Buyers Let Your Agent Work for His Commission!!

Buyers Let Your Agent Work for His Commission!!

Several months ago, I was contacted by a woman who had read my post, Buyers Need to be Represented When Buying New Construction Homes.

She and her husband were in the process of a divorce. He was going to be staying in their home and was buying her out. She absolutely loved the home she and her husband owned and wanted to buy a new construction home with the same exact builder in a development in another town. She was hoping I could save her some money. I explained to her the best way to negotiate a better deal was to visit the builder together. She agreed and we scheduled an appointment after she would receive the proceeds from her divorce.

Imagine my surprise, when the agent at the builder's sales office contacts me and says my client was just in to discuss the purchase of her new home. Then the on-site agent proceeds to say that she has already priced out a home for my client but it will cost her $25,000 more than my client wants to pay. The on-site agent suggested a much smaller model with fewer amenities to meet my client's price.

I immediately called my client. She didn't even mention that she had visited the on-site sales office. I told her the agent had called me. I couldn't believe what she said next, "Well, I told the on-site agent I was represented by a buyer's agent and she assured me you would get paid."

"Sharon (fictitious name), I'm not concerned about getting paid, I'm concerned that you may over-pay for a home by visiting the on-site agent alone. After all, that is why you hired me." I told her not to visit the office again unless I accompanied her and confirmed our scheduled appointment.

A few days later, I was in the area of this development so I decided to stop in to get an information packet that I could refer to when I met with my client. I went in and introduced myself and the on-site agent says, "You just missed Sharon by about 5 minutes. As a matter of fact, she has visited our office six times in the last two weeks." I couldn't believe what I was hearing. My client was going to sabotage any chance I would have of negotiating a better deal for her.

The on-site agent was a chatty Cathy and proceeds to tell me that my client says she can only afford to pay $$$ but as a previous buyer, they have all my client's financial information. Based upon that, the agent believes my client is just feeding her a line. She asks me to confirm this and I, of course, say (without revealing anything personal) that my client's financial situation is not open for discussion.

I even go as far as saying my client needs to be well under $$$. Remember, I'm trying to negotiate a better deal for her. The agent tells me that she suggested a lower price model but my client just won't stand for it. She has to have the bigger model with hardwood throughout, granite counters and stainless steel appliances. The agent tells me that home comes to $$$. This agent tries to pry and ask how much money Sharon is getting from her ex-husband. Now, I'm getting upset. I tell her that information is confidential.

I get the packet and I'm about to leave and the agent says, "Well, as a previous buyer, I do have access to what your client paid for her previous home." In other words, she was telling me my client paid full-price for the home. My buyer had already told me, she and her husband had not used a buyer's agent for the previous transaction because they didn't know the purchase price was negotiable.

My client has ruined any chance of me negotiating a better deal for her. The price she was quoted is way above the most recent sales comps for that neighborhood. I will still try to negotiate on her behalf but she's just tied my hands.

By visiting the sales office six times in two weeks, she has let this on-site agent know that she really wants this home. To make matters even worse, the sales office has access to my client's previous transaction and knows she paid full-price for that purchase. Right now, it's pretty unlikely that I'll be able to negotiate a better deal.

Buyers, there's a reason for you to have a buyer's agent. Their job is to represent you to save you money. When you go it alone without your agent, you diminish his ability to negotiate a better deal for you. You've hired a buyer's agent to help you with this transaction. Heed my advice:

Buyers let your agent work for his commission!!

Note:  The above is not an ongoing negotiation. That has already taken place. The subject of a future post.