Home : Blogs : Kristina Pratt, REALTOR® SFR - GoshenRealtyGroup.com : Edwardsville Homes For Sale

Cheating On Your Agent

Everything was perfect. I had a first time buyer that was pre-approved and motivated to find their dream home. We spent countless hours together. He relied on my expertise and market knowledge, and I happily showed him house after house. We met for consultations.

Then we wrote two offers together. One finally got accepted, but the whole house inspection turned up sour, so we began the process over again. I thought everything was going great. Until the phone call...

John: "Hi, Kristina? This is John Doe. Did I sign anything with you saying I had to buy a house through you?"

Me : <stunned silence> "Umm, well not specifically. Why?"

John: "Well, I knew you had family obligations today so I was driving around on my own. I drove past one of the houses you e-mailed me, and I really really liked it. So, I called the agent on the sign. She came out right away and showed it to me. And you know, what? She told me I could actually get a better deal if I bought directly from her. We went straight to her office and wrote an offer and guess what? It got accepted by the sellers! Isn't that awesome? I just wanted to tell you thanks for all your hard work. I'll send you a Christmas present."

<click>

I felt like the wife that just found out her husband cheated on her. Did the buyer know any better? Probably not. He wasn't trying to keep me from getting a paycheck. He simply didn't know - because I didn't tell him any different. He thought I would be sincerely excited that he got the house he wanted. Did the agent know better? Probably, or he wouldn't have asked me if he had signed anything.

This was back in 2005, when I first got my license. Since then, I've found that I have to be the one to educate my buyers. Although I've still had a few buyers get cold feet, their financing falls apart, or they just flat out change their minds - I rarely have a buyer call the agent on the sign.

So how do you keep your buyer from straying? It's simple - just educate them about the process. If you don't focus on building a relationship with your buyer and explaining to them that they have responsibilties in the process too, who will? The answer is either no one or another agent. Remember, most buyers (especially first time buyers) don't know the inner workings of real estate. These are the five key points I tell all of my buyers.

1. Don't call the agent on the sign. I will do everything in my power to be available during the times that you need appointments, but I'll need some notice. If I can't show you homes at that time, my partner can.

2. I'm your advocate. I'm looking out for your best interests, and I want to get you the best deal. I'm on your side in this process and we are a team.

3. I don't get paid a salary, or per house I show. I only get paid when you buy a house.

4. I'm making a commitment to you to share my time, expertise and market knowledge. I need you to make a commitment to me that I am your agent. (After a few showings or when it's time to write the first offer, this is when I bring out the buyer's agency agreement.)

5. If we work together, we can have a successful outcome.

The key point is this - Never forget that although we do this every day, not everyone does. It may seem simple to us, but to others it's not. Help your buyers understand how the process works - it's not just for your benefit, but for theirs.

About the Author: Kristina Pratt is a REALTOR® with Goshen Realty Group at RE/MAX Preferred Partners in Edwardsville, Illinois. For more information, visit their web site at http://www.GoshenRealtyGroup.com or e-mail Kristina@GoshenRealtyGroup.com

Posted by Kristina Pratt, REALTOR® SFR - GoshenRealtyGroup.com on 11/18/2009 09:39 PM

Comments (108)

Working With Buyers in the ActiveRain Channel

working with buyers

Generate short URL

Post is included in group: Almost Anything Goes
Post is included in group: Realtors®
Post is included in group: The "young" Real Estate Professional
Post is included in group: Club Chaos
Post is included in group: RE/MAX Active Rain Bloggers

108 Comments on Cheating On Your Agent

NOV

2009

Kristina, this is one thing I immensely dislike about real estate. I don't understand that lack of "understanding" or respect.

We've had buyers who were SIGNED, call agents on the sign. I have never had it happen to me, but a couple of my agents have. Only two went through with the deal, and we didn't pursue them for commission, however, if it happened to me, I might be tempted. Thorough education of the buyer is very important. I bookmarked your blog to reiterate to the agents how important it is to make the buyers aware of their responsibilities, too.

this is so well written Kristina - i felt i was right there in your shoes - and I don't think your buyer was quiet as naive as he pretended ....not to mention the other realtor! dang it anyhow eh? Have you thought of adding the re-blog button - it's a great post to re-blog to educated the public at large!

You're so right, Don. It really is a two-way street - a true partnership between agent and buyer. We all have responsibilities in the process, and if a buyer doesn't know what they are, how do they know what they are supposed to do? Thanks for commenting!

Dear Kristina,

I could not have said it better myself. It is our responsibility to educate them on the process.Thanks for sharing this difficult learning process.

Cheers,

Betina

Having no respect for someone's occupation really bothers me.

Maybe this is our chance for a new real estate reality show on HGTV. We can combine the best parts of two existing programs, CHEATERS and PROPERTY VIRGINS. (Nobody ever cheats on that mean gal from Property Virgins!) We can call it VIRGIN PROPERTY CHEATERS.

Thanks for posting Kristina. That used to happen to me a lot when I was selling real estate a LONG TIME AGO. Now that I am in the mortgage business it still happens but more often. Many hours spent with borrowers only to run off with another loan officer who is showing a rate that is 1/8 lower but is hiding the origination fee. A perfect example of how honest guys often finish last. At least I can sleep at night.

Eric J - Stated Income Loans

Dream Home Financing

Happened to me once, too, but my contract fell apart at appraisal (this was at the peak of the market a few of years ago, believe it or not, when appraisals always came in!). The buyers called me one Sunday afternoon to show them a property they had driven by (that I had emailed them, by the way) and because I was at an open house I missed their phone call. When I called them back, they had already scheduled a showing with another agent and ended up buying the house. While it was my own fault for not getting a BA agreement, and not answering my phone, it still hurt tremendosly! I rarely work without a BA anymore. :)

Hi Kristina -- Been there, done that -- unfortunately. One tends to wise up after getting burned a few times. Probably won't be the last, but education and communication and expectation setting are keys, in addition to an BBA, depending on the agent's perspective.

Liz - Re-blog is now on... :)

Betina - Glad it helped.

Nancy - You might have something there. Go get that copyrighted. We'd be an entertaining duo. (Hear that, HGTV?)

Eric - I can see how that happens in your industry too. It stings for a while, but like you said - being able to sleep is a good thing.

Shelly - We work with a BA almost 100% of the time now as well. We typically don't present it until the buyer is ready to write an offer. We want to make sure we can all work well together before we ask them to sign anything.

Chris - Thanks for stopping by. It took me a few years to learn how to educate buyers, and what to educate them about. Experience helps tremendously.

Kristina, this has happened to me in a different version - where they were working with two agents without letting me know and decided to go out with the other agent on a day when I had spent hours preparing for them. It was like being hit in the stomach. But I got over it. Sorry you had that experience.

Do you have a buyer/tenant rep agreement in IL that your buyers sign before you start showing? This is the perfect time to discuss all of this and it specfically states that you are their agent and are owed a commission if you are the procurring cause of find them a house...which you were! If you don't have this agreement in your state, I'd write someone and ask for them to implement it!

I'm really sorry that happened. I hate counting the hours I put in "pro-bono!"

Kristina.. It is very important for buyers to understand the process and that we do not drive company cars either..

Your 5 points are great !

Sharon - Thanks so much. Unfortunately, it's part of the territory.

Aja - We do have buyer agreements in Illinois, but I was so new the ink was barely dry on my license - so I had no idea how to present one or use one for that matter. :)

Roland - Yep, I forgot one... company car! I wish... :)

Great Article !

Sent it to my office e mail list. I hope it will help a few new agents. I know it happens to us all when we are new.

Sharyn Guzzi

Owner/ Broker

It can happen at ANY time...people get amnesia when caught up in the moment...

Great post and very sorry that it happened to you, Kristina.

This sounds like the other agent violated the Realtor Code of Ethics by telling your buyer they could get a better deal by going directly with them. It's tough to prove, but that happened to me 5 years ago, and I remember that agent incident to this day. They buyer had the audacity to call me and ask about which home inspector to use.

So, I called the agent on the sign. She came out right away and showed it to me. And you know, what? She told me I could actually get a better deal if I bought directly from her. We went straight to her office and wrote an offer and guess what? It got accepted by the sellers! Isn't that awesome? I just wanted to tell you thanks for all your hard work. I'll send you a Christmas present."

Absolutely unethical, I am mad for you! Geoff above is right. BUT you know? What goes around comes around. I would report her to the broker at the very least.

An example of what not to do. Good topic.

I wish educating the buyer was the answer to the problem, however they can get all the education they need from the internet about how to "play" the real estate game.

When buyers decide to use the selling agent and abandon their agent, I believe they know EXACTLY what they are doing. I hope you sent the Christmas gift back.

Sharyn - Glad I could help!

Candice - Thanks! You're absolutely right.

Geoff - Wow. If you were a good enough agent to ask for a referral of an inspector, then they should have bought with you. :)

Lane - Exactly. Unfortunately I was too new to the business to know exactly what happened. I was totally in shock. Thanks for the comment. I hope some new agents can learn from my mistake.

Dan - You're right - it's not just about educating the buyer. It's also about building a relationship with them. Little do they know that by going straight to the listing agent, they just turned from a person into a big fat juicy steak. I want buyers to understand that not having your own representation does not save you money... it does the complete opposite. And as a side note, I never even got the Christmas present! :)

Great blog Kristina, I think that the many people in the general public have it in their minds that we get the entire commission on both sides without splitting it with the other agents or our broker, or that we work on salary!

There are agents out there (we all know them) who do not respect Buyer Agency and will do whatever it takes to double side a deal. There are buyers out there who don't care about or respect anyone but themselves no matter how much we educate them about the process. I'm sorry that you had to go through this but we all do at least once. This is an excellent example of why some realtors just won't work with buyers anymore. Period.

Buyer Broker Agreement-

Once upon a time, I landed in Israel and needed a place to RENT (not buy) for a year. I called an agent and he met me in my neighborhood. He asked me some questions about what I was looking for and then requested my Israeli identity card. I asked why he needed this. He told me in no uncertain terms that I couldn't even begin to look for a place unless I signed a 'buyer-broker' agreement with him on the spot. This was protocol and there was NO way around it. Just for a rental! It was simply a fact, period. It goes without saying that this was required for purchases of real estate, too.

Imagine if all us, agents, brokers, Realtors alike, treated our business like a business and not a job. Our lives would be easier if 99% of us demanded this paper signed.

Scott Miller, Realty Associates, Boca Raton, FL

Great post and so depressing! I had a buyer do that to me and he HAD signed a buyer-broker agreement with me. Sometimes the paeper doesn't mean anything to them even if the do sign it.

I hate that for you! I agree, the other agent probably should have asked the Golden Question-"Are you working with a Realtor?" I learned a saying and I hear myself repeating often to help me get through sometimes... Some Will, Some Won't, So What, NEXT..I have to tell myself this to not dwell on a deal that I almost had and move on to making more deals.

NOV

2009

Hi Kristina,

That's a brual learning curve. Dual agencies are allowed in both California and Nevada with a signed disclosure, but I've always had a problem with the conflict of interest issues when it comes right down to it.

Kristina, I'm a little confused. In TN, we have to have a signed buyers agreement prior to writing any offers. You said you had written offer for this guy, aren't you required to have a signed buyers agreement to do that?

This just happened to me with a client whom I'd helped sell her home last year (getting a great price before the market dropped). After being escorted and squired around by me and my team, and having written several offers for her, she called last night to say she bought a not on MLS home with another agent, and "You're not mad at me are you?"

Then she had the nerve to call MY handyman 8 times before noon today to try to get him to come give her a FREE estimate on her "great deal."

Thanks for a well put reminder on how to state this simply and meaningfully.

This blog hits the heart, work hard for someone and then be cheated on! People have no loyalty!

It is our job to educate the buyers -- many are clueless and seem to thing we are on a salary or something. Get them on a Buyer Broker Agreement right away --- they might still cheat and stray , but you do have something signed if they do. Feel badly for you that this happened to you.

I adore the way you summed up the agent buyer relationship in five easy steps. I recently had a version of this scenario happen to me. Even though our duties to the seller and buyer are outlined in Colorado contracts, the duties of a customer to an agent is not. I am going to copy and paste your tips and then I can find creative ways to work them into a conversation with the buyer. Thanks for the inspiration.

I have a sheet with rules that I give to my buyers, so they understand that we are "married" throughout the home buying process. I will be true to them and they will be true to me.

On a side note, I love that you have the widget for the Iphone. How does that work?? Do I need to have an Iphone??

"Professionally Bringing Home Buyers & Sellers Together"

How frustrating that the other agent could do this to a fellow agent.

I'm certainly with Scott Miller comment #25 on this one...

The first 20 minutes of meeting with any buyer should be a brief explanation of the process and a signing of a Buyers Brokerage Agreement...

I educate as well. No signed buyer agreement, then, buy-buy :) I'm not taking chances of being a chauffer only to find they are just looking.

Listing agents who promise a better deal if the buyer purchases directly from them are a disgrace to our profession---it reflects more greed than good representation and fair dealing.

Kristina,

Been there, done that, got the tshirt. It is a difficult lesson, but once learned, hopefully prepares us to change our behavior in the future.

In the end it is our responsibility to insure that buyers do understand the home buying process fully.

Rich

Expensive lesson. . .simple solution. Implement a policy that will never allow for that to happen again and go on. .

Consumer Education is key! Buyer just don't understand....

Kristina I think we have all had this experience at one time. Right from the start I set the expectation, I go through the scenario of seeing a property while driving around and what not to do. And cover the Buyer Agency Agreement.

Even with education some will behave in this manner which shows a lack of respect.

Kristina:

Those five points are great. It sounds as though you had not yet signed a buyer agency agreement. This needs to be done right away. Poor guy - he sounds a bit clueless. How does he think you make a living?

Kristina,

It was a tough lesson but you learned quickly. Its all in educating the buyer and getting a signed buyer's agreement. I had someone in my office who this happened at least 3 times a year..she didn't get it and couldn't bring herself to ask a buyer to sign one! SI don't think she is real estate still!!

Kristina, you learned a tough lesson early on. Who hasn't?

You can harp all day about this to folks but it takes the pain to teach many the lesson.

Explaining the difference in Agency Relationships should be done on the first appointment. In Michigan it is required, but many don't do it. Only haviing them sign when they write the offer.

Some buyers know and don't care

Other's simply don't know the difference.

I've had exactly the same thing happen to me. One solution is to always have a buyer agency agreement. Even that is no guarantee of loyalty.

Before I take a client to look at homes, I have 4 docs to have them sign. The first 3 are the Agency Disclosure, my service guarantee, and a copy of the Buyer's Advisory. After we have discussed those, they are usually willing to sign the Buyer Broker agreement. A few times they have not wanted to sign it because of a bad experience with another agent but by the end of our first appointment to look at homes, they are ok with it. I am glad my broker requires it to be signed. Keeps me from putting it off until later.

Kristina,

Thanks for the reminder... there are probably not too many of us here to whom this hasn't happened! Good points to keep in mind!

Sue

Kristina:

Ouch, I have empathy for you, the sting, is that for all the time that you invested, with this buyer ---- it went un-rewarded. I know many agents will say oh, you won't make that mistake again etc.

The jury is still out as to the loyalty of a buyer, or a seller for that matter. I have had BA with buyers that wanted to get out of them because they wanted to buy the home from the listing agent, "because they can get a better deal'.

Unfortunately, there is no absolute when it comes to working with buyers.

Very good points to consider. Especially for those just new to the business. I always try to get something in writing as soon as possible when working for a buyer. At the very least I make sure they understand that I am working for them and their best interest and that they are under no obligation to buy a house or property through the listing agent.

Kristina, The third item in your "education process" is the most crucial for most buyers to know I don't get paid if you don't include me! At the end of very first meeting, I tell my clients I will work very hard for you and I need to be compensated for my time...as you are in your job, call me if you see anything I have shared with you and we'll go over the pros & cons then schedule a showing if it works for you.

Never had them call another agent but they did go behind my back to deal with a FSBO! Sometimes you can not guard against character issues though!

Almost five years (on and off) I spent showing a very skittish buyer and her extremely passive husband countless properties and several offers only to have something go awry....Her father was out looking at homes on open houses and wanted them to buy a house he saw (dreadful location on a very busy street) and they did from the agent sitting the open house...If only I knew who wore the pants in the family on this one (and it wasn't even someone I'd met!)

Kristina,

That was a very well-written post. And, you're right about the process. Sometimes the "client" will actually think that you should be excited for them.

I 've heard this story a few times. I'm lucky that it hasn't happened to me, but it could.

Brian

Great points Kristina, I've learned the hard way. I provide superior service and don't work with anyone who doesn't sign on with me.

I have found the few times that has happen to me, where they worked with some one else after i had busted my hump for them. I find in the end they were a pain to deal with and the other agent wished they had never met them. In the long run these folks would have been a problem for you. This is a blessing in disguise. And yes that other agent needs to be put on notice. Maybe they would like to repeat that "better deal' statement in front of an Ethics Panel.

After my initial meeting with a prospective client I ALWAYS get a buyers agency agreement. I explain the benefits and they happily go with me.

I think that we have all been there. Even educated people that seem to know what they are doing don't always understand how we work. Educating them is the key. Good post.

In a state that has declared agency I find it odd that you would not mention a Buyer's Agreement. This agreement defines the client relationship and is the precursor to any relationship. The five points are great, but signing the Buyer's Agreement is the key for everyone.

Kristina - good post. It is unfortunate that this happens. I have real difficulty seeing how as Realtors we are required to be ethical, yet so many Realtors will do this type of thing "you will get a better deal if you work with me". It just floors me that so many agents don't see anything wrong with that.

kristina,

I had the exact same thing happen to me. Work with them for 5 mos made 40 mile round trips to show houses and could show one house at the exact time they wanted to see the house so contacted another agent to show the house.

Buyers can be downright mean! Something similar happened to me but this lady knew better. Ihad been out with her and her family abd 3 evenings in a row. She actually made an offer but it was turned down. She waited a few months went to the lsiting agent made the same offer and it was accepted. I was furious! But there was nothing I could do but email her and tell her how disappointed I was after all the work I did. Her comment was that she was a "straight shooter" and knew how to ge the hosue for less, hardly a straight shooter, but what goes around comes around. That is a problem with working soley on commission there is a lot that is just not fair, wish we all charged by the hour!

Kristina - I believe we have all had something similar to that happen at least once. Your advice is spot on ... it is up to us to educate our clients ... and make sure we are working with people who know what loyalty is.

UGH! Something similar happened to me. What goes around comes around. Sorry you had to go through this. Working on soley commission makes listing agents unethical. Wish we all got paid by the hour and when someone buys we can reimburse them after we are paid the commission. On to a better client!

It sounds as though your buyer knew exactly what he was doing, since he asked if he had signed anything with you. And the list agent was unethical, as well. So sad that people feel the need to cheat others like this.

Those 5 Points are EXCELLENT! Thanks for sharing them! This has happened to most of us...even if we don't know it. It could be that the client who "disappeared" didn't drop out of the market but found a Realtor to show a home on the evening you had your child's piano recital!

Good points I'm bookmarking it and re-blogging for my area!

Kim

Sounds real familiar. No matter how you educate them it still happens.

I think buyers are doing that more now than ever (in my market) because with the multiple offers occurring on most homes, it's one way to have a chance at buying the home. Most listing agents will try to double end the deal, so if a buyer goes directly to the listing agent, they have a better shot than running around with their own agent. Unfortunately, buyers are figuring that out.

something I would like to point out-are some commenters not reading the whole post or missing the fact that this incident you are talking about happened back in 2005? Geez.

Sorry to hear that happened but it was a good learning experience and it has happened to all of us.

Did you get the Christmas present he said he would send?

I agree with Steve, "I don't get paid if you don't include me" many people have no idea, and think we're employees.

I make the speach right up front about how I get paid. I always stress that the agent on the sign has a fiduciary duty to the owner of the property not the buyer.

Great lesson for a newbie like myself! I would just be furious to be left out in the cold like that!

This is one of those lessons that we all wish we hadn't had to learn the hard way. I really liked your 5 point list for buyers - direct, to the point, and spelling things out in plain language.

Thats why, exceptin very rare cases, I need to have a signed buyers agreement before I will work with the buyer. If they are reluctant to sign for 90 days, then, 60, or 30 or maybe even for one property that they wish to see. Unfortunately, the buyers agreement really has no teeth legally. Most people when they sign something feel obligated to keep the commitment.

Sybil - Exactly! If I got paid a salary for every house I've shown, I'd retire! But many buyers don't realize that.

Jenny - You're right... after I finally learned what I was doing with buyers, I started using a BBA. Even that doesn't protect me 100%, but at least I can try and go after my commission.

Brittany - If only someone told me that when I first got my license...

Andrew - Dual agency is tough. Even though it's legal, it still seems like a fine line to walk. I've never done a transaction with dual agency.

Tammie - In the post I mentioned that this was in 2005 when I first got my license. I had no clue what I was doing - I was hoping my story would let newer agents learn from my mistakes. At the bottom of the post, you will see that I now get the BBA signed.

Michelle - Some people are just bad apples, I guess. No matter what we do as agents to educate them and help them through the process they will never work out.

Cheryl - Thanks!

Mark - Thank you!

Bob and Carolyn - Absoultely. I'm glad I learned this lesson early on. I know some agents that have been in the biz far longer than I have that still don't use a BBA.

Sabrina - Thanks so much!

Mary - Yeah, you do need an iPhone to use the MLS app, but it's coming soon for BlackBerry and Droid. :)

Vanna - I know, and it happens so often. A few bad apples...

Paul - It was 2005 and I was new... I use a BBA now.

Jackie - I hear you. Unfortunately, not every agent requires it - so any buyer can find an agent to work without an agreement.

Norma - If I had known better at the time, I would have took it to the ethics board.

Rich - Absolutely.

Fernando - That's been done and implemented for about 3 years now :)

Debbie - Spot on.

Jennifer - I wish it was 100% effective, but unfortunately it's not. There will always be a few people that do whatever they want regardless. The good news it, most of them are honest decent people that just need some guidance.

Claduette - Thanks for commenting. I did not have a BBA signed, this was actually my first buyer client ever back in 2005.

Dorie - I can't believe the number of agents that don't get one signed - ever. You wouldn't list a house without a listing agreement, so why work with a buyer without one? Is it wrong for us to expect a paycheck? Some agents think so. Great comment.

Missy - You summed it up nicely with your last sentence. I know I can't prevent it from happening 100%, but by offering up some education and getting a buyer's agreement signed it certainly helps cut down the chances.

Brian - You're right.

Deanne - Thanks for the tips. :)

Sue - Thanks!

Lorraine and Loretta - You're so right. There is no guarantee. That's why it's so rewarding when it does work out in the end.

Doug - Exactly. :)

Steve - Thank you - you're one of the agents that does it right.

Gary - Great point.

Penny - Wow. What a story. Can't top that one! :)

Brian - I sincerely hope that it never does.

Sara - Thanks for commenting.

Rob - Yeah, the "better deal" statement was the icing on the cake.

Laura - Isn't it amazing how if we just take the time to spend 10 minutes at the office before jumping into showings it makes such a difference?

Jody - Thanks. :)

Chris - I did mention a BBA at the end of the post and again in the comments. Also, you'll notice in the post that this was in 2005 when I first got my license... almost four years ago. With little training from my former broker, I didn't even know what a BBA WAS much less how to use one.

Joyce - Unreal, isn't it?

Mary - I think part of it is that we are in the age of instant gratification. Some buyers just can't wait to set an appointment.

Deborah - You're right - what comes around goes around. I've decided lately that when something like this happens, it's probably a blessing in disguise. :)

Kathleen - Thanks for the kind words.

Stephanie - I am 99% sure that the other agent asked him if he signed anything after they realized he was working with someone else. When the answer was "I don't know." he figured he better call and find out.

Kim - Thanks for the re-blog! :)

Ted - You're right, it's not fool-proof, but it helps and only takes a 10 minute consultation.

Andrew - That's interesting... I never thought of that.

Angelia - You took the words right out of my mouth... lol. No, I never did get my Christmas present... wonder what it was? :)

Geoff - Exactly... some people really just don't know.

Dennis - Good for you. I'm glad to hear that. It's not a bad thing for us to want to get paid for our services, yet so many agents shy away from the conversation.

Hi Kristina!

The buyer says,"I just wanted to tell you thanks for all your hard work". Yeah, thanks for wasting your time and money. I believe a few buyers don't know how it works (yep, some of them probably think we get a salary of some sort and drive company's car), and some of them simply don't care. Like other people said in their comments, that is the part of the business I don't like: no respect, no loyalty, no honesty. Sorry you had that experience. I was talking to one of my friends yesterday and he said, "Your business can cause a few blows at your ego". So true.

Great post.

Fool me once, shame on you, fool me twice, shame on me, fool me thrice, I must be a real estate agent. Oh how many times have all of us had this scenario, signed or unsigned!

I just had one that I showed my own listing to, loved the house, sent her to a lender, she did not have an agent, explained agency a bit, sent her off to follow up with the lender. Called her up 2 days later to see how it was going, her friend told her to talk to her old agent. So on the flip side, listers get cheated on too. LOL. Now after I spent 2 hours with them going over it all and the house and such, they have a buyer agent.

There's always that sinking feeling when you've been working with someone and suddenly they don't return calls or emails for a week or two. Then finally they chicken out with an email saying they bought. Signed or unsigned, it happens!

The ones who do that simply because we couldn't show a house at a particular time they wanted, those really get my goat. I need to clone myself!

Unfortunately, it happens. Hopefully the buyers don't do it intentionally. I get used by realtors to get them LSR's and then they use another lender. I do the heavy lifting of making sure they qualify. Frustrates me because I don't get paid unless the loan funds. People don't respect one another like they should.

Here is my take on things.....If everyone used the Buyer Broker agreement (not just the Buyer agency) then we would all be better off!

I like knowing that my duties to them are clearly defined, and that they owe me the percentage missing on a reduced commission sale if they choose a house with less than my stated fee, during the time that they have agreed to work with me exclusively. I like to dedicate my time to the "A" list of buyers who have signed an Exclusive Buyer Broker agreement. I can show them FSBO's and everything in between, short sales, foreclosures with a less than desirable commission for my trouble, and know I will get paid. The buyer usually feels scared in those transactions and they want and need my help. My help costs money, my time is valuable. If it is a regular transaction where the seller pays the fee and my buyer does not have to, that is even better!

It happens....but if you get a signed agency agreement it won't happen.

Patricia/Seacoast NH

I think you have to explain this concept to [especially] new buyers. But there are lots of buyers who don't care even if they have that understanding. That can be very difficult to deal with. The nicest seeming person can be the one who ends up "cheating".

Just this week, a buyer had the audacity to meet with another agent in our office when she was already signed up with two other agents--in our office! This person was not naive--she knew what she was doing and had no problem wasting everyone's time. Fortunately, one of the agents sent out an all-office email warning everyone and now the buyer officially has her walking papers! Unbelievable!

It's happened to the best of us, and as much as we say that the people don't know it, I think many of them do understand that what they are doing is awful.

Been there, done that, got the shirt to prove it! I learned the hard way early on in my career and now I am totally into educating my buyers. I even have a power point buyer presentation that is very much like a listing presentation that explains the process to buyers. It also paves the way for getting a buyer rep signed.

Kristina - This is a very well written post. This happened to me as well except my buyer walked into an open house, asked if the listing agent would honor my relationship, and he refused. She bought the house from him anyway and tried to send me a 'thanks for your effort' kiss-off check. I sent it back.

It hurts BAD. I know I should have them sign the buyer agency agreement, I just always get nervous that they will turn me down!!

Ouch ouch ouch ouch ouch!! I had this same thing happen to me earlier in the year. Live and learn. Thank you for sharing your experience and giving us all a reminder to educate our buyers!!

Kristina,

I feel your pain.

Christanne,

Are there no repercussions in your state on the listing agent for not honoring the agency agreement or was your agreement not in writing?

I like your five points. I guess you've got to educate pretty much every time you're out with the same potential buyer. Reinforcement, reinforcement, reinforcement.

I've had it to happen to me too....it stinks. I don't ask for buyers to sign the buyers agency agreement.....I don't think it helps much...if they go to another agent and you press the issue...all you get is a bad rep from the buyer and the other agent.....I just mumble under my breath and say NEXT..... it's not always easy but you can't dwell on it or it will drive you crazy.

Kristina.....i was in class one time that advertised these passports that you give all of the buyers you are working with and you tell them to always present it to any other agent that they come in contact with....wish I could remember where to get those!

I've had that happen to me too. It's a stomach wrencher! Then you just want to strangle them. After the shock, I start trying to figure out what I did wrong. Glad to see you are educating your buyers now.

I know it stinks but ... GET A BUYER'S AGENCY signed. Period.

I am sorry if that came off harsh. I learned a long time ago -- no buyer's agency, no right to complain.

Buyer's don't care about who gets paid. They care about getting the house. Period.

You need to CYA at all times or your broker cannot support your claim that you should be paid.

No BA, no right to a paycheck.

Erica -

You didn't come off harsh. I respect you enough that you don't need to apologize to me. :)

The post was intended for newbies to learn from. This was the first buyer I ever had, and I didn't know how to deal with them properly. My broker didn't even tell me a buyer agreement existed, much less how to effectively present one to a buyer. I agree with you 100% about getting the agreement signed.

Sorry it happened but on this road many lessons to learn. I am sure I have more coming but been there, done that. It happens and we learn, great point... educate the buyer.

You got the feature - cool :-) And thanks for adding the re-blog button!

NOV

2009

There is only one way to avoid losing home buyers to Open House activities.

SERVICE.

Kristina, I think this is part of a learning curve. I had that happened to me once.. and I learned my lesson fast!! I do NOT work with buyer's without the Buyer Broker Agreement. Before I take a client to see properties, they must meet with me and learn what I will do for them, and what they will do for me!! Also I want to make sure they are well qualified. I have incorporated my Buyer Broker Agreement with the package they receive. This is all about service!! Thank you for the wake up call...POST. Make it a great day

It is amazing what the temptation of saving a few dollars can do. We have so many amazing experiences some really good some heartbreaking all dealing with integrity. It can really be disappointing to have gone the extra mile to learn that you have been dropped for no reason. We get 95% of our buyers to do a Buyer agency, if they won't we try to do the best we can but are ready to move on. We are in a small town so word travels fast and most of the Realtors here work well with one another. We have seen ethics violations regarding procuring cause and the right resolution has usually taken place. All you can really do is be honest and do your best, your reputation will proceed you. We always ask if "are you working with a Realtor" if the answer is yes we always direct them back to the agent. I know some agents do not ask or want to know, the client is not honest, we can not do anything about that.

So if I stand on the busiest street corner and wave at the passing cars and the occupants wave back does that make them my clients? I know some that might say yes, food for thought.

NOV

2009

It is amazing how many times buyers call me with questions about one of my listings or ask if I can show them one of my listings. The first words out of my mouth after hello, are "Do you have a signed Buyer Agency agreement with another REALTOR. Their answer--no we are not working with a REALTOR-good news; or, there is a REALTOR who has been showing us houses but we never talked about any kind of buyer agency agreement--also good news.

My first visit with a potential buyer client involves a discussion about agency and the signing of a Buyer Agency Agreement. When they understand what my committment to them will be, 99% of them will sign that agreement and abide by it. If they do not want to sign the agrement, then, I am sure they can find a lot of other REALTORS who will show them tons of houses wihtout that agreement--I will not. I am warm, cozy, fuzzy, loving, supportive, understanding--but, I am also a professional. Amazing how buyers will operate when they understand the process and the ethical responsibilities we have to each other.

Great comments.

Kristina,

Excellent post! I had this happen to me recently. It was a lesson learned. Enjoy the rest of your weekend!

Your five points are well worded. As listing agents, we need to ask buyers if they are working with an agent. Sometimes, the question must be asked in different ways to elicit an accurate response. If more agents would do this, there would be no Christmas gifts from former clients.

NOV

2009

Kristina, thank you so much for sharing your experience. You made some very important points.

Unfortunately, as agents we all experience this at some point from one side or the other. I have always made a point of explaining the process to my clients at the first meeting. Then I take them out and show them a few homes. After spending some time together and getting to know one another, we make the determination if we want to proceed and have me to represent them, (and I them). I ask them to sign the agency agreement that same day. I have never had anyone resist signing. I have been approached by many people asking me about my knowledge of my market. I have learned to always first ask if they have already been working with an agent. If they have been, I then ask if their agent is aware they are speaking with me. I ask if they've given their agent an oppotunity to meet their needs. I gently explain the process to them. (I then call their agent and let him/her know as I would appreciate the same.)

Buyer just have one goal...getting the best "deal" on their home. As Realtors, it is our responsibility to protect our business.

OMG I had an eerily similiar experience this year. It was very painful.

Some people just don't respect your time.

I was that uneducated buyer when I was buying my first home. Although I didn't "cheat" on my Realtor, per say, I did make some of those sign calls when my Realtor wouldn't answer her phone. I truly didn't understand the way the process worked, and that she didn't get paid until I bought a home. I appreciate that life lesson now that I am in the business. Thanks for sharing your experience!

DEC

2009

This is a wonderful reminder of how to tell your clients what to do .. Thanks so much!

AUG

2010

I guess the old saying "a lesson earned is a lesson learned".

Good reason to have the buyer sign a buyers rep agreement.

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?

Kristina Pratt, REALTOR® SFR - GoshenRealtyGroup.com

Edwardsville, IL

More about me…

St. Louis' Illinois Suburbs - RE/MAX Preferred Partners

Address: One 157 Center, Edwardsville, IL, 62025

Office Phone: (618) 655-1188

Cell Phone: (618) 917-0775

Email Me

Listings

Links

Archives

Find IL real estate agents and Edwardsville real estate on ActiveRain.

Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.