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Why Do Buyers Need a Buyer's Agent--That ISN'T Representing the Seller?

Why Do You Need a Buyer's Agent?

Buyer Awareness I've had numerous calls from customers who are requesting that I show them homes that I have listed and don't want to see any other properties. I am representing the seller, and I am asked by these customers if I can only show them my listings. When I discover that the person is NOT represented by an agent, I engage them in a conversational review of the types of agency.

MANY of them absolutely refuse to listen to advice about dual agency, saying that they "WANT to purchase from the listing agent so that they can SAVE MONEY!" After citing some horror stories, many look a bit worried but, others continue to "shop the listing agents!"

From now on, I'm going to email them the video below (the story is after the very short commercial)!

Feel free to pass this link on to buyers who refuse to realize that not having their own representation can not only cost them hundreds of dollars but, hundreds of thousands of dollars!

Disclosure of material contained within.

Posted by Debe Maxwell, Realtor® - Charlotte NC MLS - Charlotte NC Neighborhoods on 04/16/2009 12:02 PM

Comments (92)

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Originally posted at: Charlotte NC Luxury Home Source: Why Do Buyers Need a Buyer's Agent--That ISN'T Representing the Seller?

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92 Comments on Why Do Buyers Need a Buyer's Agent--That ISN'T Representing the Seller?

APR

Hi Debe,

The video is very interesting and I understand you are trying to make a point with the buyers who won't listen. Many of them won't get it. I am glad the situation presented in the video is getting exposure but where was the attorney and the title company?

I have had buyers tell me they only want to work with the listing/sellers agent because they can save money that way. I did get the honest answer behind this reasoning straight from a buyer, "if I work with you as the seller's agent then you will have both sides of the transaction and I can ask you to cut your commission." I had a lengthy discussion with this buyer as to why his reasoning wasn't going to work. I think somewhere buyers have heard this is an approach to use to save money on the purchase of the property.

Stick to your position.

Have a wonderful day,
Catherine in NY

Unbelievable ...I feel so bad for that poor guy, but great msg - the importance of having your OWN representation - in this case the buyers agent - looking out for your best interests and doing the diligent research ....

Thanks for sharing this Debe - a critical topic !

Cheers !

Sheldon

Debe - I always tell buyers to seek counsel and hire a Buyer's Agent. This is vital to make the process as smooth as possible. Besides, they need and deserve representation as well. A good Buyer's Agent is priceless.

Catherine: You're SO right--it amazes me that so many are doing that these days...I did think that our consumer was more savvy than in recent years and would KNOW better! Most do but, those that don't, I'm always trying to 'save' them!!

Sheldon: Don't you feel sorry for him? OMG, I just can't imagine--I think the FIRM should have to buy that condo FOR him from the investor! HUGE mistake!

Jason: You know, one of my lenders is THE best one to let buyers know that they need their own representation--she always says, "It doesn't cost you a thing to use her--imagine how much it COULD cost you if you don't!" I agree, a good BA is priceless!

Debe - I was going to say - the news anchors look familiar lol -well yes they are. I had not seen this before. We have heard the same from some buyers "we only want to work with listing agent" - why? they are representing the sellers best interest. We had a situation where the buyer decided not to use us. It was a disaster and ended up costing the poor buyers a lot more because of many issues. The title person said, all this could have been avoided with using us (a buyers agent). The buyers almost started crying. ~Rita

Debe, this is very typical to hear buyers say the same thing you mentioned. They really have no clue how many things can go wrong in a transaction like that, especially all agents are NOT THE SAME!

Whoa...

It's all I can say right now!

TLW...ROAR!

Hi Debe...I re-blogged. Thanks for sharing with us. Very important for buyers to realize the problems that can, and do, arise.

Kate

That is really powerful. I just had that conversation last night. I can't believe how many people out there just plain don't understand anything about Buyer's Agents. Thanks so much!

There are more and more people in my area going to the listing agent to write an offer on their listing, because we are seeing multiple offers on most homes, and if you use the listing agent, you have a way better chance on buying the home you want and beating the other buyers. The listing agents are greedy to double end the deal, so "their buyers" will always win the bidding. (especially on short sale and REO's). We try to tell them that their asking for trouble going to the listing agent, but people don't listen. Thanks for the video post.

andrew

Agent "gave him the key to unit 4" GAVE HIM THE KEY? If that's how they show property they should be out of business. I have no problem with dual agency. I use it and I explain to my clients what it means I can and can't do in negotiations, but I don't give clients or customers keys to let themselves into properties. And while I truly understand your point of this message, not all listings agents would leave an unrepresented customer in this shape. I don't know any agent who would just give a customer a key to show himself property.

Wow....I am not sure what to say to this anymore. I am a bit shocked and just to make certain that all the T's are crossed and I's are dotted working with buyers and sellers.

This should not only be a wake up call to buyers but also the agents as well.

Bettina

Very interesting. So what did the listing agent have to say? I don't understand how this person didn't know what unit they were purchasing. I don't understand how the contract said one number and the key was to another. Why wouldn't the buyer be able to figure that out. Sounds like the seller, listing agent and the buyer are all culpable. Didn't anyone read the title report? Ok - dude now owns the unit next door. Is out 30K and sounds to me like CB and the listing agent better read their E/O policy and pony up! Having a buyer's agent in this case may not have helped this situation - I think there is more to the story.

I am a strong believe in everyone in a transaction having representation 98% of my business is as a buyer's agent. I practice in a dual agency state and have only run across it once in 14 years. Buyers in my area are pretty educated.

Thanks for sharing.

sparkleberry - love that graphic!

I feel like Mr Rogers, can you say errors and omission insurance, I knew you could. This is not so much about agency as it is about competence. A purchase should be tied to a legal description, and it should clearly point out a unit number. We can say the buyer should have known, but whether he bought directly through the listing Realtor or a buyers broker, this can happen, and a buyers agent could have helped to make the same result. I would have my attorney after the brokerage firm since they have vicarious liability on this. The E&O should cover expenses as well as money put into the unit he thought he owned. I would like you to post a follow up story about this. My curiosity is killing me!

Debe,

This has lawsuit written all over it!! Just the type of news that our profession needs (NOT!).

This is great information to be sharing with potential buyers. It's just wrong that this could happen to ANYBODY!!

Wow ...

Thanks you

Good grief; ambush reporting in action. The true legal owner of this condo is not the bad guy here.

I'm with Joe above, I want to hear how this turns out.

With only what the video said I'm totally unclear how the listing agent put the guy into # 4 when they were selling number 5.

I'm also wondering how Mr. buyer could sit through a closing and not notice a #5 on what he was buying anywhere.

There's much more to this story we're not hearing.

Boy what a pickle this guy is in. As a newer agent, this is an eye opener as to things to check in to. It seems I've heard a couple of stories regarding an agent marketing the wrong property... Not only should the listing agent have double checked, but the buyer's agent should also be checking to make sure their client is bidding on the correct property as well! ~Chanda

This was very unfortunate for the buyer. Although I have done some dual party transactions, I don't recommend it. I think it much better all around if both parties have their own agent representing them.

Debe: Somehow from somewhere the buyers have gotten the idea that they will get a better deal if they buy directly from the listing agent. I have had several potential buyers to contact me about seeing my listings, if they are not interested in my listings, they don't want to see any other houses. I have started asking why. The answer is always the same ~ we know we can get a better deal if we buy from the listing agent ~ because they can cut their commission if they don't have to pay another agent. This is scary!

Debe, Wow. I would love to know how this turns out. I feel for this buyer and hope against the odds that it works out in his favor. Thanks for sharing this scary story!

that is disturbing. It seems that CB is going to have to find a way to make him whole.

Incredible...I too want to know how this turns out!

No matter what field of sales, there always has to be some shady characters.

I've encountered at least one listing where the agent put in the wrong parcel number on the MLS. What kind of agent, listing or buying, will hand a buyer the key to see the property by himself. I hope the listing broker pays for this error to compensate for the buyer's expense. It appears from the video that they're trying to make the investor the bad guy. He owns the unit legally, he didn't sell the wrong unit. Unbelievable.

I have seen some pretty lame arguments by realtors claiming that they can represent both buyer and seller.

I have yet to see an argument that convinces me. "Who's best interest is the realtor look out for?" Oh, yeah. The realtor's best interest I assume.

I have had a situation where I had the buyers and the listing agent told them to get rid of me and work with her to save money. Of course they did not do that. So there are agents out there that put that idea in the buyer's head.

Hi Deb,

Funny, I never had any one just want to see my listings. When I meet someone at a open house or at the office. I always tell them I will show them everything on the market, unless they want to see a certain listing. Explaining agency is a must, I have had a lot of success full dual agency's with all parties happy.

Head Jim...

I agree with you about the true Owner of the property not being in the wrong. I found it fascinating that the reporter was attempting to turn him into the bad Guy. I just don't understand that crap nor do I really want to :)

TLW...ROAR!

Wow! It's not just the listing agent who dropped the ball on this one. It almost seems like a scam. I imagine this one will be tied up in court for some time.

Hey, I am not a real estate agent, but it does not take a degree to understand why you would need a buyers agent. A home is proably the most expensive purchase you are going to make and why would you not want someone who is going to represent you amazes me, EVEN if it costs.

We don't have dual agency in Colorado. That video is pretty darn scary though. Poor guy.

I was in a class this morning where an agent was telling us that he suggests to buyers who call on his listings. He suggest they work directly with him and he will cut the commission. He is not talking about dual agency though, the buyers make a choice to be unrepresented.

Bubbas? Is that Buyer Unrepresented By a Buyers Agent?

I think it is important to note that a real estate attorney working for the buyer would have also picked that up. Sounds like a big fat lawsuit for the listing agent and the owner of Unit 5. How do you even transfer keys to from the wrong owner???

Thank you for this post. Yes, there are a lot of strange things in this 'mishap' and I hope the buyer can recoup some of the money he spent fixing the place. He does own the deed to #5, which is a icky looking place, but he seems he's the type of guy that can DIY -- and while he is, I hope he's billing the doctor for the work he put into that unit (that's not his) and getting some of this money back.

Wow - thanks for sharing the post and video.

Great clip and a useful tool in Buyer Agency. I agree with the comment about other's who made mistakes.

Debe - Unfortunately, I have heard so many of my clients who feel this way about how much money they think they are going to save by working with the listing agent. Of course, I always encourage and recommend that my clients get their own agent but in the end the decision is theirs. May I reblog you because I really need to get this message out to my clients who feel this way? They need to know that this could happen to them if they don't have their own agent looking out for their interests.

Holy Guacamole! My Blackberry was a buzzin' and I am just now getting back to this post--which I 'posted and dashed' about midnight!!

I'm with you all on this--personally, I don't know how in the world the LA got the key to the wrong unit, unless the same investor owned BOTH units. Then, in that case, there probably was a little shady dealing going on. Then, I wonder how the attorney didn't catch the mistake on the Title Search. THEN, I wonder, just as Jim said, how can you now realize that you're buying #4 when it's really #5 on the 100's of pages of documents that you have to sign at Closing!

Of course, had this guy been REPRESENTED BY A BUYER'S AGENT, this scam (or mistake, whichever you want to call it) would not have been able to be pulled off! I believe that had a Buyers Agent been representing this fellow, they would have been showing and selling the correct unit number--that is something that is just second nature for buyers agents to manage, especially if you sell enough condos/townhomes--you just KNOW to check the unit number, over and over on all documents!

Go figure--save a dime to lose hundreds of thousands? BUBBAs, what are we going to do with them?

I'm anxious to hear the 'rest of the story' too.

I know of a couple that bought a property many years ago (it was an acre with a house), years later when they went to sell it, they too found out the deed was for a different acre that had no house. It took many months for an attorneys to get this cleared up. We as agents along with loan officers and title companies need to pay very close attention that every little detail is accurate. It's a sad day when some professionals give all of us good guys a bad name.

I agree with Tammy Lankford (post #11).

The problem was not about dual agency, it was about lack of competency.

Wow, Debe. What a shame. I don't even know what to say. The sad thing is, most buyers don't know what agency is and how it protects them. Hopefully, your post will help.

I always tell buyers when I'm representing the seller, and I refer them to someone else. The ones who want to save money end up having to use someone else, as I won't put myself in that position.

I feel sorry for the guy in the video, however, if he had been represented by a buyer's agent, there is no guarantee he would still not be in the same position. What the hell was his lawyer looking at, when he searched title and looked at the plans? Did the buyer also ever look at the plans? Did he see no difference between the plans and what he was getting? Did he not read the paperwork that had him sign off on number 5, when he had only seen number 4?
Too many questions ... and we weren't there, so who knows what really happened...

There are agents out there who will misrepresent and just don't really care, unfortunately. We have to make sure we educate the public and we have to make sure we all do our best to protect our client's best interests.

I hope that Realtor and their Brokerage fix this problem for this client. That's the least they can do.

Hi Debe~ It is disturbing that this happened especially since there was a Realtor, Title company and an Attorney involved. The buyer is innocent and deserves for it to be fixed. He bought what he was shown, so the others are apparently at fault. I guess we really don't know the whole story, so it will be interesting to see how it works out. Definitely some errors and omissions going on there... hopefully they weren't done on purpose....

That is horrible. I am thinking along the lines of Sylvie...what about the attorney who did the title search? Did he not offer him Title insurance as well so nobody could claim that property?

Agents put wrong information in the MLS all the time. Thank God that our contracts are reviewed on a consistent basis. This year they added the TAX ID/PIN # space on them, which should eliminate confusion on lot numbers, etc.

We had a class this morning on Agency 101 to refresh everyone on what was learned when they took the real estate course. It's all about cover your butt in the legal world now. Document, document, document. Do lots of research and make sure what you write is right.

A buyer's agent doesn't mean this wouldn't happen because the buyer's agent tends to rely on what the listing agent put into the MLS. I would go back to the closing attorney on this one.

I know that man has to be sick over what happened. I know I would be.

It is amazing how many buyers are trying to save money by going to the listing agent. This misconception needs to be addressed somehow.

Hey Debe, Very glad that you shared this! I feel so bad for that guy; he really would have been better off having his own representation, but even still I can't believe that something like that could even happen. The listing agent definitely shouldn't have given him the key--she should have shown him it herself--and shown him the correct unit!

--Anne Rains

I realize all real estate is local, but, but, but -- it just doesn't make sense how this fiasco could have made it all the way to a closing and recordation without someone noticing something was a miss?? Were the sellers the same (the investor??.) I agree with Tammy #11 Post as well as others who think there must be more to this story and how it could have happened. I also agree that had the buyer used a buyers agent that wouldn't have necessarily saved his "hinny". As in anything else there are useless listing agents as well as useless buyers agents. Haven't you all met some of both kinds? NC is a Dual Agency state and we have times we certainly use it, BUT NOT without fully disclosing and explaining the process at first serious contact and before much, if any, personal info is disclosed such as finances, etc. It seems whenever Agency comes up in realtor discussions different mindsets will never agree. Pros and cons to all things but great service to the client/customer should be paramont in any transaction. Sue

All: I STILL contend that if this guy had a buyer's agent, this would NOT have happened! I'm willing to BET that the investor/seller and the agent have something going here OR the agent is just not the sharpest tool in the shed! How ELSE would she have handed out the key to the unit AT ALL?! How would she have the key to the wrong unit? Perhaps the investor owned both of them and he was her client? Perhaps they're in this together?

Whatever the case, had an intelligent, honest, and/or above-board agent been involved with the buyer, I truly don't think this would have happened. Clearly if you're opening the door to unit #5 and the key says unit #4, aren't you going to begin to wonder, right off the bat why the key is marked wrong (we mark our condo keys with numbers here)? Then, you get to writing the OTP--if you have SHOWN unit #5, aren't you going to WRITE unit #5? Then, we get to the Title Search--another set or two of eyes who would notice that the number 4 is incorrect. THEN, what about the lender, then the underwriter, the appraiser...then we get to CLOSING--all eyes are on the HUD-1 and all of the documents that this buyer has to sign--#4 or #5? Folks, that is a NOTICABLE mistake that I promise a good Buyer's Agent would have caught. Think about it...

Like was said before in Colordo we don't have dual agency. This just sounds very strange. Both units were for sale (bank owned) approx. at the same time, listed by different agents. Unit #4 closed app. month before #5. (shaking head in disbelief)

I too agree with a few comments that this was not an agency problem, it was a competency or honesty problem. It seems to me this unfortunate guy could have had the same problem if he was represented exclusively by an incompetent agent. I have participated in dual agency transactions and both principles felt that they were well represented and they were. In California my primary obligation is NOT to the seller, I have "A fiduciary duty of utmost care, integrity, honesty and loyalty in dealing with either the buyer of the seller." I represent them equally, it isn't that difficult. I have been involved in other transactions where I know the other principle would have been better represented if I had been handling the entire transaction. In any case, it seems to me that this guy would have an open and shut lawsuit...hopefully he selects a more competent attorney then real estate agent.

this is just confusing. Both units were on the market - bank owned by the same bank. The unit #4 was purchased (closed) about 10 days before the unit #5. Unit #4 was purchased by investor in question. How did the buyer end up in a wrong unit? were the doors marked? Did the keys fit all the units? Units #4 and #5 were listed by different agents. Did the title co. not know that the unit #4 was just purchased. I don't know. I better stop - getting a headache :). (throwing in disclaimer - not a lawyer so don't sue me, purely pondering the situation)

I of course believe that CB does need to make everything alright. Simply put I would blame the agent also. One more reason why I will not practice Dual Agency. Yes a buyers agent should have caught it but, the listing agent should have also.

Amen to that! I have been preaching that buyers need representation for ever! Thanks for sharing this and I will pass it along for sure!!!

I think an honest, ethical, competent agent would not have let this happen. Doesn't matter if it was a buyer's agent or seller's agent... if you're honest, ethical, competent and not out to screw anyone, you will never let something like this happen - and if you make a mistake, or you are using a master key, and crap happens, then you make it right.

What happened at the closing table? Maybe there wasn't a good buyer's agent there, but was everyone else asleep?
This client had other representation... were they drunk? asleep?

Again, the emphasis should not be on buyer's agent. The emphasis should be on everyone looking after THE CLIENT's best interests, above all of their own. EVERYONE. It wasn't just the agent who messed up.

Hi Debe -- Beyond scary. Real estate is no game, that's for sure.

Wow, this is scary!! Somebody's getting sued. Thanks for sharing such an extreme case. I'm reblogging this now!!

Um whoa. How did that get past lending and title (or closing attorneys) too? Don't we have checks and balances for that? That is REALLY scary! I had a situation where it was similar, a guy really insistent he wanted to save money. As the list agent, I wrote all over the contract that he is unrepresented. PEOPLE WHO DO THIS USUALLY COME AFTER THE AGENT AFTERWARDS SAYING THERE ARE ISSUES FOLKS! I urged him to get an inspection "OH BUT THE HOUSE IS NICE." Even though I didn't represent him. Tree root in sewer one day after close = he tries to go after my paycheck. Me=covered bases. Did he save money or get what he wanted? NO. Get a buyer's agent people!

I wonder how often that really happens. I go back to the Golden Rule and it should be the only rule needed.

Debe,

Unbelievable....and I feel so bad for this guy. Thanks for sharing...

Debe, how do I get the embeded code, I too would like to use it.

Rarely do I see an agent represent both sides fairly. Rather, rarely do I see a both-side agent represent the buyer ... at all!

Oh, and if there's anyway to turn off that vid at the beginning of this page, from automatically playing, that'd be awesome ;-)

Even with a buyer's agent, something like this may have slipped through. This is the reason you have errors & omissions insurance. Woops!

Debe -such a timely issue to discuss especially in this market. There have always been buyers who want to work directly with the LA becuase they feel they will get the best deal...and in some cases they may do better but one has to wonder about the risks. GReat video, BTW, but it raises some further questions, adn given the media is reporting....

I think part of the issue is that we do not always explain well enough the issues surrounding buyer agency, and the inherant risks of not working with a BA. But if they want to go their own path despite hearing all that, then they have made their informed decision, and I say good riddance and good luck.

A very worthy feature.

Jeff

Missy: Click on the video LINK in the text that I wrote and you can then locate the embed information directly from the television site.

Debe in Charlotte

I just had a situaiton that the day before I was meeting in person with a buyer who wanted to work with me, he went directly to the builder's listing agent, who told him not to hire me because they "would take good care of him" if they didn't have to pay a co-broke fee. They told him they would put in some extra tile and stainless steel appliances. So, he met with me and I tried to explain that the agent by law had to look out for seller, not him. He would not listen. I wished him good luck and told him to call me if things didn't work out. He did go down the other path and a few weeks later I did get call. We are now working together and it looks like we have found the right house.

Hi Debe - I wasn't able to get the video to play, but I was representing a buyer on a bank-owned property and although it was listed on MLS, the land records showed that title had never been handed over to the bank. The foreclosure sale hadn't even taken place! Imagine if my client had gone directly to the listing agent. He was paying cash and so there was no mortgage company to do a title search.

I was sorry to hear my brand being involved :<

The news story leaves off just when I was expecting the real questions to be asked!

Got my real estate license in 1980. After a very short time, my position was and will always be that dual agency should not be legal. Its simply too hard to do without problems. A real estate transaction doesnt have to be adversarial and should be something that is good for bothe seller and buyer, but in truth there is very seldom a 'win-win' situation. If someone wins (comes out ahead) the other party has to lose. So how does a divorcing couple use the same attorney? How would two boxers use the same trainer? That double ended fee is alluring, isnt it? I have had many buyers echo the words above about getting a better deal through the listing office, lol. Here is a good question for this thread---If a buyer tells you they want to go to the listing agent to save money, what do YOU tel them? I know what Ive always said but lets gets some fresh brains here.

I don't give my sellers a choice. I do not act as a dual agent. I never have and I never will. It will only end badly, as it did in a situation that happened to me many years ago. I am doing a job for my sellers and they have agreed to pay an agreed upon commission regardless of what a buyer thinks they are going to get shaved off of the sales price. As an agent that only works for my sellers, I will not disclose any information contained in my agreement with them including my commission compensation.

This is a VERY SAD situation.. I hate to hear what has happened. I have to ask the same question as Catherine above.. Where are the Attorney or Title Comapny ? Another Question...Where is the Listing agent ? Was this person a Dual Agent. ( Bad idea )

When I have a buyer that wants to see one of my listings, I let them know that I represent the SELLER. I can show them the home and write the offer... The buyer would have to sign the Confirmation Of Agency that I represent the SELLER. [ Designated Agency ]

What a mess. This story is definitely a cautionary tale for all invovled in a transaction.

First off great post Deb! I happen to disagree that "dual agency" is to blame here. There are many agents who facilitate dual agency transaction flawlessly and with integrity. In my opinion, the real issues at hand are that the buyer either didn't ask the right questions about representation and/or the agent didn't provide the buyer with all the necessary information. In either case, I don't think it's fair to give dual agency a bad rep for a situation that frankly could've happened to anyone, under any circumstances.

APR

Wow... that's just horrible. I too see this as more a competence problem than an agency problem. Seems the unit purchased would have been glaringly obvious in the purchase agreement, the appraisal (if one existed) the title prelim, etc. To get beyond closing and discover the bought the wrong unit is... incompetence or perhaps negligence.

The listing agent did a disservice to the seller and the buyer...What a shame. Pretty sure CB is about to have their EO policy tested.

Debe, you raise a very important issue here, and I appreciate your sharing.

Buyer agency is here for a reason. BUYERS, BE REPRESENTED! You deserve it just as much as the seller does!

Hmmmm,..competence...soo many buyers assume that if they have an agent show them a house, of course they are representing them....asuume...of course...and then don't find out differently until after the ink is dry on the offer.

Hi Debe, Those of us in the business for a while are aware of Mr & Mrs know it all. Funny, they are sure they do not need your services, but, when it is crunch time, they sure ask a lot of questions.

Debe thanks for writing about this.

"WANT to purchase from the listing agent so that they can SAVE MONEY!"

I have never understood this "logic" and I have seen it in "use" quite a bit.

Debe, this is an amazing story and video. So sorry for this guy. I don't like nor ever have liked the idea of dual agency. Having a seller agent represent a buyer for their own listings - not a good idea. What a mindset these days. ;-)

I have been a Buyers Agent on most of my sells, and a lot of Buyer's when I speak to them about in house listings may be interested, but I cannot operate as a Buyer's Agent on an in house listing. So with prior approval from all parties, I can operate as a Designiated Agent for a Buyer in house( a form of Dual Agency), and I believe that soothes the Buyer's hesitancy from not wanting to work with a Sub-Agent. And I'm NOT a Buyers Agent, but a Desiginated Agent, who acts in the best interest of my Client.

Unbelieveable! I am a buyers agent and this is the new story that I will share with my buyers so that they understand how important it is to have their own buyers agent. Thank you so much for sharing this piece.

I spoke today to a buyer who is under contract with a builder's model home. THe builder told them they didn't need an agent. If they used HIS agent, he would give the house to them cheaper. They agreed.

The builder's agent met with them late one night, and shoved paper after paper at them, not explaining anything.

While they were pre-approved 6 months ago, they were just rejected by 3 banks. So they wanted their deposit back. Builder refuses. He says he has pull at local banks and will get them their loan through HIS bank.

They don't want to go through the builder's bank. He refuses to give their 20% down. A buyer's agent would have advised them to get a fresh prequal and also not to put down such a significant deposit.

Now they're contacting an attorney. All this could have been avoided with a buyer's agent.

I've been practicing buyer agency for 15 years and even with all of the information available on the web etc. it is surprising how many buyes still don't know about buyer agency. People in general don't seem to get "representation". Sellers think it's about finding a buyer; and buyers think it's about finding a house.

Builders are notorious for taking away the buyer's right to representation. Agents who work for builders won't compensate a buyer's agent and if a buyer wanders on to a site alone, that's it - it's the builder's way or that's it, no negotiating, even in this difficult market.

And, to confuse things further, most real estate companies give "up-calls" directly to the listing agent who once they speak to the buyer claims procurring cause. Buyers call for information about houses, they are not thinking about agency or representation until it's too late. Yes, there are those people who think they'll get a deal by going to the seller's agent, but most people just don't know.

But you shouldn't be losing a customer just because they want a buyers agent. If you take the time to explain to them agency, then if all parties approve, you can work with them as a Designated Agent on in house listings, still protect their interests, work ONLY for them, and not lose a valuable client.

Sad really. I truly hope that it was just a mistake by the listing agent and that nothing malicious was intended. I also don't agree with the news trying to make the out-of-town owner the bad guy. Why would they let some random person live in his condo?

If a seller wants to sell and a buyer wants to buy I see nothing wrong in this. With this said one has to be careful to stay"neutral" and act more as a facilitator. It can be done and done well if handled correctly.

Patricia Aulson/Portsmouth NHReal Estate

APR

WOW, first time that I heard of this story. Unfortunate! Now if he had a buyers agent, would it have been a different outcome for sure? I don't know about that. Just a sad story of a transaction gone wrong and that poor guy who has to move out. I think the buyer should have looked more closely to the transaction as well. Thanks for sharing this video in your blog.

My husband used to say this a lot. Incompetence is everywhere. He was so right. This story illustrates that point very well. Thanks for sharing this story.

APR

Debe - There are so many angles to this story... However, I really can't believe what happened. How did the buyer, lender, and appraiser all miss the simple fact that the door number and the unit number on the contract and title work didn't match? Every condo legal description I have ever seen in Missouri starts out with "Unit No. xxx of the xxxxx Condominium..."

Thanks Ryan for getting me back to this post--it's been a CRAZY week and I have neglected this post terribly!

HOWEVER, there isn't really much more that I can add that none of you guys haven't already said! I am anxious to hear how this story turns out and like Ryan and as I've said before, how did SO many pairs of eyes miss this one? I think it was MEANT to be missed--and had this poor buyer had proper representation, this would NOT have happened!

Just my two cents worth and I am certainly no attorney--only speculating what really happened here!

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Debe Maxwell, Realtor® - Charlotte NC MLS - Charlotte NC Neighborhoods

Charlotte, NC

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Helen Adams Realty

Address: 2301 Randolph Road, Charlotte, NC, 28207

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