Online real estate sites can be misleading
Ask Phyllis: a blog series of frequently asked real estate questions.
Online real estate sites can be misleading
Dear Phyllis,
I enjoy reading your real estate answers and wanted to share a recent experience for your readers’ benefit. My wife and I own our home and recently saw an interesting fixer listed. We did not contact our Realtor right away because we were not sure we wanted to pursue it.
Since no open houses were scheduled, we clicked the link to tour the property, believing we were reaching the listing agent. We met the showing agent at the appointed time. He was cordial, but he seemed to lack experience and knowledge. At no point did he ask whether we already had a Realtor.
After the showing, my wife and I went home and discussed the pros and cons of the property. We then contacted our Realtor. To our surprise, we learned that we had made a mistake. If we decided to pursue the home, we might have been required to continue working with that agent, who we now realized was relatively inexperienced.
That realization changed our perspective, and we ultimately decided not to move forward with the property. Can you weigh in on this?
Perplexed
Dear Perplexed,
I share your frustration with these online real estate sites. It is not easy to determine who the listing agent is. These platforms typically sell buyer inquiries (leads) to real estate agents. Most experienced Realtors already have enough business from past clients and referrals, so they do not need to spend thousands of dollars each year on purchased leads. As a result, when you contact someone you believe is the seller’s agent, you may actually reach a newer agent who purchased that lead.
When a buyer wants information about a property, they should first contact their own Realtor. That is never a burden—it is our job. We earn our compensation by showing properties and representing buyers. The listing agent represents the seller.
Every real estate transaction involves “procuring cause,” which refers to the actions that initiate or set in motion the chain of events that lead to a sale. I am not an attorney and cannot advise on procuring cause, as it can become very complex. If you had decided to pursue the home, your Realtor could have negotiated a portion of the commission with the showing agent in the form of a referral fee, which may have resolved the situation.
Thank you for your continued readership, and I wish you the best in your real estate journey.
Thank you for your continued readership and good luck on your real estate journey!
