Ryland Homes questionable sales practices
Picture this. You're a real estate agent. You stop into the new Ryland sales office in your city. You inquire as to if the builder is cooperating with brokers. The sales representative proudly tells you they're paying 3% if you register your clients on the first visit. She also gives you a flyer stating the same.
*two weeks go by*
You take a client over to the new home office, register your client, and proceed to show and sell your client on the homes, price of the homes, benefits of the homes, etc. Your client decides, based upon your advice, to purchase the MODEL. The price is $621,000... you assist your client in negotiating a price of $575,000. Your client places the deposit and signs the necessary paperwork. The sales agent then gives you the necessary paperwork for your brokerage to complete. You thank them for their assistance and accompany your client to the parking lot.
*the plot thickens*
After driving back to your office, you begin to go over the commission paperwork but you don't get far before you notice the following clause, "broker to be paid 3% of base price, not including any upgrades or Ryland design center purchases". You glance down to see the base price was $432,000 ($189,000 less than the contracted price). It wasn't until your very next heart beat (almost 90 seconds later) that you fully realize that Ryland was rewarding you for selling their most expensive model with almost $190,000 of upgrades, by taking over $4,000 in commission from you. Before you blow a fuse I'll remind you... this didn't happen to you. The bad news is all mine. Ryland wronged me. I'm currently surveying the battlefield at this point as to the best plan of attack. I was promised 3% (no disclaimers), and in sales profession, commission promised is paid on the sales price of the items sold. I'll keep you posted on how this turns out later.
*I know you're thinking this can't get any worse right?*
I then take my client's daughter to the builder as she is considering a purchase in the same complex to be close to mum. Daughter has a home to sell. The sales rep proceeds to tell my client (with me standing by her side), "we won't take your contingent offer unless you list and sell your home with a company we determine". Mom says, "Cameron is going to list their home". The sales rep proceeds to explain how the deal won't happen at all if the home isn't listed with the company of their choice. I'm now at a loss for words... well... words with more or less than 4 letters.
*to recap*
Ryland is attempting to reward me for selling a very expensive, highly upgraded home by shorting my commission $4,200.
-and-
Ryland has shown their appreciation for bringing in a client to purchase a home with them, by taking a listing from me (approximate commission loss on this one of $14,800).
Thank you Ryland. Thanks for the lesson. I'll pass it on to my family, friends, associates, and anyone else who cares to know about your questionable practices.
UPDATE 9-30-07: Ryland did end up paying what they initially promised, but they did it kicking and screaming. They tried to use the excuse... "this is what's standard"... my argument was... "I don't care what's standard, you promised me something else". I don't feel that they fully appreciate the role real estate agents play in their company's success (especially in a down market).
*two weeks go by*
You take a client over to the new home office, register your client, and proceed to show and sell your client on the homes, price of the homes, benefits of the homes, etc. Your client decides, based upon your advice, to purchase the MODEL. The price is $621,000... you assist your client in negotiating a price of $575,000. Your client places the deposit and signs the necessary paperwork. The sales agent then gives you the necessary paperwork for your brokerage to complete. You thank them for their assistance and accompany your client to the parking lot.
*the plot thickens*
After driving back to your office, you begin to go over the commission paperwork but you don't get far before you notice the following clause, "broker to be paid 3% of base price, not including any upgrades or Ryland design center purchases". You glance down to see the base price was $432,000 ($189,000 less than the contracted price). It wasn't until your very next heart beat (almost 90 seconds later) that you fully realize that Ryland was rewarding you for selling their most expensive model with almost $190,000 of upgrades, by taking over $4,000 in commission from you. Before you blow a fuse I'll remind you... this didn't happen to you. The bad news is all mine. Ryland wronged me. I'm currently surveying the battlefield at this point as to the best plan of attack. I was promised 3% (no disclaimers), and in sales profession, commission promised is paid on the sales price of the items sold. I'll keep you posted on how this turns out later.
*I know you're thinking this can't get any worse right?*
I then take my client's daughter to the builder as she is considering a purchase in the same complex to be close to mum. Daughter has a home to sell. The sales rep proceeds to tell my client (with me standing by her side), "we won't take your contingent offer unless you list and sell your home with a company we determine". Mom says, "Cameron is going to list their home". The sales rep proceeds to explain how the deal won't happen at all if the home isn't listed with the company of their choice. I'm now at a loss for words... well... words with more or less than 4 letters.
*to recap*
Ryland is attempting to reward me for selling a very expensive, highly upgraded home by shorting my commission $4,200.
-and-
Ryland has shown their appreciation for bringing in a client to purchase a home with them, by taking a listing from me (approximate commission loss on this one of $14,800).
Thank you Ryland. Thanks for the lesson. I'll pass it on to my family, friends, associates, and anyone else who cares to know about your questionable practices.
UPDATE 9-30-07: Ryland did end up paying what they initially promised, but they did it kicking and screaming. They tried to use the excuse... "this is what's standard"... my argument was... "I don't care what's standard, you promised me something else". I don't feel that they fully appreciate the role real estate agents play in their company's success (especially in a down market).
2 Comments:
Cameron,
Enjoyed reading your comments on Ryland homes and I agree with on the whole "base sales price" thing, although I have come to expect it here in Scottsdale. I have posted a recent experience I had with D R Horton on my blog at Home InSight http://www.homeisarizona.com/scottsdale-realtor-blog.php
Thanks for the comment Karen. I didn't back down, and Ryland conceded that they didn't explain clearly on the paperwork that the commission to be paid would be on the base price. They did go down fighting me quite fiercely though. I was forced to consider a suit, and when they found out about it and the evidence I had... the fighting ended. What a nightmare.
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