There is a client I have been working with for almost a year.  First I was their listing agent as well as their buyer's agent.  When their listing expired, to be quite honest, I didn't want to relist the property.  It was overpriced and they simply didn't want to lower the price to where it should be.  In reality, I shouldn't have taken the listing to begin with but I really liked them and let my emotions get in the way of good business sense.  When the listing expired, I told them they should go with another agent to relist their property.  They asked if I would still work with them to buy a home because I was so familiar with what they wanted in a new home.  That I agreed to.

Well - here is where the problem came in.  They have finally relisted the house and the agent had them sign a Buyer's Rep even though they told her they wanted me to represent them for their home purchase.  I have always operated where I don't ask for a Buyer's Rep until we are writing a contract because I feel that if someone decides I am not the agent for them, they should have the right to walk away as long as a contract hasn't hit the table.  When the listing agent e-mailed me to tell me that she would be expecting a referral fee when I found them a new home, I talked to the client and they claimed there was no Buyer's Rep signed.  Then I spoke with the agent who told me there was a Buyer's Rep agreement signed.  Back and forth between the agent, the client and myself the whole story comes out.  She had put the Buyer's Rep in with the listing packet as many agents do and they had signed without being clear on what they were signing.  I told the agent and the client that I would bow out and let them go on their way.  The client was adoment that they wanted me and me alone to help them purchase a home - I had shown them properties, knew what they wanted and deserved the full commission.  They had the other agent come over and put things in writing to end the Buyer's Rep agreement.

 All of this could have been avoided by me changing the way I do business and having them sign with me.  I take responsibility for that part of this mess.  But this could have been avoided in another way as well.  The agent, when told they had representation for the buy side should have never slipped in an agreement.  Also, why wasn't it clearly stated to the client what they were signing?  I know that ethically, if someone tells me they have representation, I back off. 

 Ok, my fellow AR members, how off base am I?  Any comments or constructive criticism is appreciated.  Do I need to change the way I do business?

 

13 Comments on Buyer's Rep in a rough market

JAN
08
2008
Classic case of too many cooks in the kitchen or in this case too many Realtors on one client. Is your purchase of a property for these folks contingent upon the sale of their existing property now under contract with this other Agent? 
12:55am • #1
388,633 Points 15 Featured Posts Outside Blog
Hi Shelby:  This is what happens when you are being so careful to not appear pushy with them by having them sign a buyers rep agreement, and then they run into someone what does have them sign it.  I would demand to see a signed copy of them being released from their buyers rep agreement with the other agent, or probably walk away... telling these buyers to call you when they are free to deal with you.  It is a tough situation, and I do not envy you.   Best of luck... take care...
12:56am • #2
4 Featured Posts
You have raised a lot of good points here.  In the end, yes, as a fairly new agent who has been burned a lot, I think you should change tactics.  Particularly in this case when you were severing ties on the listing side, you should have had a buyer agency agreement signed.  The other agent was unethical, in my opinion though.  I know some agents in my office will not do any business with anyone unless they meet with them in the office and they sign a buyer agency agreement right away.  I think that is very pushy since neither of you knows how good or bad the other one is - maybe I don't want to work with them!  It works both ways.  I can't imagine your sellers can be happy with an agent who would pull this on them!
1:02am • #3
Hi, Peter.  No - we will not be doing a contingent on sale.  Thank goodness!  That is the one thing that makes this do-able.
1:02am • #4

Karen - Thank you.  I will be cautious on the release.

Susan - At this point, having them sign one is going to protect both me and them.  As for how happy they are with the other agent, I agree with you.  I would have lost all faith in her if I were in their shoes.  This is a cute little couple in their 70s that she did this to.

1:06am • #5

It's too bad that people are so worried about making bad decisions that they get in these situations.

2:43am • #6
100,050 Points 1 Featured Post
Sorry you got caught up in the other agents "I'll just slip this in and let them sign it" shenanigans.  Glad you were able to work things out and I hope you find your cute little couple a new home soon.
3:04am • #7
100,050 Points 1 Featured Post
Sorry you got caught up in the other agents "I'll just slip this in and let them sign it" shenanigans.  Glad you were able to work things out and I hope you find your cute little couple a new home soon.
3:05am • #8
305,992 Points 11 Featured Posts Localism Sponsor Outside Blog Hit Router
Shelby - I was famous in the past for not geting Buyer's Agency signed in the past.  I was of the same opinion as you that they should have the opportunity to "like" me first and be "comfortable" with me.  Wow, was I wrong.  I got burned SO MANY times I can't even count them.  Now, I have them sign with a more in-depth explanation of what I do, the benefits of a buyer's rep, and what I expect from them.  It is amazing the level of respect that comes from that.  So many times we get caught up in being nice (I am still nice!) and non-confrontational that we sell ourselves and our services short.  I don't go as far as some of Susan's colleagues and have them sign "right away" but I do build a repoire with them either via email or phone and MAYBE one time out without signing.  I am so sorry that you got caught up in this.  I am a little confused though.  Why did the other agent want a referral from you if you didn't have a signed buyer's agreement with them? 
7:39am • #9

Leesa - She had slipped in a Buyer's Rep on them.  I guess she thought that made them her client and I could sell them a home only if I paid her a referral fee.  That was the twist that put me over the top as well.  Lesson learned for me.  I will operate like you do from here on out.  I will get a signature and explain the importance of the agreement and relationship.  I have learned that I can't continue to do business on a handshake.

11:01am • #10
JAN
11
2008
Oh my, what a mess!  But you seem to have handled the situation VERY PROFESSIONALLY!  I'm learning from you on this one!  Thank you.  It is a very tough market out there.  But being professional and putting work ethics above all seems earn a winning position.  I'm sure your clients put their trust on you and you alone to search for their next house is a good testimony of your good work. 
12:44am • #11
Thank you, Michelle.  I appreciate your response.  I felt very unprofessional for getting into this mess.  I have learned a ton on this one!  From here on out, I will be asking for a Buyer's Rep to be signed after only one trip out shopping.  If I can't WOW them on that first trip, I must not be their gal!  Good luck out there.
1:00am • #12
I think it is so important to get your customer to sign a buyers agreement.  I had a situation with a client where I was listing there home.  No buyer's agreement signed.  I had been showing them homes and then they went out one weekend on their own to just "drive around."  Next thing they signed documents with a builder.  They were told that the price of new construction would be less without having an agent represent them.  It was my fault for not having that agreement in place.  Not only to protect me, but to protect my clients.  I didn't think they got a very good deal!  Live and learn.
2:33pm • #13

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Shelby Morris

Columbia, TN

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