It makes me think of the old "Peanuts" comic strip where Lucy tells Charley Brown to kick the football. then pulls it away at the last second, causing poor Charley Brown to kick nothing but air and fall on his back!

We spend weeks or months showing properties to a prospective buyer.  Or we spend days doing research or making up marketing materials for a prospective seller.  And one day we get a call or a letter or an email:

"We just bought a home through XX Realtor.  We knew you'd be happy for us."

Or, "We had to list our home with my friend from church.  Thank you so much for all your great help!"

I've gotten my share of letters or emails like that, telling me what a great experience they had with me, but... 

I always felt sort of dirty and stupid and used after putting myself out there and trusting that my empathy and good service would carry the day.  I hadn't wanted to get to pushy about getting a Buyer Agency or a listing signed immediately.

The first time this happened to me was years ago. I was a new agent, before buyer agency came of age.  I shepherded one couple around for several weeks before they disappeared - and I found out they were working with another agent.

By the way, these agency agreements, as with all contracts, are only as good as the people signing them.  I had a signed buyer agency agreement with one couple who found an open house one weekend and wrote up an offer with the listing agent sitting in the house instead of me.  We wrote a letter telling them that we would have gotten paid by the seller, but now that another agent was getting the commission, they owed us a fee.  They ignored the letter.  When it comes to battles, you have to decide which hill you want to die on.  I finally let it go, figuring that pursuing it would cost me more in time, money and aggravation than it was worth.  Now I give clients the opportunity to be released from our agency agreement if they are unhappy for any reason. 

My policy has become that I will only meet once with a prospect before we do an exclusive agency agreement.  I don't hard sell it - but I won't commit a lot of time to them if they won't make a similar commitment to me.  I give 100% of my ability to my clients, and I expect the same loyalty from them.

I was going to make this post private, to be seen only by other professionals, but I changed my mind.  Hopefully the public reader will gain some understanding of the frustration that we Realtors go through when prospects ask us to do weeks of free work for them, and then give their business to someone else.

©BrianSchulman2008

Brian Schulman offers expert real estate representation for buyers and sellers of homes in Lancaster County, PA.  To learn more, visit http://www.FindLancasterHomes.com/

 
Post is included in group: Realtors®
Post is included in group: Pennsylvania Professionals

79 Comments on "Dear Brian, Thanks For Your Great Service, BUT..."

Good evening Brian - I understand what you are saying. I get real fustrated with the ones who don't even tell you when they go somewhere else.

07/03/2008 05:52 PM by Solaris Realty


Buyers agency agreements are key to letting you know where the buyer stands with you and how serious they are.

07/03/2008 06:02 PM by Mike Jackson (Realty World Global)


More of us need to do the same thing.  Buyers must to learn that our time is valuable and that our service deserves compensation.  I'm afraid, however, that buyers simply haven't realized that the best agents won't waste their time and energy on uncommitted buyers.  It's a lot like the televangelists people send their money to and watch on Sunday mornings rather than going to church.  Give them a call when you have problems.  Just don't hold your breath waiting on them to get back to you!  The reality is, uncommitted buyers almost always end up with uncommitted agents.

07/03/2008 06:13 PM by Ron Moore The Home Team Pros (RE/MAX Professionals)


Mike, Buyer Agency Agreements do something both for the buyer and for the agent.  For the buyer it provides service, care, loyalty and representation.  For the agent it proides security.  A win-win situation!

Pam, you'd think that they could at least give us notification if they've decided to work with someone else.  Often we don't even get that much.

07/03/2008 06:26 PM by Brian Schulman - Your Lancaster County, PA Real Estate Professional (Coldwell Banker Select Professionals)


It happens in commercial real estate as well.  After 10 years I have a 6th sense and can tell almost immediately when a potential client is going to shop all over. 

07/03/2008 06:26 PM by Cindy Barrett


I can relate.  I've had customers call for a loan, taken the application, done all the research and credit work, etc and then drop off the face of the earth.  It's usually due to some issue they didn't want to reveal, like, oh you need my 1040's to do the loan?  I don't remember if I filed taxes the last two years, let me get back to you!!  They're gone!!  They never return your phone calls again.  I have to then put them in the "dead zone"  after I've spent hours on the phone giving them advice.  Not much you can do, I'm afraid, but it sure is frustrating!!

07/03/2008 06:27 PM by Bryan King (Ascent Home Loans)


Ron, those buyers who recognize the value of buyer representation have a far better real estate experience than those who don't.  A properly represented buyer avoids many possible pitfalls, has a smoother transaction, and may save money.

A good Buyer Agent is well worth his or her fee - and the fee generally doesn't even come out of the buyer's pocket!  All the Buyer Agent asks is the loyalty of the buyer to stay with them during the process - and hopefully to take advantage of their good advice.

07/03/2008 06:33 PM by Brian Schulman - Your Lancaster County, PA Real Estate Professional (Coldwell Banker Select Professionals)


Cindy, it's interesting that the same thing happens on the commercial side, too!  I've developed a sensitivity to recognize "red flags", too, for when a prospect isn't serious or is shopping agents all over the place.

07/03/2008 06:37 PM by Brian Schulman - Your Lancaster County, PA Real Estate Professional (Coldwell Banker Select Professionals)


sucks doesn't it?  Happens to us in all walks of life.  I've been guilty of finding what I want thru one web site, then seeing what the best price I can get from anywhere else.  Isn't my loyalty questionable too?

07/03/2008 06:41 PM by Greg Fox (Realty World Wichita)


Bryan, as you note, a lot of the buyers who waste your time have problems that they don't want to reveal, and are hoping against hope that you won't find out.  It's too bad, because these problems always catch up to them eventually, sometimes after we've invested a lot of time trying to help them.

It's always better to be up front with your real estate agent or mortgage broker, because then they can give you a realistic opinion about how good your chances are.  They may also be able to help you with your situation in ways you didn't even know about.  The only way this can happen, though, is if you're up front and honest about your situation in the first place.

07/03/2008 06:43 PM by Brian Schulman - Your Lancaster County, PA Real Estate Professional (Coldwell Banker Select Professionals)


Greg, I think it's a matter of degree.  You shop around until you find a source (website, Realtor, mortgage broker, etc.) who is meeting your needs and who you feel compatible with.  Once you get serious and start using up a lot of a service provider's time, loyalty becomes a factor.

It's like people who go to small shops with knowledgeable people, and pump them for their knowledge and experience with appliances, stereos or hardware.  Then they go to Walmart or buy it cheap online from clerks who have no idea what products they're selling.  It's not fair.

07/03/2008 06:50 PM by Brian Schulman - Your Lancaster County, PA Real Estate Professional (Coldwell Banker Select Professionals)


Brain, great post...I have been there, done that. Its rough at times and yes I do Exclusive Buyer's Agency there and there. Its your time. After all you may be working with someone for 3 months before they buy, so sometimes you have to remind them its a business. Its great you see some humour in it. AT the time I didn't think it was funny either.

07/03/2008 07:09 PM by LLoyd Nichols~SW Florida Homes (Right Choice Realty LLC)


It stinks when that happens but I figure that it's not worth getting too upset about it. 

There's always a perfectly logical reason why people do what they do.  Most of the time only they know and you'll never be able to find out.  So I just don't waste time dwelling on it.  If it happens on a consistant basis, then I'll maybe take some time to see if it has something to do with me.

07/03/2008 07:11 PM by Tim Maitski (HomeAtlanta.com)


Brian~  Some people just don't have what it takes to be loyal!  And yes, life isn't always fair.  I have had it happen to me from someone I worked with for 5 years....  I guess I was the biggest fool!

07/03/2008 07:12 PM by Owensboro KY Real Estate Specialist Vickie McCartney Broker,ASP,ABR (Home Realty GMAC Real Estate Owensboro Kentucky)


I like to do a one to two hour consultation with a prospective homebuyer..... /borrower... when they leave I go so far as to tell them... "I am only going to follow up with you if you give me some good feedback.... otherwise, I consider this an interview.. you with me and me with you and if we click, we will be working together soon.  You let me know how you feel during out next conversation or leave me a message on my 24 hour voicemail....

I meet lots of loyal clients that way.  gotta be the first one willing to walk away.  I don't hear from alot of people too but that's okay... I'd rather be horseback riding than wasting time with people that don't understand loyalty....

 

good luck!!  Jennifer

07/03/2008 07:14 PM by Jennifer Lamm (The Loan Gallery)


Brian - who hasn't been burned by disloyal buyers?  I have been duped by buyers who ate up all my time and gas and I've spent countless hours with people who did not show me any consideration.

But I had something happen this weekend that made me think:  my sister came into town this weekend to purchase furniture.  We went to La-Z-Boy and the woman there spent time with us and was extremely professional and helpful.  She was WONDERFUL!  We left with leather and upholstery samples.  Next stop:  Thomasville Furniture.  Again, great saleswoman who happened to pull the absolute PERFECT fabric swatch.  it just snapped the whole room together.  My sister purchased a $3500 chair right on the spot.  What to do?  I know there's a difference between buying a house and a chair and the fact that they are two different stores with a different product line - but really, the public just doesn't think about us and how we're going to get paid - even IF they like us.  It's about them, not us.  We have to have an agreement and educate them.  I used to leave it up to fate and a good working relationship - not anymore!! YOU HAVE TO GET THAT AGREEMENT! (sorry for the long comment)  Alyce Martin, Keller Williams Realty/Albuquerque

07/03/2008 07:37 PM by Alyce Martin (Keller Williams Realty)


Hi Brian! It's so painful to go through what you're describing! I think that it's good that you posted for public view so that may someone will read it and think twice.

I have a couple of questions that I ask in my interview.  Like, Have you been looking at homes with another Realtor? Do you have a friend or family member who's a Realtor? Have you been preapproved for a loan? If I find you the perfect home today, are you prepared to buy today? 

Once had an answer to question #2 by the buyer, "yes, my best friends a Realtor, bu he's going on vacation and I didn't want to bother him" right now. It's funny now but it wasn't then.  People do not understand that we are independant contractors and that our time is money.

07/03/2008 07:48 PM by Judy Peterson (Prudential Fox & Roach Realtors Devon )


Brian, excellent post and deserving of the gold star. I go all out for a client and I at least expect them to be loyal. I always try and get the agency agreement before I ever go out with them.

07/03/2008 08:03 PM by Linda Scanlan (A Fan of AR)


We have all heard that one.  I believe buyers think that we are somehow on a salary plus commission basis which is what makes a buyer consultation so important.  I think most people don't stray when they know we are not compensated at all unless they buy through us. 

07/03/2008 08:07 PM by Sandra Carlisle, Realtor Newport Beach & Corona del Mar (First Team Estates)


golod posty..this has happened to all of us over the years...just keep plugging away!!

07/03/2008 08:40 PM by Michael Shankman Selling Las Vegas 702-498-3383 (Liberty Realty )


Brian, Loyalty is a wonderful thing! Most Realtors fail to explain the rules of the game to buyers, so they inevitably get burned. But no matter how careful you are it will happen to everyone! Have a great weekend!

Mike Kelly

07/03/2008 08:45 PM by Sellstate Advantage Realty


Brian,

I'm sure there will be some that don't agree with me on this but I really don't worry too much about them....even if the buyer signs one....there are many holes in those things. And quite frankly I don't have the time or the money to research it further if I suspect it happening. I'm sure everyone has gone through it once in their career and so have I. I'm primarily a listing agent with  partner who handles buyers but quite frankly when i work with a buyer either they give me their word of loyalty or they can always go work with someone else if they aren't comfortable with me...I try to build my relationship past the paperwork and luckily I haven't gotten burned many times in 12.5 yrs so I can't complain but I know there are many who are strict about getting them signed and that's fine too but I wonder how many who swear by them have had to collect and did they win the case. The issue is are you willing to pursue it if it's warranted.

07/03/2008 08:49 PM by Neal Bloom-Realtor ® Assoc.-CRS-Weston FL (RE/MAX Premier Associates)


Brian,

this sound so familiar...Thank you for posting it to "public eyes"... Lots of times the things which are obvious to us Realtors are not so obvious to consumers. Just a few months ago I worked with a  couple - before putting their house on the market, inspected it, made a list of things to repair and take care of, staged inside and outside etc...spent time marketing, taking visual tour, etc...sold the house within 7 days! We spent two months working on it....when it came to buy a new house they bought FSBO!!!! well, I can only learn from this .... I still am not sure if this was my fault because I didn't inform and educated them in more detail about the process, or they just chose a different way of doing business...who knows...I just had to be happy for them...

Right now I am richer by one more experience and definitely educating my clients how I earn my money and what it takes for me to get paid for my work...

There is also another side of the problem...the "other realtor" who just takes the order without asking any questions even when it is obvious that the buyer knows the house or  that they received help from another realtor...When it comes to money ETHICS sometimes run THIN...

Have a Happy Independence Day! And take care...

07/03/2008 09:01 PM by Bo Kociuba (Keller Williams Realty)


Brian - I wrote a similar post many months ago, and I couldn't agree more with you.  Many clients have no concept of how we are even paid, so it's easier for them to simply do what is expedient.

07/03/2008 09:06 PM by Jason Crouch, Broker - Austin Texas Real Estate (Austin Texas Homes, LLC)


Brian-  I always work with a Buyer Agency Agreement - CT makes it easy - it's required before you can show another Broker's property.  Even so, I've had my share of similar circumstances. 

The agreement is written to cover the towns in which the buyers are interested.  I spent week after week, with one couple, searching for the perfect home.  Then, one day, they called to say they had taken a Sunday drive to another town and bought a home that they saw at an Open house.

I worked so closely with another couple, we had practically become family.  Then, suddenly, they stopped taking my calls or responding to e-mails. The wife finally informed me that the search had become so intense, that they needed to take a break.  Something smelled fishy!   I watched the closings and sure enough, they waited for our agreement to expire and then purchased a FSBO.  It was little compensation that without a professional advocate, they overpaid by ALOT!

We just have to shake our heads and move on.

07/03/2008 09:08 PM by Marilyn Katz - ABR, e-PRO - WestportCTProperties.com (Prudential Connecticut Realty)


I'm with Brain, the buyer agency is only as good as the character of the people that sign it. I NEVER get used to this and truly don't understand why it happens. I will say that I am getting better at smelling when I should walk away.

07/03/2008 09:36 PM by Joe Boylan (ERA Shields Real Estate)


Been there! 

Once, I found out that my client had gone elsewhere when the lender called me, wanting to know the address and details of the offer the client had made over the weekend.  I guess she'd called her loan officer when she had the offer written.  I called her at work, left a message for her to call her lender.  She never called me back, but had the audacity to invite me to her housewarming party!  I didn't go.

07/03/2008 09:59 PM by Sylvia Young - Broker (Options Realty Group)


I think this is a good and fair policy that actually protects your interests as well as your clients' interests.  Definitely a WIN-WIN!

07/03/2008 10:12 PM by Steve Shatsky - Dallas Real Estate & Short Sale Specialist (Keller Williams-Dallas City Center)


It is an issue of Loyalty.  I think we as realtors expect our clients to have some amount of loyalty to us when we drive them all over the state looking for the perfect home.  But I think some things need to be said aloud to clients.  Specifically, talking about their loyalty may help.  I think some people think they are going to get a better deal from someone else.  I've had clients trying to bail on the mortgage broker after he did all the work and I felt I need to point this out and talk about loyalty with her.  She ended up staying with him. But I think it was more of the idea of jeapordizing the transaction time table than the issue of loyalty that made her stay put.

07/03/2008 10:13 PM by Christine Loschiavo, AZ Realtor (Chandler, AZ West USA Revelation)


I have a "one free ride" policy as well.  I've only had a couple of bad experiences... and don't need more. 

07/03/2008 11:19 PM by Lane Bailey - REALTOR & Car Guy (Diamond Dwellings Realty)


Lloyd, it's not funny at the time, and there's not much to laugh at later, either!  The best we can do is to avoid giving loyalty without any in return, and become more skillful at educating our clients and prospects to respect our time, talent and work.

07/03/2008 11:29 PM by Brian Schulman - Your Lancaster County, PA Real Estate Professional (Coldwell Banker Select Professionals)


I feel your pain...Brings back memories!  My first clients!  I didn't have anyone else at the time, so I gave them a ton of attention. They had me going EVERYWHERE.  I was able to get an EBA. They suddenly stopped answering phone calls and emails.  Just after the EBA expired, they bought a FSBO.  The kicker was that when I prepared my taxes the next year, I realized that I had put over 700 miles on my car on their behalf.  OUCH!  It's one reason that I do need a committment before doing significant amounts of work.  It's a big county and the miles add up.  At $4.50 a gallon today - that one client would cost me $126 in gasoline (not to mention that my time is worth something.) Multiply that by about 4-5 clients and it starts to get costly if they are not going to be loyal.

07/03/2008 11:30 PM by Ruthmarie Hicks (Keller Williams Realty)


Tim, you have a point there - if it happens to a certain agent too often, that agent may have to take a look at their own presentation and service, to see whether something needs to be improved!

07/03/2008 11:31 PM by Brian Schulman - Your Lancaster County, PA Real Estate Professional (Coldwell Banker Select Professionals)


Vickie, five years may be some kind of record - especially for someone who didn't even end up buying through you!  I once worked on helping an older woman who was thinking of selling her home some day.  I lost track of her after four or five years.

Eventually her son ended up handling her affairs, and he had his own priorities and connections regarding what to do with her house.  But that's a topic for another blog...

07/03/2008 11:38 PM by Brian Schulman - Your Lancaster County, PA Real Estate Professional (Coldwell Banker Select Professionals)


We hear you. It can be frustrating. And we always get a buyer broker, but we also know that is someone wants to throw you under the bus, they will find a way, and yes, you have to decide on what battles makes sense to use one's energy dealing with.

07/04/2008 12:29 AM by Bob & Carolin Benjamin - E Phoenix Arizona Real Estate (The Benjamin Team - Keller Williams Integrity First Realty )


Buyers agency agreements are important.  I believe the buyers need to be educated about how their agent is paid and understand that the agent's time, knowledge and expertise is what he has to offer and that the buyer should understand and hopefully respect that.

07/04/2008 12:36 AM by Christine Donovan Costa Mesa Real Estate (Broker/Attorney) (Donovan Blatt Team - Donovan Group Realty)


It happens to everyone...and folks just don't get it. We explain at our first meeting...you wouldn't go to work and not expect to be paid..and we don't either...so when you talk with another agent, that is exactly what you are doing. That usually hits home...but every now and then..buyer agency doesn't always "save you"...someone will yell procuring cause....and the debate begins all over again !

07/04/2008 06:41 AM by Sally & David Hanson, Southeastern Wisconsin Realtors (First Weber Group)


Brian, its funny how after a while the experience to clients is almost like a game or a hobby. We try to remind buyers "this is how we feed our children and pay our mortgage". Personally, the agreement is only as good as the integrity of the client so I seldom bother with it. As we do quite a few relos, our clients tend to be more loyal and we have been the recipient of a dumped agent on many occasions because an agent did not know the area or would not listen. With that said, the clients that drop you just to save a buck do get an earfull from me (usually does not work but I feel better!)

07/04/2008 06:53 AM by Get Us A Home Realty - Frank & Jodi Real Estate Brokers


Brian,

I totally understand.  It's frustrating to spend time with potential buyers (especially in a resort community) have them go home and NEVER respond again to an email.  That just happened to me.  We spent several afternoons with customers (not clients) and they vanished.  After awhile, you learn how to qualify more efficiently.  But in this case, we thought we had done our job right.  Live and learn.

07/04/2008 07:30 AM by Diane Bell, Hilton Head Real Estate, Bluffton (Charter 1 Real Estate, Hilton Head, Bluffton, SC)


Over the years, I've become a lot stricter than I was as a new agent. With the price of gas, I wonder if more agents won't require more commitment and a pre-approval letter before showing homes.

I do agree that I don't really think buyers consider what they're asking the agent to do, and don't see the negatives to changing agents in mid-stream (like the LazyBoy example).

When I meet with "some" buyers (that I suspect might not be loyal), I try to use attorney relationship as an example. People simply know that they can't expect an attorney to do ANY paperwork or invest any time without paying for that service. We need to get them thinking in those same terms about our industry. Being able to charge retainers would certainly help "separate the wheat from the chaff". As it is, too many agents willingly give away their time, expertise and knowledge for free. This hurts the industry as a whole. That's just my 2-cents worth, but I know many agents don't share that viewpoint.

07/04/2008 08:58 AM by Elaine Reese, REALTOR® in central Ohio (Real Living HER, Worthington Ohio)


Brian - I've been there... I've had the same "kickd in the gut feeling"  I agree with buyer agency agreements and believe that they will become more commonplace in the near future.

07/04/2008 09:16 AM by Debbie Summers (RE/MAX Central - Lake Mary, FL)


Jennifer, that's a great way to conduct the first interview!  It gives the prospects the opportunity to show you whether they are serious on not.  I like it.

Alyce, sometimes there's more than one qualified individual that the buyer likes.  Your sister  interviewed two sales people and chose one for a purchase.  Nohing wrong with that.

Judy, I don't understand the mentality of people who call us up because they don't want to bother their own agent.  What do they think their agent is there for?  I always ask if they have interviewed or signed anything with another agent.  And asking whether they are ready to purchase if the right home comes up is a good question.

Linda, I try to get a buyer agency signed before I show property, but I'll show someone once without it, just to establish a relationship.  If they want to continue, I'll require an agency agreement.

Sandra, it does seem that some folks think we are on salary plus commission.  It's important for them to realize that that's not the case.

 

07/04/2008 09:35 AM by Brian Schulman - Your Lancaster County, PA Real Estate Professional (Coldwell Banker Select Professionals)


Michael, thanks for commenting!

Mike, loyalty is indeed important for both client and agent.  I don't assume anything at the beginning.  That's why I try to educate my prospects and find out what their attitudes are.  We can still lose time and money on false leads, but preparation helps minimize the occurrences.

Neal, I prefer to work with clients who are as good as their word.  In general, if someone is out to take advantage of my time and experience without giving me the opportunity to do business with them, I'd just as soon be rid of them as soon as possible.  Chasing after someone for lost fees only causes even more loss of time and the opportunity tt work with more appreciative people.

Bo, I've had experiences also where someone I spent a lot of time with ended up buying a For Sale By Owner without me.  The only way to minimize this is to have a buyer agency agreement that covers representing the buyer with FSBOs.  Buyers often are talked out of being represented by FSBOs who tell them that it will cost the buyer more if the seller has to pay a commission.  This is a false premise, because the FSBO is sellling without an agent in order to save the commission themselves, not to pass the savings on to a buyer.

The "other agent" also has an ethical obligation to make sure that they are not working with a buyer who is already under contract with a buyer agent.  They don't always get a truthful answer, but at least they should ask.

 

07/04/2008 09:57 AM by Brian Schulman - Your Lancaster County, PA Real Estate Professional (Coldwell Banker Select Professionals)


I can be a difficult situation to get into how hard to push. I have just gotten to the point of going into more explanation and asking them what they thought we should do and the ones that don't want to sign  are free to work with someone else.

07/04/2008 10:11 AM by Terry Westbrook ~ Realtor(R) Grand Rapids Mi Ada/Cascade Real Estate (Five Star Real Estate, LLC Grand Rapids , MI)


Jason, many buyers just don't care about misusing agents.  That's why we all need to ask the right questions of our prospects!

Marilyn, I think CT has a great rule if you can't show property without a representation agreement.  As you demonstrated, though, even that safeguard for the buyer may not always protect the agent.

Joe, you're right.  If someone is out to mislead you, you can't stop them.  But we do begin to develop a sixth sense with experience, and are able to avoid such situations more often.

Sylvia, don't you just love it when a lender calls you with questions about a contract you didn't even know about!  That's rich, that this "client" even had the nerve to invite you to the house warming party.  I'm glad you didn't go and act like a door mat...

Steve, win-win is my policy.  I'm not one of those who feels they have to vanquish someon else in order to feel they are winning.

07/04/2008 10:14 AM by Brian Schulman - Your Lancaster County, PA Real Estate Professional (Coldwell Banker Select Professionals)


Brian - Congratulations on being featured.  You addressed an issue we have all faced, and I agree with your reasons.  I will give 100% but I need a commitment.  I will also release a buyer from the contract if they are not happy, that has not happen yet.

07/04/2008 10:29 AM by Jennifer Fivelsdal, Rhinebeck NY (Keller Williams Realty)


Christine, it's an issue of loyalty, and also of fairness to both parties.

Lane, I developed the "one free ride" policy after being burned a few times.

Ruthmarie, wow, 700 miles!  I had a client last year who caused me to put about 400 miles on my car over a period of a couple of months.  I was unusually patient with her because she was a referral from an associate.  I eventually insisted on a buyer agency agreement, which she reluctantly signed.  In the end she stopped answering my calls, just like any other deadbeat client with a secret agenda.  It just made me that much more convinced that I shouldn't make exceptions in my policy.

07/04/2008 10:36 AM by Brian Schulman - Your Lancaster County, PA Real Estate Professional (Coldwell Banker Select Professionals)


Great post.  I couldn't agree with you more.  It is so frutrating to spend so much time and effort with buyers  and then have them  dissappear.  I think many realtors think that if they provide fabulous service to their clients, the clients will stay with them.  But then they sometimes don't use us afterall.  People's number 1 concern is themselves and because of that many don't think anything of loyalty to an agent.

07/04/2008 10:54 AM by


Thanks for the sage advice. 

07/04/2008 11:01 AM by Andy Parker (Azalea Realty)


Bob & Carolin, exactly, we have to decide whether it makes sense to chase bad clients.

Christine, educating prospects in advance and getting their understanding and cooperation is the key.

Lisa, qualifying prospects early is paramount.  If they're not qualified, all else will come to nought.

 

07/04/2008 11:37 AM by Brian Schulman - Your Lancaster County, PA Real Estate Professional (Coldwell Banker Select Professionals)


Frank & Jodi, each of has to do what seems to work best for us.

Diane, it's frustrating when clients disappear after we have invested time with them.  Hopefully we get more efficient in weeding them out after a while.

Elaine, if more real estate agents were as rigorous as attorneys in demanding compensation for their labor, we wouldn't have this problem of being treatd like disposable handkerchiefs.

Debbie, I think that the buyer agency agreement is one of the better tools developed, both for buyer protection and for loyalty to one agent.

Terry, that's the secret; being willing to walk away if you can't get a commitment from a buyer to stay loyal to you.

07/04/2008 11:47 AM by Brian Schulman - Your Lancaster County, PA Real Estate Professional (Coldwell Banker Select Professionals)


Hi Jennifer,

Only a couple of clients in my entire career have ever asked to be released, and I honored their requests.  There's nothing to be gained by holding on to someone who's unhappy.  It's just looking for trouble.

07/04/2008 11:52 AM by Brian Schulman - Your Lancaster County, PA Real Estate Professional (Coldwell Banker Select Professionals)


Buyer agency agreements are not big here in the Indianapolis area---yet.  I read with interest that even though you had one, in the end, you decided not to pursue it.  Taking someone to court takes a lot of time and money and energy possibly better spent elsewhere.

07/04/2008 01:43 PM by Pat Haddad, ABR,CRS,e-PRO,GRI Indianapolis (The Haddad Team, Keller Williams )


It's interesting... I think   a lot depends on where you are in the country.  This is NY!!! Loyalty? Ya gotta be kiddin me!  Other areas the situation might be different. But unfortunately there are very few people in NY that will be "loyal" to the point of losing  $10k when they smell an opportunity to get the same deal without dumping the $10k.  It doesn't matter that they never would have found the deal without the agent or that the agent gave them the information they needed to negotiate wisely.  In some ways, you have to be careful that by showing your worth, you don't cut yourself out!

I liked the LazyBoy analogy.  Of course that poor LazyBoy sales person was dealing with A SPECIFIC inventory while Thomasville was dealing with a DIFFERENT inventory altogether.  Neither had access to what the other offered. With the MLS we are technically all dealing with the "same inventory." But that difference is key because we are not denied access to one type of inventory when we use a specific agent. 

Perhaps one of the problems I see is this: consumers seem to think we are "hiding" inventory.  I know this sounds weird and I really don't get it entirely myself.  Why would I "hide" inventory from someone - I want to make a sale! Yikes!  But somehow running from agent to agent is going to help reveal more hidden "gems."  This could come from the days when agents tended to show their own or their brokerages listings and hope that people would pick from that.  I know a few agents who do that today, but there aren't that many of them out there.

07/04/2008 03:25 PM by Ruthmarie Hicks (Keller Williams Realty)


Silly.  In this market, there are untold numbers of hungry agents looking for a sale.  Up front pressure is a sure way to get your prospect to walk across the street to someone else.  If you can't size someone up at your intial contact, maybe you should find another way to "feed your family"...

07/04/2008 03:28 PM by Chuck Timmels, Prospective Buyer


Great post !  I like your policy as far as meeting with someone once and then asking for a buyer agency agreement.  We give people the benefit of the doubt too many times and also do not like to be pushy either.  We feel that the people will definitely want to work with us (pretty much most do) once we start working with them and consulting them.  But I do know that things go the other way too.  Also, it happens when you dont even hear about it as well !  That is the funny thing.

I have been thinking about if I am showing one of my listings that I will have the buyer sign a buyer agency just for that property.  That is when it happens more for me or my team is that someone from my team or myself might show one of our listings and then a deal comes in written by another agent !  What do you think about those cases ?

07/04/2008 04:33 PM by Christopher and Stephanie Somers - Realtors - Philadelphia Real Estate (RE/MAX Affiliates)


Pat, it's interesting that in your area buyer agency agreements are not popular.  Real estate really is local.  As far as buyer clients who breach their agency agreements, you have to decide whether you want to spend a lot of time with legal procedings or whether you you just want to get back to doing your job.

07/04/2008 05:25 PM by Brian Schulman - Your Lancaster County, PA Real Estate Professional (Coldwell Banker Select Professionals)


Ruthmarie, you make an interesting point about the "hidden inventory" mentality.  Some buyers seem to think that we're all sitting on secret real estate stashes, even though we all go to the same local MLSs.  A few unscrupulous agents will "sit" on property listings so they can sell their own listings, but this is a violation of both the REALTOR Code of Ethics and the MLS rules.  It's not in the best interests of their seller clients.  It's also not very common.  Switching agents won't generally get you better or different properties to look at.

07/04/2008 05:31 PM by Brian Schulman - Your Lancaster County, PA Real Estate Professional (Coldwell Banker Select Professionals)


Chuck, I send information to dozens or hundreds of prospects without asking anything in return.  I don't "pressure" anyone to work with me.  But at a time when we finally meet and you expect me to spend a great deal of time with you setting up showings, providing you with advice and taking you around, I expect you to be considerate enough to use my services if and when you do purchase a house.

If you're not going to be serious, and you're not going to be loyal, then I'm perfectly happy to have you take advantage of one of the many other hungry agents around.  That's how I've been able to stay in this business for 30 years without looking for another way to "feed my family".

If you read the many comments on this post, you will realize that many agents feel exactly the same way about giving away their time, money and talents for free to prospects who don't appreciate it. 

07/04/2008 05:40 PM by Brian Schulman - Your Lancaster County, PA Real Estate Professional (Coldwell Banker Select Professionals)


Christopher & Stephanie, I don't particularly like dual agency.  The few times I used it was when I was already working with a buyer client, and I had a listing come up that would have been appropriate for them to see.  If I get a call from a new prospect to see one of my listings, I will disclose that I am an agent for the seller, and have them sign the Broker-Buyer Business Relationship correspondingly.  I have had few if any buyers refuse to work with me because of this disclosure.

07/04/2008 05:52 PM by Brian Schulman - Your Lancaster County, PA Real Estate Professional (Coldwell Banker Select Professionals)


LOYALTY.   It helps if you have someone under written agreement but that is not always the case.  I had a situation three years ago where the parents both passed away and there were 4 children.  The old family home was worth $1,100,000 and one of the children wanted the home while the others wanted their share of the money.   I was asked to meet the the family and look at different options.  This involved several meetings over a one month period of time.  One of the brothers was a CPA who of course was the smartest man in the world.  Just ask him...but he was ignorant of real estate.  Bottom line is I basically had to educate them all, structure the transaction and I was only going to receive the loan origination fee for my services.   All of a sudden I was not getting my phone calls returned and for the usual reasons, she had gone to World Savings and obtained a no point loan.  Of course it was a negative amortization with a low start rate and a margin that would choke a giraffe.   It was a situation I thought I had under control but apparently the lure of the cheapest loan fee won out over time, service, education and the fact that I was going to charge a 1 point loan origination fee.  Well.....maybe if there is some truth in the old saying "What goes around, comes around" and the house will be lost in foreclosure.   Gee....did I say that?

07/04/2008 08:13 PM by Keith Webb GRI (Guardant Investments, Inc.)


Brian, I am glad that this happens to other people, even after the Buyer Broker Agreement was signed!  I liked it that you put that these pieces of paper are only as good as the people signing them. 

07/05/2008 01:19 AM by Tony & Darcy Cannon - The C Team (ERA Realty Center)


Gene, thanks for commenting.

Tony & Darcy, I was quite sure I wasn't the only one that this sort of thing had happened to!  The Buyer Broker Agreement unfortunately is not a guarantee of a transaction.

07/05/2008 08:23 AM by Brian Schulman - Your Lancaster County, PA Real Estate Professional (Coldwell Banker Select Professionals)


Keith, sometimes people who don't recognize great service and knowledgeable advice, deserve what they get.  You can lead a horse to water, but you can't make them drink.  Those folks you described will lose a lot more than the small fee they would have paid you.

07/05/2008 08:54 AM by Brian Schulman - Your Lancaster County, PA Real Estate Professional (Coldwell Banker Select Professionals)


It's too bad you can't get paid by the hour upfront, like a taxi meter.  Then your clients would fine tune their goals and look at serious properties only.

07/05/2008 09:17 AM by Randall ~ @ ~ Access e Mortgage


Hi Brian

I guess it happens to everybody at least once and I  think your approach of meeting them one time and getting your buyers agreement signed it the only way to go.

I love the calls, c"an you give me more information on listing XXX" and my response it "sure I can let me look it up, by the way are you working with an agent"   "yes, but she is busy at the moment"

Whay are people thinking?

Anne Hensel

Real Estate Broker ABR, E-PRO,

C-CREC, TRC, ASR, RECS, AHS

St. Petersburg Florida

www.AnneHensel.com

07/05/2008 10:52 AM by Anne Hensel Real Estate Professional buy or sell St. Pete


Randall, we'll get paid up front when a majority of Realtors insist on getting paid up front for their services.  Don't hold your breath.

Anne, if the public doesn't respect the value of our services, we have to at least respect ourselves.  That may mean, among other things, advising prospects who already have an agent to call their own agent when they have questions.

07/05/2008 11:12 AM by Brian Schulman - Your Lancaster County, PA Real Estate Professional (Coldwell Banker Select Professionals)


Loyalty is a thing of the past as the world continues to shrink.  People used to know and care about each other in most communities, now pros are just commodities.

07/06/2008 09:59 AM by Randall ~ @ ~ Access e Mortgage