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Buyer Beware or Agent BEWARE!

Use to be there was a saying Buyer Beware, then there was Full Disclosure. Now there is Agent Beware!

I had a very interesting experience happen today that really made me step back and think, this is a really an Agent Beware market!

Let me explain. I received a call from a listing agent this morning asking about a showing I was to do on Saturday. They asked me a couple of questions and we both soon learned that the person I was to show the condo to had worked several angles and things had gone badly.

It all started with a phone call I received from a lady out of town that had seen my web site and wanted me to show their daughter some condos. I contacted the daughter and arranged to show her several properties. We spent about two weeks looking and she finally narrowed the search down to two units. She called me last Monday to set up showings for her parents who would be coming into town to view the condos on Saturday.

On Wed or Thurs, she called, said plans had changed and that they would have to set another time. I tried to get more details, but the conversation ended with she would be in touch. I didn't hear from her again.

Today, I learned why. It seems the parents (who were purchasing the unit for their daughter) did come to town on Saturday, did view the condo I had shown the daughter, but with a different agent! The listing agent said the buyer's agent had been working with this client a long time? (Hmmm)

Anyway, it appears a contract was written on this condo and negotiations went on until Monday with the contract virtually being done. That's when things abruptly changed and the negotiations ended and the out of town couple hasn't talked to either agent since. The listing agent told me that there were issues with the Financing Disclosure and other details that raised several eyebrows and when questioned about it, the buyer went into hiding.

At first, I thought, wow, what a deal to have been in (although I have experienced several deals similar to this in the past), I'm sure glad I hadn't spent my weekend wasted over a 80K condo. Then I reflected back on several Active Rain posts I have read where agents have been burned with similar experiences. I have to say that it really makes an agent wonder why there are so many buyers out there trying to be anonymous and avoid the real estate agent?

It's no wonder real estate agents are in the position they are today in the real estate business where so many individuals want something for nothing and there seems to be no loyalty. I do try to understand the other side as I have been on both sides, but I guess I was raised in a different time. I feel there should be honesty, respect and loyalty to someone who you are asking to contribute their time and talents to you! Is it so wrong today to expect to have these three factors, honesty, respect and loyalty?

What do you think?

David L. Britt, MBA
Olathe, Kansas
David L. Britt Real Estate
Heritage Real Estate
The Heritage Real Estate Team
Olathe Neighbors

Guiding You HOME!

Posted by David L. Britt, MBA on 08/22/2007 09:46 PM

Comments (25)

buyers, sellers, real estate, homes, condos, market, heritage, olathe, kansas

25 Comments on Buyer Beware or Agent BEWARE!

AUG

2007

Yes honesty respect and loyalty are very important. I have never used them but I have been more interested in making prospective buyers sign an exclusive buyer agency agreement.

You know - it simply amazes me why buyers sometimes do these things? Hire us - let us do you our job - let us protect your interests - represent you and the seller will pay us - not you!

If I were a buyers agent I would never let an "ass" so to speak hit my car seat without a buyers agent contract. It is stories like this that I continue to read that make me reflect on why I have been a listing agent since the beginning of my career. You are right where is the honesty, respect, and loyalty! Well here is to not having to work with another one of these type buyers for a while - best of luck!

I agree, we need to be careful. If the general public only knew how much we work for free!!

David, I'm running into more instances of buyer ignorance regarding the value agents bring to the table this year than any other. It just means that buyers don't understand what we do, but that is an enormous problem. I'm focusing more on quick and pithy ways to explain what I do as their advocate to communicate my worth early and establish trust. If I can get that, I'm most of the way there.

Charlene, I guess I'm really just a person of my word! Attorneys and lawyers can tear up anything that is written, but what comes out of my mouth, I stand behind! I have been under the opinion that if you try your best to help someone, that they will respect you for it and carry forward with you. I will give a buyer a couple of showings and give them advice. I have presented an exclusive buyers agreement at various times in the process believing that I will win based upon my service. I still feel this way. I must do my best for my client! I want to respect them, I in turn believe they should respect me. If they don't, then I'm sorry it didn't work out, I will be cautious about how I deal with the next one. I must still be old school!

James, yes, amazed and aware!

I agree 100%. That is why I won't rush out and show properties. The buyer must come to a minimum 1 hour "counseling" session. Not only do they ask me questions, but I ask the prospect questions (and really delve into their motivations) to determine if I want to take on the Buyer. I also request a pre-approval BEFORE we look for any property. They MUST sign a buyer agency agreement. If I really think there may be a hidden agenda, I will ask for a $500 retainer -- that gets rid of those who are not loyal and committed!

Bill, I agree with being the listing agent. As Keller Williams teaches, Leads, Listings, and Leverage!

Nora, how do we educate the public on our value? Yes, we try to do it at the time of our meeting with the prospects, but shouldn't our Realtor Associations dues go toward doing some advertising to assist with this message? Just a thought!

Irene, I agree, but I also think our realtor dues could go toward the endeavor as well. What do you think?

That is why we cross our T's and dot our I's.

Hi David: I agree, but since real estate is local (and in my area, Redfin has hogged the limelight for a while) it is absolutely essential that I demonstrate my value individually instead of waiting for a NAR campaign.

Joan, thank you and I like your $500 retainer idea! See it pays to seek the Active Rain community! I really do like your approach, I have been informed of this approach before, I have just resisted doing it. Times are changing and so must I.

When I work with a client I want to help them. Help them get the best deal I can and protect them. You taxi them, help with lenders, inspections, and the list goes on and on. Instead of being appreciative and understanding that you could not provide these services to them if you were not getting paid they want to cheat you out of your well deserved commission.

I think we need to explain how things work and paint a TRUE picture of representation to buyers. That should help with loyalty.

Todd, dotting and crossing is needed, I just wish we could get the respect as well!

Irene, I do agree with you, we must do our part, just would be nice for a little follow-up from NAR.

Vicky, it truly is a matter of understanding and presentation. But with so many ways for buyers to gain information, there seems to be this need to escape into the woodwork. There must be a better way!

Vanessa, I'm trying to picture the TRUE picture? I think the truly good agents do present the picture as Joan put it so eloquently. Can you give me more details on your thoughts? Thanks for commentings!

Joan like the craig proctor approach has it been successful for you? Do you think that you have lost any good business from the approach?

AUG

2007

Let them know just how we represent them and how we are their advocate. I think when we spell things out, buyer loyalty maybe increased. I'm learning that these days, tell them, tell them, show them, and tell them again. :)

Vanessa, I agree, tell them three times, then tell them again!

AUG

2007

David,

thanks for the comment on my blog "Is now the right time to buy?".

I have personally had some experience with your subject. It's unfortunate that some people do this, but yet there are many others that do believe in the same values that you do.

I agree with many of the comments here. We need to list our buyers. Just like listings have a contract, so do buyers. And you know what, I've found that when I stick to my guns and get the buyer's contract signed, I gain an extremely loyal client.

Thanks for sharing you personal story!!

AUG

2007

Kory, thank you for your feedback. Glad to hear getting the buyer to sign on the bottom line works well for you. I wish you the very best!

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