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What do you want the big discount or a realtor who can do the job?

I received a floor call from potential buyers. We spoke for a while and I qualified them as serious buyers. We made an appointment to look at a house that was very similar to what they wanted.

During the process we talked about making the offer and out of the blue they had a realtor (a relative). This one question is something I go over every time and I know they said they did not have one.

I politely told them that if they were planning to use their relative them we should end our discussions here and that the person they were planning to write the offer with should help them. Thirty minutes wasted is only thirty minutes.

40 minutes later I receive a call, they were again asking questions about what to make the offer for and how it should be done and if this is a good deal...

I asked if they would like me to write the offer and help them or if they would prefer using their relative, which they replied their relative. (I'm guessing that there is a huge discount)

I believe I did the correct thing and told them to go back to the relative but alas no more than 2 hrs later a call again.

The questions for you is:

What should I do next?

Posted by David Wang | Prudential | 650.504.8190 on 01/07/2009 05:45 PM

Comments (15)

Buyers Can't Decide on an Agent in the ActiveRain Channel

clients, agents, buyers, loyalty, ahhhhg

15 Comments on What do you want the big discount or a realtor who can do the job?

JAN

David,

Somewhere there is a disconnect, you maybe need to explain it to them in a different way. If nothing else maybe be blunt and ask them why it is they keep calling. There's a reason there and until you know it you can only make assumptions.

David, they want the discount and the advantage of having your knowledge. 2009 is the Year of Opportunity and by helping buyers who will not commit to an agent of your qualifications is the wrong way to start the year. Cut them off or tell them you'll give their relative a referral fee (small) and complete the transaction for them. If they cannot or will not accept those terms, you need to ask them politely stop calling you as you are an ehtical Realtor who just doesn't practice real estate behind another Realtor's back.

The relative must be the owner agent or something along those lines. Explain your position to represent the Buyers interest in the purchase only. There is something untold here.

I'm back, question: Did you show them the house? They told you they did not have a Realtor? If nothing, get a referral fee from the relative Realtor on the flip side as you did the showing.

For now on, please ask them if they have a family friend, relative or enemy that they would consider using instead of you, or if they are working with one of the above.

Best of everything.

Have "Come to Jesus" talk and speak to the "relative" and the "buyers" set up a meeting to decide on who is who. Honesty goes along way. Agree on some form of referral fee and everyone wins.

They found out what all buyers find out when they believe that they can save money by finding the house themselves.

Finding the house is the easy part.

David~ I love Lenn Harley's statement above, Finding the house is the easy part! You just need to get to the bottom of what it is they need you for. I hope the answer isn't free advice.....

Remind your clients, you are a professional and that buying homes is your job. It sounds like the relative is a dna agent that doesn't even have the experience to price a home properly. They could actually get a worse deal by paying too much or even having their 'agent' miss an important detail in their contract. IMHO it's best to let us, professionals, do our job and avoid the hobby Realtors, even if they are relatives. There's a reason we get compensated as we do...

Just explain that it would be unethical for you to interfere with the agency relationship of another agent, and you must withdraw from any further conversation with them. I'm assuming you didn't have a buyer's agent contract going into this? If you did, then you need to seek your broker's support in enforcing it, and inform the relative's broker that he/she is interfering with your fiduciary relationship with a client.

NEVER EVER SHOW A HOME in the future without a written agreement from the buyer to pay you your fee!

In CA, we don't use the buyer's agency contract, and I've heard of several instances where buyers have even written offers with one agent but later buying a house with another agent. It's pretty difficult to spend so much time with clients and have nothing to show for it in the end. Sometimes I wish that we had such contracts here, although I can also understand the benefit of buyers being able to choose whom to work with, especially if they aren't comfortable with their current agent.

Having said that, I agree with the comments above and think it best if you explain to them that it would be best for them to get the information from their agent and that it would not be ethical or wise for you to advise them outside of an agency relationship. If their agent/relative doesn't have enough information or knowledge to help them determine how much to offer, this would be an enormous disadvantage to the clients, and I would hope that he/she would seriously consider taking a referral instead.

Thanks for all the responses, I didn't mind showing them the listing even after they the changed and said they had an agent. Its the call back and advice later that has me shaking my head.

We have all been burned before by buyers and sellers, its part of our job, but when they call back twice you have to wonder what they are thinking.

I will comment again if they call again.

JAN

David, I have done this before because as soon as I tell a Realtor that I am working with someone they won't show me the house. Sometimes you have to tell a little white lie.

I think you are making a big deal out of nothing. If they want to buy the house then they should get the best deal. Its their relative for heavens sake. Probably first time home buyers who need the money back.

best of luck to you anyways

JAN

My suggestion is to tell them you cannot help them or advise them in any way and they should speak to "their Realtor."

JAN

All interesting comments. I believe everyone should be honest with each other. There is nothing like working very hard for someone and then to have them work with someone else. If they are going to use their relative then that agent should be the one helping them. There is nothing like doing someone else's work. Just my opinion. Keep up the great work David.

JAN

Tell them they can have your undivided attention and access to all your knowledge and experience by just signing on the dotted lines.

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