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I Really Don't Think BBA's are Such a Hot Idea

By
Real Estate Agent with Long and Foster REALTORS (703) 470-4545 0225085927

happy clientsA couple of years ago, I met with a couple whom had been referred to me by a previous client.  When they walked into the office, he was carrying a notebook and several books, one of which was "Real Estate for Dummies."  Oh, boy.

The first words out of the husband's mouth were, "I'm not signing any kind of agreement or contract to work with you." 

I just chuckled and said, "Oh, don't worry.  I haven't decided if I want to work with you, either."

His wife burst out laughing (whew!). 

I continued, "We need to see if it's a good fit;  I want you to have confidence in me because of my abilities and because I am going to do a great job for you.  Right now, you have no clue about that, do you?"

"Well," he hesitated, "Jonathan did tell me what a good job you did for him." 

"Yeah, there's that.  But this is about you and what makes you comfortable.  So, let's talk about you guys."

I have a love/hate relationship with the BBA...I don't love it, I don't hate it and to be honest, I have only used it when a client requested it. 

Yes, that's right, I have had clients request it because they read about it somewhere and thought they needed it.  It's okay, I'm happy to give you one, as long as it has an expiration date that doesn't string us both out too terribly long.

Ah, why the attitude, you may ask.

Simple. 

businesswoman shouting at manI don't want to be contractually obligated to someone who is prone to cheat on me.  That's akin to marrying the guy who is texting your best friend behind your back...seriously, he's already showing signs of bad faith, so why would you want to force him into a monogamous relationship for which he is clearly not ready?

There are plenty of good guys out there, so why on earth would I want to be tied up with one that isn't right for me?

And isn't that what we're really talking about here?  Trying to lock in a client's loyalty with a piece of paper? 

I look for clients with whom I have great rapport, clients who respect my knowledge, experience and work ethic.  I look for motivated clients who take the process seriously and who are committed to the home buying or selling process.   Clients who trust me to do a good job for them.

If I don't sense it is going to be a good fit and the relationship is not going to be a mutually satisfying one, then I'm the first to say it's time for a change.

 

 

 

 

Comments (66)

Barb Szabo, CRS
RE/MAX Above & Beyond - Cleveland, OH
E-pro Realtor, Cleveland Ohio Homes

Susan, You have put into words what I have been thinking. I have never used on and likely never will. I can't even remember the last time a buyer "cheated" on me, though I do hear it from other agents so of course it does happen.My M.O. has always been to let the buyers know up front that I will not sell them any old house. I walk through, and if I see problems, I point that out. There have been many times I have said "I cannot sell you this home." While we are looking I point things about about fha financing, or a point of sale inspection..slowly showing them that I have experience and knowledge.

 

Nov 27, 2010 02:54 PM
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

Barb:  I think that is the most effective way to work, absolutely!

Nov 27, 2010 03:14 PM
Homer Ray
Eastern NC Homes - New Bern, NC
Eastern NC Homes

Referrals are the best way to work, however you still may get someone who all over the board.  I like the "let's check each other out" approach and go from there. 

I think pre-qualification/approval is more important before you get in the car than BAA..In NC we have to do the Working with RE agent disclosure and then we go from there.

If you are not at least prequalified in todays enviroment,  I'm not spending much/any money or time until you are.

 

 

Nov 27, 2010 06:32 PM
Homer Ray
Eastern NC Homes - New Bern, NC
Eastern NC Homes

Referrals are the best way to work, however you still may get someone who all over the board.  I like the "let's check each other out" approach and go from there. 

I think pre-qualification/approval is more important before you get in the car than BAA..In NC we have to do the Working with RE agent disclosure and then we go from there.

If you are not at least prequalified in todays enviroment,  I'm not spending much/any money or time until you are.

 

 

Nov 27, 2010 06:32 PM
Tni LeBlanc, Realtor®, J.D.
Mint Properties, Lic. #01871795 - Santa Maria, CA
Tenacious Tni (805) 878-9879

Susan -

You make some excellent points.  I am toying with the idea of using the BBA again (in the past I only pulled it out when the investment got too deep or I became suspicious of cheating) , but it may be that I simply need to be a little more selective about the clients I choose to work with.

The only thing that argues against it for me is, that I have had clients that have actually stunned me when they "betrayed" me.  Completely stunned.  They regretted it later --- but they still did it.  Having a BBA is also a guard against that other agent that thinks they are being slick and lies to your client that if they don't use them and sign now they won't get the house that they want.  What do you think?  What about all those seducers out there?

Tni

Nov 28, 2010 08:20 AM
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

Homer:  I totally agree with you about being qualified and fortunately, my business is predominantly by referral. 

Valerie:  I think that is a good use of it!

Tni: I have not had the experience you describe with clients betraying me - ouch, that would really hurt - but I think if they are the type to betray you, they will do it with or without the BBA. 

In VA, if we have a solid case for procuring cause - i.e., more than just showing the house - then we can always pursue a commission in those cases where a client ends up going to a "slick" agent.  We don't need the BBA because we do have implied agency.  It may add "one more level" of protection, but in and of itself, it doesn't do a lot -- and really, I'm not going after anyone, either, UNLESS it's a rock'em sock 'em slam dunk case - it would have to be pretty egregious for me to even consider pursuing it.  And, if the case is that solid for procuring cause, then I don't need the BBA.

I totally understand the viewpoint of agents who use it as a way of completely explaining agency or who want to gauge the level of seriousness of their client.  I prefer to "lead with trust," I guess and so far, I have not been burned.  I am pretty quick to boot someone, though, to another agent if my gut tells me they are going to be a lyin', cheatin' POS or a PITA.

I think at the end of the day, if you have committed, well qualified clients - and as Homer mentioned above, being qualified is key - you will have or develop a sixth sense about which clients are the real deal.

Nov 28, 2010 08:48 AM
Tni LeBlanc, Realtor®, J.D.
Mint Properties, Lic. #01871795 - Santa Maria, CA
Tenacious Tni (805) 878-9879

Good points - no we don't have implied agency here so that may be the difference.  

I used to live in Alexandria by the way (not old Town though) and I know exactly where your office is and I can see it in my mind.  I lived up near King & 395.  Love the area and kind of miss it, especially in the fall.  Fall is the best time to visit DC.  But for a native Californian you can keep your implied agency if it comes with that winter!

Nov 28, 2010 09:09 AM
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

Tni:  Ironically, I was born in Lompoc!  While my family has been in Virginia since they were land granted by King George, I am the oddball of the family and was born in California, at what was at the time Camp Cook Army Hospital.  Have an aunt in Walnut Creek, up in the Bay area.  Have spent a lot of time out there, but I have to stay on the East Coast FOR the cold weather and snow!  if I had my way, we would be living up in Canada somewhere in the winters!  LOL 

I know exactly where you were...did you go to school here?

Nov 28, 2010 09:19 AM
Tni LeBlanc, Realtor®, J.D.
Mint Properties, Lic. #01871795 - Santa Maria, CA
Tenacious Tni (805) 878-9879

Susan

I can't believe that.  What a small world!  I work in Lompoc all the time.  It's the area where I was going to begin using BBAs -- LOL, because I've had a lot of clients borrowed but not returned there.   That is too funny.   And, everynow and again, I'm out there showing houses in SM that were originally built as housing for Camp Cook!

I went to Georgetown Law and Georgetown University and lived in the DC area about 7 years.  I lived in Shirlington and then over to Alexandria (which I liked a lot more).  If I had moved again it would have been into the city or into Old Town Alexandria.  So much history.  Just can't take the snow and almost kissed the ground when I made it back to CA.

Yes, I used to live right there and it was so convenient - I believe they were old housing for the Navy - both the law school and my office ended up being right off the D street tunnel.  It took me all of 8 -10 minutes to get to work (because I did have the freedom of going in when I wanted). On 9/11, I decided to go in late and still remember seeing the smoke and then hearing the radio make an announcement as I was about to get on that freeway entrance.  I turned right around and was home in one minute and luckily missed most of the chaos downtown. 

I have a lot of memories in that area.

Tni

Nov 28, 2010 10:00 AM
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

SWEET schools...some of the best!  My brother went to William & Mary, then UVA for law school, is now with Hunton and Williams in DC.  I remember on 9/11 - we were at the beach, vacationing with my parents - we spent the better part of that day trying to get in touch with him, but couldn't get through until late that afternoon.  What a day that was. So much uncertainty. 

I don't know if you have read Brian Block's blog posts - he is a REALTOR on here - but he was an attorney at the time of 9/11 and wrote a beautiful post on walking home from DC that day.  An agent in my office was also an attorney when 9/11 happened and ended up leaving her practice after that. That was a good day for you to go in late, to be sure.  None of us will ever forget that day, for a number of reasons.

 

Nov 28, 2010 10:50 AM
Tni LeBlanc, Realtor®, J.D.
Mint Properties, Lic. #01871795 - Santa Maria, CA
Tenacious Tni (805) 878-9879

Thanks for the tip. I just subscribed to his blog.  Besides the weather (minor I know), 9/11 was a big motivator for me returning home.  It really was a game changer for me.  Glad to have made the connection with you via Active Rain.

Nov 28, 2010 03:22 PM
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

Me, too!!!  The internet is just an amazing place (most of the time).  ;-)

Nov 28, 2010 03:27 PM
Steve Baklaich
RE/MAX Results St Cloud Mn real estate - Saint Cloud, MN
Treating Buyers & Sellers to Full Service Always.

Great subject for a lively give and take Susan. I love your response to the Husband.

Nov 29, 2010 07:12 AM
Margaret Woda
Long & Foster Real Estate, Inc. - Crofton, MD
Maryland Real Estate & Military Relocation

Susan, I just want to come back into this with one more thought.  I don't think anyone has mentioned the length of time specified in the BBA.  I always allow the buyes to fill that in, once I have decided to accept them as clients, and I tell them it should be whateve they're comfortable with.  If they wish is to be for today only, and renew it the next time we go out, that's fine with me.  In that case, it will simply clarify for both of us our understanding of each other's role regarding the properties we see today.  Most people make it for 30 days, and some for longer. 

If I know them well enough, I tell them their ring on my cell phone will be changed when they become "official" clients and they can get away with interrupting my dinner.  We laugh about it and they usually ask me to change it when they sign the BBA so they can hear just how obnoxious the ring becomes.  They really like that notion - I guess it's because they feel like they're getting something tangible from me right there and then.

Nov 29, 2010 11:53 PM
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

Steve:  Debate is fun and healthy!

Margaret:  That's a good approach, I like that. I don't have any objection to a BBA being used in the positive manner you described - in fact, it sounds as if you have made it appealing for your clients, which is a good thing.

And I love the ringtone idea!  Years ago, I downloaded the Motley Crue tune that included the words, "Girl, don't go away mad, girl, just go away."  I do use that ringtone for people that annoy me - LOL - I may love them to death, but the tone means it is someone who is either high maintenance or someone who drags out every conversation.  In other words, their call is not one I would always answer in the hopes of getting off the phone quickly if I'm getting ready to get in the car or go into a meeting.  LOL  I play it for some of my clients and say, "you don't want to be THAT guy."  Everyone gets a big laugh. 

Back to the topic at hand, I guess I should add that I get tired of hearing agents say "if you/I had a BBA, they wouldn't have gone to the listing agent" or the like.  Or agents who think if they manage to "corner" a new client, they can "keep" them in the fold with a piece of paper.  We should strive to keep our clients on our own merits and through our own hard work, not because they "have" to stay with us. I also understand in different states, it is required or has more importance.  Around our place, though, I just don't hear it mentioned;  because we don't really need it, I don't think anyone really uses it.

Nov 30, 2010 01:09 AM
Jen Edwards
RE/MAX Unlimited - Ponte Vedra Beach, FL
Broker Associate

Attitude?  I didn't sense an attitude. These silly jackwagons think we have to work with them as if we don't have better things to do with our time.  I'm firing a few customers this month to insure a clean slate starting off in 2011!   I suggest everyone do the same.  Don't waste your precious time with deadbeats! Good for you Susan! 

On another note, I'm from Maryland and worked on the National Harbor project years ago. Curious, has that increased your business at all?

Nov 30, 2010 03:04 PM
Jen Edwards
RE/MAX Unlimited - Ponte Vedra Beach, FL
Broker Associate

Attitude?  I didn't sense an attitude. These silly jackwagons think we have to work with them as if we don't have better things to do with our time.  I'm firing a few customers this month to insure a clean slate starting off in 2011!   I suggest everyone do the same.  Don't waste your precious time with deadbeats! Good for you Susan! 

On another note, I'm from Maryland and worked on the National Harbor project years ago. Curious, has that increased your business at all?

Nov 30, 2010 03:04 PM
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

Jen:  Now THAT is an attitude I love!  LOL  Absolutely - get ready for a better 2011. 

I have not noticed any difference businesswise but since we are only a few minutes across the bridge, we do enjoy going over there occasionally for a meal or event (Cirque d'Soleil).

Dec 01, 2010 12:22 PM
Jim Frimmer
HomeSmart Realty West - San Diego, CA
Realtor & CDPE, Mission Valley specialist

I used to agree with you, but upon greater reflection, the BBA simply sets out the ground rules for everyone. I sign contractual agreements when I go to the dentist, the doctor, the attorney, the CPA, etc., so I see no problem with them.

Dec 04, 2010 08:14 PM
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

Jim:  I can totally understand your position;  I just don't understand agents who use it to force agents to stay loyal to them.

Dec 05, 2010 07:44 AM