www.UtahDave.com is a site where we are used to having many other agents on our site using our site.  Thats great..we love the traffic and being able to help people..so here is what happened this week.

Over a week ago, we had a buyer that when we asked the golden question, "Do you have an agent you are working with?" They answered the golden answer. "No."

So my buyers agent started helping them, showing them homes and getting them ready to buy.  The buyer shows up at our office yesterday morning with a Referral agreement for their brother for 35% fee.  (He is a local agent and as a matter of fact, they are renting and living in one of his homes that he has for sale.)

 They said, "Well, we want to use you but we need you to do this."

 What would you do?  Well, this is what we did....lets see what you think.

We signed it.  We told them the following: "We actually never pay this high of a referral fee to anyone, and we actually never pay referral fees unless the agent called us up and wanted us to help their client.  We understand that this is important to you since you feel bad about not using your brother especially when he showed you homes months ago.  Im going to do this, just for you.  I appreciate getting to know you and love working with you and would love working with people you know in the future.  Would you be willing to let me know when you come across someone looking to buy or sell a home and send them our way?"

 I figure hey.....we got someone to use us instead of their own family.  Capitalize on the experience, get a testimonial, and use the experience when next time someone says...I have a cousin in the business.  Besides, if the brother called us in the beginning instead of when we were doing the offer...we would have paid a referral fee. I believe the law of abundance wins.

What are your thoughts?

 
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105 Comments on I dont have an agent...BUT weeks later...I want you to give my Brother 35% Referral Fee.

APR
15
2008
135,851 Points 1 Featured Post Outside Blog

Morning Dave,

Wise decision. Your professionalism will reap rewards abundant!

4:49am • #1
164,632 Points
I have had the same thing happen to me and that is exactly what I did.  I figured if I didn't sing it the buyers could walk away and I would get nothing at all.
5:13am • #2
65% of a pig is better than no pig at all.
5:18am • #3
112,099 Points 15 Featured Posts Outside Blog
Dave If any member of my family needed real estate services I would refer them out.  But due to the circumstances I would not ask for a fee.  Heck, I'm not sure I would even refer them.... I know my family well.  :-)
5:19am • #4
1 Featured Post
Dave- That was a good decision.  You handled that very professionally.  Hopefully you will get more business out of that.
5:20am • #5
441,534 Points 10 Featured Posts Outside Blog
Dave you did the right thing.  A little less commission is better than none at all. I wonder why they didn't use the brother in law.  
5:31am • #6

Dave - You handled this in a good way.  I would have done the same thing.

5:32am • #7
255,544 Points 44 Featured Posts Outside Blog

I would have been tempted to ask if the nice helpful brother in law was going to rebate *his* referral fee back to them..but I digress :-)

 

5:35am • #8
2 Featured Posts
Yes, I agree with your decision, however the brother really took advatange!  35%, I have never paid.  I had a simular situation............woked with a buyer for a long time, got close to puting a offer on a home, then her brother told her if she morves to a C21 agent he gets a big referal fee.  (I am at Keller Williams).  and he would split the fee with them!  I gracefully told them this was their choice, but we have worked so long together and I was the one finding the homes, I would hate to loose their business.  However they needed to decide NOW as this was only fair to me.  It was never brought up agian and they did end up buying from me with NO referal fee.
6:17am • #9
It's happen to us all on occassion.  Just take in stride!!
6:42am • #10
We would have agreed but at the standard 25% that we offer. I would have crossed over the 35% and countersigned at 25%. But not until we called and spoke to him directly with the client. That way there could be no confusion!
6:46am • #12

I'm appauled.  It is clear to me that both the clients and their brother took advantage of you.  If the brother was involved in this and instructed them to lie about having an agent to you then I feel disciplinary action should be taken against him with the Realtor board and/or real estate commission.  This is one of the reasons why in GA we have a written EXCLUSIVE buyer agency agreement.  I would have gotten one of those signed early in the process.  It is likely that these unethical people would not sign it and I would have been able to find out about this long before I wasted my time with them.  As far as him "splitting the fee with them" that is ILLEGAL.  There are ways that he can legally rebate money to them effectively; but to say that it is giving them part of the referral fee is illegal (at least in Georgia).  Now, I probably wouldn't have been in this situation because I would have had an agreement with them early on or I would not have spent time working with them.  However, if I did not have a signed agreement and I was in your position, my reaction would honestly vary depending on the price range of the home.  If it was a very expensive home I honestly might have swallowed my pride a bit and agreed to it.  If it was in a low price range, I would feel better about confronting the brother about this, reporting him to the authorities, and putting both him and the unethical clients in their place (albeit tactfully).  By agreeing to this you are sending a message that this kind of behavior is ok and you are increasing the likelihood that they and others will do the same again.  As far as getting referrals from them - good luck.  Do you really think these people will be loyal to you instead of their brother in the future.  Now their brother has a good gig.  They will tell all of their friends to do like they did so that their brother can repeatedly make 35% for doing NOTHING.  The truth is, they chose to use you over their brother because they felt that you were more qualified and knew their area better.  You had a chance to nip it in the bud by getting a signed agreement from them before you invested time.  They likely would have signed and you would have had some protection.

6:47am • #13
1 Featured Post

Fortunately this is not a common situation that you were faced with. You treated it very professionally and we would have handled it the same way.

Patty & Scott Carroll - RE/MAX Equity Group Vancouver WA

8:45am • #14
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Why didn't the brother show up with the referral agreement?  You are such a nice guy!
9:12am • #15
1 Featured Post
Hey Utah Dave- Congratulations on being the bigger person. If I were the other agent I wouldn't have had the guts to ask for a referral but obviously he's not too much in the educate my friends and relatives I'm in the business department. 
9:54am • #16
I would have tried to get the referral fee down a bit, but at the end of the day, I would have signed it as well.  Just get the deal done and gain the experience like you said. 
10:13am • #17

I would have signed it as well. Something is better than nothing.

10:17am • #18
405,182 Points 3 Featured Posts Outside Blog
Dave...I believe and agree with you.  You handled a bad situation in a good way, keeping your head.  I think I would have made a call to the Agent and to the Broker voicing my displeasure, But, I also know that you may be working with this clown in the future.  The Broker should definitely be advised of the way his/her agent handled the situation and the amount of the Fee!
10:19am • #19
1 Featured Post
I think it is unprofessional of the other agent considering they had nothing to do with the referral.  You did the right thing though in the best interest of the client.  In the future you might want to call the other agent and maybe negotiate closer to 25%.  I think it is fair to tell the buyers that you can't offer a referral fee to anyone that is not licensed and therefor you will need to call him.  I feel bad for your clients.  It must have been awkward for them to bring you the form.  the other agent is probably new and doesn't know the etiquette.  He might actually appreciate a call so he doesn't offend agents in the future.
10:19am • #20
That was a great response. I probably would have went off the walls giving a response to that. That's crazy! People expect us all to give away our money, they think we are filled with it. Well we got bad news for them! :) We're not :)
10:28am • #21
The same just happened to my brother and I. We did the same thing. I think you did  a great job. After all it is about the client's experience and you helped two people and I think that is great.
10:28am • #22
832,844 Points 213 Featured Posts Localism Sponsor Outside Blog Hit Router

Been there.  Had that happen. 

Dumped them.

 

10:32am • #23
2 Featured Posts

Dave--Kudos for taking the high road. 
question...did you share this experience with the brother/realtor's broker?  It would seem that the broker may want to know about the practices of their agents.  A broker would not want to have the reputation of having unprofessional agents.

www.FindHomesKansasCity.com

10:32am • #24
402,204 Points 16 Featured Posts Localism Sponsor Outside Blog
Dave - I'm with those above who gave you a thumbs up for your decision.  From this transaction many more may follow!
10:37am • #25
Dave, I look at these things individually and as a business decision. I would look at the referral percentage, property value range, approximate my time in helping the client, likelihood of future or referral business and then make a decision. Most of the time I try and look at it from an hourly rate. If I can't justify what I perceive as the hourly, then I can't take the business - my time is too valuable. Sometimes if it's close, I can chalk it up to marketing cost and do the deal.
10:40am • #26

Dave,

I agree with your decision and approach.  You will gain in the end.

Bob Haywood
10:43am • #27

Really, I see what you are saying about the laws of abundance. I think you handled it with great tact and business-like decorum. It's stories like this that truly shine a light on the Good Realtors and ... the other kind.

10:47am • #28
1 Featured Post Outside Blog Hit Router

Dave,

I would have had to think about it.  I would have called the brother and gotten his take on the situation, to see if he even understood it.  I give and receive referrals at 25% but may have offered him 10% on this one.  I would have asked if he was going to give them the credit on the PSA for his portion.

First meeting with the buyers, I get a signed buyer agency agreement which would have solved this issue.  After it is signed, I explain to my clients that "now it's like we are married, we don't date any other realtors."  And I get their agreement.  This would forestall the question of a relative, I think.  

List and Sell (once again, I think Lenn is correct)     Gary @ RentonHomeFinder

10:50am • #29
423,504 Points 81 Featured Posts Localism Sponsor Outside Blog Hit Router
Yes, I would do the same thing - and have, more than once.   Professionalism wins over greed in the long run every time.  I wouldn't be surprised to see you reporting a referral from this buyers or the other agent in the next year.  Go Dave!
10:50am • #30
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Very good Dave. You did a nice job.
11:07am • #31
Localism Sponsor
Very good Dave. You did a nice job.
11:07am • #32
While it would feel really good to receive a 35% referral fee, I think it is too high for someone to come in wanting almost at the end.  However, I must say that something is better than nothing so I would have acted in the same manner.
11:15am • #33
3 Featured Posts Localism Sponsor

I would have done the same under those circumstances, especially if you already have spent time with them.  I'm sure it was a measure to keep the peace in their family, and the brother might have been upset if they had asked him to refer them to someone else (and someone they didn't even choose themselves).

You might have tried to negotiate it down a bit, or suggested that the brother provide a closing credit to them, but well...

11:26am • #34
597,242 Points 111 Featured Posts Localism Sponsor Outside Blog

I did the same thing before.  After my client and I set everything up for showing (she contacted me and never mentioned a relative or agent) I get the call. The agent.... a relative is in the midwest and never showed property or anything .... just was rude and said that my client was supposed to let her refer her to someone here but instead wanted the referral. Well, the transaction closed and I asked for a testimonial and haven't heard hide nor hair from client or agent relative.  I won't do this again.

11:35am • #35
190,788 Points Outside Blog

I think, I would have asked for a more firm commitment for referals as I was bending over to accommodate and service them.  Knowing me I would have probably spoken to the brother prior to signing the document to justify the 35%.  

I read through a lot of the replies and am trying to contrast that to somewhat similar posts regarding the work required to help customers. In many other post agents complain bitterly about being low-balled for fees and all the work required to close a transaction.  If I read this post correct.  It is not really 31.5% that you would earn as you must split with your broker, using a 50/50 split.   Is that good or bad? Or is business so slow that any amount will work until the market turns around?

11:37am • #36
I agree with Matthew. Although I feel you were professional about it and that you will make some thing out of this, I'm tired of everybody trying to stick their hands in my pocket. I have given large gifts to my clients, loaned my commission so they can purchase a home, given cash to help with mortgages and moving expenses, now what I learned is that takers, take and take and take. Today I wouldn't do it, although in the past I would have because it's not about the money to me, but it is to them. I have let people go because when I did do such things it was because I care, I don't do it now because I've learned to care about myself. That agent should be ashamed of himself. (I know he's not, but he should be) It would have been better if he asked for only 25%, 35% is just too much to give to someone for not doing anything but collecting a check. You're a good guy.
Yolanda Bradshaw
11:42am • #37
You were in a catch 22.  You couldn't say "no", as they would have just gone to their brother and had him sell them a house.  But I am sure that saying yest to 35% sucked.
12:02pm • #38
Handled with great integrity. With actions life this, our industry will soon have the favourable reputation that it deserves.
12:26pm • #39
8 Featured Posts

People never cease to amaze me and money is an ugly motivator for many. Congratulations for make lemonade out of lemons! I would have to agree that you made the right move!

12:28pm • #40
1 Featured Post Outside Blog
that is a good way to handle it. not so sure i would've done that but after reading your post i think i may just consider it if i ever have this. i have actually been on the other end. my uncle wanted to see a home and made an appointment with the listing agent before he called me..the agent was livid when i called her and refused the fee....hmmm maybe she should've read your post.
1:04pm • #42
654,884 Points 108 Featured Posts Localism Sponsor Outside Blog
I would have done the same thing under the circumstances.  However, if it happened after the home was under contract, I'm not sure if I would be willing to do this.  It's all about timing. 
1:31pm • #43
607,325 Points 244 Featured Posts Localism Sponsor Outside Blog

Dave, With out a doubt I would have picked up the phone and called the brother before agreeing to any thing. The buyer and brother do not have the authority to get a referral agreement signed, only the Broker does. So brother would need to do some 'splainin' first. If everything went well during that conversation I MAY be willing to pay some sort of a referral.

Of course the truly professional way to have handled this would have been to follow up "No, I don't have an agent." with "Great!!! Let"s sit down and go over this buyer broker agreement so the next time someone ask you that question you can proudly say...Yes, I'm working with Utah Dave!"  

2:04pm • #44

Wow.  I rally dont know what I would have done in your position.  I have not been in the industry that long (less than 2 years) and I have been lucky enough not to be in the position,Yet.  I think I would have called the other agent, at least, possibliy his broker as well.  Or I would have asked my broker to call his so that it may even carry more weight then just another agent calling.    

I probably would sign form and I love the way that you handled it saying that you were only doing this for Them.  Makes you sort of hate-well thats sort of strong, makes you think--gosh he is not only Lazy  (since he didnt even bother to call or bring by the referral sheet- which to me personally is one of the worse charcter flaws that you can have except being a lier.  I can deal with people that dont know what they are doing since you can always teach them, but Laziness goes deep! )  but he is also sort of unethical.

Good Luck!  I believe in the long run you will win and the brother will be an agent of the past........

Take Care & Have an Awesome '08!

2:07pm • #45

You can do anything with your own time that you want; but if you are the Principal Broker and it was a Salesperson or Broker working under you, then I'm afraid this turns into a management issue, and you have to protect the interests of the Agent in your Office who sincerely invested his/her time with the expectation of not having the carpet pulled out from under them.  I've seen many Agencies lose good Salestaff because they did not vigorously protect their interests.  That's where a good Policy Manual comes in handy - one that is dynamically growing as new and previously unanticipated issues are encountered.

So who's Ox was being gored, your own .  .  .  . or one of your Agents ?

 

2:07pm • #46
I'm on board with Bryant.  Clients should never have to be involved in or dealing with referrals from other agents.  Pretty unprofessional.  I'm guessing the brother sent the form along with the relatives because he didn't have the guts to call you.  I would have thanked my clients for the form and called the brother immediately.  Why were they working with you and not the brother?  Seems like there is something fishy going on here.  If you called the brothers broker right away - he would have to explain to the broker what is going on. 
2:11pm • #47

Wow.  I rally dont know what I would have done in your position.  I have not been in the industry that long (less than 2 years) and I have been lucky enough not to be in the position,Yet.  I think I would have called the other agent, at least, possibliy his broker as well.  Or I would have asked my broker to call his so that it may even carry more weight then just another agent calling.    

I probably would sign form and I love the way that you handled it saying that you were only doing this for Them.  Makes you sort of hate-well thats sort of strong, makes you think--gosh he is not only Lazy  (since he didnt even bother to call or bring by the referral sheet- which to me personally is one of the worse charcter flaws that you can have except being a lier.  I can deal with people that dont know what they are doing since you can always teach them, but Laziness goes deep! )  but he is also sort of unethical.

Good Luck!  I believe in the long run you will win and the brother will be an agent of the past........

Take Care & Have an Awesome '08!

2:13pm • #48

Hi Dave,

 

It is disgusting that they did that. You did the right thing.  Unfortunately there are too many relatives with licenses not really "Working" in Real Estate.

Good Luck

Kevin

White Plains, NY

2:16pm • #49
168,592 Points Outside Blog

I like your thinking Dave. You are making 65% and thats alot better than 0 %.

The payee will appreciate this gesture and you will get future referrals, thats all that matters.

Eddy

2:31pm • #50
You handled it beautifully.  Well done.
2:39pm • #51
Localism Sponsor
I don't pay 35% to anybody unless I'm getting a pre-approved buyer on a particular property and the referring Realtor is from out of town.
2:40pm • #52

You are a true professional.  We need more like you in our industry. 

Happy House Selling!

 

2:48pm • #53
very professional. that was a good way to handle a shaky situation. 
2:56pm • #54

it would have been nice to get it all, but you did the right thing.

 

 

3:02pm • #55
2 Featured Posts Localism Sponsor
Dealing with family doesn't always work.  Having the brother ask for 35% referral fee is incredible unless he gave every penny to them. Strange that the brother didn't find them a house and give the real estate commission as a credit...or negotiate a reduced seller agent commission so the buyers could get the house for less.  Although I'm not sure that is legal....
3:07pm • #56

From all of the responses Dave, you hit a nerve.  How about this response..."I am very pleased you brought this to my attention, your honesty is appreciated.  I will always reciprocate honestly.  I'll bet you got put on the hotseat from your relation when he found you were working with us.  Here is what I will do.  Justice does not require me to pay him anything since he did nothing in this transaction.  It's sort of dishonest for me to pay him.  What I propose is to give you a 35% rebate on our fee since it was no doubt difficult for you to come to me with this request.  Now you can keep the money for yourself or give it to this other licensee.  That is your choice." 

David Hillestad
3:09pm • #57

"65% of a pig is better than no pig at all."

I love Bacon!

3:34pm • #58
487,277 Points 84 Featured Posts Localism Sponsor Outside Blog Hit Router
I did have a similar one not long ago.  I also gave the referral fee.  It was less than 35% though.
3:48pm • #59
210,393 Points 1 Featured Post Localism Sponsor Outside Blog
Very nicely handled.  I hope I would have handled it as well - without biting my tongue !
4:11pm • #60
302,189 Points 3 Featured Posts Localism Sponsor Outside Blog
Glad to know you'll pay a 35% referal fee if I send any buyers or sellers your way. : )
4:41pm • #61

Dear Dave,

KUDOS to your team For acting professional as you did.

As for my comment, i probably would not have taken it just for the principle of it (REALTOR 101). It is this kind of clientele that put us realtors in the dump, taking advantage of our time and talent just so they can have more. My gut feeling is that this same buyer is taking you for a ride. If he is renting in one of the houses that the agent is selling, he could have just as easily used him. The 35% referral may not even go to the other agent's pocket but rather as this buyers payment for breaching his rental agreement. If this is the case the buyer had both of you duped....If not, then this buyer is just greedy and feeding on some realtors' desperation to have something, even a little thing!!!!

Newbie from Florida
4:44pm • #62

Dave,

I think you did the right thing. I love creating raving fans and clients for life. It always pay off in the end

4:51pm • #63

dave

I agree, you did the right thing.  I look at the situation this way, I'm not losing 35%, I just made 3000 dollars. then it doesn't look bad at all. 

4:59pm • #64
4 Featured Posts

Dave,

I think you handled it perfectly and with class. It's difficult to do but it's certainly happened to us before. More then likely, they did not know a referral fee could be done until their Brother told them -- which obviously would have happened from the start if their brother would have told them in the first place.

 

5:17pm • #65
3 Featured Posts Localism Sponsor Outside Blog
You did the right thing... it may have stung a bit.  Hopefully this guy is for real! :)
5:19pm • #66
249,048 Points 2 Featured Posts Outside Blog
You were taken advantage of, but chances are the client would have just gone on to the next agent and done the same thing to them, until they found someone willing to go for it!
5:21pm • #67
404,248 Points 72 Featured Posts Outside Blog

"Utah Dave"...

Well first of all...I am big on nicknames. I love it when a Member comes with a nickname.

It saves me from having to nickname them myself :)

Anyway...I love the way you handled that...Let's just call that money well spent :) 

TLW...ROAR!

5:26pm • #68
This is an unfortunate situation, but it sounds like you handled it in a professional manner.  Sadly, it's this kind of story that gives all real estate professionals a bad name.
5:30pm • #69

We all agree 35% is ridiculous.  I commend you on taking it like a gentleman and probably would have done the same thing. 

I do think that to hinder this type of activity, we always need to make it clear that the requested referral percentage is outside our experience (it may be a violation to indicate it is not typical or normal or customary).  If brother-in-law is gouging us, his family has a right to know.

I also think planting a seed like "He must really be planning a great house-warming gift" might make it worth the extra fee :)

5:40pm • #70
160,822 Points 9 Featured Posts Localism Sponsor Outside Blog
Dave, You did the right thing and were very professional in the way you handled it. I would have been tempted to call the brother and let him know after the deal was done how unprofessional he was, however.  He should have never had them handle his business for him.  Good job on your end and I hope you do get some nice referrals from them in the future!
5:42pm • #71
160,822 Points 9 Featured Posts Localism Sponsor Outside Blog
Dave, You did the right thing and were very professional in the way you handled it. I would have been tempted to call the brother and let him know after the deal was done how unprofessional he was, however.  He should have never had them handle his business for him.  Good job on your end and I hope you do get some nice referrals from them in the future!
5:42pm • #72
After reading your post and the responces given, I agree with what you did but I also think 35% was way to much for them to be asking for.
5:51pm • #73
That is so annoying! My first response would be to kick and scream! After calming down I would probably do it and take advantage of their referal business more than ever. I would feel like they "owed" me. I don't know, after reading that, it made my stomach hurt.
6:27pm • #74
 Sounds like the brother set it up, you do all the work and he get's 35%. Bravo on your response.
6:42pm • #75

Dave,

I definitely think you took the right approach.  When you put your clients before the money you will always come out on top.  Those people will bring you more business than the 10-15% extra you paid that agent.  I do however think the agent took advantage of the situation.

8:06pm • #76
4 Featured Posts
What what a bunch of really great comments.  Yes, In life I believe we dont get what we deserve....we get what we negotiate.  We had someone recently do this to one of my agents a few months ago and my agent didnt give them anything and they didnt get the deal.  I feel good about being professional and not getting emotional about it.  Thanks for all the comments and other great ideas.  What an awesome panel of brainstorming and thoughts!
8:08pm • #77
118,046 Points 2 Featured Posts Outside Blog
100% of nothing is nothing. If you say no you probably lose the client.
9:54pm • #78
582,165 Points 34 Featured Posts Localism Sponsor Outside Blog Hit Router
Get a video testimonial with them saying "My own brother is an agent here... I used Utah Dave because I wanted the best."  That would make it worthwhile...
11:20pm • #79
344,612 Points Outside Blog
You got to do what you got to do in this market. Hard to say what any of us might do in a similar situation as each person is unique and situation different. You seems to have made lemonade out of lemons and that may be all you can hope for.
11:33pm • #80
APR
16
2008

Good call, I have had the same experience, but not for 35% (ouch)  I also believe the more you give, the more you get  :)

cheers!

1:47am • #81
1 Featured Post
Dave,  You took the high road, that says much about your character.  The other agent put the client in the middle (related or not, WRONG!), that says all we need to know about his character.  
3:14am • #82

Who hasn't had something similar happen to them?  It is so frustrating.  By the huge # of responses it is clear that this practice is way too widespread.  Maybe, just maybe, instead of Realtor ads saying, "Now's a Great Time to Buy," they could pass regulations stating that all referrals must be given in advance of the first substantive meeting between the agent and customer.  Unfortunately, it probably wouldn't change things, as people like this will play games no matter what.

Finally, a question, would you have workd with this guy if his brother had referred him to you in the beginning?  I would guess the answer is yes, so you certainly did the right thing. 

8:24am • #83
Good decision, not something to get greedy over, and repeat business has lots of potential.  However, if it was a "tough" client, it would have been a good situation to part ways or push the issue.
11:31am • #84
180,843 Points Outside Blog
It's a toss up. But it was your decision to make and from the consensus of comments you did the right thing. The other "agent' reminds me of some agents here who send their clients out and ask other realtors to show the properties and then want to come back and write the offer. It's called LAZY. Just my 2 cents.
12:05pm • #85
121,298 Points 6 Featured Posts Outside Blog
Wow, they didn't use their brother. That's kinda crazy. But if they aren't using him, hopefully they aren't referring him to their friends. May be you will get their friends.
12:30pm • #86

Dave,

A good freind of mine just had the same thing happen to him.

He said something so simple, yet so brilliant.

"Sure I can give your brother part of the commission.  Just have him call me to go over the details."

The customer said the very next day that his brother had changed his mind. 

How uncomfortable would that conversation be for someone trying to get something from you for nothing? 

Happy Selling,

Greg

 

4:22pm • #87
Localism Sponsor Hit Router

A good decision.  However, I might have challenged the 35% since it is very high and the Brother didn't do a thing to earn it.  I might have called the Brother and asked if 25% or 30% was okay.

Then, after closing, you may want to ask the brother to hang his license with you.

4:27pm • #88
307,678 Points 1 Featured Post Outside Blog
Dave, I would say wise decision!  I would like to think that I would do the same thing. 
4:29pm • #89

Wow, aren't we all from the same tree? :) I just had some buyers use me up, then went to their 'friend' to write up the offer. I didn't ask for a Broker Buyer Agreement to lock them in with me, I thought he's so nice, a teacher, nice family!!! Yeah, right.

Any suggestions from you all about what you'd do to the client.... I mean handle the situation!?!?!

Karena
8:48pm • #90

I hope it works for you!  It was certainly a nice thing for you to do!

9:08pm • #91
Hi Dave, I would have done the same exact thing as you.
9:48pm • #92
APR
17
2008
You handled that very gracefully.  In the end, any referrals from them would far outweigh what you gave up.
12:56am • #93

 

  I thought what you said was great ! I would have dropped it to 25% since the agent didn't let you know in advance. I then would have waited til ithe deal closed and called the brother to see what he had to say about his relatives. I would much better have the larger percentage than try to take them to court for the whole commission.

2:51am • #94

I feel for you. This is a very uncomfortable situation that could easily have been handled with a Buyer Agency Agreement. I make people sign these before I ever show a home. If they have specific issues with this, or have some special situation that needs to be worked with, I put that situation in writing, in the provisions (like the Realtor brother), or I don't work with them. Bad business is bad, no matter how it is done.

If I am going to be held to a high standard, and be accountable for every breath I take in front of a client, I want them accountable, too. That is what makes it a partnership with them.

Another thing i do with buyers and sellers is get a financial statement. It tells me how I will be able to help them purchase a property, or protect their equity best.

I know a lot of people say a little of something is better than all of nothing, because times are tough, and deals aren't coming in the same volumes nationwide as they used to. Still, there is something that speaks in the back of my head that having high standards for ourselves, and equal standards for our clienteles makes us perform more professionally, and lets the public know that the service of a real estate professional have a high value.

In this instance, I think the Buyer's actions were unethical. Since I am help by personal choice nad professional standards to the highest ethical conduct, I just don't see the value in participating in unethical behavior. I am still asking what the brother did to earn the referral? Just exactly why did he get a pass/gimme for doing apparently nothing.

Lou "That Realtor Guy (in Shorts)"
11:29am • #95

I guess I did not ask my question clearly enough . . . . or I missed the answer.  On 4/17 at 2:07, I asked

"So who's Ox was being gored, your own .  .  .  . or one of your Agents ?"

If you are the Principal Broker, and it was one of your Sale Staff who entertained these people; then it's much more than whether to pay a "Referral Fee" or not.  If it was a Broker or a Sales Person on your Staff, then that is where the Principal Broker has to go to bat for his Agent.  What would you do if, instead of a Referral Agreement, these same folks had come back into your Office with a full blown Offer on one of the properties that your Agent had presented to them, an Offer drafted by the Brother who wasn't at the Presentation of the property ?  Would you give away the Selling Side of the Commission to the Brother and "Cut out your own Agent ?"  I guess it's all a matter of setting a precedent and letting your people know if you're going to be there to protect their interests when another Agent or Agency is picking their pocket.  Good people leave for lesser reasons !

So, am I mis-reading this scenario by thinking there is someone from your Office involved besides you ?

4:06pm • #96
4 Featured Posts

Dale,    Thanks for your comment. Great points.  Heres a few answers.  I am the Broker...and a Team leader.  My Buyers agent was handling the client.  It was someone elses listing.  Not even ours.  So if the brother came in and took the deal instead of us.  We could go to the board and do some sort of Procuring Cause.  But than, that could be argued because the definition means, someone who started a chain of events.   The brother could argue that because the clients are living in his rental and he started showing them homes 6 months before we did.  The brother didnt get an agency.  The buyer told us they didnt have an agent...and than when offer time came. Tadaaaaa!  A referral agreement.  What am I going to do if the brother wrote up the offer on the house that we showed the buyer....take a family to the board for procuring cause?  They will witness you out of the game.  It would never work.

Thats besides the point and isnt the real reason why we should do something.   Patrick McCarthy was about to be fired from his job at Nordstroms because he wasnt producing....he was fighting over who gets the customers commission that came in the store with other agents.  Once his manager said "Stop fighting with other employees....when they think the sale is theirs.....ring it up for them and do it with a smile." After that Patrick became the #1 Sales Rep for Nordstroms for 15 years!  If we want to be a top sales rep...we need to focus on giving value..not fighting over commissions or who wronged us. 

The great thing about my team is that they understand this.  So when they came to my office and asked to sign the agreement...they already were in good spirits.  The lower split sucks...but they know for a fact that their attitude is the most important....not who ripped them or had a different point of view. We are all about negotiating...you have to feel the moment and know where your line is though. But when we give up a referral...We just do it with a smile.

4:21pm • #97
Localism Sponsor Outside Blog
i think you did great.   I would of done the same.  Now you will get referrals and part of the pie is better than 100 percent of nothing. 
4:32pm • #98
404,248 Points 72 Featured Posts Outside Blog

"Utah Dave"...

I checked the box so I could follow the comments on this post.

I am impressed with the way you handle yourself.

Love the way you understand the phrase: "Pick your battles" :)

TLW...ROAR!

4:45pm • #99
Localism Sponsor Outside Blog
We have had this happen to us when our client came to us as abuyer on our listing and then brought his stepdad into the equasion for a referral fee. We signed the agreement that if that particular home worked out then we would pay the 35% fee, but if  we had to look for another home that required us to do more extensive research, then the referrral fee would go down to 25%.
5:00pm • #100
Localism Sponsor Outside Blog
We have had this happen to us when our client came to us as abuyer on our listing and then brought his stepdad into the equasion for a referral fee. We signed the agreement that if that particular home worked out then we would pay the 35% fee, but if  we had to look for another home that required us to do more extensive research, then the referrral fee would go down to 25%.
5:00pm • #101
Localism Sponsor Outside Blog
We hae had this happen to us when our client came to us as abuyer on our listing and then brought his stepdad into the equasion for a referral fee. We signed the agreement that if that particular home worked out then we would pay the 35% fee, but if  we had to look for another home that required us to do more extensive research, then the referrral fee would go down to 25%.
5:01pm • #102
404,248 Points 72 Featured Posts Outside Blog

"Utah Dave"...

Re: Contact. 

To see my Blog you'll have to sign in.

I am strictly "Member's Only"...

You'll see why after you see my Blog :)

I am one of AR's Founding Member's.

When this site began (almost two years ago) there were only a few hundred of us that were "Active" Bloggers :)

TLW...ROAR!

5:23pm • #103
APR
18
2008
861,041 Points 68 Featured Posts Outside Blog

I was on the reverse end of this in my first year in the business, my sister bought a home just across the state line where I wasn't licensed yet and she gave the other agent a referral agreement of 20%, but it was something.

The other agent had no problem with it and my sister was happy as she got to pick her agent. But, good for you and you are right the testimonials will be great! I sold a home to a local real estate agents daughter, didn't find out until close to closing that her dad was a local agent.

12:24am • #104
Wow...that's a tough one. What nerve people have!
12:42am • #105
APR
19
2008

Any time that we can take the high road, it will come back to us many times over.   Well done, you give the term "Realtor" a good name!

 

7:23pm • #106

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Utah Dave and Utah Homes for Sale

South Jordan, UT

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Robison & Company Real Estate

Address: 10380 Redwood Road, South Jordan, Utah, 84095

Office Phone: (801) 566-7800

Cell Phone: 801

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Realtor, Utah Real Estate Specialist! Utah Dave specializes in assisting people buy and sell residential homes in the Salt Lake Area. If he doesnt specialize in it, he knows someone that does! (Thats why his friends nicknamed him Utah Dave.)

Kahuna Rainmaking - Secrets to building an Industry Leading Real Estate Career/Team! Dave also coaches real estate agents the 3 secrets and 7 steps to building a real estate team/career. These steps took Dave from 20k in commissions to $1 Million in just 3 years.

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