviously some house no question that is done. the issues this in 22 years of being in the industry and what I have seen and what I have experienced in watching the Street all across the nation not just here in the in the Triad is some sellers actually hired what we call a free agent. Meaning that agent is free to sell that buyer. Anyhow, they want to buy kind of like your neighbor's house. yes, you hired them to sell yours, but that agent is free to do just that they can walk down the street and sell any home to that person. so here is the downside the issues this they called about your home. They wanted to see your home. They went to your house. It did not meet their criteria and instead of trying to figure out how to fix that. They simply take the easy route walk right down the street and just sell on the neighbor's house free agent. You wanted an agent that was going to fight for you. Yeah, right you want an agent that was going to overcome objections and complaints and all these issues and that is the When we see, , it is not that they are bad salespeople. It is well, a lot of them are just not trained to deal with objection and how to overcome it and how to get through that. , it could be as simple as . Hey, we want a house with hardwood floors and your house has carpet and the free agent instead of overcoming the complaint of the eject objection. Really they are just going to walk them down the street and show them a house that has hardwood floors get a sale get the commission and move on and The sad thing is many times not even really seeking your feedback and you've probably read comments like this. If you ever sold a house in the past, you may remain s and think back to this is , just not what they wanted needs too much updating. These are very vague non detailed, responses in in did anybody dig in and find out what the opportunity was there? , it could be that what they should have come back to I said, okay great. Well, here is what they do not like. if we give you an offer that says you will do this then we will pay X like hey Keith take your carpet out of your house put hardwood floors in your house is sold. Yeah if I need to sell my house if I have got a if I got a pony up
Speaker 2: $1,000 to fix a simple objection to get my house sold. I might do
Speaker 1: that and we have some owners that would pony up $10,000. Yeah, depending on the price range of the home, , and , and we will get sometimes. Well, I am not spending $10,000 to do this. But yet they do not they do not work through that objection properly or they do not even get the opportunity. They did not even know that that was an option for them. And then what do they do lower the price 20 grand?
Speaker 2: Well, you see lots of money on that. Yeah,
Speaker 1: you lost money on the deal. But but unfortunately some owners do not even know this so, after look at this, for 20 years and teaching all across the United States and and really how to overcome this stuff what you got to look at it is it is the free agent issue. , if you hire the company what you are looking for really is hire a company that does not allow that listing agent to work with buyers. And when that happens, the only way that agent gets paid is if they sell their home. Okay, and so well, this is why 15 years ago Jason barely real estate. We set That Into into process. we have dedicated listing Specialists that do just that they only get paid. Aid if they sell your home and we never fall into that trap of free agent I is a listing agent cannot take Keith down the street and sell them my neighbor's house. I am not allowed to I can only overcome those objections and complaints and sell the home for my owner. That is the only way in which I get compensated most owners. Do not do this enough to know the even even though The questions to ask under an assumption. They think well, I hired this agent to sell my home. That is what they are going to do. Not even realizing that they are a free agent in which they could sell them. Anyhow, so you got all these people calling in inquiring in about your home you get there and it is instead of selling and overcoming the objection. They just take the easy route like oh, I know Street there is a house right down around the road. I will just , it is got the hardwood floors already done by this one. I No matter what now, is that is that what the owner wanted? No, they wanted someone that was going to be there and was going to fight for them. They wanted someone that was there that was going to make sure that they had their full representation at all times. That is what we decided to do 15 years ago at here at Jason Brown real estate. That is why we are a hundred eighty degrees different then most all the companies that offer this free agency situation. is there a difference A hundred percent difference. You better believe it big
Speaker 2: time that explains a lot because when and full disclosure, I purchased a home recently and used you guys and the agent was completely committed to us now clearly. We were the buyers not the sellers in this instance, but he was committed to us 100% and did not have to have the split
Speaker 1: loyalties. Absolutely and and that is and that is key. The other thing too is if if that agent was let's just say that agent was a free agent and they were working they were actually able Two lists homes, but in your case, it was Dave and let's just say Dave had five listings for sale. If Dave is out showing you property. He's going to take me to his listings or
Speaker 2: orderly who in the world is working on
Speaker 1: selling those homes if he is doing his proper job and he's giving you his full undivided attention as an agent and out here showing you property. What about this five other sellers who sell in their homes, right? It ain't it is not Dave he's working with you. when you Have undivided attention, you can't fully focus on a task. our listing agents only get paid when they sell the house for the owner. Therefore, they are under percent focus on that and they are not distracted by out showing Keith property because that takes time effort energy, right and if I am focused on working with you and your wife, I can't be working on selling your home. It is Impala can't be doing two things at once right now. It
Speaker 2: does not and again it is completely even if I am in my situation if he had five homes listed and he's only in the fight to sell his five homes for me. He's not going to show me the home. I need job does not work for either side. I do not know. Why do not why do not all other real estate agents do this. That seems to be the best thing for the customer.
Speaker 1: Oh, yeah. Well, we are going to talk about that. We are gonna dig into that and we have news
Speaker 2: from the state of North Carolina about this
Speaker 1: very thing that we are going to talk about but I am going to save it to the end because well, it is legalese and it is well it is the state and , like I said, I do not want anybody crashing her car but it is an issue in its in and here is the thing. Here is the downside with our product people have either never done this or they haven't done it in ten years. They do not remember they do not they do not know the questions to ask and they operate under assumption and you can't assume that the person you hired is fully a hundred percent, working for you the you may have hired a
Speaker 2: Asian I just again it just does not make sense. it sounds great for the agent, , because but your I am paying them for representation. if I wanted to go to a restaurant and and walked in he could just for whatever reason if I do not like it take me to the next restaurant and give them my money it just does not I do not know. I just do not understand why anyone would hire that situation because it is
Speaker 1: split. Yeah. Yeah. Well, and that is just it so yeah good good analogy association with things we do more common like restaurants you go out to eat, right? think about that what owner wants his prospective buyers walked right out the door to his neighbor's house or , what what restaurant guys going to have that happen, right? , it is like no it is never that is a hundred percent. No, do not do that and yet that is how the industry is set up. you see that the free-agent is just it is really it is just there to free to walk right down the road and sell that person another product.
Speaker 2: It is great for them. Maybe not so much for you.
Speaker 1: Maybe not so much for you, and sometimes yeah, we'll just leave it at that. Yeah, it is not and and that is exactly why it is our company policy that we do not do it that way.
Speaker 2: It is funny when I first started working with you guys. I saw that clearly on your website. It was , it was literally right in front of your face was clearly put up there and did not really understand it. But now I do so, that is obviously a huge deal. That is a really big deal. What else do I need to look for? When I am selling my
Speaker 1: house, absolutely so in North Carolina, we also have this agent. Well we call it do agent, , meaning that they can work with the owner and the buyer equally sounds like a great plan. Right? I have the home listed for sale Keith in is family comes up. We want to buy it. Oh, you do not have an agent. Alright, I will work with you. I will represent you. The problem is with dual agency as you are going to see here in a minute as we walk through this. There is a problem. The problem is is that agent now cannot offer any advice to the owner or the buyer they have to be what they call a neutral basically they can fill out the paperwork. Well most of the time when we hire an agent to sell our home we did not hire them to fill out the paperwork.
Speaker 2: , you can't pick that you can probably find easier ways to fill out the paperwork. the issue is like you and I have talked that if you've bought or sold a home it Hasn't if either has never happened or it has been 20 years since you've done it, I needed the expertise. Yeah, I can find a lot of different people who could fill out paperwork. Yeah. I need the expertise on what's a good offer. What's a bad offer? What should I be asking for? What can I ask for? That is the stuff. I needed to
Speaker 1: know absolutely and that is that is exactly what people are looking for. They are looking for that expertise and advice and they want it from someone that they know has their best interest at at all times and so where we find this issue? It is like okay if this cup of coffee here, if I am going to sell this cup of coffee in your the owner you obviously want the highest price for the coffee. Right? , that is just a given right and but if I am also working with the buyer under dual agency, yeah, they they pretty much want the best price how in the world. Can I achieve the highest for the owner and the best for the buyer and I am selling the same cup of coffee
Speaker 2: now because the other side wants it
Speaker 1: cheaper no. Matter what right or the or the owner that I am equally represented once the most and so I am in this Catch-22 this nightmare of I can't do a good job of this. It is impossible. , that is what we feel yet the state allows this practice of agency the other issue with this type of agent is equal. Well if I am originally I would be the listing agent first. I went to your house there was no perspective buyer at that time because I did not even know if I was actually going to earn your business, right? I told you whatever you wanted to hear you agreed you love my price. I showed up with these fantastic numbers that I just pf8 which is, pulled from the air and singing and dancing. And you said man, I like your smile go for it. No buyer. But yet at that time. You told me hey Jason. Is the deal really we are in a pretty major financial hardship as a matter of fact, my spouse is leaving me and my dog just died both of the same week. That is all in the same week. And so we've got , it is the country song, right? We all know the country song and here is the thing under this agency relationship. All that information needs to be shared equally with all parties. And and so this is an issue. here I told you I was going to read you what the stasis. Oh really. Here you go. Here is the deal. State of North Carolina. This is what they stay although the laws and rules by which dual agency is practice have not been reviewed to any significant extent by the courts. Theoretically a dual agent owes full range of agency duties to both principals owner buyer. This creates practical problems for the Dual agent regarding such matters as disclosure of material facts, especially confidential information about the client. In advocating for the clients North Carolina Real Estate Commission. Do you see the issue there? I love this one line. It is do agency is practiced but it has not been reviewed in any significant extent by the courts. Do what that means folks? Nobody's got sued yet. That is all that it be someday someday. Matter of fact, I am told there is some money sitting down in Raleigh in a fund for the lucky person that gets R name selected. if anyone ever gets sued we will actually be able to figure out finally in the state in order to North Carolina. Is this even legal if there is again it is the practice is allowed but there is been no test. What is a test Court law right? It is good times is North Carolina. Where do amazing it hasn't come up at this point. It is it is absolutely amazing. It is all in this world where we Sue over everything. Early, so it is kind of crazy. And so why is it allowed? Well, I am , just hey, sometimes you just gotta is what it is. It is pretty simple big box real estate companies would close our be crippled instantly if that rule changed and the reason being is because of their survival, they they survive on the fact that they have to sell their own product under this way. Why because they are in the Dual agency trap in and so if they couldn't sell their own product, they would close and of course, , well big business big attorneys, right? They got the lobbyists. They got everything that they need and well they influence lawmakers and lawmakers haven't made a law that says no yet. They just said well, we'll just see what happens. Keep doing it until somebody gets sued Here Comes Here Comes, right? It may be there. Who knows but , It is politics and with all politics do what everybody does follow the money. It is all in the money. you need to be educated. You need to understand. Did you hire a free agent? Do you have a dual agency situation that you are unaware of and you need to make sure that you have the information out there, do agency actually is is not allowed in a lot of States North Carolina just happens to be one where it is. make sure that you understand. If you are getting a free agent or a dual agent and ask the right questions, that is what you need to know. you go to Jason Brown a.com get more information. We are going to take a quick timeout will be back in just a minute. You are listening to the Jason Bramblett real estate
Speaker 2: show.
Speaker 1: Hey and welcome back. You are listening to the Jason Bramblett real estate show. I hope your Saturday is going great. I hope that all those cars in the ditch aren't real estate agents that just freaked out about what we just talked about on the
Speaker 2: radio. I want to talk about this some more because yeah, just honestly it blows my mind. It blows my mind that it both goes on that, , if I am trying to sell my home literally. mebody can come in there and say they are working for me and give me this presentation make it all pretty and make me feel like they are working on selling my home. But at the same time if my home is not absolutely perfect and meets every demand they are just going to walk them out of my home and take them to another home that maybe is closer to their fit. in that scenario, my home has to be perfect or I am not going to get a great offer. Right? How did that I'd I can't believe that is
Speaker 1: allowed. Right? Right, right. And so where it comes in is that is where you have to have that exclusive. Civility you need to make sure you hire a company or a team of people like our company that where we've already figured it out. We do not allow that that just does not happen with our company our dedicated listing agent. The one that is working on your home cannot be compensated in any way unless they sell their home and they are not allowed to take that buyer that called on your house or emailed in on your house or showed up a what? Ever at your house and walk them down the street. Our goal is going to figure out how in the world. Can we make this work? How can we take whatever objection or complaint that you have about this home and get the get the owner at least an at-bat a swing right as opposed to just saying? Oh, I know one. That is right down the street just got exactly what you are looking for.
Speaker 2: Well, it is so true to because ultimately each, , each agent wants to make money and if there is an Easier path for them to make their money if somebody brings up. I do not like the color of the wall. He can either go. Well, why do not we ask the the seller if he put in a $500 pain allowance so you can do these two rooms and we'll get it knocked out or he can just go for houses down the street that has the color of blue you like. It is easier and less time consuming for him to go down the street and not sell your home and sell somebody else's you are right.
Speaker 1: yeah, like you could like that. Yeah. Oh, hey. I was just in the neighbor's house down the street. They just painted the whole house neutral last week done. Yeah. It is just perfect neutral blah color that you are looking for
Speaker 2: and the kick-out the kicker of it is and you are right what might have cost five hundred or a thousand dollars to have a home that guy's going to come back to you and tell you have to lower your price by $10,000 because it is not selling two months later. Yeah, and you are gonna get lost 10,000 instead of a grant
Speaker 1: in really what we need to make sure is that owner has the option and so what happens is what I have seen across the nation in North Carolina after doing this for 22 years is I have seen Unfortunately agents, just well what's easy have the card conversation are just walk across the street down the road drive a half mile down the street and just show them another houses sell that which one has less confrontation for the agent. It is easy. Just go show them another house, right? But that is not who you hired. You did not hire the free agent that can sell anything or how about this using your home as a loss leader. Like hey, your house is a shiny beautiful thing. It is so stupidly overpriced, right but it Great and people show up and you will not get realistic on the price. I will just use your home to go sell the other seven to get you in the door to get you in the door. You do not think that happens in business. How about a grocery store? You ever heard of a lost leader, right? You see it every week will make nothing on this but we know when you come in the store, you are not just going to buy the hohos, right? You are going to walk out with milk in the chips and the salsa and everything else that we make a tremendous amount of profit on. There is no secret as to why the milk is always in the back of the grocery store. Right and most of them if you pay attention, what do you walk through the chip and the cookie and candy aisle to get to the milk condemned? It is all planned all the time all the time and so is your home our has your home been used in the past as a loss leader something to think about these are just questions. You need to ask when you go to sell your home. Is that person in fact, Working for you. It is not that they are working against , it is just that they are working for themselves easier. Yeah, maybe you would for themselves. Well again, it goes back to free agent. Right if we use Sports analogy. What's a free agent do he can do whatever he wants. He does not have a contract right where the money is he goes. There you go. And so that is what we see in real estate. anyway, hey, you can get more information by going to Jason Bramble.com. You can give the call give us a call to the office of five five three zero. 0 7 9 6 and if you have questions about any of that get with us, we'll see you next week have a fantastic weekend. You are listening to the Jason Bramblett real estate
Speaker 2: show.