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"Are You Currently Working With A Realtor?" Oopsie I Forgot to Ask?

This morning I sat through a mock arbitration and mediation. Its amazing to me what you can learn from your local Board of Realtors. Nancy Dance did a great job but I have to say, it was ruled that David Wyant was awarded the $33,000 commission.

Keep in mind this was a mock mediation and arbitration.

While there I learned something new that made me realize I do believe many Realtors are Violating the Code of Ethics.

"The National Association of Realtors, Code of Ethics."

One of the responsibilities of a Realtor is to protect the public from harm.

Failing to ask that important question, Are you currently working with a Realtor can be harmful especially if you show property to a potential customer that already has an established relationship with another agent.

I have read the Code of Ethics many times, however, I miss that one. For me to ask that vital question was always courtesy and respect to fellow Realtors. It just made sense...I didn't realize it was my obligation as a Realtor to ask.

We make so many mistakes in assuming the general public knows and understand how Realtors work.

Its our responsibility to know what is right, not their's.

Why not explain how we get paid? How we work and what we do.

According to the National Association of Realtors, Our Code of Ethics Reads....

Stand of Practice 16-13

Before providing substantive services (such as writing a purchase offer or presenting a CMA) to prospects. Realtors shall ask prospects whether they are a party to any exclusive representation agreement. Realtors shall not knowingly provide substantive services concerning a prospective transaction to prospects who are parties to exclusive representation agreements, except with the consent of the prospects exclusive representatives or at the direction of the prospects.

So the next time you jump for that Potential buyer remember to ask that vital question....

"Are You Currently Working With A Realtor?"

Posted by Midori Miller-Daytona Beach Florida Real Estate Trainer on 09/23/2007 04:55 PM

Comments (109)

realtor, nancy dance, david wyant, code of ethics, arbitration, mediation, daytona area association of realtors, midori, midori miller

Originally posted at: Daytona Real Estate Training: "Are You Currently Working With A Realtor?" Oopsie I Forgot to Ask?

109 Comments on "Are You Currently Working With A Realtor?" Oopsie I Forgot to Ask?

SEP

2007

Smile, very good posting. I find myself hitting my head when this very question slips my mind. I believe training yourself to react this way is a very hard task, but once learned it becomes your greatest asset.

Midori -

Although I always ask, my understanding and it seems to be the Standard of Practice, is, do they have an exclusive representation agreement. I'm not certain working with a Realtor, established relationship and Exclusive Representation all have the same meaning. In your mock trial, what was the determining factor? Was it a Buyer Broker Agreement or had the agent showed the home to the clients previously and another agent wrote the offer.

Yep, that's a very important question and I ask it every time. Every one needs to read our COE every couple of months. The COE is our friend. It dictates what we can't do and most importantly it dictates what we can do. An example is meeting with a seller that is currently listed and selling them my services even so far as getting a predated listing agreement signed. If they contacted me I can do this and do it all the time. A lot of REALTORS(R) believe this to be unethical BUT it's not. In fact, it's doing exactly what we are supposed to do "protect the public from harm".

I am careful to be ethical in every thing I do but I work for the consumer NOT my peers.

I love those mock trails.

I always ask...are you contractually obligated to another REALTOR? I don't want to get caught up in procuring cause. If they have signed a contract...working exclusively with a REALTOR I want to know.

If I just ask are you working with...I get a song and dance plus buyers don't understand what working with really means. I'm obligated not interfere if they have an exclusive relationship. I'm obligated ethically to ask those questions...If they are not exclusively working with an other agent...up here they are free game.

Midori,

Sometimes I wonder how much they really know. but that still means we have to do the right thing on our end and sometimes we forget that.

I was involved in a case where the listing broker refused to pay the commission offered in the MLS because he showed the property to my client's brother. I had prove that I was the procuring cause of the sale. He didn't ask and my client did tell him she was working with me. Some people just don't understand the rules.

I agree with this, yet I have been faced with sometime people just aren't truthful. Last year I did ask, and the client said no. Yet after a weeks worth of work.....the truth comes out. Another agent had shown them one of the houses I showed them. Luckily, they didn't want that one. But....the next question is: Did they sign a agency agreement with an agent to be their "Buyer Agent"? Here I have had customers say that "yes" other agents showed them property - but they did NOT sign any agency agreement. Then I explain agency and ask if they will sign one with me. Have you had that problem there too?

We always ask before we show any houses. If they say Yes then we quite frankly just ask them to call their Realtor. Thanks for sharing the exact wording of the Code of Ethic's.

Great way to make an important point! It's a question that should be as natural as saying hello to someone. Some how though, we often forget to ask . . . Go figure!?!?!?!?!?

I think many of us sometimes forget to ask that very question!

SEP

2007

Midori, I always ask if they are working with another realtor. I just met someone yesterday who obviously is searching on their own, and calling each listing agent to show them properties. It seems to be a growing trend these days....

Marquis-yes I have never had a problem asking that question. To me why would I want to take my peers business? Why would I do tons of work to not get paid at the end? Why would I put myself in a position where i am sitting in mediation or arbirtration...and all I did was forget to ask a question that is required. I say make that question one of the most important ones and there is a good chance you will not forget. Thanks for commenting and I will see you on your post.

Paula-while the code of ethics read buyer broker agreement. You have to ask yourself, how do I find that out? By asking Are you currently working with a realtor? Doesn't matter if there is a buyer broker agreement in place, just like contracts verbal does count for something. For me I could care less if there is a buyer broker agreement or not....aint going there and aint putting myself in that position.

In the mock trial, Nancy spent two days with the buyer, showed property and did research, even took the buyer back to the property. The buyer's family realtor was on vacation which is David, The buyer never told Nancy about David the family realtor. Nothing in writing....David wrote the contract and handled it from that point on. They tried to do mediation but wouldn't you know it.....Nancy got greedy and opted for arbitration...In most instances...mediation is a better way to go.....mediation...the two agents decide. Once you get to arbitration it's all or nothing...a panel of 3 who does not know you from adam. Guess what David won.....The buyer said that David was her realtor and has been for years....it was verbal. In order to find out if someone is working with a realtor , So to me the best question to ask is ARE YOU CURRENTLY WORKING WITH A REALTOR? Thanks for commenting and I will see you on your post.

Midori, I love this post! It is a critical question, and I constantly hear our agents ask it, with the correct response depending on the answer.

Midori,

I am just a Mortgage guy, but I follow a code of ethics myself...

Nice Post, it's attrative :0)

Tom Weiss

Broker Bryant-I try and take an ethics class every year! I also make it a point to read the code of ethics as well. To me it's pretty simple treat others the way you want to be treated! I tend to agree we work for the customers and not our peers..

Monika-I agree with you 100%! But....I do think working with another realtor and buyer broker agreement is not that much different. I have had instances where a buyer will call and tell me that they saw properties with another agent. I ask them point blank, Do You Like Your Agent? I tell them flat out, if you like your agent stick with them, know we all have access to the same properties, I don't want to waste your time or mine! I also tell them Agents only get paid if they close the transaction. If the caller says no, then I ask them do you have an agreement with them or contract. (sometimes they have no idea what you are talking about). If they say yes.....bye...bye....if they say no and they want to work with me....they do!

Neal-well for our sakes we have to explain. I know what you are saying....that has always been a top question for me when I am screening leads.

Ray-we have to take the time and really explain. We have to exlain how we work and how we get compensated. Did they decide you were procuring cause? I hope so. thanks for commenting

Missy-You are so awesome! that's me...next!

She's back......Hi Cyndi! Welcome back and I am so happy to see you in the rain.

You and Bob have been in my thoughts and prayers. Hope you are well and feeling good!

Ok. back to topic....yes it should be second nature and for me it is, always has been always will.

Thanks for commenting girl. I will e-mail you!

I've Really Missed You!

xoxoxoxoxoxo

My favorite response to that question.... "Yes, but I didn't want to bug her (the buyer's agent). I thought YOU could just show me the house."

Why is ok to bug me, but not the agent they have agreed to work with??? Unfortunately, I force them to go "bug" their agent!

Thanks for the reminder... it's very important.

Barbara Jo and Bill-Yes we do have many things to remember. It is second nature for me to ask that question....

Diane-yes, the myth call the listing agents, maybe they will cut their commission. That is usually the case. It happened when I sold too...I just reminded people we all have the same access. thanks for commenting and I will see you on your post.

Lysa-thanks for the comment, yes our agents are excellent about asking that question.

Tom-thank you....yes...Code of Ethics is similiar to the golden rule....thanks for commenting

Hi Sandi-I've heard that a time or two! I tell that is what they get paid for...and to please call your agent. I tell them it's unethical.....usually if you use the unethical word, the famous violation of the Code of Ethics...it seems to get them back to their agents. Thanks for commenting and I will see you on your post!

Midori:

The buyer planning to just drive by the property stopped by the seller's office for directions and the agent took the buyers brother by the house later that day. The buyer called me, I showed her the property, she made an offer through me and we successfully closed the deal. The seller's agent thought he should get the commission so they offered to pay us 1%. We did win the full 3% offered in the MLS and found that they charged the seller 10% to sell the property.

A footnote, that company is still around but barely. Their reputation is well known and most of the local community is shying away from them.

HI Ray-This is what I mean. Its not the customer's responsibility to know what is right, its our job. Loyalty does exist...Why would the listing agent actually think they deserved a commission especially since they showed the brother and not the buyer? Crazy....Crazy... Congrats on being awarded the commission... You worked for it and earned it!

As far as 10% commission, I used to do that on occassion on very low priced condo's...often times...agents would not show it! the difference I split it down the middle!

I believe what goes around comes around and its only a matter of time. Thanks for your comment and see you on your post.

You got it. Crazy and greed.

Even if they would have showed the property to the buyer they would not have been able to prove procuring cause. I generated the buyer, I kept in contact and had constant communication with the buyer, I provided them the address and information on the property, I wrote up the offer and the buyer considered me as their agent.

Now if the other agent showed her the property, of I never kept in contact with her and she wanted to use the other agent as her agent, I would be left out of the deal. Just by giving her a list of properties does not prove procuring cause.

In this case the commission was very little but it was the principle. We had a very good case and we won. Since this time I have been serving on the Pro Standards committee with our local association. Now that's an eye opener.

Midori,

What a great reminder of ethics issue. I ask that question to insure I am not wasting my time with a customer who is not committed to anybody, but now that it's a rule, I'll continue doing that every time...

Ray-I agree and that is what happened in the Mock mediation.....Showing property does not ensure procurring cause ever! Glad to hear you are on the professional standards, I think it is important. My hat goes off to you! hmmm, ok, I don't really wear hats though! Very nice to meet you Ray...and I will see you on your post.

Ana-I too did not know....it was a requirement as a realtor.

Midori - A great reminder. We do need to ask the question and make sure the potential client understands the question and how we get paid. Thanks for a timely reminder!

it seems so simply i can't see how anyone could ever defend their behavior if they hadn't asked the question.

Not asking, "Are you currently working with another Realtor?", has an expensive lesson attached.

SEP

2007

Hi Midori,
Yes the all important question--every Reator® had better get that tattooed on his/her brain. I have run into some people who have not been honest but luckily I found out before it got too far. Thank you for a good reminder and lesson.

Gary-Thanks for stopping by and you are right!

Jay-again I agree..I wonder what are people thinking of sometimes

Dan-You are not kidding and probably the best point....its and expensive lesson

Cynthia-You are right.....thanks for commenting

SEP

2007

Ask. Always ask.

Don't ask "Are you working with a REALTOR?". That's too easy for them to fib because they really do want to see that property and their agent is tied up for the whole weekend.

A better questions is: "Who's your agent?"

If I get even a sniff of another agent, we're finished. I don't want to waste my time, or an agent's time.

If they say thier agent is out of town, I tell them to contact the broker or manager for their agent because "I'm sure that their agent made arrangements for your needs while they're out of town." I'll even look up the broker's number for them.

The Devil makes me do it.

MM,

Go Figure!Thank You for the info.

Sorry we don`t reward Realtors who are not working!

Great advise for all of us. thanks so much.

Hi Midori - Great post - it's an important question to ask as soon as possible - keep your energy for your own clients!

Midori, we ask, though a lot of the time we know right away. if someone is working with another agent, information game over, but our humanity is not. we always kindly and helpfully ask them to contact their agent, and usually say something nice about their agent as well.

Cheers

Midori,

Great post....gave it a 5.....

Thank you for sharing your mock arbitration experience. We can all learn from the value of respect for one another in a profession we share common interest and sharing our expertise by educating the public about our standards.

What about the consume who lies? Read my post:

http://activerain.com/blogsview/213201/Used-Glued-and-Tatooed

You won't believe this!

Sometimes it's the simple questions that are the easiest to forget. I find most people have no problem answering this question... yet the two times I forgot to ask it early in a conversation I later found the answer to be yes.

Ray's scenario reminded me of the importance of regularly keeping in touch with buyers. Of course, we should do it anyway because it's the proper way to do business; but we MUST do it if we want to maintain our status as procuring cause in a situation like Ray's.

I also like Lenn's way of asking the "working with an agent" question: "Who's your agent?"

Thanks to all for the comments from which I've had the pleasure of benefitting.

Mitori, I just love your blogs. I'm sure you are a wonderful Realtor, you seem so concerned for your clients.

Thanks Midori - The result is as it should be, yet, I have seen different outcomes from the same situation.

I am going to an arbitrition right now that is real. It is with another agent within our company. We showed the property to a cliet who had just come to town. We showed him the unit on Tuesday and he wrote with another agent on Friday. We stayed in touch with him. He narrowed his choices down to two. I knew which one he would pick. The other agents told me this happens all the time and I should take my lumps. We will see what happens.

Great points here, Midori. I think you have to phrase the question in different ways to really get a clear answer. I have found people will say NO to one question but when asked differently will tell you YES, or well maybe I am, or well they did show me some homes, or I think I signed something.

Jeff

Hey Midori.... Long time no talk!!!

Uggghhh! This happened to me this weekend. I'm going to write a post about this after my comment here. A couple in my circle of friends called me a few weeks ago. They weren't happy with their current Realtor, and asked me to help them find a new home.

Because we're friends, I didn't have them sign a purchasing agreement with me. BIG mistake. They decided to go back to their other Realtor, (without a contract) and make an offer on a property this weekend. I will never go without one again!

When a friend will stab you in the back... I guess it's safe to say it's not wise to trust the general public!!!

I have found that most of the time the people are working with another Realtor. I have even had friends do this to me. Most people think we are Realtors for our health. They just don't know how much work is involved in being a Realtor!

Yep. I've made that mistake before... not asking that is. Funny thing is though, you'll get informed sooner or later, like just before they're ready to write.

"Ah, we forgot to mention this to you, but we'll be having our Realtor write up the offer. Thanks a lot though..."

Auuuuugh!!

Thanks for the reminder.

I'm headed to arbitration as well. I was working with my client for 3 months with an Exclusive Right to Represent Agreement and then one day when I was unavailable due to another appointment my client decided to ask another agent to see a property. Well he told the other agent that he WAS WORKING WITH A REALTOR and his agreement was soon to expire and the other Realtor showed him the property anyway.

Well a week later I showed my client the same property and he never indicated that he saw it before and 4 days later we wrote an offer on that property and closed the deal a month later. Well what do you know, the other agent found out since he tried to followup with my client and my client explained that he sealed the deal with IS REALTOR and the other agent is now screaming that he is the procuring cause. He's claiming that I abandoned my client. Funny how there are over 100 emails and phone records between my client and I before and after the showing. Thank goodness I have kept everything.

If this other agent was ethical in the first place, this whole ordeal would have ever happened. Such a shame that we have some bad apples out there.

Stacey, I can not believe that you are going to arbitration over this, he was unethical, and now he wants to get paid for it? Well, I'm sure you will win, question is, will he get suspended?

Oh that would be great if he was to get suspended although I truely doubt that will happen. It's funny that some of his own email records that he has from my client may come back to bite him.

I do ask this question and honor relationships. I think it still depends on the circumstances and the interpretation made by the grievence committee for the ruling.

I did an open house last week, a consumer came by, I asked the question and she said yes, named the agent and the company. That was good enough for me. I sent her to another open our office had - my manager was hosting. My manager asked - more specifically if she had signed an exclusive business relationship plus the client was 'vague' with her not giving specific - an agent took me out once. Objectively, I said she wasn't "fair game" but I can see where my manager said she was.

Great reminder to work on ethics and constantly keep them in mind. I was amazed during my ethics class on what people did not know about the Ohio Revised Code, NAR Ethics, and Ohio Real Estate Commission's Cannons of Ethics. Amazing...

As to whether there is a buyer's agreement in place or just a verbal showing of homes, I think would be a regional variance. What is the norm in your market area? We have very limited buyer's agreements in our area -- so it would be a matter of action over agreement.

Toby

Great post. Something that is overlooked everyday. I have had one too many calls from others talking of and claiming procuring cause. Calls from brokers and agents alike stating that they are headed to mediation because a client saw the house that they were making an offer on at an open house. My first question is always "Did you ask if the were represented by and agent". In 100% of the cases, the answer was "No.....and why does that matter anyway?". It DOES matter!

This is something that just boggles my mind. If agents hold open houses simply because they think that anyone who happens to drop by becomes their client.....they are sadly mistaken.

Midori: Why is this question so hard to remember to ask? I've caught myself several times not asking. But I fully mean to. This is a good reminder for people like me. Thanks.

Thanks for given me the insight.... I know that working with Buyers can be difficult, but Your so right...Our realtionship with Buyers will be better if we find out where they stand before we start working with them.

The answer isnt always the truth. Sometimes the buyers will say they are not working with anyone, afraid we will not answer there questions or show a property. They don't always get it, have us do the work and ten call in their buyers agent forthe contract. Luckily they are not all that way !

Glad you became aware this important question. Our board also did a workshop and I think it is very helpful to insure we are professionals. As you point out, often buyers have no clue about something as unusual as procuring cause - or what the consequences may be if they show up at an open house. I have had some agents call me and let me know that my buyers have been to their open house --I really appreciate the courtesy.

It saves a lot of heartache in the end, that's for sure. I always ask, and the one thing I do that isn't always done is if someone calls my office looking for a Realtor that works in another office, I tell them that the agent they are looking for doesn't work in this office, and then give them the correct phone number to the office they were looking for.

What good does it do everyone if we don't all play nice? None!

Midori, in my opinion the proper question would be:

Do you have an agency relationship with a Realtor?

After all, someone could be "working with a Realtor" as a customer, in which case there would be no problem in converting them to client status by entering into a agency relationship.

Speaking as someone who is NOT a Realtor, I can tell you 10 years ago my husband and I did what most Realtors probably cringe at. We went to an open house on our own and were "just looking" without our Realtor. Is that really frowned upon? Why make our Realtor go with us when we have picky tastes and now we probably drag her into more homes than your average buyer? We knew the home was holding an open...so why couldn't we go look on our own? We did let them know we had a Realtor we were working with but in some circles it still seems like this is a wrong thing to do.

The problem is that most buyers don't realize the ramifications of our agency agreements and often times, the agents don't understand them! I like Lenn's suggestion of a direct inquiry, "who's your agent?" I'm tired of hearing that the buyer has spoken to an agent or two but they're not "working with them". We need to educate these people and get those docs signed! I was at that mediation seminar and sat with some very experienced agents and we had a minute to comment amongst ourselves and they were looking at me like I was from Mars when I stated that Nancy was not clear/diredct enough about representation. They fire the questions at us when they call for info/price/details, right? We need to respond just as directly!

SEP

2007

It's the right thing to do, but it also will keep an agent from wasting a lot of their own valuable time on a situation.

Great reminder and post. It's nice to see something that is featured that isn't redundant, "ooh look Active Rain is this.... blah, blah, blah."

Thanks

Midori! Congrats on the feature! This one deserves it for sure!

Lenn-I love how direct you are and that is quite the powerful question. Yes I do think there are times to just call the kettle black. I have to refer that statement to the agents I work with. I do believe that is the best question you can ask.

I think if they say they are working with an agent.....doesn't matter broker buyer agreement or not ....run...don't walk....Thanks so much for commenting.....

Scott-my pleasure....I suppose most agents have experienced this a time or two...usually when something negative happens or something that is an every day occurance in real estate I usually state.....welcome to real estate. I think some agents only get once they have been burned. Thanks for commenting.

Peg-thanks for commenting.

David-Can't agree with you more....save the energy for your clients.

Gary-To me that is the way to be.....I really believe what goes around comes around...I say if you have an established relationship with your agent, if you like your agent...trust your instincts and stick with them! Thanks for commenting and I will see you on your post.

Julie-thank you ...see you on your post.

Barbara-You said it best....educate the public, don't assume they know how we work! Its our job to educate and on top of that as professionals we should and do know the difference between right or wrong. Thanks so much for commenting

Karen-will check out your post....it happens, we are dealing with people, all with different mindsets and morality. I say don't beat yourself up..Next.....I say take a hard look at your pre-qualifying questions...usually you will catch them. I screen leads very hard....If I don't ask my series of questions....they don't get in my car. Most often we forget to ask vital questions to ensure that they are ready, willing and able to buy through you! Thanks for commenting.... Will check out your post.

I agree it is very important that we remember to ask the question..We have to contantly be reming the "junior" agents to ask. They get excited because it is a possible client and just forget. It is human nature but, that wont's stop the reprocussions..

Good info thanks for the reminder.

The problem I've heard stated more than once, the buyers don't completely understand what it means to be "working with" another realtor. It seems to really be about educating your buyer...without badgering them, from what I can see.... Thanks, great post!

Great post - thank you for sharing it with the Active Rain community.

Keep'em coming!

Midior ~

I asked! Check out my blog this a.m. too! Great post. I love that clover! thanks for sharing

http://activerain.com/blogsview/214474/1-Steps-to-working

10 Steps to working with Buyers in todays market

This might work better! sorry. Charlene

Hi Midori,

OMG! How perfectly said. We ask this question all the time and now more than ever, not knowing whose got what agreements with other agents out there. Especially since there are so many newly licensed agents. Ignorance is no excuse! Thanks for this wonderful post.

Lenn stole my remark-my team also asks 'Who's your agent?' because it catches folks off guard before they can lie about it. It's easy enough to explain up front that you don't want to step on the toes of another agent but another issue altogether to spend your life chasing disloyal folks around over a buck.

Chuck-This was one question I never forgot to ask and I never will! there is plenty of business to go around....I don't have the time or energy to go after other's customers.

Louis-I agree that Lenn, could not have said it any better....the comments are great and very helpful!

Robert-Thank you.....and thanks for commenting

I forgot to ask this question a couple of times in the very beginning - and it came back to bite me both times. Now it's as common a question as their name. Good reminder for us.

Interesting...I also didnt know it was in the COE...I just thought it was the right thing to do. Good to know.

I always ask if they are working with an agent - if so who. I have never had an issue with this. Although I had a buyers agent that had her friend go around a view properties with other agents and was going to right up the offer. My buyers agent saw nothing wrong with this. Needless to say I have a new buyers agent.

Paula-All outcomes will be different, if you choose arbritration you have a panel of 3 who decides your fate. Not sure I would put myself in that position unless I knew I was right... Mediation would have been a better avenue sometimes you can work things out and I do believe that sometimes something is better than nothing.

Good Luck Eric-I hope it works in your favor!

Hi Jeff-You are right....phrase the question in a few different ways and ask in a variety of ways, in the process explain how we work. It's just like someone discriminating or making a discriminating remark, we don't hesitate to put those people in their place, at least for me it holds true! It's the same with Ethics issues.....we have to educate the public as to what is wrong or right. Its our responsibility....never theirs...Thanks for commenting and I will see you on your featured!

Julie-Sorry to hear that happened to you...but I guarantee you are not alone. It happened to me and with a $1,000,000.00 deal. I got the listings for them, drove them around the area, not worried at all because they were friends....next thing I knew they callled the listing agent out of my same office and bought the property through him.

I knew that I was wrong....no buyer broker agreement.....no committment from them! It was a friend and why should I worry right...........wrong.....get a buyer broker agreement even if it is for the properties you are showing for the day.

Date it for one day! Don't worry about collecting a deposit....concern yourself with a committment from them to you....you to them.....Happy to see you on the rain....can't wait to read your post.

Kim-most people do not understand how we work, how we get paid and the laws and rules we have to follow. It's our job to educate them.

I used to tell customers that while experiencing the buying and selling process with me, you may think you won't need me the next time because I explained everything.... but the truth is you will...I provide protection...... Another words I explained everything and did not miss a beat. Thanks for commenting and I will see you on your post.

Fred-thanks for your comment and input

Stacy-You have said it best.,,,,if the agent was ethical this would have never happened! Good Luck with your arbitration....sounds like a sure thing......

Judi-just so you know a verbal is acceptable as a buyer broker agreement....the customer will be a witness...their words matter....you won't know who is the panel....so it's the person that gives the best story.... so to me regardless of whether a buyer broker agreement exists are not....If a customer told me they were working with another realtor....I would say have at it! Just my humble opinion.....

Toby-We do have buyer broker agreements but if a customer told the panel that so and so was my realtor, it does account for something. Verbal is acceptable. You have 3 strangers deciding your fate! The bottom line is don't get yourself in this position. Real estate is hard enough when you do it right.

Christopher-I can honestly tell you that we have not had a case like that in some time. As a matter of fact I have been with the company for 2 years and no issues to date. Everyone including managers and trainers need to really understand the Code of Ethics....I still am shocked that I missed it! I have done it my whole career and asked that question as well as have you seen any properties, with who? Its a lesson to all.

Donna-Real Estate continually changes just as the rest of the world1 My best advice to you is to put it on your lead sheet.....I have created lead sheets that most associates in our company uses...I laugh...it is the best training piece I have ever given to them....its timeless. Add it to your lead sheet....don't have one...let me know...I'll send you one.

Donna-Thanks for your comment and if they are working with someone or they are wishy washy....NEXT! Thanks for commenting.

Bob-I agree with you...they will not always tell the truth...dealing with people...so for me....I probe and probe....again a lead sheet is helpful...that is what I used my entire career. Keeps the conversation flowing...makes you ask the right questions...the more you probe...the more truth comes out. I always have screened my leads over the phone, had them approved for a mortgage before they stepped foot in any of our cars. If I was on the phone for an hour so be it....My buyers were always ready to go and were working with us. That was the way I was trained...that is the way I train....

Joan-With that said, I want to share something...One of things I do when having a buyer's consultation is to let them know that I can show them any fsbo, new construction and anything in the mls. If you attend a new homes site or go to a open house, please leave my card when you register or I have made coupons that our associates can give out to their customers.

Joslyn-I like you.....that is the way it's supposed to be done! Good for you....I am the same way..as a company we are the same way!

I can honestly tell you that I was a former Re/Max Agent in South Florida....I moved and I tell you even though we had a falling out.....Re/Max was professional enough to make sure I got my calls. To me that is the right thing to do....if it's right...why don't more people do it!

Larry-I don't believe that holds true! Again, if a buyer says they are currently working with an agent...they admit....they are stating to you.....they have a realtor.....so to me the correct question is no matter how you slice it is Are you currently working with a realtor? Can you probe farther....I suppose you could but if someone says to me they are workng with a realtor and we try so hard to get them to commit to us as individuals why on earth would I go back and try to get them to work with me!

Will it cause me to loose business, it's possible but I can assure the commission I earned are mine and no one elses! the only time I would question it is if a potential customer said to me was that they were not happy with their realtor...then I would do further probbing but if there is a buyer broker agreement in place...no way....beat feet...you are committed and I won't be the reason they break it! Thanks for commenting and I will see you on your post.

and sometimes...they don't give an honest answer...and that is kind of werid too..but if you ask..you have done your part..

Beth-Now if there was a buyer broker agreement in place that means you had a consultation right? Well in my consultations that I gave it was stated, remember I can show you any fsbo and new construction as well as anything available in the mls. If you see a house you are interested in please give me the address. do not go without me.....I can't negotiate or do anything unless I am a part of it. If you plan on going to open houses please make sure and give my card to the host and they will register both of us. Let them know we are working together. It does matter...but then again were you currently working with an agent? If you were,,,,they should have consulted you! Thanks for commenting and again it just goes to show you that the public doesn't understand how we work!

Hi Sherry-Hope you enjoyed the mediation....I did.... yes the mediation was awesome...yes Nancy was definitely not clear...as a matter of fact...I would be giving her grief if that scenerio did happen...but I can tell you she too believes in buyer broker agreements. I felt that David and Nancy both did a great job but it was clear to me....that David was the buyer's agent....no agreement....all she said was David was her agent....thanks for commenting.....

Bob and Carolin-You are right...thanks for commenting

Joshua-thanks for commenting.....

Lysa-thank you....

Dave-Its funny, I make jokes even the seasoned agents who haven't written a contract will come to me to confirm that they didn't miss anything....I laugh.....but really seriously we do have to remind newbies and less seasoned agents to ask this question....this simple question can save time money and aggravation....

Faith-As the question point blank, do you know how we work? Let me explain the process to you. By sharing it helps to build rapport to give them the strength to sign an agreement with you. Thanks for commenting.

Armondo-Thank you....see you on your post.

Charlene-Will check it out! So sorry I haven't made it anywhere except here! Will see you on your post...thanks so much for commenting.

Lisa and Robert-I agree...ignorance is defintely not bliss when it comes to real estate buyers! Thanks for commenting and I will see you on your post.

Leigh-I love that response and I will be sharing it! Thanks so much for commenting and I will see you on your post.

Ed-Isn't funny some mistakes we never make twice! I love it....thanks for commenting and I will see you on your post

Midori - I do totally agree with you regarding the verbal. IMHO, even when working with offers. However, that viewpoint isn't totally accepted around here.

I once hd a friend email me that his wife was going to be coming to Bellingham where I live to look for a home and he old her that I was an agent and to expect to hear from her. When she walked into my office one day, and asked me to show here some homes, I was expecting her and didn't ask if she was working with another agent. After showing her a few homes she found one she liked and wanted to put an offer on, When we got back to my office she told me that she had been lookong at homes with another gent and renting a condo from her and felt obligated to her. I told her it was up to her and I would be glad to give the other agent a referal fee or have her write it up and give me one. To add a bit of interest when doing a search for her I went a bit above her price range which is where we found the house she liked. The other agent didn't like that I did that.

She called me back that night and told me the other agent had yelled at her and made her feel awful and said that I was unethical.

She went with her and bought a different house. She told me she would be referring her sister to me, never heard from her again.

Midori - I agree with you, To many people are sincere but not Honest... Great post, Midori.

Midori,

Another great example of why a Buyer Brokerage agreement in writing should be a mandatory practice. We would not list a home without a contract, why should we work with buyers without a signed and dated contract?

If everybody had to do it -- then there would be no fear from agents to ask for it - resulting in less complaints and disputes in our local associations.

Great post! Absorbing all of the information given. Active Rain is a great place to learn more about this business!

Rebecca-I think most wont have a problem with the customer. But just as anything else in life. we sometimes get suprises. Thanks for commenting.

Konnie-yes it is kinda weird, but sometimes people are afraid...in some instances they may not know what you are really asking. thanks for commenting

Judi-It may not be totally accepted there but I would hate for you to be the one! anything is possible....remember there is no clear cut way in mediation....there is no clear cut way to determine who is right or wrong..... I am saying if there is no buyer broker agreement and two agents are duking it out....there will still be a determination......

Michael - you win some you loose some! My sister called another realtor to sell her house. We lived in the same area. It happens.. I know now doesn't matter who you are.....use an agreement buyer broker or listing. I learned an expensive lesson.

Luis - :)

Paul - Interesting....I wonder how people would feel as an industry to do this? That is definitely something to think about and hard! Thanks for commenting.

substantive services is the key phrase ... Regardless, it is always ggod practice ... thanks for the refresher

Connie-There is tons of great information here on the rain....keep soaking it up...I guaratee it will keep falling....

Allen-I agree with you.....substantive services-procurring cause....

I see this is still attracting well deserved comments. Good post.

Thanks for commenting on my post today: Law of Attraction: Your bank balance reveals your thoughts

SEP

2007

I will never forget to ask again. Thank you for the post!

SEP

2007

I myself have been to arbitration because of this. Another Realtor had taken my client. I did get a 20% referral fee out of it and that was it. Great Post.

Dan-Thank you....

Jodie-Good, that is why I wrote it! Thanks so much for your compliment and I will see you on your post

Dan-Thanks and so sorry but I will say 20% is better than nothing. Did you opt for mediation?

SEP

2007

Some agents have to learn the hard way, but it doesn't benefit anyone. We need our rules to keep some honest.

SEP

2007

I cannot imagine you need another comment, But this blog is outstanding and I just wanted you to know it so you will continue writing blogs like this to keep all of us in top order with the laws.

I am not a seasoned agent but I cannot tell anybody how many times I run across people who do not go over the realtor informaiton and find out if they are or are not working with another realtor and do not step on their toes. would you like it done to you, of course not.

I'm with Lenn Harley. The question is not "Are you working with an agent/REALTOR?" It's "Who is your agent?"

Why? Because it's harder to come up with a false response when it has to be a name rather than "Yes." You put them on the spot to name the agent, not to just blow you off by saying "yes."

OCT

2007

Great reminder Midori about checking on representation by a client already by an agent. We can make many assumptions in real estate which are completely false. It never hurts to keep checking. Even some FSBO signs that do not mention listing agents are in the MLS.

OCT

2007

Well let me throw my 2 sense in. I thought i was working with a client(who i've known for many years) but i was informed a few days ago from a lender that she was referred to her by another realtor. I thought ,because we were "friends" i didn't have to worry about that. So yes that was MY fault. Not theirs. It's my responsibility. it's my business. And i'm responsible for it.

OCT

2007

Well I will say I was just recently screwed by another realtor that I know. She couldnt have asked the question or else she would have found out the way the buyer knows about the house is because I was suppose to show it to her in a few days but for whatever reason she was impatient and jumped right in. And I hope karma comes back I saved a realtor this weekend. A potential buyer called on an ad I had placed on new construction homes. We started talking and I asked oh by the way are you working with a realtor. She stated yes, I said well tell your realtor too look up communities by this builder in this area and they will be able to help you. She stated back well I would like to see these now can you take me? I explained are you happy with your realtor, has he/she been working with you? If so then no I cannot help you see as realtors we only get paid when you purchase a home through us, so it would be unethical for me to show you this property and possibly write a contract, please call your realtor and they will help you. I did say however if your realtor is unwilling to help or you are unsatisfied with their service then please contact me.

NOV

2007

It does take some work, but if you put some safety nets in place, you can save yourself some aggravation.

At Open Houses, I have an individual sheet for each person signing in. It has a line asking if the person is in contract with a Buyer Agent. And I ask that they write the agent's name. There's a short paragraph stating that if I am not told of buyer representation they have, their agent will not be compensated. That helps to get them to fill out the form completely.

I email agents in my area to inform them of the open house, and ask that they call or email me ahead of time to give me their clients' name if the agent is sending the buyer unaccompanied. I do get an occasional response and that is helpful.

If the buyer says they are not working with someone, I still probe around - "Have you seen many homes in town?" "How did you hear of the Open House?" This flushes more out.

Sometimes it feels like our job is intrusive to potential buyers, and they get sick of being asked questions. If I get the feeling that the buyer is withholding information in fear that I'm a hard-sell agent, I back off, but insert disguised probing questions as the showing goes on.

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