Today, my server at the restaurant told me she had considered going into real estate when she found out I was a real estate broker. According to her story, she talked herself out of it when a REALTOR friend told her this tale of woe.
Namely, that ANOTHER agent had "stolen" her listing and she had "lost" $10,000.
I can understand the reasoning of the server because she did not know any better, but that agent?
JUST BECAUSE YOU HAVE SNAGGED A LISTING, YOU DO NOT HAVE ANY MONEY.
When you are an agent and you find a seller who will give you the listing you still need to:
1. Make sure that the seller signs the listing agreement.
2. Then you have to do a competent job and find a buyer, or a buyer's agent with a buyer.
3. Once you have a binding offer, you need to get the transaction to close, which can be a lengthy ordeal.
4. Once you get the transaction closed, THEN you have earned your commission.
HOW CAN YOU HAVE THAT LISTING 'STOLEN' BY ANOTHER AGENT?
If you have a valid listing, there are pretty much only 4 ways to "break" it:
(1) The agent gets out of it if the seller does not perform per the contract.
(2) The seller gets out of it if the agent is "incompetent" and does not perform as per the contract.
(3) Both agent and seller mutually agree to cancel the contract.
(4) The seller decides to take the listing off the market. Or the listing burns to the ground. Or the seller dies or gets incapacitated. There are a few loopholes here where the listing agent usually lets the seller off the hook.
ONCE THE PROPERTY IS NO LONGER UNDER A LISTING CONTRACT, THE SELLER CAN RELIST IT WITH ANOTHER AGENT.
I don't consider this "stealing" by the other agent.
WHAT IF ANOTHER AGENT GOES AFTER YOUR SELLER WHILE YOU ARE IN CONTRACT? TRYING TO 'STEAL' IT?
This is "tortious interference with a contract" and there is plenty you can do about it. Find out your rights and take the action(s) that pertain to this interference.
BUT MAYBE YOU ARE NOT IN A CONTRACT, YOU ARE JUST SHOWING A 'CUSTOMER' HOMES WITHOUT ANY SORT OF WRITTEN AGREEMENT?
This is on you! You, the real estate agent, need to protect yourself and have them sign a "Buyer Representation Agreement". If the buyer doesn't want to do that, all kinds of things can happen which will make you, the agent think you have "been robbed" - but you haven't' it's YOUR fault.
1. They will have a relative actually make the offer, leaving the hard-working agent who actually showed them the homes out in the cold.
2. Go visit a "new construction development" without their agent and sign in without them. The developer will then not pay the agent.
3. Or they have been using several agents all along and you, the faithful agent, had no knowledge of this.
4. They are friends, you don't feel you need to go into a contract with them, but they still get talked into using another agent. These are the ones that HURT!
BUT NONE OF THESE ARE REASONS TO GIVE UP OR NOT GO INTO REAL ESTATE.
Real estate is a fabulous business for someone who enjoys the challenges, can shrug off the "downs" and enjoys the "highs" of this fast paced profession.
Most clients want nothing more than have a hardworking agent on their side to help them. But the agent needs to EARN their trust, establish a relationship, and give them an experience that they will brag about to their friends who will then hire you.
And buyers and sellers, if you read this and want a hardworking real estate broker on your side, plain and simple, call me and let's discuss what your real estate needs are and find out how I can help you.