I am currently renting a house that is for sale. The rent is dirt cheap and includes most utilities, so I can’t complain about that. But I think I may have stumbled across a shady realtor practice.
First, some background info. The owner won’t take less than $700K for the house, and most believe the market will not support that price. My hunch is that the selling agent agrees, although she has told the owner she fully believes the house will sell for that price.
Before getting the listing, she said she’d have an open house every other Saturday. After the papers were signed, she has held an open house every weekend.
It is important to note that there are two types of open houses. A broker open house is only open to real estate agents. They get to take a good survey of the house and decide whether it is right for their clients. This directly helps out the homeowner, because it increases the number of people selling his house.
Then there is the public open house. Here, every Tom, Dick, and Sally can come off the street, check out your house, and paw through your stuff while you’re trying to figure out what to do for the next 4 hours. This typically has little benefit for the seller, because most people walk into the house, look around, and then ask things like, “How many square feet is this?” or “What’s the price?” or “There aren’t any ethnic people in this neighborhood, are there?” Usually, the answer is not what the buyer wanted to hear. However, the showing agent can now get their contact information and what they’re looking for, adding them to their client list.
The house I’m in appears to be major client bait. It borders 3 streets, one of which is fairly busy. The agent has stated that they get a lot of visitors during public open houses. So many, in fact, that she’s decided to hold one every Saturday and Sunday, from now until the house sells. Oh yeah, she’s got a 6 month contract.
As a renter, this really sucks. In fact, I’d say it borders on harassment. I doubt she’d do this if the homeowner were living here, and if I moved out it would be a big win for her.
But as a homeowner, it doesn’t help, either. First, the selling agent isn’t running the open houses; it’s going to some random agent in the office. My network of Crack Team spies have confirmed that the agents do absolutely nothing to sell the house. Rather, they sit in the corner and collect names and phone numbers. I confirmed this lack of motivation again today. As I was scrambling to get things ready (I was given zero notice this time), I spoke with the showing agent. It became immediately apparent that she had no knowledge of the house or owner, nor did she care to. Clearly, she had no plans to sell the house.
If you find yourself in this situation, there are a few things you can do. Obviously, you can limit open houses. You can also get open house reports asking about the solid leads they’re generating. You can be lied to, sure, but this only works for so long. Then the agent looks like she can’t close since she loses so many solid leads. But most importantly, be realistic about your selling price. Maybe it’s time to call it quits.
