Buying a Home in Palm Beach County- Make Sure You're Represented.

DON'T CALL THE LISTING AGENT HE WORKS FOR THE SELLER!

Yesterday, while out with a buyer for the tenth time in about two months, I suggested that the buyer might want to consider building a home. It seems that every time we go out, another obstacle to buying an existing house pops up. The criteria seems to be constantly changing.

He casually mentioned that he called a listing agent off a lot sign and the agent rushed over to meet him. I reminded him that we had a signed buyer's agreement and that he should have contacted me. After all, that is my job to protect his financial interests and help him find the right place.

He made it sound like it was no big deal. Just a casual conversation. I mentioned that the neighborhood he was interested in had many building restrictions so before purchasing a lot, we should meet with a builder just to make sure he could build exactly what he wants for his budget.

Then he nonchalantly says, "I offered $150,000 for a lot priced at $170,000." My heart skipped a beat. "You did that verbally right? Did you put it in writing?"

"No, the listing agent countered at $160,000 and we're not going to do that." I, once again, reminded him that the listing agent works for the seller. His job is to get the best price for the seller. My job as his buyer's agent is to get the best price for him. I told him not to have any further contact with the listing agent. He agreed.

As I was driving back to my office, I called the other agent. Of course, he didn't answer his phone and I left a voice mail just to inform him that I was working as Mr. XYZ's buyer's agent and that we would be meeting with a builder prior to making an official offer.

Within minutes, I got a call back from the listing agent. Apparently, my client had submitted a written offer. I tried to remain calm but I could feel my blood pressure going up. I said, I'm sorry my client didn't mention any such written offer.

The listing agent went on to say that they don't use a standard Tennessee Association of REALTORS® (TAR) Purchase and Sale Agreement. The listing agent just typed up the offer and had my client sign.

You see, my client is an international. He has lived in this country for years but he doesn't always understand what people are asking him to do. He is very trusting and doesn't believe anyone would take advantage of him.

The listing agent said the seller had countered but there was still no response from the buyer. Then he told me that the counter was based upon the buyer being unrepresented and that counter would be off the table if my buyer expected the seller to pay me. Good. I told him I would speak to my client and get back to him.

I called my client and arranged to meet him right away. When I arrived at his home, I asked him again if he had written an offer. He told me that he had signed a form but it didn't look anything like a TAR Purchase and Sale Agreement so it wasn't legally binding. (We had written two previous offers on TAR Contracts, that's how he knew what they looked like).

I went on to explain that not all agents and sellers use the standard TAR contract and that even though it didn't look like an official document, it was a legally binding contract. Fortunately, the listing agent had sent a counter which my client had not signed. WHEW!

The buyer then apologized, he said he didn't know he was suppose to call me. I had explained this at our initial consultation but that had been two months earlier.

He didn't know that when he signed this document prepared by the listing agent that he would be legally obligated to buy the land. As a matter of fact, the counter offer prepared by the listing agent, didn't even give my client the option to reject. By signing it, he was agreeing to all the terms stipulated in the document.

I simply drew a line across the document put the word REJECTED across each page had my client initial and date. I prepared an official TAR Counter Offer rejecting the counter and my client signed that as well. I emailed the documents to the listing agent. CRISIS AVERTED!

I spoke with several builders and we have appointments scheduled for next week to see if my client can build exactly what he wants within his budget.

Upon further investigation, there are many things about this neighborhood that may prevent my client from building; such as, size and style restrictions. It's possible the buyer would have purchased a lot that he couldn't even afford to build on. If that had occurred, he would not have even had the ability to buy an existing house as his down payment would have been depleted.

This would have been a sad turn of events for this buyer who has waited many years to get into the house of his dreams.

The moral of the story...

DON'T CALL THE LISTING AGENT HE WORKS FOR THE SELLER!

Call your buyer's agent, he has your best interest in mind. He will prepare a competitive market analysis and make sure you don't overpay for a house or a lot.

If you don't have a buyer's agent, contact another agent who can help advise you or feel free to give me a call at (615) 495-0752. I would be happy to help you with the purchase of your new Franklin TN home or lot.

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Tammie White, Realtor® in Franklin TN

Cell Phone: (615)495-0752

www.TammieWhite.com

Tammie@TammieWhite.com 
 

This posting and the contents written here are the intellectual property and opinions of Tammie White of Benchmark Realty LLC. Providing real estate services to clients in Franklin, Brentwood, Nolensville, Thompsons Station, Spring Hill, Fairview, Leipers Fork, Nashville and the whole Middle TN area.