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?