Episode 038 - Stirring the Pot with Limited Agency
Episode 038 - Stirring the Pot with Limited Agency
You want to get B riled up? Bring up the subject of limited/dual agency with him! Actually, on the podcast, we decided to do it for you.
In this episode B gets passionate--and sometimes even angry--about this topic. Limited agency has its place and on RARE occasions, but when? More importantly, how?
We discuss the legal requirements, along with some thought-provoking insight into what agents affectionately refer to as the “Me-Me” deal. Sit down, buckle up, and turn the volume down. B sets the record straight on how he really feels about this topic!
SHOW NOTES
- 00:36 – Increasing our rating from 1 to 2. Whoa!
- 01:50 – Secret guest, Jordy Long aka Morty Short; professional photog to add to Cate’s photo album.
- 02:26 – Recording Stirring the Pot with Limited Agency. Cate was not helping cool B off.
- 03:10 – “No offense…but…” Going to make some agents mad and PC must turn down the volume. B may be biased, but he does not like limited agency.
- 04:05 – What is limited agency: working both sides of the transaction as listing and selling (buyer) side. Limited agency is also known as dual agency in some states.
- 05:10 – Song of the Episode: Bob Marley, “Stir It Up” .
- 08:05 – Refresher on agency: COLD-AC; Care Obedience, Loyalty, Disclosure, Accounting and Confidentiality.
- 09:20 – Loyalty defined: Act at ALL times SOLELY in the best interest of the agent’s client and to the EXLUSION of all others.
- 11:05 – Problems with COLD-AC in limited agency. It is not possible to have loyalty; disclosure is complicated; confidentiality may be put to the test.
- 12:44 – Indiana and other states requires informed consent of limited agency.
- 13:30 – Redisclose agency, loyalty, disclosure and confidentiality. Be VERY clear on what happened with limited agency. Agent does NOT have loyalty anymore in limited agency.
- 14:30 – If client is okay with no loyalty, disclosure and confidentiality then get their consent.
- 14:50 – Cate: office policy and client’s remembrance of the policy.
- 15:24 – PC example: agent wanted limited agency and the agent only showed homes he had listed that did not even meet their criteria.
- 16:10 – There are reasons why the real estate industry is at the bottom of respected industries and this is one of them.
- 16:50 – Agents are legally required to properly disclose. If agents handled this in the legal proper way, most clients would not consent to limited agency. It is only because agents do not properly disclose if that limited agency happens so often.
- 17:40 – Once limited agency is created, the agent now has two customers, not two clients. HUGE difference in those terms. Customer: someone we don’t hurt, but we don’t help them either. Agent becomes a facilitator.
- 18:37 – Cate: going to the doctor; doctor is working for the patient or the pharmaceutical company when the prescribe medicine.
- 19:10 – Cate’s Side Note Tangent: Cold sandwich ingredients; cheese or no cheese; how to layer the ingredients.
- 21:30 – What does consent include? Must be in writing in Indiana. Do NOT just “slide” the document across the table and the client has no clue what they are signing.
- 24:25 – B gets mad…for real this time! STOP CALLING IT A ME-ME DEAL!!!!!!! It is PATHETIC, sick, disgusting, and gross. Using the phrase “Me-Me” says everything about who the agent is serving, and it is NOT their clients.
- 24:27 – Commission is nice. We are businesspeople too but do it right. Your business is not about making money. Your business is about serving your client and then you make money by doing that.
- 26:30 – Other options: referrals, partnering with another agent.
- 27:29 – Cate: you will still make money in this deal.
- 28:40 – PC slowing us down with harp music.
- 29:00 – The longevity of your business relies upon repeat business. When limited agency happens, it is rare that you receive repeat business. Look at the long game, the bigger picture. Today’s bigger commission will pale in comparison to the several commissions you receive down the road from referrals.
- 30:25 – Cate: secretly interview limited agency clients, most of the time the client is not happy.
- 31:20 – Quote of the Episode: “Loyalty means nothing unless it has, at its heart, the absolute principle of self-sacrifice.” -Woodrow Wilson.
- 32:25 – Take care of your client. Look out for their best interest. Loyalty might be the greatest of that responsibility. Take that responsibility with the sincerity it deserves. Your business will do so much better by doing that.
SHOW LINKS
- Limited agency defined – https://www.lawinsider.com/dictionary/limited-agency
- Bob Marley, “Stir It up” – https://www.youtube.com/watch?v=S3UqvWk8-uw
- Johnny Nash, “I Can See Clearly Now” – https://www.youtube.com/watch?v=g_rB4v75jqU
- Ric Flair – https://www.youtube.com/watch?v=spZOgdhtaMA
- Woodrow Wilson – https://en.wikipedia.org/wiki/Woodrow_Wilson
BETWEEN THE LINES LINKS
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https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
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