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Is It Wrong to Work With More Then One Realtor?

Is It Wrong to Work With More Then One Realtor?

Home buyer: " Is it wrong to work with more then one Realtor at the same time? I'm trying to follow proper home-buying etiquette. My friends tell me it's O.k. as long as I keep track of which Realtor showed which property. That way, if you end up purchasing, the correct Realtor is compensated. I've not signed any exclusive contracts with any Realtor.

Is it OK as long as I make sure both Realtors realize I'm working with another agent as well? Some people have told me that Realtors know customers might be working with others, and it's not a big deal."

Isn't that a good question? As a Realtor, I definitely have a 'biased' perpective and answer to that question. But since the question involves 'working with a Realtor' - who better to answer it? :)

1.)Yes - if you're working with Realtor's in two different Cities - where each has their own area of expertise! Go ahead and Use 2 Different Realtors! As a matter of fact your local Realtor can probably refer you to a Realtor in the city you're moving to.

2.)If you are Selling Your Home and Buying again - it is possible to work with a Listing Agent to sell your home and a Buyer's Agent in the purchase of your new home. Often these 2 Realtors can even be a part of a team where they tag-team each other.

More importantly however, is the Buyer asking about this from a legal or moral/ethical perspective?

First of all I want to say that Real Estate Associations in each Province and State have their own rules. There used to be 'threshold' rights in British Columbia. This is where the Realtor who introduces you to the house - is the Realtor who gets the commission. However it's not so cut and dried anymore.

If you signed a Buyer's Agency Agreement - then you are under 'contract' to work with that and only that Realtor. If for some reason you choose not to - then your new Realtor may very well end up getting paid by YOU or not at all! And YOU will be breaching a contract to work with another agent. This can get ugly ... and no one wants "ugly" ...

However if you have No Contract - Let me Tell you You some Reasons Why it is NOT a good idea to work with more then One Realtor!

Home Buyers often call on signs and advertisements and talk with MANY real estate agents until they find a home that they want to buy ... and then just work with the listing agent to buy the home. Sometimes this is not a good idea, as the home buyer may not get the best deal if the listing agent is looking out for the best interest of the seller ... not the buyer.

Or the Buyer may work with several different Buyer Agents to see who will find them the best deal. This is ALSO not a very good idea for a couple reasons ...

1. First of all all Agents have the same access to the same homes for sale via the local MLS. They all have the potential of finding the "best deal".

However Agents only get paid when they successfully find a home for a home buyer ... and it closes. All the up front work of finding the home is done without pay and in good faith that the home buyer that they are working with is using them to represent them. If a home buyer is not disclosing that they are potentially working with other agents, then the Buyer Agent does not have the ability to fairly weigh out the situation and determine whether or not they want to work with that home buyer.

There Are some exceptions though:

If a home buyer wants to work with more than one agent (for whatever reason), the right thing to do is to NOT sign a Buyer Agency Agreement and to notify each agent of this decision.
If a home buyer is considering buying different types of property or different areas, they may consider hiring an "expert" for each area.
If you're still not sure and don't know if you will like being 'married' to just one agent - Consider signing a week long Buyer Agency agreement - If after that week, the agent is not a good fit, then the home buyer can move on and find a new agent. Win Win right?

Finding ONE agent to work with is generally going to be your best bet.

If you or someone you know is thinking of Buying or Selling property in Cultus Lake, Chilliwack, Hope, Abbotsford, Langley or anywhere in the Fraser Valley Area of B.C. - or if you would like more information please give Liz Moras of Landmark Realty Chilliwack a call at- 604-799-0459 or e-mail at lizmoras@gmail.com.

Copyright © 2009 By Liz Moras, All Rights Reserved. All photos taken by Liz Moras and copywritten. Please do not use without permission. Information provided by this author is only an opinion, it is not guaranteed, may be based on information collected from several sources, and may be time sensitive. It is not necessarily representative of the opinions of Landmark Realty Chwk. Ltd.

Posted by Liz Moras ~Chilliwack Realtor, Chilliwack,Hope,Langley,Abbotsford on 11/11/2009 11:43 PM

Comments (90)

Using More Then One Realtor in the Home Buying Channel

using more then one realtor, can i use more then one realtor, selling your home and buying

Originally posted at: Liz Moras' Real Estate Blog: Is It Wrong to Work With More Then One Realtor?

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90 Comments on Is It Wrong to Work With More Then One Realtor?

NOV

great post for future clients.

Liz, I hear ya... but the general public just doesn't 'get' the way we real estate agents operate and get paid. For the public, it's "first come, first served" - meaning that as a profession we have a LONG way to go in the way of educating the public on our services. Yes, I agree with you. I just believe that it is WAY too complicated and convoluted to change public perception any time in the near future. But I still love ya! :))

I SOOO wish we could get "Agency Agreements" to take hold in our area. We've never been able to get them into a position of prominence. They just go somewhere else if they're asked to sign one. I've even been the recipient of buyers who stuck with me, after walking away from agents who refused to work with them unless they signed an Exclusive Agency agreement. But I'd love to be able to work under the security of one of these exclusive agreements =/

Hi Liz!
If a buyer is working with 2 Realtors in the same area, I think that is when it is just not good form. If a buyer tells me that they are working with several Realtors, I will probably either bow out or they will not be the first buyer I call when I find a good property (I will call the buyer who is being loyal to me.)

I just want those I am working with to be upfront with me...thanks for the insightful article!

Very thought provoking. I had some call back to my office and when I was trying to hand him off to the agent he had spoke with earlier in the day, he said "It doesn't matter." Sad that buyers are either uneducated on how we get paid or just don't care. Nice informative post.

Liz - well put post, with the various perspectives. As always, it is a matter of education as to how we work and get compensated. I prefer working with loyal clients -- I work really hard for them, and buyer broker agreements are important. I have 'lost' buyers a time or two when I explain how I work - and feel that is okay - more than likely, they weren't gong to be loyal and I'd rather know up front than later.

Liz, that's some good points. By the way, I like the new picture of you.

Is it wrong to have two spouses? . . .. now you get it! ( I agree. .I love your new pic)

Liz, I recently had to tell a very well qualified couple that I woiuld not work with them while they worked with one or more other agents.I tried to explain they should interview several agents and then select the one that best fits their objectives, but they somehow believed more agents gave them more access. I just decided that I did not want to drive them around three of four days only to have them buy form one of those other agents. I have way too many loyal prospects to operate this way.

Liz - Very insightful post to help people understand how best to work with Realtors.

We tell buyers...if you are loyal to us...we will be to you...statistics show one agent, one buyer produces better results....if the chemistry is there... it's wonderful.

Dave's answer, #10, is the best one for me. There are LOTS of buyers in Southeast FL now. There are less and less agents that have any idea what they're doing. If you're good and you know it, let your prospect know that you don't work parallel to other agents, period. I'd rather be reading a book at the beach than wasting my time.

Scott Miller, Realty Associates, Boca Raton, FL

Different projects, different cities, that's all wel and good. But two agents with the exact same objective is absolutely wrong, counterproductive and a dispute in the making.

Liz:

You have made some very good points here.

I like Dave's answer. They need to make their mind up and work with an agent who is going to do a good job for them and stay with that agent. For someone who is relatively new to this business, Dave is a quick learner.

Hi Liz,

Great post and some great points. I think that most buyer's do end up working with one agent after they understand what a buyer's agent role is - it's our responsibility to educate the consumer.

Liz:

Make up your mind and choose who you want to work with. As you mentioned, all agents have access to the MLS so decide which agent fits your needs. Congrats on feature.

I actually think buyers understand what they are doing. Consumers are pretty savvy around here. That may be more local. I hate to sound cynical, but some people just want what they want when they want it. I'm more flexible than some..we need to meet first. Then after one outing (they may not have it the first time) I need a preapproval. On the third outing - I need a contract. If they aren't willing to sign after three showings, chances are they are not being loyal and I am wasting my time.

I help them shorten their list. If I can't sell them on me the first visit,we are done.

Hi LIZ! Buyers often live by the WIFM principle!! WHAT IS IN IT FOR ME!! Some are loyal to you...most are not! I really wish our industry would quit working for FREE!! A great buyer presentation should lead to a short term buyer broker agreement...and hopefully a relationship that will last for years! If they understand our profession and the amount of work that is involved...they will come around!

I believe it's a two way street. If a customer wants to work with multiple agents, that's OK with me.

Full disclosure from both sides is important to develop a productive working relationship.

Then we can both decide if we are a good fit to work together to meet their goals and objectives.

It's wrong for us as agents not to ask for a client's loyalty by way of a signed agreement in exchange for our dedication to their best interests.

The underlying factor should always be mutual trust. Once that's established, most any type of working arrangement can be worked out.

Great post!

Liz, I always find that if they are working with another agent they should continue to work with that agent. Working with multiple agents to see if they can get the best deal is an ostensible agency. The minute an agent works with a purchaser to get them the best deal, they are representing the buyer whether or not they have a written agreement. This could result in an ethics issue. Good post!

Liz, you did a great job with this.

Anyone that doesn't have a signed buyer's agreement is just a customer, not a client and a customer isn't getting the same service as a client. Put the shoe on the other foot. Would you be loyal to someone who wasn't working with you exclusively?

Great points. I am bookmarking this one for future use. Thanks!

I feel any agent who is still willing to work with you knowing that you are not committed to them, and using other agents in the area as well, is not likely to be of the quality you would want anyways.

I'll give you one more: Switching agents or dealing with more than one agent fot the same purchase in the same area can be very unsatisfactory in that you (the buyer) has to "train" each agent what you're doing/looking for. So your personal workload jumps as you try to work with each agent.

Having said that, I don't know of too many agent's that will play this kind of game. You will be perceived as fickle or wishy-washy. And nobody likes to deal with flakes.

Great post, Liz. We are very loyal people and always appreciate when buyers are loyal to us. We put a lot of time into previewing and finding that one special home for our buyers and ask for a commitment before putting in our time and effort. If a buyer is going to work with multiple agents, they should at least have the common courtesy to tell all parties involved. Thanks for the post.

I guess some people believe that if two Realtors compete against each other then you get a better deal. My question to that buyer is this, do you want two or more Realtors competing for their commission, or do you want an advocate devoted to your needs? If that Realtor does not perform, then move on.

Many buyers simply don't trust us, and don't want to commit to ANY realtor at all, until they find the perfect house. I had this recently where the buyer asked 3 realtors to compete to show her properties. I declined the invitation!

If the buyer is not committed to you, why would you work so hard to find a great property for them? All they need to do is to have one bad conversation with you (where you deliver information that is true, but not what they want to hear), and they go to another agent as if your selling cars. Those type of buyers have no respect for anyone, and I'd bet money you will never get a referral from them.

Since I am committed to my potential clients from the first phone call or email, its nice to know they feel the same. Sometimes people feel if they shop around they can get a better deal. However if we all have access to the same homes from the MLS, isn't it better to find someone who genuinely cares about you?! To some agents a client is just another HUD/D.A., which is sad. I treat my clients like family and do whatever is necessary to help them close their deal, which is the only right way to act in this business. Thanks for letting me give my .o2!

;)

From a consumer point of view, I can understand wanting to shop around without an agent tied to your waist. From an agent perspective I know the frustration of showing a dozen homes to a buyer and then not getting any return calls only to find out later they bought from a competitor. You would think some where down the line the buyer would decide who was giving him/her the best service and let the other one know either by voice mail message, email, or, just a thank you note (with the NO THANKS written inside).

Sometimes I think like my cousin, who states, "the more people I meet, the more I like my dog."

Liz, in general the answer is that it is wrong to work with more than one Realtor, but your example of different cities of interest, I can see where there are exceptions. The Buyer Rep agreement can spell that out.

Liz,

This is a great topic. Truth is that a buyer who has not signed a buyer/broker agreement can do as they choose. From a buyers perspective it can generate a lot of confusion for them. Therefore, I think it is important to address this upfront and let them know exactly how it works so they know exactly what it is you are doing for them in being 'their Realtor'. Unfortunately, many don't. Many do as well, and buyers still choose to call another. That's business and life. Yes, it's frustrating but it's also important to find out why in those circumstances.

Liz - I am pretty biased as well on working with more than one agent but like you said.... if a buyer, for whatever reason, chooses to do so then it is the professional and moral thing to do - DISCLOSE IT!

Liz. You made some good points and there are some great comments. I've got to weigh in.

I recently had a buyer for whom I'd worked pretty hard for call me and say, "Oh, we're also working with (fill in the blank) and we want to make an offer on that condo you showed us on Saturday but since both of you are working with us we expect you to split the commission."

Talk about a sticky-wicky. Well, the outcome of that is a blog within itself. Buyers would be better off and certainly we REALTORS would prefer, exclusive agency. If a buyer tells me they are working with another REALTOR in my area, I tell them they need to work with them and I step aside. I won't knowingly be one of two working the same area. Too much chance for ethics violations.

Well said. I just wish that this could be required reading for every buyer before they contact any agent!

Wow - I need to play catchup here! :-)

Marian - I do agree - except that instead of stepping aside - 'these are the reasons you should be working with me only' choose? And then let them decide? If they choose the other realtor - or non-commitment - you know where you stand!

Leesa -yes and frankly it's not always a 'fit'..but we should encourage honesty - ask the question! So often we're even scared to ask because we don't want to hear the answer! -

Kathleen - you're right - we should have that conversation and perhaps after the first time out ask them for the commitment/business :-)

Sybil - you can send it to them or give them a copy at first showing! :-)

Betina -' I am commited to them since the first phone call!' what a great line - how could they resist you? :-)

Gary W - yep so much of it is about 'educating' our Buyers - sometimes you just don't know what you don't know!

Gregory - I understand that in the beginning - perhaps before you're really serious about buying and just scouting the territory - but part of the exercise should be narrowing it down to the Realtor that you think will do the BEST job for you.

Geoff - I guess we need to convince them WHY they should only work with us. Sometimes the oweness is on us to make the argument :-)

Erica -yes 'trust' is often the factor' ...previous experiences and overcoming years of negative and unfortunately sometimes accurate perceptions about our role as Realtors.

Off to work - more later! :-)

When this question arises, generally only during the first phone call, I tell buyers this:

"Understand this, real estate agents make a living trough service or sales. If an agent knows that you are working with other real estate agents, they are going to do everything possible to try and get you to buy a home today because they know it may be their only chance. So, in that case, are they really looking out for your best interest? Or are they just trying to sell you something? If you want proper representation and real service, commit to one agent that you are comfortable working with. Otherwise, you'll be stuck with cheezy sales guy."

9 out of 10 will then say. "I get it. I definately don't want cheezy sales guy. Let me ask you...........?

And then we have a meaningful conversation about buyer agency and the benefits they will receive woking with me exclusively.

Great explanation Liz. When I work with a buyer, I give them my full attention and top service... so when a buyer tells me they are working with more than one agent, I will usually opt out of the "competition" for that buyer's purchase. But not without expanation...

To the buyer, I offer this question: "Would you get up early everyday, fill your car with gas, drop your young children off at day care and show up for work, and likely have to call your spouse to say you'll miss dinner because you're working late tonight if you only had a 50% or less chance of being paid? Because as a buyer, that's what you're asking each of your Realtors to do.... And they know it. So who's going to give YOU 100% effort for a less than 50% chance of being paid?"

Bernice Dubon in Calgary Alberta, Royal LePage Solutions

www.yourhomeincalgary.com

I Concur- The general public has little to no understanding of agency or Realtor relationships. Most will drive around calling sign numbers without realizing they actually have no representation. The same for sellers who really don;t research whom they would ideally like to have help them sell their home.

The agent that would want to work with these buyers (who want two agents) might be an inexperienced agent. Anyone with any experience, tenure will understand that this buying style may not produce a sale. There is a lot of energy and work expended and to think it could be "all for naught" if the buyer finds their home through the efforts of another agent . . . what's the point? Again, the seasoned agents steer clear, or obtain a non-refundable retainer.

Allison - So much of it is about US educating the public - and hopefully these blog posts and comments help!

Allison, I have been taught to explain how we don't gfet paid unless we actually get them a property or sell their property. That's how I feed my family, by getting escrows to close. Then they get it and the more honest people will become loyal.

Educating the public is the key here. I think the public will find that being a one agent client is in their best interest as well as the agent. Excellent information here. Thanks.

Great information about educating buyers. If I can't get their loyalty, I'm not working with them. If they won't give me that in writing, I'm history.

Now that I have many prospects coming in on my website I see ones that mark that they are working with a Realtor. I do send them one email letting them know that if they choose to leave their present Realtor I'd be happy to work with them. One was asking me lots of in depth info needed on different properties. I emailed him to give that to his agent so they could do their job! I'm exclusive!

I'm not working as a "multi tasked agent" They work with me as "buyer agent" for them or I cut em loose. I want their loyalty and will do the very best as their agent.

Patricia/Seacoast NH

Liz, good article. Sometimes we work with someone for a while before they finally let it slip that they have seen other property with other agents.

Great post because I feel the current market has created such chaos in the buyers head that they don't know what to do or who to work with.

Here yee, here yee, Liz does it again, you vary political in your answer, I like it. It's great to have you write about this because we here it all the time.

My 2 cents would be yes ask your agent to refer you to someone else if you are moving out of area, it is a great way to avoid the hassle of finding an agent that is a good fit.

The other bit is this, as an agent I am hard line on working with just one agent and like the idea of short buyer agency contracts to sort out the situation. I just provide a hassle free buyer contract that allows us to cancel at any time so I don't have to renew it if the process is going well.

Cheers!

I always learn a lot from reading these excellent comments! I've often wondered about this and sympathize with agent out in the field who works with buyers with no sense of loyalty to the real estate agent. Is this the approach we use when finding a physician, dentist, insurance agent etc...? If the buyer isn't willing to sign an agreement with the agent, it suggests they don't trust that agent. I would have to say the buyer "find someone you trust and commit to them, I'm not a taxi service".

Way to sum it up for the home buying consumers out there! I like this post and appreciate the work it took to pull it together!

With the MLS being computarized with automated notifications, why work with multiple agents in the same area when we all have access to the same system. It's not like someone is going to pull a listing out of a hat like in the "old" days.

Hi Liz, I personally like your analysis of this issue. However, it is somewhat complicated by the lack of understanding on the part of the clients ! If the clients understood the issue it would be far less of an issue !

Liz, a thought provoking and informative post. We need to continually educate the public...as they seem to forget how Realtors are paid.

That is a great post, can we print it out and hand it out to the next person that asks this?

Liz - This is a good explanation of when a buyer should work with more than one agent.

Hi, Liz. I think that people have gotten so used to instant gratification that they want what they want when they want it. They will be working with one realtor until they drive by a house that catches their eye and they call the number on the sign! Because so many people research an area online, they do find several realtors and will be emailing with them simultaneously. It is very disheartening to spend time with a customer and find that you are just one of many. I agree with Carol, if they won't commit to a relationship with one agent, that's a big ole' red flag!

I like this nice and simple so many buyers do work with more than one Realtor and many Realtors know they are and are okay with it ,,

Bernadine (comment #25) had a very good comment, "Would you be loyal to someone who wasn't working with you exclusively?" It is better for the client and the agent to show loyalty to each other by signing a buyer broker agreement. I had been communicating with a prospective buyer for nearly two years before he was ready to buy a home. He decided he wanted to "keep his options open" by having several agents look for homes for him. I wished him good luck.

Liz, I see the reasons for working with two realtors on some occasions. A buyer's agent for buying and one for selling your listing if you have one. Other then that when you find a good Real Estate Agent there is no need to work with more then one. They know your tastes and what you're looking for and the best way to help you--as long as you choose wisely.

That is one of the first questions I ask. Now a days people don't think twice about working with 3-4 at any given time. I refuse to waste my time if I can help it. Good post!

Liz my first question to a potential buyer is "Are you working with a Realtor?" If so, I respect that existing relationship and mention to the buyer(s) it is best that they work with their current agent. However, if they say they are not working with a agent I explain to them all the advantages to working with one agent. Once I have done that and they mention they want to work with several agents I thank them for their time and wish them all the best as they "leap frog" from one agent to the other.

A lot of buyers don't realize the benefits they have by enlisting one agent to represent them and in particular when it comes to limited dual agency. I have found most buyers like the idea of having someone in their corner as opposed to one agent representing both parties.

Bottom line is by having an upfront conversation with potential buyers you are able to ascertain whether or not you are going to be able to work together or not. Thanks for posting on this topic and congrats on the feature.

Jason Neumann

I look at people who want to work with several agents as patients who want to work with various doctors but only intend on paying one.....it ain't happening here!

Damon - here patients could use as many doctors as they want - and the government would pay all of them! :-)

Jason - really well put - love the wrap! :-)

Debra - We all know we're supposed to ask - i wonder how often we don't though? :-)

Carole - I think that's the key is rappore and trust - if they have it chance are they will!

Liz...

I wonder why we don't pander to sellers the same way? Why don't we want sellers to work with multiple agents, or sign a listing for a week?

Buyers DEMANDED agency, and AGENTS don't seem to want to give it to them. Makes no sense to me.

Richard - its crazy upside down backwards and inside out ~ I'm thinking that maybe some of that responsibility might lay at our feet? :-)

Uh oh I do know if I'm going to be able to catch up on all the comments - but I do want to say thank you - AND thanks for the Feature!

I so appreciate the individual comments - its so helpful to the whole post - and hopefully to our public that might be reading it! Thank you!

You've given a good explanation to the buyers and quite a bit for them to consider as have many of the comments.

I usually work with buyer agreements and explain why to my clients when we sit down. I am happy to have them get to know me before signing an agreement, and feel that they are important for both parties.

NOV

What a great explanation on this topic Liz. This is put into terms any buyer should be able to understand.

We really like to have our clients sign a buyer-broker agreement. It gets the client "on board" with you--- but I always tell them-- If you want to cancel this agreement at any time- just let me know and you can walk away. Kathy

I very seldom work without a buyer's agency agreeement. My loyalty for the buyer's loyalty. If they tell me they are working with another Realtor, I try to find out why they are not working with that person exclusively and then make a decision based on the response. I do step aside on any properties that another agent has shown the buyer prior to contacting me.

Fernando - thanks! ha......I guess the answer to that question would depend on who you're asking :)

Randy - yep it's a continual educating process - we assume that they know - sometimes the just don't know and I guess sometimes they don't care?

It would be interesting to see how many people get signed buyer's agency agreements - and those that have - what percentage?

Great post Liz. I solve this problem by requiring a buyer to sign a buyer's agreement. I'll show them a house or two first, but if they're not ready to sign by then, I politely part ways with them.

Liz ---- great post and one that every consumer should read ---most of the public does not understand our our profession works.

NOV

Liz - Some interesting points and over twenty years ago when I was purchasing Lake Lots and acreage in the Midwest I would use 2-3 different agents with 1-800 numbers so it didn't cost me anything to call them. Lot's and Acreage are a little different than Homes but it worked for me many times.

VB ;o)

Wow Liz! I should invite you to speak at my new agent CE class next week. Well organized & presented very logically. Come on hop on the next flight east. I feed my students . . .Mary

Great explanation - and congrats on the feature. I find that buyers who understand, but still "play the field" are buyers that I really don't want to work with. They probably won't be honest with you anyway, and just waste your time.

NOV

thanks Georgina - you could be right in some cases! :-)

mary yonkers - I'd love too.......:-)

robert -oh ya? you were one of THOSE guys were you ? lol

NOV

Liz - great post . . . I've reblogged it for readers in our area too. Thanks

Wonderful post Liz. Found it via Susan's reblog!! The title grabbed me, and I immediately thought, "YES, it's wrong to work with more than one agent...if one of 'em is ME!! :)" No two timing clients for me. LOL!!

Thanks susan glad you liked it! That's cute Sonja - thanks! lol

NOV

Great post, I did not realize a buyer could/would work with several Realtors in the same area. When I bought my first home I signed a contract with my Realtor and we only used her. If a buyer is loyal, I am pretty sure your Realtor will find you the home of your dreams. Thanks for sharing this info.