Should We Give a Real Estate Agent a Bad Review?

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Dear Monty: We just interviewed a real estate agent. A friend referred the agent to us. While they presented themselves professionally as we traded information, we shared that we were cautious because of a bad experience in the past. Asking our friend for a suggestion was a way to minimize a repeat experience. As it turned out, the agent recommended that we sell our home to them. The logic was that by doing so, we could avoid another bad experience by skipping the typical home-selling hassle. This advice was disturbing because they became pushy at the end. Our home is neat and clean, in a nice neighborhood, and under no financial pressure. This experience felt like we were dealing with a predator. Not only will we not use this person, but we are thinking of reporting them with a bad review. Is this a good idea?

Monty’s Answer: The low inventory supply in our current environment and technological advances exacerbate the opportunity for specific real estate agents and professional iBuyers to contact masses of homeowners. They flood homeowners with offers to sell directly to them to avoid the hassle of the home-selling process. Some offer a finder’s fee to agents.

Two Kinds of Referrals

When seeking a referral, there are informed referrers who have a direct connection to the industry. Title companies, appraisers and mortgage lenders work with iBuyers and see them in action. They are a better source. However, some of those can be tainted when there is a personal or business relationship. Then, there are friends, neighbors and co-workers who will pitch in with the referral of a friend without knowledge of their friend’s real estate practice. As an example, companies pay celebrities to pitch reverse mortgages on television. The stars read a script without genuinely understanding how reverse mortgages work. They pitch the product with no warning of the fraud in the reverse mortgage industry. Here is a link to an informative reverse mortgage discussion on BankRate.com. The best option for any homeowner is to check multiple options.

Options for Reporting

You have several reporting options.

• The agent’s broker
• The state regulators
• The local Board of Realtors

Whether you would be satisfied with any of these choices is questionable. Your complaint would not be severe enough to pursue. In this instance, the agent’s broker is likely unaware of the agent’s tactics, yet they affect the company’s reputation. They are more likely to curtail it. Posting a bad review on social media would be unwise as it could lead to litigation.

The Agent’s Motivation

Here is a Dear Monty article about agent motivation you may find helpful as you continue searching for an option. Here are the current choices:

1. Traditional Full-service Broker—Six percent commission. Traditional services like yard signs, open houses and showings.
2. Cut-rate MLS—A variety of choices. Typically, a 1 percent listing fee and 3 percent to the selling agent. Limited service.
3. For Sale By Owner—No listing fee and a potential 3 percent commission with a buyer’s agent. The seller pays all expenses.
4. A No-Agent Advertising Marketplace—Removes all the hassle—a tiny flat fee. Simplicity, speed, accuracy and expert support make it easy.

Real estate is opaque with low entry-level requirements. “Trust, but verify” is the safe way to proceed.