Real Estate Referrals Gone Wrong

UGH- sometimes consumers need a clear cut explaination of the Code fo Ethics. Refusing to show a property because they are represented by another agent only has consequences to the Agent not the buyer.  Explaining those consequences, clearly and concisely, IS a form of educating them and helpuing them to understand why we can and cannot do certain things at certain times.

Ouch Kathy!  But I too believe it really is a matter of educating the public.  I can't help but believe that if they knew how Realtors® are compensated they would have a different view.  Sorry to hear though that it affected you and your clients...  

Kathy ~ No question education, or the lack of education is the key to the majority of the problems we run into when dealing with a non-client/customer.  It is, however, a bit tough to expect Agents to accept all of the responsibility, considering how much information is now available to John Q. Public via the net.

Anyone already working with an agent has obviously been required to sign the Agency Agreement which fully explains duties, responsibilities and compensation options.  (Hopefully, that is . . .)

Kathy, I hear you on this one. I am amazed at the things we are told, or not told. Even after explaining that we could be putting our license at risk. I know that some believe that as a result of the current real estate market we will do anything.

Not true...

Kathy:  NC, VA, (DE and I believe MD) an Agent must provide the "Working With Real Estate Agents" Brochure  and provide the Agency Disclosure at the first substantive meeting.  Normally, this is done before showing property and not always possible, but I have certainly done this in the process of showing a listing.  We are also asked to declare our Agency Relationship to the Purchaser when scheduling an appointment to show through our centralized showing system.  This is intended to avoid the sharing of information which could be detrimental to the Seller, etc.

I do agree with you that we cannot, nor should we ever assume a client/customer has the knowledge we want them to have, I was simply pointing out that we do, at least in my area, have the opportunity to educate them and it would serve each of us well, if we were to take that a bit more seriously.  You are so right about proper etiquette in our field -- that would certainly go a long way in avoiding confusion on so many levels.

I had the same standards with agents working under my licenses as well.  Great post, thank you so much.

When this happens I ask the client to sign a buyer broker agreement with me and they usually decline, enough said!

I would like to believe that the agent explains that they are working for the buyer and to give them a call when they would like to see something. In a lot of cases the buyer believes that they'll 'get a better deal' if they deal with the selling agent. uh huh...right. In other cases they just float around from agent to agent ....just because. (and then they think we get paid hourly anyway).

It would be a wonderful real estate world if all in the industry educated the client and there were a closed transaction with everyone being open and honest.

Bottom line....our laws differ from state to state and I get buyers who think we all get to go to signing and get keys right then and there. 

And....I think the coffee worked this morning lol

Hi Kathy,

Just saw the mention of your post on one by Sally so I thought I'd just cruise on over. Interesting comments so far.

I'm also in agreement with your comment about education consumers that we are not all 24/7. Some may be if they choose to be, yet not all of us.

Kathy - there are a growing number of agents who send their customers out on their own and then step in to do the deal.

Wow that's too bad the referral didn't work out!

I, as a consumer, had no idea that if I had an agent I shouldn't contact another agent to show me their listing or another listing! Silly me!  But yes that makes perfect sense! DUH! :) Thanks for educating me!

well tonight I found out that a client I have worked with since around June wrote two offers last week and both were accepted.  One offer was written by me for a Single family home in Ventura, and the other offer was written by an agent in Santa Barbara for a duplex there.  Tonight, the buyer called me to withdraw our offer.  Not only making me look pretty bad to the listing agent I'm sure, but having wasted probably 30+ hours with all the showings, writing four offers, etc.  I am pretty miffed to put it mildly.  The biggest thing tho, is that I did the referral to the SB agent because even tho it's just 30 miles away, I don't know the market there and am not a member of the board.  The biggest problem is - he and I forgot to let each other know we were actually writing an offer for this guy.  He knew I was working with him in this area, but the client just didn't bother telling us what he was doing.  LESSON LEARNED!  What a way to end the day - I am exhausted.

Since we value our time it is imperative that we ask a buyer on first contact if they are working with another agent.  I don't know anyone who likes to work for nothing.

Can we start making buyers operate by a Code of Ethics?!  I wonder what could possibly be going through some of their minds!  I just watched a cute little video (cartoon) with the buyer asking the agent to take them house shopping before pre-qualifiying, buy them lunch and probably look at 100 homes before finally realizing that they aren't qualified!  "I just like to look at houses!"  

Do it on your own time if you're not going to qualify FIRST, you're not sitting in MY car!!

Kathy, I wonder how much of this is our fault for not explaining how we work and how we are remunerated to customers...

This reminds me of the buyer that hung up on me because I would not show her a home before she got a pre-approval from a lender. Her loss not mine...