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Spilling the Secret of How Real Estate Really Works - Norma Toering REMAX Palos Verdes

By
Real Estate Broker/Owner with Charlemagne International Properties BRE# 01147470

Yesterday a co-worker called me to vent.  It seems she showed an out-of-town couple thirty houses in three days, took them to meet with a lender and facilitated return visits to the top choice homes.  She arranged for a builder friend to meet with them and discuss possible remodeling projects, and in general did everything possible to help them make the most of their short visit from another state.  On their way out of town they called her to say they leased a house in their friend's neighborhood, and used the listing agent to write up the lease (and take the commission), not her.  She was speechless.

The couple was a referral from a long-term client.  Perhaps they do not understand real estate agents work on straight commission.  We do not receive a base salary, we do not receive benefits, heck, we're lucky to get a couple hundred free copies a month.  Here's the clincher, we do not get paid unless we close a transaction.  The office sales are not pooled and then shared at the end of the month.  To receive a paycheck you must sell something.

So consumers, please do not be offended when an agents asks you to sign a buyer broker agreement.  It is a mini employment arrangement agreeing to work with an agent for an agreed upon length of time to find and purchase real estate.  Agent hopping does not provide the highest level of service and professionalism to you.  If you expect a high level of service, then please extend a similar level of commitment to the agent whose service you are engaging.

Orchestrating three days of house hunting requires market knowledge, time on the computer selecting the homes and hours on the phone arranging and setting appointments. Then three days in the field showing the homes.  No one wants to work for free.

Of course there will be times when the buyer/agent fit will not be a comfortable one.  Exit early and do it with grace.  It does not happen often, but I have simply said to a prospective buyer, "I think Joe would be the perfect agent for you, and would you mind if I referred you to him?"  They have the option of accepting or moving on and selecting another agent of their choice. 

 Good manners are so much better than ugly surprises. 

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Norma Toering & Team RE/MAX Palos Verdes Realty
(310) 493-8333 / Office Phone: (310) 831-0800

South Bay Los Angeles cities I sell real estate, property, houses and homes in: Palos Verdes Estates, Rolling Hills, Rolling Hills Estates, Rancho Palos Verdes, San Pedro, Long Beach, Torrance, Lomita, Redondo Beach, Hermosa Beach and Manhattan Beach.


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Comments(10)

Donald Wenner
Keller Williams Maplewood Mid-Town Direct - Florham Park, NJ

Wow!  that was many hours of work and deication to help that out of state couple... all for nothing.  What a great scenario to include when you present a buyer with a buyer's broker agreement.

Lesson hard learned for many I bet.  Thanks for the great post Norma.

DW

Mar 28, 2009 04:22 AM
Norma Toering Broker for Palos Verdes and Beach Cities
Charlemagne International Properties - Rancho Palos Verdes, CA
Palos Verdes Luxury Homes in L.A.

Thanks Donald.  Yes, I think those will be the last three days she works without a signed buyer's agreement.

Mar 28, 2009 04:26 AM
Craig & Sue Guffin
Coldwell Banker Monsees Realty - Sedalia, MO
Sedalia Mo Real Estate

That age old dilemma. I am so thankful for the buyers agent agreement! It allows you to put this issue right out front without sounding pushy or arrogant. Thanks for the post.

Mar 28, 2009 04:26 AM
June Tassillo
Owner/Broker RE/MAX Elite Realty - Franklin, NC
Let me help you with the next phase of your life!

I have been in that same position a few times already.  Last week I wrote my first buyers agreement and I knew this client pretty well.  I am convinced that I have to have that.  My time is valuable and I need a pay check.

Mar 28, 2009 04:28 AM
Andrew Johnson
Touchstone Realty - Martinsburg, WV
Real Estate Service and Inventory Specialist

oh the venting of a co-working.. you gotta love it

Mar 28, 2009 04:31 AM
Irene Tron
Valparaiso, IN

As with any job, there's the good with the bad.  I guess we can only learn from our experiences, move on, and avoid making the same mistake twice. 

Mar 28, 2009 04:38 AM
Norma Toering Broker for Palos Verdes and Beach Cities
Charlemagne International Properties - Rancho Palos Verdes, CA
Palos Verdes Luxury Homes in L.A.

Craig - I explain it as a retainer without a fee, just a commitment and buyers seem to relax and reach for the pen to sign.

Mar 28, 2009 02:21 PM
Norma Toering Broker for Palos Verdes and Beach Cities
Charlemagne International Properties - Rancho Palos Verdes, CA
Palos Verdes Luxury Homes in L.A.

June -- It's true, time is money.

Mar 28, 2009 02:22 PM
Norma Toering Broker for Palos Verdes and Beach Cities
Charlemagne International Properties - Rancho Palos Verdes, CA
Palos Verdes Luxury Homes in L.A.

Andrew --  Sharing war stories is part of the biz....

Mar 28, 2009 02:24 PM
Norma Toering Broker for Palos Verdes and Beach Cities
Charlemagne International Properties - Rancho Palos Verdes, CA
Palos Verdes Luxury Homes in L.A.

Irene -- Yes, there are many lessons to be learned from her experience.

Mar 28, 2009 02:27 PM