Ep. 93 – Advertising Other Broker’s Listing’s and Unrepresented Buyers

Matthew Maschler:
Welcome to the Real Estate Finder podcast. I’m Matthew Maschler, real estate broker with the signature real estate companies in the great state of Florida, and with me, my real estate partner, and today’s co-host of the Real Estate Finder podcast, Jill Glanzer. Hi, Jill. How are you?
Jill Glanzer:
I’m doing great. How are you doing?
Matthew Maschler:
I’m doing all right. I’m doing all right. I was reminded of something I read a few years ago. I was reading a book about the history of the Max brand
And the founders, I forget what city it was, but he was on an overlook looking out in the city, and he said, that’s our inventory, right? One of the things that he pointed out that he liked about real estate, and something I like about real estate is if you owned a store, you’d have to buy a bunch of inventory and stock it, price it, and sell it, and then you have to, if it’s ice cream, you have to keep it frozen. If it’s refrigerated, you have to keep it refrigerated. You have to store your inventory properly. So in real estate, the whole market, every house for sale is our inventory, the entire multiple listing service. But we don’t have to pay for our inventory. We don’t have to take possession of it. We don’t have to store it, so it doesn’t cost us anything. And I’ve always liked that, that I’m selling a product that I didn’t have to buy on speculation that I don’t have to store, that I don’t have to take possession of.
But the entire city, separate concept that the entire city is our inventory. So when you list a property on the multiple listing service, there’s a choice. There’s a field that says, is it okay for another broker to advertise this property? Any broker advertise, and you select yes, or you select no. Most agents select no. Now, the point of the multiple listing service is that we’re all cooperating with each other. I put my listings in. You put your listings in, and everyone is free to sell everybody else’s listings. But there’s a restriction you can’t advertise someone else’s listing with without permission. So what the any broker advertised field in the M L Ss does is it gives blanket permission to all people to advertise it. If you want to advertise a listing, and when it says no, you merely have to call or email or text the other agent and ask for permission to advertise their property, and they’ll either grant it or not.
And when you’re advertising someone else’s property, it’s very important to give credit to the broker. So if I wanted to advertise a Keller Williams listing, I have to give credit to Keller Williams. Now, I’m fortunate enough that I have enough listings. I don’t have to advertise someone else’s listings. But then again, if I’m focusing on a particular area or a particular niche market, maybe I want to, I tell our agents here at Signature, well, certainly if you’re on the signature real estate finder, subteam at signature, let’s advertise each other’s listings first. But I always look at my listings, my agent’s listings, and then all of signature’s listings first. I think at any moment, I think the lowest in the 10 years I’ve worked for Signature, the least amount of listings they’ve had was 500, but they’ve had multiple thousands at any one given time.
So when you advertise a signature listing, you don’t have to give credit to the broker because it’s the same broker. So if Jill or Stacy or Sarah wants to advertise one of my listings, it’s perfectly fine because we’re all the same broker. Technically, the listings belong to the broker, but maybe I want to advertise something in the Oaks. I don’t have a listing in the Oaks right now. I find someone else’s listing, and I advertise that I have to somewhere disclose who the broker is, unless it’s any broker advertised. Yes, on the M L S. Well, I still have to advertise. I still have to give credit to the other broker when you advertise it.
Jill Glanzer:
Right? Right.
Matthew Maschler:
Yep. Okay. So what are we saying? So we’re saying you may not advertise another broker’s listings without permission. Any broker advertise fields in the MLS grants that permission, and we can have debates whether or not you should or should not say any broker advertise personally, if the property’s in Boca or if the property’s in one of my fields or one of my specialties, I’ll tend to say no, but I have a commercial listing in Miami. I should double check it. It should say yes,
Jill Glanzer:
Because
Matthew Maschler:
I may not have a buyer for this listing. I want other people to be able to advertise it and find me a buyer. That’s the whole point of having these 80,000 real estate agents in Florida. It’s the whole point of having all those real estate agents. They should go out and they should advertise it. They could spend their own money, advertise it and find me a buyer. And that’s why I’m offering them cooperation. I have found, I’ve worked in some of the areas I was advertising, doing an advertising campaign, miser Country Club, and I asked somebody, it was a vacant lot. So I said to the listing agent, Hey, can I include that in my advertising? They said, no, they don’t want another broker advertising their listings because they like to market their listings in a certain way, presented in a certain way. I’m like, it’s a vacant lot. There’s no owner that’s going to be upset. I’m not showing up with any showings.
It’s a vacant lot, but people are possessive because it’s hard to get a listing in this business. So when you have a listing, you don’t want to help your competitors. People are very competitive, so okay, can’t advertise a listing without giving credit to the broker who the listing belongs to. So I called one of my agents the other day and I said, how come when I look at your Facebook feed or your Twitter feed or your Instagram feed, I never see any listings. And let’s talk about this for a second, right? If you’re a real estate agent, you should be marketing to your sphere of influence. You should be letting them know that you’re a real estate agent. I’ve talked about this a million times, but you post a listing, you post a buyer, you post something interesting about the real estate market. I have a friend from high school that got a real estate license 15 years ago.
Her social media feed is all about her family, family trips, the kids school, someone’s birthday. I never see just listed. I never see open house. I never see buyer. I never see interesting article, a real estate. So she lives in a small town in New York, and I needed to refer a customer to an agent in that town. And I’m like, I don’t know if this person is a real estate. I know they’re a licensed real estate agent. I don’t know if they’re any good, right? I don’t know if they’re actively doing this. They spend their time being a real estate agent, or if they’re stay-at-home mom, nothing wrong with that, got her license for the occasional deal, or if they have another job and they have their license for the occasional deal. So I didn’t want to give the lead to someone who’s not actively
Jill Glanzer:
Practicing, practicing.
Matthew Maschler:
They don’t have to be the best, but they have to be actively doing real estate. And I couldn’t get a sense in the last 20 years or 15 years, I couldn’t get a sense of if this person is an active practicing real estate. I mean, nobody could say that about me.
I got my podcast. I got a newsletter. I’m always promoting. They see me doing other things with my fun, my wrestling and stuff like that. But people see me. No, I’m working. So I called a realtor on my team, and I said, how come I don’t see anything from you? He goes, I don’t have any listings. I go, well, take any one of my listings. Take the listing that’s closest to your house and put it up on your Facebook. Just listed it. I mean, just do it. Attract buyers and brag. I mean, that’s the point of why I have agents. They’re my Salesforce. So I saw an agent who does not work for Signature the other day, and I saw him post a house in the community, nice house, three bedroom, two bath, a half a million dollar house. And I said, that’s a great little house. And I posted it on my Facebook. I said, it’s not my listing, but I saw this house and I really liked it. I wonder if anyone on my feed, if any of my friends or family is looking for a three bedroom, half a million dollar house in Boca. So I put that on my Facebook, and I got a lot of comments. The listing agent actually commented,
Jill Glanzer:
That was funny.
Matthew Maschler:
I was a little embarrassed. I did not ask him for permission. So the question I have did break the rules and advertise a listing that was not mine without the permission of the listing agent and without crediting the broker, you need to do both. You need to have permission and you need to credit the broker. So did I break the rule?
Jill Glanzer:
It’s a fine line because it’s just crazy because on one hand, people share stuff on Facebook all the time without asking permission
Matthew Maschler:
About
Jill Glanzer:
A lot of different products, things, this, that, but with real estate, it is kind of a fine line because what is considered advertising? When it says, any broker advertise yes or no, what
Matthew Maschler:
Constitutes
Jill Glanzer:
That?
Matthew Maschler:
It didn’t say any broker advertise. Yes,
Jill Glanzer:
I know. No, I’m just putting that out there.
Matthew Maschler:
The question is,
Jill Glanzer:
Did you violate,
Matthew Maschler:
Was it an advertisement?
Jill Glanzer:
That’s the question. I don’t know the answer.
Matthew Maschler:
If what I did, if that Facebook post was an advertisement, then I broke the rules.
Jill Glanzer:
Okay, so thinking about that, if it was an ad that you bought on Facebook, you actually purchased an ad and use that listing to advertise yourself, you made a cute little ad with Matt’s face and that house, that to me constitutes advertisement.
Matthew Maschler:
If I made a Facebook ad and paid money for that house, then I was definitely advertising, and then I broke the rule, right? I definitely broke the rule. If it was an advertisement, the question is was that Facebook post an advertisement?
Jill Glanzer:
Did you share the m l s listing? I don’t remember the post. Did you share the M MLS listing, or are you from your page probably from Real Estate Finder?
Matthew Maschler:
I did it from my website.
Jill Glanzer:
Yeah.
Matthew Maschler:
Is it different if I do it from my website versus if I did it straight from the MLSs? No,
Jill Glanzer:
I don’t think so. No, probably not. I mean, that’s the thing. I don’t know what constitutes advertising or not, but I think it’s sharing information. And I think you could, I don’t know many people who would want to consider that advertising and say, Matt, I’m going to get you in trouble for this,
Matthew Maschler:
Right? Because the listing agent or the broker file a complaint against me for advertising their property without their permission and without giving credit. So it’s interesting. But then we talked about my website, right?
Jill Glanzer:
Yep.
Matthew Maschler:
I shared it from my website. I went to my website. I typed in the address and I found the property.
Jill Glanzer:
Yeah. Why are you allowed to advertise it on your website,
Matthew Maschler:
Right?
Jill Glanzer:
Yeah.
Matthew Maschler:
And every agent has every brokerage firm, every Kel Williams, every Coldwell Banker, every Lang Champagne, bruising, everyone has a feed on their website where you can click on a neighborhood, find all the houses in Boca under 500,000, right?
Jill Glanzer:
Right.
Matthew Maschler:
So where does that information come from? That feed comes from the I D X internet data exchange, and that is allowed.
Now, why am I allowed to have on my website featured listings? I have a button that says everything new to market. I could have a button that says three bedrooms between 200 and $600,000. I could have featured communities click on for Woodfield or Boca Square. That’s all allowed on realtor websites, fed through I D X. And you don’t need permission from the other agent, and you don’t need to credit the broker. So why is that allowed? The way the I D X works and the way realtor websites work is the view is imagine before the internet, someone came to your office and said, I would like to look at houses. Here are my criteria. And then you showed them houses that match their criteria. Either you showed them the listing on paper or you took them to the house. But wait a minute, someone says to me, Matt, I want to buy a three bedroom, two bedroom house, and I put them in my car and I drive them to the house. And I said, isn’t this a great house? Did I advertise the house? I’m marketing the house. I’m trying to sell the house. That’s the whole point. The whole concept of m l s of the association is to sell these houses. So I could take someone in my car and drive them to the house. I could print an information sheet
That’s not advertising. You’re responding to a customer, you’re servicing your customer, and you’re selling the customer of the house. So they draw a distinction between finding relevant houses based on a customer’s search and showing them those houses and advertising houses. And the I D X is considered being responsive to a customer search. A customer goes onto my website and they say, show me all houses in Boca. Show me all houses in Florida. Show me all houses in Orlando. Show me all houses in this neighborhood. And they get a search result of three houses or 30 houses that match their search criteria. The idea is that isn’t advertising. That is the computer artificial intelligence, the website responding to a customer inquiry.
Jill Glanzer:
We just have different ways now versus the eighties of responding to customer’s inquiries.
Matthew Maschler:
So if someone went to my website and said, find me this house, the website could show them the house, and that’s not considered
Jill Glanzer:
Advertising. Advertising.
Matthew Maschler:
Fascinating.
Jill Glanzer:
It is so fascinating because things have changed so much, and maybe these M L s people or the board needs to somehow update their rules on what advertising is so people more clearly understand it.
Matthew Maschler:
Well, I mean, you’re saying if it’s a problem,
Jill Glanzer:
Yeah, if it’s a problem, I’m
Matthew Maschler:
Not sure it’s a problem.
Jill Glanzer:
And the question is, if someone, let’s say you shared that listing and that agent, instead of being okay with it and commenting and you guys talking and it being great for him, what if he was upset by it? Does he have a case? I don’t really know.
Matthew Maschler:
Yeah,
Jill Glanzer:
You think he does?
Matthew Maschler:
I think he’d have a case against me for advertising. I think I didn’t realize it at the time,
Jill Glanzer:
Right
Matthew Maschler:
When I posted it,
Jill Glanzer:
Because the way in which you didn’t say, come see my listing in blank blank. You said a story. You had a story about showing,
Matthew Maschler:
Well, that makes it worse, because the story wasn’t
Jill Glanzer:
True. Oh, it wasn’t true. Okay. So
Matthew Maschler:
That’s another ethics
Jill Glanzer:
Problem. Well forget about that, but you had a good story. Let’s say it was true. You told the story in such a way that it wasn’t your listing.
Matthew Maschler:
So
Jill Glanzer:
I feel like you were pretty upfront
Matthew Maschler:
About that. It’s not my listing, but I really liked this house.
Jill Glanzer:
I showed it to a family in Jersey.
Matthew Maschler:
Well, that’s part of
Jill Glanzer:
True.
Matthew Maschler:
We’ll leave that out.
Jill Glanzer:
Okay,
Matthew Maschler:
This is not my listing, but I really like this house. Anybody want to come see it?
Jill Glanzer:
Right?
Matthew Maschler:
So it’s advertising, but it’s also the job of a realtor. That’s also my job. That’s also what I tell my agents to do on a regular basis.
Jill Glanzer:
Exactly. And I think what we have to tell the audience out there is that the reason why some agents don’t want to any broker advertise, yes,
I think it’s because, and I’ve been getting these calls lately, all of a sudden from a buyer who I am the listing agent of this listing, and they call me directly, but let’s say I advertise it as my listing, and it’s not really my listing because the person over there said, yes, you can advertise it. Now someone comes to me and goes, oh, I saw your listing in such and such magazine. Since you’re the listing agent, I would love to have you show it to me. I am not represented by a buyer’s agent, and I know this is all opening up a whole can of worms, but I think a lot of people don’t understand the real estate industry, and they will believe that. They’ll believe that you are the listing agent, and maybe you’re not going to tell them you aren’t the listing agent. Really, you’re going to show them the house.
Matthew Maschler:
So you have to always be honest.
Jill Glanzer:
You always do.
Matthew Maschler:
If they’re under the erroneous belief that you’re the listing agent, I don’t know if you have the obligation to correct them. It just depends.
Jill Glanzer:
Even their pretense is false anyway of why they’re going to you directly.
Matthew Maschler:
But if they ask you, but if they ask you, are you the listing agent? You can’t say yes if you’re not. But yes, if someone look, you advertise someone else’s property. Now someone called you based on that advertisement, yay. They’re not represented by another agent. Yay. But now you have to call the listing agent to make the appointment. But which by the way, for years, that was Zillow.
Jill Glanzer:
I
Matthew Maschler:
Would advertise on Zillow, and everyone who called me thought I was the listing agent,
Jill Glanzer:
Was the listing agent,
Matthew Maschler:
And I had to figure out wordage, if they want to see it at 10:00 AM tomorrow, I couldn’t say, lemme call the listing agent, make an appointment. I’d say, lemme call the owner and make an appointment. So lemme call the seller and make the appointment. But yeah, on Zillow, halftime, on all those leads, I paid thousands of dollars for over the years. The first thing they ask you, are you the listing agent?
Jill Glanzer:
And that’s a whole other episode as to why people think what they think and how that’s erroneous their thought process. I had a, we need to do that. I had
Matthew Maschler:
A conversation with someone this morning, David Conway, who does Boca living and what Delray living, he asked me a question, what’s the most common misconception? I said, lately, I have had three or four buyers come to me directly because they think they’re going to get a discount by coming to me directly.
Jill Glanzer:
Right?
Matthew Maschler:
So for you buyers out there, let me explain to you how contracts work. When the homeowner wants to sell their house, they hire a real estate agent. They sign what’s called an exclusive right to sell listing agreement. And in that listing agreement, it says how much I am going to charge the owner. So it’s a contract between me as the listing broker and the owner of the house, not just how much am I charging. There’s a lot of other duties and obligations and questions in our contract, but the contract is between me as a listing broker and the owner of the house. It is not between anyone else. It’s not between the potential buyer. It’s not between the buyer’s agents. They have no right to interfere with that contract. When I list that property in the multiple listing agreement, in the multiple listing service, which is run by my association, I’m a member of the association and some of the rules of the association, one of the rules is I have to enter all my listings into the database. I can’t pick and choose which listings to put M l s. So I’ve agreed to put all my listings in the M l s. And when I put it in the M L s, I make an offer of compensation to a buyer’s agent. I say how much I or my broker will pay the buyer’s agent who brings a buyer, and then there’s a successful closing.
The listing broker pays the buyer’s agent, and the buyer’s agent can’t demand more or less. They can’t in the contract negotiate that amount because if they try to the contract’s between the buyer and the seller, that’s not the place for the buyer. The buyer’s agent, the buyer’s agent, to negotiate with the listing agent, the offer of compensation, the contract’s between the buyer and the seller, not between the buyer’s agent and the seller’s agent.
So there’s no relationship between the buyer’s agent and the seller directly. I’ve seen some mistakes where people actually put more in the M L S than they actually charging seller. For some reason they put the wrong number in. But the number that I put in the m l s is what I am offering. So hopefully it’s less than what I’m being paid, but it’s what I am offering the buyer’s agent. So if the buyer, and usually in this situation, it’s some smart attorney from New York or New Jersey or Washington, dc. If the buyer says to me, I’m not using an agent, so let the seller know that I don’t know if the seller really cares. I’m being paid x, I’m offering Y to a buyer’s agent. But if you’re not using a buyer’s agent, I get the entire X, sometimes a seller, I go on the listing appointment and the seller will say, would you take less if you bring the agent, if you bring the buyer? And I’ll generally begrudgingly agree, I want the listing. And because it’s just so hard to explain the seller why
Jill Glanzer:
That’s
Matthew Maschler:
Just a terrible idea,
Jill Glanzer:
Right? Because
Matthew Maschler:
The terrible idea is why would you discourage me from selling
Jill Glanzer:
If I have a buyer who happens to want my listing, but there are several other listings, just like my listing now to bring it to my buyer because I’m actually going to make less money
Matthew Maschler:
If I have a buyer, and I’m going to get paid more by buying
Jill Glanzer:
A different house, a
Matthew Maschler:
Different house. It’s not the seller’s house. So now I have to bring it to my competitor, my competitor broker, and my competitor sales item. But I’m going to make more money than if I would’ve done the deal with you, the guy that hired me. Certainly if I represent the buyer in the transaction, and Florida allows representing both sides, because in Florida, we’re all deemed transaction brokers. So we represent the transaction, not a party. But if I have both sides, if I have the buyer, certainly it’s going to be much easier to negotiate and get everything, all the bumps in the road, get them done between now and closing. But if you’re going to financially penalize me and I choose, which now I have to choose which property I’m going to focus on in the next magazine, aren’t I going to choose the property where I’m going to get paid more money from the buyer? I’m trying to get buyers here. Let some other schmucky agent bring a buyer for your listing. So I’m not going to spend as much money on advertising and
Jill Glanzer:
Marketing,
Matthew Maschler:
And I’m not going to be as excited when I get a buyer and I’m going to want to show the buyer other things.
Jill Glanzer:
So
Matthew Maschler:
What did you gain except,
Jill Glanzer:
And it’s hard to explain it, to punish, punished for,
Matthew Maschler:
Do a good job
Jill Glanzer:
On a listing appointment. They think they’re really smart, and you want them to feel like they’re really smart because there is a bit of ego involved when you get a listing
Matthew Maschler:
And you want them to feel listened to,
Jill Glanzer:
And then you start telling them how smart you are by, Hey, this is the situation. They’re kind of a little bit deflated,
Matthew Maschler:
A,
Jill Glanzer:
And then they kind of don’t like you as much, I feel,
Matthew Maschler:
But I’ll give in because it’s an easy win. Why
Jill Glanzer:
Are you,
Matthew Maschler:
If I need to let the seller have something, let him have that. But then going back to the buyer, if Mr. Buyer, if you think that your offer is better somehow, because you’re not
Jill Glanzer:
Going with a broker,
Matthew Maschler:
I don’t have to pay an agent. Yeah, it is better for me. It’s better fits me as the listing agent, but it doesn’t benefit the seller. Let the seller know it doesn’t work that way. Because I wanted to tell this New York lawyer off and eventually say, look, buddy, you’re interfering with a contract here that’s legal. I’ll call the bar on you. You can’t interfere with my contract with my seller by insisting that I let the seller know that you’re not bringing with an agent. You’re telling you want me, you want to tell the seller to pay me less money than I contracted for your benefit. You learn that. I don’t know what law school you went to, but we learned that if not in the first day, in the first four months.
Jill Glanzer:
But you got to be so careful talking to people. You start trying to say that,
Matthew Maschler:
And the guy wasn’t even making an offer. It was all, what’d you take?
Jill Glanzer:
Yeah,
Matthew Maschler:
What’d you take?
Jill Glanzer:
Exactly?
Matthew Maschler:
What’d you take?
Jill Glanzer:
Sell this. And I wanted to pop the ego, but you kind of have to be careful.
Matthew Maschler:
The funny thing is, by the way, Jill and I are actually talking about two different buyers.
Jill Glanzer:
It sounded like the same guy.
Matthew Maschler:
It’s the same guy over and over and over again. But they’re actually two different human beings.
Jill Glanzer:
They’re the same model.
Matthew Maschler:
And that’s why I said it’s happening a lot lately. But I was dealing with an agent that didn’t even want to show that unrepresented person.
Jill Glanzer:
And I
Matthew Maschler:
Was like, no,
Jill Glanzer:
You want to show it, show it, show it. Why’d you tell him to get an
Matthew Maschler:
Agent?
Jill Glanzer:
I wanted to smack the
Matthew Maschler:
Guy.
Jill Glanzer:
Yeah, because literally making him go out and find his brother or brother-in-law or something who’s an agent and bring him in.
Matthew Maschler:
But the problem was the guy was starting with, the guy starts with negotiating before he sees the property. So he is already negotiating, which is why my agent was thinking the guy maybe needed another agent because all of a sudden, my agent was like, my agent was on the awkward side of a negotiation and couldn’t turn it into a showing, oh, by the way, agents out there, when you hear this, if you’re in this situation, don’t say schedule A showing. If they’re not represented, they don’t want to schedule a showing because they don’t want to use a realtor. And if you schedule a showing for them, that’s you being their realtor. So they don’t want to schedule a showing.
Jill Glanzer:
Do you want to see it?
Matthew Maschler:
Do you want to
Jill Glanzer:
See the house? You
Matthew Maschler:
Want to see the house? Want to W A N N A
Jill Glanzer:
Want to see the house?
Matthew Maschler:
Hey, you want to see the house? Ask them, are you local? You want to see the house? They all want to see the house. They do not want to schedule a showing. So when you’re dealing with an unrepresented buyer, sometimes you have to drop your fancy realtor hat and lessen up the formalities. Talk to them on their level. I’m the type of person, text me. I’ll text back, call me. I’ll call back. Mirror rule. When an unrepresented person calls you, don’t play realtor. And just think about it. You’re selling it in this scenario. Think about it as you’re representing the seller, right?
Yeah. You want to see the house? I could show it to you. You want to see the house? I’ll show it to you tomorrow. We can meet there tomorrow. And we could talk about, because they want to take the wood. You takes, Hey, you want to see the house? Let’s meet there tomorrow and we could talk more about this. So that’s what you want to do. You want to get down on their level. They don’t want to use a realtor, so just don’t be a realtor. Just want to see the house. We could talk more about it then. So yes.
Jill Glanzer:
Well, I switched subjects a little
Matthew Maschler:
Bit. Yeah, so that’s the unrepresented agent, right?
Jill Glanzer:
Yeah. Because we were talking about any broker advertising, and then we got into that, right?
Matthew Maschler:
But as a realtor, you should be happy when you get that unrepresented agent. That’s a good thing,
Jill Glanzer:
Right?
Matthew Maschler:
God,
Jill Glanzer:
When I start talking on this podcast, I feel like I could talk forever. Another subject I would love to talk about, but we’ll hold that for next time.
Matthew Maschler:
Let’s talk about it next time. Alright. Well, thank you for joining us on the Real Estate Finder podcast. I’m Matthew Ashler.
Jill Glanzer:
And I’m Jill Glanzer.
Matthew Maschler:
Check us out@realestatefinder.com. There you can see links to our monthly newsletter, links to our other podcasts, our preferred vendor list, and stay tuned. Coming up October 10th, the 100th episode of The Real Estate Find podcast. The future looks bright and the storms pass by the sky’s blue. When it’s almost that time, light shows cameras flash when I pass living in the moment, forget about the, they saved the best for last. Matthew Mania. We about to make a splash. Life is a marathon
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