Special offer

I don't want to WORK with the listing agent, I just SAW the house with Her

By
Real Estate Agent with EXP Realty 414-525-0563 57026-90 Broker

  We were introduced to a couple from one of our referral sources...who were at the end of a very peaceful divorce...yes, the do happen !

      One was electing to buy the other out of what had been the family home and the other was buying a new home.  That sounds simple. The person staying in the former family residence wanted advice on updates and maintenancc and the other on hoped we could help with the putchase of another home.

divorce house puzzle 'Sounds simple...BUT....the home purchase got complicated. The about to be different home owner, before meeting us, had called the listing agent and seen the property with her. She called him four times in less than 24 hours pressing him to write an offer.  Since there had been no "ink on paper" for closing the present residence, the offer would have had to be written with a home sale contingency. Neither the about to be former spouse nor the listing agent understood Mr. About to be New Home Owner could not afford to be on two mortgages at once.(His preapproval did say exactly that.)

     Eager to take the next step in his new life, he wanted us to write the offer on the new house he had seen with the listing agent. We explained the home sale contingency which means he could get bumped if his offer was accepted by someone who did not have a home sale. house key

    We explained to him, that because he saw the house with the listing agent, who is working for the Seller...She is now his agent, though not representing him, she would write the offer contingent upon the sale of his present home to his former spouse or on the open market. He asked that we call her and explain he didn't understand "the rules". We agreed with an offer of a part of the commission.  No No and No....she showed him the house and "Knew" he would buy it.  She had not seen the pre approval though knew the divorce was not final but did not find out the details.  

      No happily ever after with this house for either the Seller or the would be buyer....Procuring Cause....not understanding that owning two houses at once by either the buyer or listing agent....no house for now.

      The Soon to Be New Buyer now understands the merits of looking for a home with a Buyer's agent.  Had the house been sold....the Listing agent had procuring cause and would "have to write the offer."  

      Real estate is not always "consumer friendly" in the eyes of the public. Amen and Women.

Posted by

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


home worth iconemail iconhome searchLinked In  facebook

Joe Jackson
Keller Williams Capital Partners Realty - Columbus, OH
Clintonville and Central Ohio Real Estate Expert

Good post, and good information we need to make sure our clients know who can work for them. 

Sep 16, 2016 11:16 PM
Harry F. D'Elia III
WEDO Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

It is best that you explained the rules of engagement upfront and avoid that whole situation.

Sep 16, 2016 11:20 PM
Sally K. & David L. Hanson

Not possible Harry F. D'Elia when you are referred to the Buyer 
AFTER he has seen the property....

Sep 16, 2016 11:44 PM
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

It always amazes me when I hear buyers say they want to contact the listing agent directly - they just don't realize they are throwing their negotiating power out the window.

Sep 16, 2016 11:34 PM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Sally K. & David L. Hanson - to this day, Everything I do I have my clients sign a Buyer-Broker agreement (AZ) .  I have had agents with 30+ years ask me why I do that!  I bought my first home at 19. I have sold many of my own homes in the litigious state of California. BUT, I never realized how little I actually knew until I became a REALTOR®!  

If there is any inkling of a procurement issue, I get it resolved immediately before moving forward. It is just the right thing to do!

 

Sep 16, 2016 11:38 PM
Jessie Cochran
Counts Real Estate Group, Inc. - Panama City, FL
Panama City Realty Group

Knowing they should work with the same agent is often a difficult decision to get across to customers - thanks for sharing

Sep 16, 2016 11:41 PM
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in Southern RI and beyond

What the consumer does not know in real estate can adversely effect them in any offer, Sally...well put!

Sep 17, 2016 12:24 AM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Sigh...dont you just love it when that happens? NOT!

Sep 17, 2016 12:45 AM
Roy Kelley
Retired - Gaithersburg, MD

Thank you very much for sharing this story. Just calling the listing agent is not always the best solution for home buyers.

Sep 17, 2016 01:15 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hi Sally and David --- it's all about knowing the correct protocol.  Some clients understand, others learn eventually and then there are those who never get wit the program.   

Sep 17, 2016 03:58 AM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

The problem with people is they just don't know what they don't know.  We've said that, read that a lot here on AR and this post is a good case in point!  Well done Sally K. & David L. Hanson 

Sep 17, 2016 04:13 AM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Sally K. & David L. Hanson many consumers do not know how it works and can make a mess by doing instead of asking

Sep 17, 2016 05:17 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Hi Sally and David... that procuring cause issue is a minefield to say the least. Another reason I hate it when someone calls me to say they'd like to show them my listing, but they already have an agent. That's when I politely suggest they have their agent show them the home.

Sep 17, 2016 07:18 AM
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Sally and David

The relationship between the buyers and the listing agent was moving in the wrong direction . . . . fast which could easily become a big mess.

Good luck and success.

Lou Ludwig

Sep 17, 2016 11:42 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Sally and David sounds like the listing agent was sloppy and more concerned with getting a commission check than taking the time to make sure the Buyer was qualified to purchase the house.

Sep 17, 2016 11:45 AM
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Sally K. & David L. Hanson I would be writing the same comment that Dorie Dillard already provided!

Sep 17, 2016 01:01 PM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Some lessons are learned the hard way, Sally and David.  We need to try and educate all of our clients better even when they just don't want to pay attention.

Sep 17, 2016 10:11 PM
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

Which just proves that so many don't understand this business. Too bad for everyone...

Sep 17, 2016 10:56 PM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

FAR too many don't understand how we work - it's good that he won't be buying this one and hopefully he's 'got it' now that he needs to work with YOU...when the time is right, of course!

Sep 18, 2016 02:46 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Procuring cause is still very much a part of our code and buyers don't understand it. Agency doesn't mean you get the commission.

Sep 19, 2016 11:31 AM
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

It is an excellent example about representation Often the buyer will go direct or even bypass listing agent go to seller strike a deal after listing expires. 

Oct 07, 2016 11:10 PM