I had an interesting question proposed to me by a prospoect that I met months ago but the couple was already under a buyers' agreement with another agent. This couple had been looking at properties since May, made 3 offers on homes which all crashed and burned at inspection. They decided to wait for a while before they looked at homes further.
They requested that their contract with the agent terminate. They were frustrated with the agent for numerous reasons. The agent took a part time job and was not available to show property to the buyers' during their time frame, the buyers felt pressured to purchase one of the homes even though there were safety issues that were revealed during inspection, the agent was not sending listings that fit the buyers' criteria. The buyers were doing most of the leg work in seeking homes to look at.
The buyers offered to compensate the agent for her time since they were terminating the contract early. This seemed fair and reasonable to me since we have all been in that situation where the buyer changes their mind and decides to stay put in the current living situation. A lot of time and energy spent but no closing.
The agent provided the client with a fill for $3600. Now this shocked me. The agent had charges for gas at $2.40 per gallon = $700 fuel expense. Seems like that is a lot of fuel for seeing 11 homes. The client usually followed the agent in their own car or met at the property.
The agent charged for sending meeting with the clients to sign buyer agreement, faxes, writing contracts to purchase, attending inspections, discussions with her managing broker regarding the offers, CMA's on the property they were making offers, retrieving faxes and (I love this one) time for attending a party at the buyers' home where she indulged in cake and ice cream with the family.
We agents do all of this and a lot more. We don't get paid until we go to the closing table. Yes it is frustrating when we loose a client or deal falls and we are left holding the empty bag. I find it amazing the buyer is willing to compensate the agent for her effort. BUT an invoice for $3600????? She is billing for 56 hours at $50.00 plus fuel expense.
I would love to hear what other professionals feel about this. I think this makes our industry look unprofessional and greedy. We deserve to be compensated but I don't think we gouge our clients either, especially if we are a little miffed that it did not work out.
Have some fun with this. Let me know what you think and any advice that I can pass onto these buyers.
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