It's Your Own Fault!!!

By
Real Estate Sales Representative with Hoty Enterprises, Inc. 417305

 IT HAPPENED AGAIN!!!

I just received an e-mail from a buyer I have been actively showing homes to for 16 months. We became fast friends and had a good time when we were out looking at homes. We've looked at everything that met her criteria. Mostly on weekends or early mornings because of her work schedule. Some homes we viewed more than once. Three times I wrote offers that were never accepted. Now she tells me she found a home through a friend of a friend that was for sale by owner and she bought it. WHAT! Oh, but she appreciates all I've done for her. HOW COULD THIS HAPPEN?

A similar scenario happened 2 weeks ago with a guy I had worked with for 6 mos. and went way out of my way to accommodate his every whim. Researching neighborhood declarations, deed restrictions, septic requirements, etc. In his e-mail, where he "just wanted to" thank me for all my help, he made it sound as if he bought a FSBO, when in fact, he negotiated a price directly with the seller, then used the listing agent to complete the transaction. I was furious!!! BUT in both cases, I didn't have an Exclusive Buyer's Agency Agreement. WHY? I didn't believe in them. How could I ask someone to sign something I wouldn't sign myself??? It simply wasn't fair.

This is a small town area and Buyer's Agreements are not common here. Not unheard of, but not used frequently. However, I've changed my tune.                                                                                                                       

I have children who are young adults and I asked myself.....If someone who did business in the same manner as I, honestly, ethically, and with a sincere desire to help buyers, asked one of my children to sign an Exclusive Buyer's Agency Agreement, would I be upset? No, I don't think so. After all, it's a commitment for both parties. Why wouldn't a buyer want an agent to commit to them?

Another thought I had was this:

If upon first meeting a potential buyer told me, "Oh, by the way, I just want you to know, I'm not committing to any one agent. I'm also looking at properties with Nancy Newagent, and with Patty Parttimer, and also with Frank Fullofhimself. Whichever agent finds me the home I want, that's who I'll buy it with.", would I continue to work to find a home for that buyer? Pffffttt! Doubt it! He's not committed to me. I'd rather focus my energy elsewhere. So why not get that commitment in writing?

Now I think differently. This business gets harder and harder and closed transactions are few and far between. It's a business, it's my livelihood and I no longer worry that I might offend someone by asking them to make a commitment. I've recently signed up 3 buyers and none of them batted an eye at signing the Exclusive Buyer's Agency Agreement.  HOW COOL IS THAT? In fact, the first couple that signed an agreement closed on their home 2 weeks ago and referred another couple to me that just signed an agreement over the weekend. It really wasn't that hard. I just explained what I do for them and how the signed form protects my business and they totally understood. Better yet, I'm encouraging all the agents in my office to use Exclusive Buyer's Agency Agreements. They are reluctant, but then I can be relentless. They'll soon be playing my song!!!

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Rainmaker
30,840
Lynn Michaels
RE/MAX Central- Marlboro & Manalapan, NJ - Marlboro, NJ
Marlboro-Manalapan Real Estate

Many of us in New Jersey use Buyer Agency Agreements. The disappointments you described above still happen, but less frequently.

Asking the buyers to sign the agreement gives you the opportunity to explain all that you will do for them, and most sincere buyers like the idea of having their own agent looking out for their best interests.

The people who will flit from agent to agent will be difficult to form a close relationship with, and will probably not be a good source of referrals either.

Good luck with your new business model!

Nov 09, 2009 09:45 AM #1
Rainer
136,625
Terry Lynch
LAR Notary and Closing Services - Saint Clair Shores, MI

Not willing to sign a buyer agency agreement should be looked at as a red flag. Just walk away.

Nov 09, 2009 09:57 AM #2
Rainmaker
656,032
Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes

If someone won't sign a buyer broker -- then we send them on their way -- if they won't sign there are so many ways you will spend a lot of time and never be paid it is ridiculous.

Nov 09, 2009 10:11 AM #3
Rainmaker
565,035
Steve, Joel & Steve A. Chain
Chain Real Estate Investments & Mortgage, Steve & Joel Chain - Cottonwood, CA

Jamie, Some people need help realizing the value of what agents do.  The Buyer's Representative Agreement "helps" them and protects the investment of your time. 

Nov 09, 2009 01:26 PM #4
Rainer
145,166
Jamie King
Hoty Enterprises, Inc. - Huron, OH
Sandusky, OH

Thanks, everyone, for your comments and support.

Terry, Bob & Carol - I've come to the same conclusion. If they won't sign..."Have a nice day!, Buh,by!"  Although it took me 14 yrs. to get there! I've just not had many bad experiences until now. I think it's the economy. Everyone is out for the best deal no matter who they step on to get there.

Nov 09, 2009 01:45 PM #5
Rainmaker
208,238
Dee Nofziger
|Key Realty | Maumee Toledo Real Estate Blog - Toledo, OH
Maumee Real Estate, Toledo Homes, Key Realty

My company truly trains us to use buyers agency agreements. I have had success with them lately even with fsbo's. I simply explain that there are a lot of icky homes on the market right now, so why not add fsbos to the list - and that for me to help them do that and have the seller pay for my services, a BAA helps alot to protect their interests. So far so good.

I very much agree in this market, that if a buyer balks at a BAA, then perhaps adios may apply. Not always, but sometimes. A good buyer consultation at the beginnig can help immensely.

 

Jan 18, 2010 07:16 AM #6
Rainmaker
1,183,905
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

I know you are doing the right thing, but I am not going to do it.  Why?  The last place I worked for insisted on it.  So the first buyer I was referred I had sign it.  I swear.  He had no clue what he was signing and I wouldn't have trusted him as far as I could throw him.  I guarantee he would have made any offer that suited him, and they really aren't enforceable.  But, what happened with you is an excellent example of how it CAN and should work.  Good for you.

May 11, 2010 04:36 PM #7
Rainer
12,137
Nichole Tigges & Monique Riddle
Century 21 Mike Myers Realty, Inc. - Norwalk, OH

 

Congrats on using the exclusive buyer's agency, I'm in your area and I agree I don't know many people that use it. I just may give it a try in the future.

Jun 25, 2010 10:34 AM #8
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Rainer
145,166

Jamie King

Sandusky, OH
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