OUCH! Saying "NO" to a Buyer Hurts, But It's Ultimately For His Own Good

Early last year my partner and I met a potential buyer during an open house we were holding at one of our listings.

He and his wife and kids came through the house, looked around a bit and left. He signed in and provided his e-mail address, so we sent them a thank you note for coming to the open house, put their names on our monthly newsletter list and didn't think too much about them afterward. They just hadn't struck us as a family that was actually ready to buy a new house at the time.

AS IT TURNS OUT, WE WERE RIGHT.

This morning -- not quite a year later -- I received a call from the same buyer. I was in the shower, so the call went to voice mail and the message went something like this:

"Hi, this is JOE BUYER. I want to look at a house on PLAIN STREET in Edwardsville today between 11 a.m. and noon.  Call me back." (Plain Street is in the same neighborhood as the original open house where we met. He wanted to see newly listed house today...and in less than three hours.)

I called back and Joe's wife answered the phone. I told her I was returning his call about a house on Plain Street.  "Oh right," said Mrs. Joe. "He's out loading the kids in the car. We're looking at a bunch of houses today."

OH, REALLY?

"So, you're already working with another Realtor?" I asked.

Mrs. Joe said no, they weren't. She noted that Joe was setting today's showings up himself. Rather than cause further confusion, I asked if I could hold on and speak to Joe as soon as he became available. In just a couple of minutes, Joe came to the phone and I reminded him of how we originally met. I asked what they had been doing in the almost-year since we first ran into each other and asked if they were already working with a Realtor.

"We stopped looking, but we're ready to resume our new home search now," said Joe. "And, no, I'm not working with a Realtor. I just called all the listing agents for the houses we want to see today."

(As an aside, I must have been the only non-listing agent he remembered, thus the call re Plain Street. Score one for keeping in touch, but score zero for proper buyer education.)

I TOLD JOE WHAT I TELL ALL SERIOUS BUYERS:

Joe, did you know that the listing agents you called this morning are working for the sellers of the houses they're showing you? They are duty bound to get their seller the best possible price on his property...FROM YOU.

Did you know that you are allowed to have an agent -- a Buyer's Agent -- to represent your interests in the negotiations and the transaction on the house you choose?

Joe, your Buyer's Agent will work with you to find homes that fit your needs and wants, give you pros and cons regarding the properties you like and -- once you decide which house is best for you -- they will negotiate with the seller via the seller's agent to get you the best possible price in the current market.

Did you know that your dedicated Buyer's Agent also will set up the proper inspections and negotiate with the seller via their agent again on your behalf if repairs are needed on the home you choose?

Then, Joe, your Buyer's Agent will handle the dozens of details that need to be set in motion and finished to lead to a successful closing.

And...here's the best part: The services of your Buyer's Agent will cost you nothing. That's because the seller pays a commission to his listing broker who then splits it with the cooperating buyer's broker if there is one.  And contrary to some bad advice being circulated out there, you will NOT get a better deal for yourself by going directly to the listing agent. Their deal with the seller was already struck when they signed the listing agreement. The seller might get a better deal if his listing agent brings the buyer to the transaction, but you won't.

JOE, THE SELLER HAS AN AGENT. SHOULDN'T YOU?

I closed the conversation by making sure Joe knew that I would be very happy to show him the house on Plain Street as well as any other houses they would like to see, but that I only work with buyers who are working exclusively with me. To do less would not be in their best interest. Buyers who wander from house to house without the help of an exclusive buyer's agent relationship almost always waste their own time and the time of multiple agents.

I love to work with buyers, Joe, but only when they are ready to buy the house of their dreams by using an agent who can achieve the results they want and deserve.

Good luck today, Joe, and don't hesitate to let me know when you're ready to use a Buyer's Agent. I'd enjoy being your agent, advocate and advisor and helping your family find the perfect place to call home.

It was a cordial conversation and it seemed that I could hear the lightbulb going on at the end. I hope for Joe's sake, I am right