Special offer

"I Only Want to Work with Listing Agents...."

By
Real Estate Agent with RE/MAX United Real Estate

So I get this e-mail lead from RE/MAX Lead Street.  It's an in-house lead generator that distributes potential buyers leads who visit remax.com. It's not the most wonderful lead generation tool on the planet but it's free (to me).

This particular lead is looking at a very nice house that I can comfortably say is in the luxury market tier.  A very nice house with a very nice sales price.  I get a little excited.  "A good lead!", I think. In fact the e-mail accompanying the lead says the buyer is relocating from another area and will only be here a couple of days.  Great!

I e-mail the guy telling him I'd be happy to help him with his home search and begin to ask about arrangements to meet, yadda, yadda, yadda.  He e-mails back, "I'm staying with friends and will have a car. I'll meet you at the house."  Great.", I think.  I ask him, again,  if there are any other houses he wants to see while he's in town for only two days.

Then....the veil is lifted.  He writes back that he has other properties lined up.  He works with listing agents and doesn't want to work with a buyer's agent.  Mmmmmmm.  Bummer.

I know the strategy, though.  Work with the listing agent and since you're such a sharp negotiator you'll not only negotiate good terms for the price of the house, you'll get the listing agent to cut their commission to the bone to "make the deal work"and get an even better deal.   Been there, done that, have the t-shirt.

A couple of hours later he e-mails again telling me no one has responded to another Internet inquiry and would I be a seller's representative to show him this other home (also very nice).

As if.

A tour guide is a tour guide whether it's for a bunch of $200,000 homes or a couple of homes at $1.5 million +. All I would be doing is opening doors and maybe satisfying my own curiosity about what the houses looked like.  Hey, I can preview houses any day.

I politely disengage by e-mailing back that I'm not the listing agent on the houses he's interested in, I woud not be able to show him the homes without a Buyer Broker agreement and then passed along contact info for the listing agents whom I immediately e-mailed to give a heads up (not a referral request) about the guy who will be calling them to look at their very nice listing...and only that listing...with them as the listing agent.

I guess there is some opportunity with working only with the listing agent. After all they can work with their commission as can a buyer's agent work with the co-op being offered.  Maybe there are other reasons.

It just seems a little risky. After all, buyer agency exists for a reason.  Even rich people can make dumb mistakes. (Hey, just look at the banks and auto makers!)

J. Philip Faranda
Howard Hanna Rand Realty - Yorktown Heights, NY
Associate Broker / Office Manager

I would have invested a couple hours to spend with the guy and win him over to my way of thinking. My attitude is that if I can get in front of them they'll love me.

Feb 23, 2009 01:43 PM
Larry Ulfig
RE/MAX Professionals South - Plainfield, IL
Naperville/Plainfield

The good news is that the lead generator from REMAX provided a good lead. The bad news is you have a very uneducated buyer.

Feb 23, 2009 01:47 PM
Don Sabinske
Don Sabinske, Sabinske & Associates Inc. - Zimmerman, MN
Sabinske & Associates Inc.

I'm with J. Philip.  But, once out, and you sign or no more opening doors and touring.  Educate the guy.  Win him over....you can do it. 

Feb 23, 2009 02:15 PM
. .
Adak, AK

Interesting situation; I know the drill just as you said Ken this person thinks he is skilled negotiator, maybe he actually is. If his specialty is real estate he might be able to negotiate his own best deal.

I'm with J. Philip also, I would have invested some time with him. Listened carefully and asked a few probing questions - and said very little about my own negotiating skills which have a very long successful record.

People don't always know what they need. Particularly those things they present very early in communication. Maybe you will click with him when you show your listing, if so I would stay a step ahead of him at each turn- he will respect you for it and in the end he wants what we all want - the best property at the best buy!

Kent Davis, MBA

Feb 23, 2009 03:16 PM
Regina P. Brown
MBA Broker Consultants - Carlsbad, CA
M.B.A., Broker, Instructor

Ken, you made the right decision.  How would you like to spend hours of your precious time with a buyer who wants to cut you out of the deal, or nickel-and-dime you to death on every little issue?  That can make your life miserable.  You have much better uses of your time, even if it's NOT working (like spending time with your family).

Join my new AR group and post your blog at http://activerain.com/groups/virtualoffice

Regina P. Brown

Feb 23, 2009 04:57 PM
Lisa Wetzel
RE/MAX Realty Affiliates - Carson City, NV
CDPE, SFR carsonvalleyland.com

I really hate these kinds of buyers - the ones who think they are the only folks who ever figured out how to negotiate with an agent.  I have to say ... it's possible sometimes to "win them over", but usually they only have allegiance to themselves.  Regina is right.  

Feb 23, 2009 08:01 PM
Ken Montville
RE/MAX United Real Estate - College Park, MD
The MD Suburbs of DC

Thanks you all for the responses -- I think where this guy made his first mistake was tipping his hand to the fact that he had no intention of working with a buyer's agent.  Another person may have just called in a local Realtor and had them show them around and then go directly to the Listing Agent anyway not withstanding a Buyer agency agreement.  I haven't met a Broker yet that was willing to hold a buyer's feet to the fire, legally, if a buyer is in breach of a buyer agency agreement.  Too much time, money, hassle and bad press.

I don't think I'm, personally, very adept at winning people over who are disinclined to use my services for other than showing houses.  I have found that these folks are highly distrustful of Realtors, in general, and think overly highly of their own abilities anyway. I'm very good at developing good rapport with my clients or portential clients who may be inclined to work with a Realtor in the first place.

Long winded response...should have been another post, eh?

Feb 23, 2009 09:52 PM
Brenda Harmon
Century 21 Beal, Inc College Station, Texas - College Station, TX

I think you did the right thing.  You were very lucky that he told you upfront his intentions.

Feb 24, 2009 03:08 PM
Alan Gross
PrimeLending, A PlainsCapital Company, Equal Housing Lender - Bethesda, MD
Loan Consultant

The tiger showed his stripes early and you are lucky to have found out. I think it's a great idea to insist on a Buyer Broker before committing to much time. I had a call a few weeks ago from someone wanting to refinance their mortgage. They told me they couldn't get anyone to talk with them. I spent time with them going over options and advised them to wait a few weeks because it looked like the loan limits would be raised to $729,750 and that would meet their needs better. I sent them a pre-application form I use so we could get the process started. They have not returned it to me but have called for more information. They want me to call them and keep them up to date on what's happening. My response was to tell them to call me with questions. I can't make a time commitment to someone who won't even spend a few minutes getting me basic information.

Feb 24, 2009 11:45 PM
. .
Adak, AK

Good point Ken on Buyer Broker Agreements...I do use them - bring it up when I show the first home, and have buyer sign before I write first offer for them. Done it hundreds of times -but sure not willing to take legal action to hold their feet to fire if they do breach it. 

So why do I keep using them? At least they know we have an agreement and if they are trustworthy it just may keep us working together. I don't think anyone has ever terminated one with me, I have wanted to terminate with impossible to please buyers but work with them until it expires.

I'm a REALTOR® but first of all I'm a businessman, and after reading responses I think you made the right business decision.

Kent Davis

Feb 25, 2009 04:48 AM
Rich Mielke
REMAX Results, Frederick MD - Frederick, MD
REALTOR, Frederick Maryland Real Estate

Ken, I have run into someone like this recently. I showed her one house and then she explained her "system" to me, only deal with the listing agent to get the commission reduced. I explained to her that the commission agreement was between the seller and my broker and she had no say in it. I am tired of being asked to be a tour guide.

Feb 27, 2009 02:27 PM
James Downing - Metro DC Houses Team REALTORS®, CRS, GRI, ABR,MRP, MilRes
Real Living | At Home - Washington, DC
When Looking to Buy or Sell - Make the Right Move

My Listing Agreements say my commission is X%.  There is no "cut" if he doesn't want representation.

Feb 28, 2009 05:15 AM