This is like FIGHT CLUB.  I NEED to let go!  

I just got done showing a property that happens to be situated next door to another great Lake Pend Oreile waterfront property that I was actually very knowledgable about.  LAKE PEND OREILLEWhen I was done with my customer, a new potential buyer drove up and started asking me questions about that adjacent waterfront.  A gift from God perhaps?

We are not setting real estate sales records here in SANDPOINT, IDAHO and suddenly I've got customers flagging me down.  

I answered all of his questions and was pretty proud of my ability to really speak with authority.  There are some engineering issues with the property that need to be addressed to complete a successful build and I even knew the engineers the potential client should contact.  We spoke for a half hour, I met his little kid and was even able to get the little guy to stop crying.  There was a definite positive energy happening.

It eventually got to the point where I suggested we write an offer and see if we could make a DEAL on the lot.  $700,000 is nothing to sneeze at and, in this market, we could probably make something work.  The customer was pretty savvy and said he would enjoy working with me but, in this case, he felt he should go directly to the listing agent in the hopes of negotiating the "selling commission" out of the sale price.  It could save him as much as $20,000.00.

My first reaction was..."That makes sense...how do I talk him out of that thinking?"  I gave him some feeble response like, "Oh, I don't think the broker would accept a 3% total commission when his agency has both sides of the sale".  Then I explained that commissions are negotiable and he shouldn't worry about that too much and that he would be in great hands if I were representing him through the sale.  Plus, I know the listing agent well and we could make this happen!

He eventually walked away and said he might get back to me.  I'm such an IDIOT!  What a weak sales pitch.

While I am beating myself up I keep berating myself with, "Don't worry about commisssions Mr. Buyer!  We'll just offer a price you can live with and let the agents worry about commissions!!!"  LET THE AGENTS NEGOTIATE.  I CAN GET YOU THIS PROPERTY!

He could show up again.  He has my card.  I'm pretty experienced with this stuff, I can't believe I was so far off my mark.  

LIFE GOES ON ...MONARCH MOUNTAINS

Kent Anderson, REALTOR

Coldwell Banker Resort Realty, Schweitzer Mountain

Sandpoint, Idaho 83864

Cell:  208-610-1201

Email:  ski7b@coldwellbanker.com

SCHWEITZER AERIAL

 

 
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68 Comments on He Swings...He Misses! Another sale just slipped by!

JUL
10
155,008 Points 6 Featured Posts Outside Blog

Oy, vey.

Perhaps you can share a nightmare "don't let this happen to you" story about dual representation?

 

1:15am • #1
1 Featured Post Outside Blog

That's unfortunate, I don't like to give clients too much information without a buyer's agency agreement.  Especially when they are asking questions about a particular property.  I always keep blank agreements in my car, and if they don't want to work with me as their agent, I let them know we can restrict the agreement to just the one property that they are asking questions about.

1:26am • #2
186,678 Points 1 Featured Post Localism Sponsor

Kent,

We have all been there done that but Raymond is right. I keep the Information on Brokerage document in my car in a folder with contracts along with the buyers agency agreement. I establish a good re-pore giving them an introduction to the knowledge I have for the for the community and then ask them to sign my agency agreement. I'm a professional and take time to explain how the process works. I offer a list of references for the clients to contact to see the level of my commitment to my clients. Most of my business comes from past clients or my reputation. It does work and I've had very few not sign. You can't click with everyone. Just don't give away all your knowledge for free!!

2:14am • #3

Kent,

Dorie and Raymond are spot on.  You gave away the farm.  However, I do think that the guy might call back with more questions.  Tell him we don't work for free.

4:05am • #4

I guess that is where the saying nice guys finish last comes from.  I too do this, we are good people just trying to help out another.  Atleast we can both sleep at night right?

4:52am • #5
338,160 Points 5 Featured Posts Outside Blog

Valuable lesson for all readers. . .what could you've  said different?. . I got a few scripts about that centers in the dangers of taking possession on a property that could have have title problems later and the fact that sellers will always want to sell for the highest amount possible and they are not looking out for teh buyer.. . finally . .when you speak to a seller about cutting commissions so they can save money. .most of the time the money being saved will be pocketed by the seller. . .they know their  bottom line and their bottom line raises quickly when an eager buyer appears.

5:31am • #6
196,794 Points 8 Featured Posts Localism Sponsor Outside Blog

Kent, what would you have done differently? I am always interested in hearing this argument by others. I know if you had the buyer broker agreement signed, yada yada, but what would you have done differently with this buyer?

We have all been duel agents at one time or another, and we have been fair to both sides, not giving any one an advantage. And if we only represent the buyer we negotiate best price, etc. Same thing.

So, as I said, I am looking forward to hearing what you think you could have said that would have turned this around for you. Because I stammer and stutter over this one to be sure. 

And of course getting them to sign a buyer broker agreement before you gave away the candy store.... but sometimes you can't get them to sign because they will say exactly what he said to you.

6:00am • #7
847,096 Points 213 Featured Posts Localism Sponsor Outside Blog Hit Router

Nice of the gentleman to milk your brain before sending you packing. 

Your experience is evidence why it's never a good idea to give too much away without a representation understanding.

Fact is, many agents will negotiate the commission when they have both sides and many buyers know it.

Fact is, as the buyer's rep, you could have negotiated more that a mere $20K out of the package for a buyer.

Fact is, he would have had an advocate, which now he has none. 

Fact is, there is a lot more to a real estate transaction than the buyer's fee.

Sad that the NAR has yet to get that message out to the consuming public.

6:03am • #8
428,930 Points 81 Featured Posts Localism Sponsor Outside Blog Hit Router

Don't beat yourself up, Kent - it's happened to the best of us! 

In conversations with consumers about buyer-brokerage, I usually give them a few real-life examples of how I have handled different situations as a buyer-broker - and how that differs from how I'd handle the same situation as a listing-broker.  It's an eye-opener for them to understand how both are right, depending upon who I represent.  Then I ask, would they really want to be the buyer with the agent handling every situation from the perspective of the seller?

I don't think any of this applies in some states, however, where agents are facilitators and have no "agency" relationship with buyers or sellers.  If this buyer came from one of those states, he/she may not realize the different role agents play in real estate from one state to another.

6:57am • #9
602,162 Points 112 Featured Posts Localism Sponsor Outside Blog Hit Router

Kent...

Sometimes a buyer has such a fixed mindset that you can't do anything about it, but I can tell you that as a listing agent, I will not allow a buyer to renegotiate a commission, The money is not on the table, period.

7:05am • #10
131,007 Points 2 Featured Posts

Been there, done that. After the fact I actually went into the system to see who bought the property and it was the name I remembered from the conversation. Also, when I checked the listing, it was dual agency, but the listingagent gave the buyer to another agent in the office so there was no savings. Have to figure that no good deed goes without reward and somehow it will come back to you down the road.

7:15am • #11
225,295 Points 4 Featured Posts Outside Blog

Kent, I don't believe this person ever had any intention of working with you. He was just gathering information to give him leverage to talk directly with the listing agent. You could try to save the deal by giving him a follow up call and discussing all the benefits of buyer representation. Good luck.

7:25am • #12
Outside Blog

We can get so "helpful" at times and trust that people will do the right thing, that we let ourselves out of the mix.  Sure, our first obligation is to the "client" but they are not clients at this point and we still need to earn a living for what we do as professionals.  I mean, come on, it won't happen next time because this buyer is "different."  Yeah right!!!

Been there, done that and continue to beat myself up over it.

7:27am • #13
292,401 Points 4 Featured Posts Outside Blog

I would have driven them to a remote road and told them we could see the view of the property. Once they were out I would have left!

7:33am • #14
Outside Blog

Ken, I feel for you. This happens often in our market place Manhattan New York, where buyers do not work with agents and more often than not go directly to the listing agent.  When a buyer asks to go directly to the listing agent, I ask them why, if they say that they can get a 'better deal', I would ask them to explain how that would work. Here in Manhattan New York, even when a buyer goes directly to the listing agent, the commission has already written in the listing agreement that the seller sign previously with the listing agent. It is highly unlikely the agent is willing to get pay one person's compensation, when they are doing a two person's job representing both the seller and the buyer.

7:34am • #15
Outside Blog

Laura....I really like your game plan!

7:41am • #16
281,198 Points 7 Featured Posts Outside Blog

One must stay in control of the deal at all times. Hard lessons are learned in real estate. Go on to the next deal.

7:49am • #17
121,128 Points 1 Featured Post

It seems like you are incredibly knowledgable for your area. I am sure you will not give away the farm next time and will have a successful sale in the near future.

7:56am • #18
226,666 Points 26 Featured Posts Localism Sponsor Outside Blog

Kent - That buyer needs to understand that the listing agent has a fiduciary responsibility to the seller to get the highest possible price and cannot share information with a buyer that would put his client at a disadvantage. The buyer needs to be aware of what you can share if he elects you as a buyer representative. Most importantly comps. He thinks he can save $20,000 in commission by going directly through the listing agent? What if he could save twice that much or more by having a buyer's agent who can share comps which would justify a much lower price? What kind of value does the buyer place on having his own advocate and somebody?

8:30am • #19

Getting a better deal from the Listing Agent is OLD thinking ! Since the mid 90's all states have completely redefined their required Agency practices !!! Standard education brought forth by NAR(ie.ABR) has gotten MOST of us on the same page ! The Listing Agent is supposed to be the ADVOCATE solely for their CLIENT(who has GRACED them with an Employment contract).The Listing Agent has either correctly priced the property or not. If priced correctly the LA should in NO WAY be indicating to any potential buyer inquires "that there's room in the price".(unless authorized by their client to do so !) So ,NOW in reality the Listing Agent(already married to the SELLER) should be the least likely place to discover the best deal !!!!!!!!

8:41am • #20
342,840 Points 4 Featured Posts Outside Blog

Kent - I think Lenn said it best, but, like you, I sometimes forget everything at crunch time. But, I will admit, when I played ball I could hit any pitch thrown at me (except a curve).

8:55am • #21
226,020 Points 2 Featured Posts Outside Blog

Hey Kent...there are more fish in the Lakes, this guy was just using you. I had a similar one last Summer where the Buyer asked me as the listing agent to kick in my Selling side of the Commission, I said no. His Wife was embarrassed, he said he would just get his own agent so I'll lose, I said That's a good idea to get your own agent. I never heard from him again or his agent. Go find another Buyer and try and invite them to your office to discuss their real estate needs then ask for a Exclusive Buyer Agency agreement when possible.

Cheers

9:05am • #22
141,277 Points

Kent, I'm sorry that happened to you. It's too bad he did not go to the listing agent in the first place. It always amazes me how much time people are happy and willing to take from agents when they already know they are only bleeding information and have absolutely no intention of doing business with - either because they intend to go directly to the listing agent or their uncle Bob will represent them (lol) There are many objection handlers for that one - most people who are that set in their thinking won't budge to see how it serves them to be represented by their own agent who will negotiate in their client's best interest. 

9:17am • #23

Kent, I was thinking of writing a post about this. Similar thing happened to me with a client that I have been working for awhile. We made couple of unsuccessful offers on REO listings. In my area, there are multiple offers on REOs and usually cash offers are the winners.

To continue my story, the client I was working with, calls me and tells me that maybe he should go directly to the listing agent. For a second I thought that he may be right. I didn't say anything to him but decided to do some research for my own sake.

My research showed that less than 10% of the agents with REO sell their own listings. I e-mailed my buyer and told him that what really matters is the financing and the offer and that my research does not confirm his belief that he will do better if he goes directly to the listing agent. His next offer was accepted so this story had a happy ending.

I guess facts speak louder than words.

9:31am • #24

If someone said they woud try and negotiate my commission I would say why would you want to work with a guy like that?  Your better off not having him as a customer.... Change Your thoughts change your life.....

April Moore
9:38am • #25
10 Featured Posts

Well, it sounds like we've all dealt with this situation before...I know I have.  I really appreciate the comments!  Every tool for the TOOLBOX that I can garner is greatly appreciated.  

As always, LENN is concise and right on!  

MIKE, I hit for a high average myself back in the day...I, too, couldn't hit the curve.  (That's why I'm selling Real Estate instead of playing for the Twins).

ANDREA - I'm not sure what I would have done different under pressure.  I guess, in the future, I'll be more "to the point" about the importance of a buyer's rep.  ...and emphasize the fact that if the listing agent would be willing (and able) to eliminate the buy-side fee, I should be able negotiate far more than that for him as the buyer's agent.  Also...I DO need to carry more pertinent info about my business with me so I have that info at my disposal...especially contracts.

9:41am • #26
10 Featured Posts

Jana - You are right.  Personally, I love dual-agency when I can get it, but it usually only works for expediency for the buyer.  Buyers are usually better off with their own representation.

9:44am • #27
156,351 Points 4 Featured Posts

In our market commissions are not to be talked about like that. On our MLS we are ethically bound, okay you can stop laughing, to reveal a variable rate. In other words, whether the commission would be lower if we sold it directly. In my opinion, as an former retail electronics store owner, I recommended to my salesmen to always leave price for last. The first duty is to make sure the client's needs are satisfied. In this case, emphazing yourself as his fiduciary advocate would be a start. Then explaining how a sale is more than just price, it is the details that matter. In Oklahoma, as a listing Realtor, I can give a direct buyer comps, but the question is always which comps. Aren't I obligated to my seller to give out information that supports them? The importance put on commission by this "buyer" is a red flag and it is difficult to get them off that subject. My first question to them would be, what if you saved $20,000 in commission bu paying $40,000 to much for the property? 

9:45am • #28

Ouch! That hurts- I feel your pain. I have so been there. 

I completely agree... "Don't give away the farm." But sometimes it just happens.

You are a pro! I know your not going to sit by the phone and think about your "woulda, shoulda, coulda." Call the buyer up and let him know, you have been thinking about it his "plan".  Prep a Buyer CMA of the area and talk to him about dual agency.   Let him know how its most likely going to play out.  He is probably going to be assigned an agent from the listing agent, depending on the broker. Go get your buyer back.

 

 

Angela Tharp (RE/MAX Fiesta City, San Antonio,TX)
9:50am • #29

Been there...done that.  Read my blog for today... Log Blog--Three Ways to Live Your Life. 

Have a blessed day! 

11:51am • #30
116,377 Points 7 Featured Posts Localism Sponsor

[Lenn sez: Nice of the gentleman to milk your brain before sending you packing. ]

No kidding! The playing field wasn't level in the first place and you mustn't beat yourself up over it.

But Kent . . . when Hoohah proclaimed he could save 20k by going to the listing agent:

"I see. OR you could end up OVERPAYING MORE because the listing agent WORKS FOR THE SELLER. Do you REALLY THINK you'll get a better DEAL not having YOUR OWN representation?"

 

 

12:58pm • #31
Outside Blog

Ouch Kent!  i think we are all kidding ourselves if we say that we haven't all been in that same spot at one point of our career. Now it probably hurts more due to it being a $700k sale but I'm sure the next one "won't get away"!

1:11pm • #32
10 Featured Posts

Candice - I'm o.k. with the whole thing...I just could have done it better.  Truth is, he probably would have walked anyway.  We'll see.

Duane - I'm glad you're sure!  I'll try to live up to your "impression" of me.  Thanks for checking in and have a great weekend!

2:55pm • #33
135,459 Points 5 Featured Posts Outside Blog

If they buyers don't sign a buyers rep agreement, I don't work with them.  Your "batter's up" story is the reason!  There's no "at least" here . . . his honesty to you was a SLAP in your face. 

There are TWO levels of service an agent provides: 1) Customer level and 2) Client level.

This is NAR, not me.

Customer level is NOT binding.  You were providing CLIENT LEVEL services without a contract, and now you have no recourse.  A listing agent puts that FOR SALE sign up WITH a contract because it's CLIENT level not customer.  They may provide a CMA at the customer level, or tell a seller to get rid of the crap on the kitchen counter (declutter), but there's no listing contract signed.  When that takes place, they have the "exclusive right" to sell the home. 

The same is true of buyers, and your representation is not #2 without a contract.  If you are going to give your time, knowledge and expertise to a customer . . . and do so without contract . . . you are, indeed, a free agent!

The contract works both ways.  Buyers have an obligation to you as well, and when they sign they agree to it!  Most buyers I work with understand this, and think it's absolutely appropriate.  Most buyers WANT an agent under contract.  The level of fiduciary duty rises under contract, and protects the buyer.  A lot of agents can weasel out of a ton of things they are supposed to be doing by not working under contract for a client!

 

3:06pm • #34
1 Featured Post

Kent - It happens to everyone.  Definitely a learning experience!  Next time you will be ready with your answer and be able to respond with the authority you had when you were giving him the information about the property.  Practice your script because it will happen again.

3:08pm • #35
6 Featured Posts Outside Blog

Kent,

I've got my fingers crossed that some friend of this guy "wises him up" and that your phone rings soon!

4:22pm • #36
321,723 Points 8 Featured Posts Outside Blog Hit Router

There are certain buyers who always believe they can get a better deal from the listing agent, because he is more motivated to sell it himselft and get 2 sides than a buyer's agent.

5:04pm • #37
171,855 Points 10 Featured Posts Localism Sponsor

Hi Kent, I'm hoping the listing agent isn't as knowledgeable, or as friendly-- and the guy turns around...but then knowing how he is already, you'll be better prepared.  I'd send him a thank you note, just like any other contact, and see what happens.  Include some information about why working with a buyers agent is so important. :-)

Congrats on the Gold Star and for gleaning all these terrific comments that helps everyone.

5:28pm • #38
454,859 Points 8 Featured Posts Localism Sponsor Outside Blog

Kent - I have to agree withostof the comments and sometimes I talk to much and put my foot in my mouth, sorry it hapened to you and congrats on the feature!

6:45pm • #39
117,861 Points 4 Featured Posts Outside Blog

Do these buyers not understand that there are bunches of listing agents out there just chomping at the bit to double dip on their listing...give up the selling commission on your listing in this market???  Are these buyers insane???  They obviously don't understand the dollar signs that flash across the mind of a listing agent who is about the score a double sided sale!  He will likely pay more by buying from the listing agent...Don't beat yourself up too much and have a great weekend.

8:25pm • #40
10 Featured Posts

Carla - Obviously you are correct.  We do have to walk a fine line, however, when gaining the trust of a customer/potential client.  An agent needs to exhibit a certain amount of knowledge and expertise before many buyers would be willing to sign a contract.  If you go too far, you could get burned.  Thanks for the thoughtful response!

9:03pm • #41
10 Featured Posts

Hey Mary - Good idea.  I'll send him an email...I NEVER burn bridges.  Thanks for checking in again!

Jeani - I'll survive.  It is dog eat dog out there, isn't it.  Probably not much different than a strong market, however.  It is always very competitive.  It keeps us young.  LOL

9:09pm • #42
JUL
11
2 Featured Posts Outside Blog Hit Router

Kent, play it out the other way.  What if shortly after meeting this guy you whipped out a buyer's agreement.  He might have been scared off anyway. Perhaps inviting him back to your office, where you could rlook at comps together to determine if the asking price was at fair market,  Implying that he potentially had money to save on the price might entice him to go with you there.  Once there, you could raise the topic of buyer's agency.

8:51am • #43

Kent, don't beat yourself up. I think you dodged a bullet. A buyer whose first thought is how to reduce your commission isn't someone you want to waste time with. Dwelling on the one that got away can really mess with your head. The one thing I have learned in the last few years is that sometimes you lose and you can't let it get to you.

8:58am • #44

Just a thought.  Maybe next time call the listing agent immediately and see if you can get a referal fee if you send an interested buyer his way.

Not ideal but 25% beats zero.

9:38am • #45
243,940 Points 27 Featured Posts Localism Sponsor Outside Blog Hit Router

Kent - Wow !  Great discussion and comments here.  The bottom line is that buyers will do what they do.  You positioned yourself to be an expert in the area and for that property as well.  It would be foolish for the buyer to not utilize that if he decides to move forward.  You never know, he may not decide to move forward at all !!!  So nothing lost if that was the case.  What I try to do is always get an email or phone number of the prospect so at least you have the opportunity to follow-up.  Keep us posted on what happens ! 

9:44am • #46
1 Featured Post Localism Sponsor Outside Blog

Do not beat yourself up.  There were no magic words you could have used there at the end to change his mind.  He was never going buy from you.

The "easy" critique would be to say that you shouldn't have shown him the property without having sign for representation - but....... I have a gut feeling he wouldn't have signed it. When people won't sign an agreement they are not really, imo, potential clients. So, in all probablity you did not lose anything other than some of your time. He was never going buy from you.

I don't know how it is in your area, but in our neck of the woods, our Buyer Agency agreement states that the buyer is liable to us for our fee unless we waive it which we do when we collect from the selling broker - and if you take  an unrepresented person out to see homes that are not listed in your own brokerage - you run the risk of not getting paid.  

I know of case going on right now with someone I know, who brought a new buyer to see a home without getting an agreement signed first.  Later they did -but in the interim, the buyer went BACK to the first house during an open house and talked to the listing broker. He told the broker he had not signed with anyone yet. 

Then the buyer went back to the first agent, signed for representation and they made an offer on the house.  The listing agent is now disputing, through the MLS that SHE was the procuring cause of the sale because the client showed up at the open house because of a street sign and that the buyer's agent only signed him up after the fact. She is claiming that she owes no co-broke.

Don't know how it will end - but it makes me want to be extra careful.

 

9:45am • #47
102,390 Points 5 Featured Posts Outside Blog

People who believe that they can negotiate with the sellers better than an experienced agent who deals with real estate every day rather than someone who purchased or sold once or twice in their life, are the same people that put $5 in a collection plate and take $2 back in change. Let 'em walk the plank

10:23am • #48
Hit Router

Kent, I think we have all had similar circumstances.  I guess the only thing you can say, is that we learn from these experiences,(myself included), and hope we will do better on the next one. Don't beat yourself up.  He probably wasn't going to use you anyway.  That is the only way I can handle some of these experiences.  thanks for sharing!!!

11:10am • #49

It's happened to ALL of us!!!  As the saying goes...."Buyers are Liars"!

That person was probably not even going to buy anything. I've come across so many people that want to look, say they own this, that and everything else and then when it's time to get down to business they wriggle away with their tails between their legs.  Some people just love to hear themselves talk, and why they keep doing this to us a agents I will never know.

If he does end up approaching the listing agent, let him enjoy the dual agency buyer's experience.

12:46pm • #50
165,767 Points 10 Featured Posts Localism Sponsor Outside Blog

Not much more I can add here.  Just the other day a potential "buyer" called me on a listing and requested a showing and named two times.  Neither was workable.  But I also had a feeling... a feeling that this person was already working with someone.  I don't know why, but it just felt wrong.  Sure enough. When I said again that I couldn't come out at the times he requested, he mentioned he "knew" an agent in my office.  I talked to said agent - and not only did  he "know her" but they had been working together for months.   ALWAYS get the EBA!!! Also, I really don't like to waste my time showing a listing if the buyer is working with someone else.  I don't like dual agency even if I do double-end in any case.

 

1:48pm • #51

Kent,

You did the NORMAL Real Estate Agent thing that we all do...... HELP the Buyer and HOPE for a deal!

Don't beat yourself. Just say "Next!"

Kathy Opatka

2:32pm • #52
164,536 Points 6 Featured Posts Outside Blog Hit Router

It may still workout, if it's meant to be, it will. If not, maybe something better is on its way.

2:47pm • #53
201,341 Points 2 Featured Posts Outside Blog

I can't possibly kick you any more than you're already kicking yourself.  No talk of dual agency? Did you forget that one?  As Lenn said, where's the buyers advocate on that scenario?

3:13pm • #54
195,452 Points 1 Featured Post Localism Sponsor Outside Blog Hit Router

This guy is a Jack Ass.  Call the Listing agent and tell him you are the procuring cause.  In California you might have enough going to get you the fee if the Listing agent, or any other agent closes with this guy without you on the other end.  You are the agent that provided him with the information that made him want to buy.  If nothing else it will give the listing agent a pause to think.

7:06pm • #55
JUL
12
103,256 Points 4 Featured Posts

So sorry this happened to you, but it's good to see that others are dealing with this same situation. I've been very careful lately not to give out pricing information, staging info, etc without some kind of committment to list with me.  From reading all these comments, I've learned not to give out the information to buyers either.

 

7:28am • #56

Great post. It's happened to all of us one time or another. Just pick up and move along to bigger and brighter things! Best to you~

8:39am • #57

Hi Kent,

When a buyer goes after your commission, they are not someone you want to work with. They will keep going after yor money. They picked your brains and used you. There is value in your knowledge and what you do.

Jerry Gray CRB,CRS,GRI / Prudential Carolinas Realty / Winston Salem, NC

 

Jerry Gray
3:05pm • #58

BT-DT - I've done the same thing, even taken the buyer back 3 times to the home, answered multiple phone calls only to be asked later if I was the listing agent since he had been told only to work with the listing agent - since "the listing agents will give back half of their commission" - LOL - learned right away what to watch and listen for and not to fall for it again. 

I was out showing a beautiful waterfront property yesterday to a "prospective client" - and I say prospective only because he let slip a few things before that made me be wise to this one.  I wanted to line up other properties to show him when he slipped and said he had seen all the others from other agents - I knew now what was coming.  I showed it to him anyway since I was already there and just waited for the words to come - and they did.  He asked me if I was the listing agent, I said No and then (probably wasn't in the right mood for this one) told him that the property was bank owned, if the listing agent sells the home himself, his full commission will be cut, and then did he think the agent was going to split what was left with him?  No, sorry, won't work.  and then waited.  He continued looking, asked for my card, said he would be calling (uh-huh, sure).  He may or may not call me, but I'm not holding my breath and based on what I learned about him, I halfway hope he doesn't call back. 

I want to work for clients that want to work with me, and a Buyer Broker Agreement will solve that situation.  Works everytime now.

Cyndi
6:17pm • #59

Familar Strory - I've have had Buyers Agency Agreements that haven't been worth the paper to write them on. Other agents have found loop holes or "talked" the client to cancelling the contract.  I am learning the hard way to make sure my BA contract is completely filled out - no blanks - other agents are less tethical and respectful - very doggy dog.

It really does sound like you dodged a bullet. He may have done you a favor after all, sounds like a headache to me. I can sometimes educate an ignorant buyer and other times - guys like your guy - it's not worth the effort.

 

11:10pm • #60

Sorry forgot my name -

Jo Baldridge
11:10pm • #61
Outside Blog

My most recent similar experience was with a couple who felt that I should share my commission with them. After all, several of their friends had recently purchased real estate and received 1% or more back from their agents. Funny thing - none of those buyers were willing to recommend their agent to my clients. Those folks could only complain about the lack of service from these demanding agents who seemed more focused on their own commission than serving a client's needs. In spite of that admission, my clients insisted that I should rebate part of my commission to them. I guess I am fortunate that, since I continued to refuse, they moved on. I don't really want to deal with people who are that obtuse, anyway.

11:57pm • #62
JUL
13
10 Featured Posts

Kevin & Monica - Finally...Missoula Realtors chime in.  Stay in touch!  I love Missoula!  (That's where I met my wife, bought my first home, had my first child, started my first business, etc, etc)

1:10am • #63

Hi Kent,

I face this scenario with Commercial real estate transactions all the time.  Most if not all commercial buyers are pretty aware that commissions become just another 'net cost' to the transaction and try to negotiate directly.  And many of them try to get as much info, tips, and things to look out for from buy side brokers as they can for free, oftertimes contacting multiple brokers, then going directly to the listing broker.

10:35am • #64

There are solutions!!! You have one chance to turn that buyer and I have 6 tools to pick from...so I am just going to share One with You!!! This is not some gobbly gook answer from some prostitute trainer who has never had an original idea... This one is an original and it works.

The Key here is to show your VALUE !! Through your rapport, You already showed the customer you got Knowledge, Experience and great  Advice...that you can freely share with a customer... but with dual agency or transactional or designated agency, turning them into a client you could be pend in by your Regulator...so let me teach you how turn this customer into a client...right now.

You warmed them up with info, like you did, showed your expertise... now you need to show your Value. My #1 favorite tool for this situation is...  "The Listing Agent and the Seller on average know one another for 10 years and you for 10 minutes... who do you think has an advantage?" " Don't you think they discussed this situation amongst them selves, long ago when they Listed? Are you going to trust just anybody... This would be a good time to chat Agency wouldn' t you say?

So back to the experience you share and thousands like us can identify with you on this matter every day ... So as a Realtor you showed how wonderful you are and now the customer throws you a test objection about dealing with the Listing Agent. You either rise to the challenge or fumble the ball...what are you going to do next time. Now think what other good tools can you make to get over this hurdle. I read the other associates responses... and I was looking for a short sweet non threatening reply with a big thread of common sense that says, Hire Me? I did not see much in the way of a clear and concise answer... but there are 5 others I can think of... so put your thinking hats on and save the money!

 

 

Doug MacCllum Calgary Alberta
6:49pm • #65
JUL
14

That's a tough one...I'm not sure what I would have said in that situation. I don't know that there's a whole lot you can do when talking to someone that's savvy & realistically could save $20K in commissions....

Best,
Dan

1:25pm • #66
JUL
15
134,820 Points 9 Featured Posts

GOOD MORNING KENT!  Congrats on the feature -- I'm a little behind catching up on things!  If you couldn't secure this guys business after getting his little kid to stop crying - then the guy has no heart and substance.  That's a pretty good size price to lose a deal over - understandably I would be kicking myself too - but like you wrote - life goes on and it will come around again in another way -- keep your chin up! -- Gabrielle

7:37am • #67
JUL
16
10 Featured Posts

Hey Gabrielle,  Always nice to hear from you!  ...and, NO KIDDING!  The kid and I actually connected.  I gave him a rock to kick around and he was in "heaven".

4:03pm • #68

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Kent Anderson

Sandpoint, ID

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Coldwell Banker Resort Realty

Address: 202 South First Avenue, Sandpoint, ID, 83864

Office Phone: (208) 263-6802

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