That's a good idea. You never know what'll happen.

Thanks for sharing

Rich

Charlotte NC

Desiree,

Not a bad idea after all. The trick here is that you do not talk to the Seller, offering the services of someone else, and this is brilliant. I could figure the first part, but not this small touch that makes it so good.

It's very tough to see a listing expire, and sometimes, a fresh perspective will help. While many agents would suggest extending the listing at all costs, due to the money spent, I like your idea of offering an "out" for a seller that may wonder about the house not selling (but, not want to cut ties), and recapturing what was spent when the seller just wasn't prepared to look at the reality of the market- it's sort of stunning all of us at the moment. Release the seller, offer a great "next step", and recover lost marketing costs.

That could work out just fine. Another approach is to just barter expired listings among competitors.

A Foot Note:

This is the only business where competitors are required to cooperate with each other.

Rich - I've done it and have gotten paid.   I am not saying it works all the time but I certainly feel its worthy of a call.    Thanks for the support

Dez, I have seen this advice offered by various RE coaches. I guess it depends on the MLS  board. In NY the exp date was published on MLS...Not so in NC.

Ginger 

great post.  I have done that and will be doing that with a builder I have in another town.  His homes just aren't selling, and he is going to pull the listing.  I am trying to get him to go with an agent I can refer him to, wish me luck

funny that you say We did not sell the home. when the fact really is we failed to advise the client about the true condition about the market and how best win the buyer in today's market .   

Desiree-we used to do that many years ago.  It seemed my inventory was always high and I would call agents to let them know the listing was expiring...I would gladly give them the phone number and all the info needed..sometimes it gave me an extra 20%.  Sometimes I relisted...and sometimes... well I walked away! 

I have suggested this to the agents in Volusia County..they look at me like I am crazy.  This a great post..I have to flag it! :)

I have such a weird sense of  humor. I saw your title and thought it ended with "and you want to get laid." So just excuse me.

Great post and idea...I'm just having a hard time coming up with someone who can relate to my clients more effectively, market better or more strategically than I can.  :)

Hi Desiree,

That is a fabulous idea. I will surely try it and will recommend this to all my fellow agents in the office. Brilliant!

It works both ways when they have a listing about to expire they might sent one back your way.

Jon - Thanks...  ya know its not the save all for everything but certainly when you've given it your all sometimes a seller just needs a change and why not get something out of it

Desiree - great idea and wroth trying. Hopefully I won't need to. But maybe I can be on the recipient end!

Have a great weekend.

Jeff

I remember doing that in the last bad market of the early 90s.  I would not stay for longer than 9 months saying "I could have made a baby by now!"  and referred the listing to someone else.  It works well.

Laurie/Options - Sometimes we are certainly guilty of not getting the job done for whatever reason and sometimes you get into an agreement and the personalities just don't jive.

You can offer all the advice and professional pricing, staging and sometimes a seller just isn't ready to hear it.  Especially with the market change... some sellers need to sit for awhile before they are ready to hear reality.

Desiree - I hadn't thought of doing that...  That's a good idea.  Thanks for the tip!  :)

That's a great idea. I just wish i could find out on my expired short sales who the bank is going to use as their realtor!! :0)

Hi Desiree--

What a great idea.  Wish I'd come up w/it myself! But since I didn't, and you did, I'll just say "thanks, you smart girl"!

Great idea.  I haven't had too many that actually expired but this is something to remember.

Its so true...........i spent my first year in the business just doing expiries - and i became the no. in sales realtor in the office as a result!  So I'm a believer...

DEZ - This is a great idea.  I haven't ever tried this, but you are absolutely correct - you usually know when it's going to happen.  Great tip!

I have done this before and it worked!  Good advice...

Now that's one good way to exit.  Thanks for the idea.  This is definitely one sure way to get paid especially if it's you, the agent who's getting tired of the sellers. 

Desiree, I tried this a few years ago and was told by the seller they wanted to go a different direction. I had referral agreements written with 2 agents with different companies. It felt as if the seller was saying we don't trust your judgment anymore...

Better yet... you should just refer all of your clients out.  Your clients then might run into a salesperson.

I love it when people think outside of the box and this is a great example of just that.

I don't get the logic in referring a seller to another agent if your listing didn't sell.

If the owner doesn't want to relist with you, why would they take your advice about another agent?

Great post!  Since I used to specialize in expired listings, and was very successful selling them...in the 1990's even my competition would refer listings to me to sell and I would pay them a referral!  It is so easy to get paid when you know what you are doing.

I know an agent in Ann Arbor that does that and they do in inter-office. I am just getting ready to start and expired campaign with Katerina coaching me, so this will be a new challenge for me. You are right, in this market, listings ( some) are taking longer and we spend more on marketing and time giving the sellers updates, so it would be nice to get some of the hard money back.

That is an excellent suggestion and many times the listing agent does not want to admit failure so they get nothing at all...

I always develop "friendships" with my clients and when I have a listing expiring and they're leading towards taking a different direction, I've recommended certain agents I felt could them them a good job but never asked that agent for a referral fee.  I've given them the background on the person and how we're good friends and I want someone to do a good job for them and "you can buy me a cup of coffee sometime". 

The agent is appreciative and may never return the favor, but they'll also respect me for my integrity and loyality to my client/friend.  I would never make a referral within my city where I was going to "make some money" in making that referral unless I disclosed it, which if you told "me" that, I wouldn't call that person.  Hopefully that client will someday learn that it's common to get a referral fee and I didn't ask for one.

Sometimes friendship is more valuable than money

#1 - Who says you have to tell them that you sent the agent over.

#2 - Now that the market has softened up, it is more important now than ever that the agents be in the drivers seat when it comes to pricing and marketing. 
Yes, the homeowners have a say, but agents need to step it up a notch and be willing to say "NO" once in a while.  My wife Jacquie Cliff is an agent here north of Seattle and she recently sold a town home for full price in about two weeks while other are languishing on the market.  Why?  Because she priced it accurately, and told the sellers that it was a bad idea to list it at a higher price because of the market conditions.  Agents need to not be push overs and afraid they won't get the listing.  I mean who really wants an overpriced turkey anyway?

Ginger - our MLS date is NOT published thats why i am saying if you give someone else the headsup they can get their marketing in place before the rest see it hit the expired list

Kay - Good luck and smart thinking!

Eric - Sometimes no matter what we tell the seller they don't "hear" us.   And with that we do fail.   I have found sellers who agree to one thing at the listing table and turn into another person 30 days into a listing agreement.   It happens.    Sometimes you advise them till your blue in the face and they just don't get it.  

Great idea, keep it in the office!

If you feel right about telling the seller what you are doing and how much you will be making because of it, then I agree.

But if you feel that you have to sneak around and not tell the seller what actually is happening, then I think it is not right. 

I'm always for full disclosure, all of the time.  I would be very careful of not revealing anything confidential or I think you would be breaking the following code.

Standard of Practice 1-9

The obligation of REALTORS^® to preserve confidential information (as defined by state law) provided by their clients in the course of any agency relationship or non-agency relationship recognized by law continues after termination of agency relationships or any non-agency relationships recognized by law. REALTORS^® shall not knowingly, during or following the termination of professional relationships with their clients:

•  
  1. reveal confidential information of clients; or
     
     
  2. use confidential information of clients to the disadvantage of clients; or
     
     
  3. use confidential information of clients for the REALTOR^®'s advantage or the advantage of third parties unless:
     
     
     1. clients consent after full disclosure; or
        
     2. REALTORS^® are required by court order; or
        
     3. it is the intention of a client to commit a crime and the information is necessary to prevent the crime; or
        
     4. it is necessary to defend a REALTOR^® or the REALTOR^®'s employees or associates against an accusation of wrongful conduct.
        

Well Tim...I interpret that as saying if you DON'T disclose you're getting a referral fee, then you're in violation of Standard of Practice 1-9.

Maybe I am missing something... You would not disclose to the seller you were referring them to another agent and then collect a referral fee? So in reality the seller is paying you a fee, possibly unknowingly? This just does not work for me. 

I would only use this practice if there was full disclosure to all parties.

Midori - When I tell people they look at me like I have six heads... some just "get it" and others don't.      There is nothing illegal about referring a client out and I just don't understand why,  If you know your relationship is going south and the listing is almost up, why not?

You don't have to even refer within your own office.   Sometimes that is not the best approach.   This really does require an "out of the box" mind set

Thanks for your support!

Elizabeth - Get your mind out of the gutter girl!    PAID PAID

Ant - Sometimes you have to think about who's the agent that's going to be going after that expired and contact them first.   There are many agents out there that survive and are extremely successful working expired listings.      That was one of my niche markets back in the day.

So Desiree...are you saying you Do or Do Not disclose to your expired listing that you'll be receiving a referral fee?

Lavine - I liked the idea.... thanks for the show of support

Terry - It would be great to get one in exchange!

Jeff - It is worth trying and hopefully you don't have many/any listings that expire.  Always good to have a back-up plan just in case

Dez,

My theory is if you list a property then you better meet the market right then...because by the time you get an offer it might be worth less. Why not be ahead of the game or you just might end up calling your seller to reduce it constantly and then the next agent will get it at a low enough price to sell and remember that we represent the fact that we direct them to price it there. Many new agents would just use the old-tactic of taking it at a high price and just hope they can reduce it enough to sell it before it expires. That tactic now will hurt most listing agents.

Ardell - "I would not stay for longer than 9 months saying "I could have made a baby by now!"  and referred the listing to someone else."- LOL what else to say

Debi - You are welcome my friend

Mana - I can refer you my short sales I've just about reached my mental "end of the rope" with some of these banks.

Wow great idea! I will put that in the back of my head to pull out in time of need!!! Hopefully not soon though!

Ok, why did I ever think of something like this?  Luckily most of our sellers have been willing to just re-list with us.

What a unique twist. I love it!

Lanette - Smart girls unite!

Kathy - Here's hoping you don't have to use the idea!

Liz - With the market the way its changed you can make a living just doing expireds again - Congrats on your success with them

Jean - Good for you ....   see it does work!

Jason - Glad you liked it and thanks for "fixing" my button (boy that didn't sound right)

Courtney - Thanks

Sherry - I thought it was a great way to exit a sometimes difficult situation that has become unproductive

Paul  - Sorry it didn't work out for you, but don't be afraid to try it again if you need too

Camaron - ahh okay? <shrug>

Don - I love out of the box thinkers!

Lenn - I think its all about approach.   If as an agent you've done your job, educated the client and it still isn't getting through, a referral will work.   

Certainly if there is some animosity that has developed it probably won't go your way.   But ultimately if you take a professional approach and suggest that a change is in their best interest, seller will be receptive to the idea

Jim - You must be making a fortune in this market....   Happy selling!

Missy- You are getting coached ... good for you.. feel free to share with me anything you've learned.     Expireds are a great market, not sure I want to got there again I used to do them heavily, but they certainly are a pay day

Charles - It doesn't have to always be about admitting failure...   Its called being smart.   During the process an agent and client can start to butt heads on major topics, you don't even need to wait till a listing expires to refer it out.      If you feel things are working, cut them free and send them on to someone else.

David -I would love to be friends with all my clients and actually I have alot of loyal long standing past clients that have become dear friends.   

As a listing agent its unrealistic for me to think I can remain friends with everyone of them, most of my sellers relocate out of state ... just the geographical area that I am in.

I also don't think its smart business for me to refer out sellable listing without getting some sort of compensation.    I am self employed and have bills to pay.

There are certainly times when I have referred people out and not taking a referral to help someone out, probably more often than I am willing to admit.

I am the first one during a transaction to anti up to put things together.   What goes around comes around. 

I had several closing yesterday ... the majority had some issue of sort of issue at the table and because I like and respect my clients and their needs are put first.  They closed because of Me.   I could give you about 4 of my clients phone numbers just from yesterday, that if I didn't reach into my pocket to make a bad situation right, we wouldn't have closed.

That's another thinking out of the box situation ...   I believe in always being proactive

Cliff - I couldn't agree more.    Agents "still" buy listings with the thought of beating up the selling through the listing agreement for price reductions.   I am not a fan of price reductions and pricing it right is crucial.

Why take them overpriced and add to an already saturiated market ... what to just sign you sign on the front lawn?   Congrats to your wife in her quick sale

Tim - I am all about disclosure...    and I am certainly not suggesting that you reveal something that would adversely effect the sellers.

What I am suggesting is to refer the seller to someone you feel may be better suited to help them in their respective situation.    Not everyone is for everyone as I am sure you are well aware.   We can't please all people all the time that is impossible.

I am not suggestion you "sneak" around, I am suggestion that you contact an agent who you feel would work well with the client and let them know the property is going to expire.   I don't see any violation in ethics there.

I am not one to interpret the law but I am a firm believer in following it.   I can promise you this, I will be at a gathering with my broker and some fellow high producing agents, I will ask them their opinions and without pause report back here ...

Thanks for the input

A little is always better than none!  I have got to refer out a ton of listings that turned into short sales while our market declined!

You are right -- if things did not work out and they want to go elsewhere, refer then and take a referral fee. It's better than nothing.

"Refer the Seller to Another Agent!!!" ????????????? Well..so much for transparency! Simply amazing!

I am laughing at Barry's comment although I have read all......Oh how I agree.  And I have referred Sellers to other Agents including on Trulia Answers....Why not?  If you can do the job I can't...and I trust your work ethics...then I'm sending them to you :)

Good discussions Dez ;)

Desiree,

That's a good idea. You just might get something out of it anyway. Besides, that would create goodwill among the other agents and one day you might get a similar listing from them.

I just did this with an agent. I felt bad about another deal not going right. I got a call. It wasnt really in our area and I wanted to handle it. I felt it was a good referral. I sent another agent near me business! I realize this isnt exactly what this post was about but I wanted to say that sometimes its just customer service and I want to provide  great service. If I dont think I can do something why not refer it and help someone out?

Well, Desiree...for some reason you don't want to answer my question, so I won't ask anymore.  Good luck and best wishes.

I did this awhile back on a ranch listing, referred it to a realtor who specialized in ranches and had shown the property many times while I had it listed.  IT was a great concept.. .but he didn't sell it either so neither of us won.  :)  Life happens. :)

Good Tip! But do you recommend doing this after the listing has expired?  I can't help to think that the Seller may be a little turned off if this is mentioned even before the listing expired because it may look like you are trying to get rid of it.

Thanks.

Desiree....  I saw you lurking... lol  Hey, this is not a bad suggestion and makes sense.... congrats on that gold thingy...

This is a great idea Desiree!  I plan to talk about it at the office meeting next week.  Thanks.