Myths Of Real Estate

All BRE Licensees Are Realtors

False, the Realtor Associations are basically Trade Associations, optional to join, and fees are required. Some of the people who do not join include many Loan Brokers, Property Managers, Commercial Agents and licensees inactive at the moment. Right now about 180,000 Realtors and 240,000 not Realtors.

All Realtors have access to Multiple Listings. False, some Realtors like Duane Gomer do not join “Multiple”

All Multiple Listings members are Realtors. False. Not a fact. You can join as Multiple Only.

Associates can join a Realtor Company and not be a member. False. Just try it.

All listings in Multiple must be Exclusive Right to Sell Listings. False. What other listings are there? It is not true that all listings must be exclusive. Of course, if you want someone to work on your listings, they might best be exclusive.

There Are Several Other Types Of Listings

1. Exclusive Agency:  In this agreement the owner can still sell or rent their property without paying a commission. The company with the listing can sell and demand a commission. Other companies must respect this listing.
2. Open Listing: In this listing everyone can sell the property and get a commission including the owner. Have you ever seen a lot with many Real Estate signs on it? Each of them probably has an open listing and will get a commission if they bring a buyer and get an agreed sale. No guarantees.
3. Verbal:  This is not a listing. It is a suggestion. Years ago I wrote an article, and a reader sent me a note and wanted me to send them a copy of my Verbal Open. Do not think that he understood the concept.

Have I Ever Used Number One Or Two?

Yes, in both cases. Many times when I have had a vacant unit, I would ask the broker to sign an Exclusive Agency. This would allow me to continue my attempts to rent, and the broker’s company would increase the exposure. They would most times get the commission.

I have sold large apartment houses on open listings. In most situations when I was doing this, owners of large apartment houses and other commercial properties would list them with different companies.

How Did You Protect Yourself If You Advertised?

If someone inquired about your ad or promotion, you would ask them to sign an agreement that they would honor your open listing.

How Did You Protect Yourself If You Had An Offer?

Normally, I would ask the owner to sign a 24 hour Exclusive Listing to allow me to present the offer and negotiate the terms.

What happened if the owner said that they would like to list, but they have a couple people with whom they are working so they want an Open Listing. I would negotiate that it would be an Exclusive Listing, and the owner would have an exception to the agreement if he or she sold the property to their exempt people.

What If You Had The Policy Of Not Taking Open Listings On These Type Properties?

You might be able to do this if you were CBRE or Lee and Associates. Many owners would not want to list exclusively with boutique companies like mine. Of course, I did also get many Exclusive Listings, especially when I was General Partner. As I remember, I always picked myself as Exclusive Listing Broker when I was General Partner of a syndication that I formed.

Ever Get Cheated Or Stabbed In The Back?

Yes, some Et tu brute moments. Sometimes from people whom I considered long term friends and would have trusted them with my check book. When “good” money gets involved, atmospheres change. In Real Estate keep your back to the wall and watch the doors. In restaurants get the Law Enforcement Table.

As the old Sarg said on “Hill Street Blues”, “Now, you be careful out there.” Best Police Show ever tied with Law & Order. Rest in peace, Steve Bochco, you did good work.