Home > Blogs > Barbara Todaro > Thoughts From A Retired Agent

Buyers' Agent...Your Buyer Just Signed A Contract Without You...But I'll Gladly Pay You!!!

By Barbara Todaro

Services for Real Estate Pros with RE/MAX Executive Realty - Happily Retired 104763

May 30, 2011 09:55 AM

I just read a post written by Christine Smith titled "Buyers Use Your Buyers Agent-They're On Your Side" and I had to share my opinion. My team and I are listing agents, and we have experienced a number of different scenarios regarding this topic.

The majority of buyers who visit our open house events are without their agent. They all sign in and list the agents' name, and let me say up front, we pay all buyers' agents whether they accompany their buyer or not. We list all of our properties with the intention to co-broke each one, and the majority are sold by a co-broke agent. It's a cleaner deal and that's how we like it.

There have been many occasions where the buyers did not want to contact their buyers' agent. The buyers decided to make an offer or place a reservation on a new home or condo during the open house, and they don't want to bother their agent. We're not going to say "no." The buyer is told that we represent the builder, and the builder is firm on his price. There is no negotiating!!

Would a buyers' agent follow that statement? Some would and some would not, but that buyer will not have the opportunity to see that happen. The buyer pays the price and does not include anything other than what the spec sheet indicates. The buyer knows that we will pay their buyers' agent, without any further discussion!!

So, why would buyers wander on their own; find a property they love; and write up a contract with the listing agent? Why does this happen? Where is their buyers' agent? Our builders love the way we sell their real estate!!

One more thing...after the buyers' agent has the buyer sign the purchase and sales agreement, most buyers' agents in our area just turn the deal over to us to finish, and we do, gladly. Our new construction transactions run smoothly, but always to builders' advantage. Remember, that's our job!!!

Re-Blog

Comments(101)

Comment

Show All Comments

Sort:

Barbara Todaro

RE/MAX Executive Realty - Happily Retired - Franklin, MA

Previously Affiliated with The Todaro Team

Thanks, Richard....hope all is well with you....

Jun 01, 2011 07:40 AM

Steven Cook

No Longer Processing Mortgages. - Tacoma, WA

As Gloria (#68) pointed out (as do most of the home inspectors here on AR), even with good builders and new construction, it is important to have a home inspection done. Those buyers agents who are just sitting back and letting your team do the work are shorting their clients.

Jun 01, 2011 08:25 AM

Barbara Todaro

RE/MAX Executive Realty - Happily Retired - Franklin, MA

Previously Affiliated with The Todaro Team

Steven....they are....and some do....

Jun 01, 2011 08:28 AM

Kathy McGuriman

First time home buyers, downsizers,seniors,new construction - Lansdale, PA

CRS, SRES, ACRE, Realtor for Lansdale, PA area

I feel the same way Barbara. When we list the house the seller has previously agreed to paying a co-broke. I don't like to sell my own listings.

I believe in paying it forward, it will come back to you......

And my builder knows I will get it done right, so hand over that file to me buyers agent!

Jun 01, 2011 08:32 AM

Barbara Todaro

RE/MAX Executive Realty - Happily Retired - Franklin, MA

Previously Affiliated with The Todaro Team

kathy....if there's a good buyers' agent involved, they won't hand over anything....and I can't blame them....they should do their job....but I certainly would rather run with it myself....then it's my way!!! however, when I did transactions, I would have to have direct communication with the buyer....all communication was via email and I always copied the buyers' agent....all meetings would have the buyers agent included also....some wanted to be totally involved and they should.

Jun 01, 2011 08:41 AM

Christopher W. Earl

Sutton Group - Showplace Realty Ltd. - Chilliwack, BC

No doubt about it. Buyers' agents have to educate their clients.

Jun 01, 2011 09:14 AM

Kate Akerly

Kaminsky Group - Manhattan Beach, CA

Manhattan Beach Residential Sales

That sounds like it would be such an unusual circumstance, at least in my neck of the woods. I have represented purchasers in over $5mil in transactions thus far this year and I could not imagine having a client 1) submit an offer without me; 2) negotiate the contract of sale without me; or 3) speak directly to the listing broker. Once in a great while my team will register a buyer with a listing agent for an open house. That being said, our average buyer probably views two out of forty properties that way before we negotiate an offer for them. It almost always happens when the buyer calls and says "there's an open house in an hour that I really want to stop by. Can you register me?" If they like the property we would always return to view it again with them.

Clearly the purchasers that bought direct from your client did not avail themselves of the advantages of using a skilled buyer's agent. Negotiating a purchase agreement directly from a sponsor (at least in NYC) is a particurlarly challenging transaction. At least 1/2 of the agents in the city don't even know how to best represent the buyer's interest in those types of negotiations and I've honestly yet to meet a buyer who had a clue as to what provisions could be negotiatied (e.g. "splitters" to reduce mortgage recording tax, transfer taxes, payment of attorney's fees, payment of common charges on behalf of buyer post closing, etc.). Price is usually the least negotiable deal point when purchasing from a developer with dozens of other units to sell in the same development.

Jun 01, 2011 09:52 AM

Barbara Todaro

RE/MAX Executive Realty - Happily Retired - Franklin, MA

Previously Affiliated with The Todaro Team

Christopher....they do....

Mike.....price is never negotiable with our builders, but they will include extra amenities if the buyer asks for them in the offer.....we see many buyers come through without their agents and some go solo if they decided they did not like their buyers agent.....I suppose they assumed they'll all be the same!!!! most buyers do not understand the role of the buyers' agent.

Jun 01, 2011 09:59 AM

Robert Bob Gilbert

Berkshire Hathaway HomeServices Anderson Properties - Katy, TX

Your Katy TX ( West of Houston) Real Estate Expert

I think it that the buyer actually believe they will get a better deal without an agent. The fact is most of the time they will not and they cost themselves a lot of money.

Jun 01, 2011 11:17 AM

Gerard Gilbers

Higher Authority Markeing - Asheboro, NC

Your Marketing Master

Barbara, you have a great way of doing business - with integrity. The only time I suggested that my client look at a house without me was open houses when I was not available because of the distance of the drive. (They were a friend of a friend that lived about an hour away.) They were also advised to let the agent know that they were represented - they never did go out without me.

Jun 01, 2011 11:33 AM

Marte Cliff

Marte Cliff Copywriting - Priest River, ID

Your real estate writer

It sounds to me like you must check out your builders carefully before you represent them... so you're confident that even while the buyer has no representation, they're getting a good home.

Jun 01, 2011 02:21 PM

Jan Green - Scottsdale, AZ

Value Added Service, 602-620-2699 - Scottsdale, AZ

HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Barbara, thanks for posting this subject. All too often there are problems when agents and buyers get greedy. I'm afraid I may have lost a client this well to a listing agent. And I'm sure I'll never hear from the buyer or the agent! Shame on them and good for you for your ethics!

Jun 01, 2011 02:31 PM

Barbara Todaro

RE/MAX Executive Realty - Happily Retired - Franklin, MA

Previously Affiliated with The Todaro Team

Robert....they never get a better deal and they are all hoping they will.....

Gerard....that's good that you accompany them....

Marte....all of our builders build a good home....we don't represent anyone who doesn't.....they've tried to hire us and we decline the project.....I've not been in a courtroom in 33 years and I'm not going to start that now....

Jan....you should have heard from both of them.....

Jun 01, 2011 03:09 PM

Michael Smith

Michael Smith (Homexpo Realty) - Orlando, FL

I think it's important to take the time to explain to a buyer client the value you will add to their position in the transaction.

Jun 01, 2011 05:23 PM

Robert Courtney

Lihue, HI

Century 21 All Islands, RA, CDPE, MCRE, CIAS

Sounds like your approach to this business is the Golden Rule. I hope there are more buyer agents present that do some work than not.

Jun 01, 2011 05:25 PM

Barbara Todaro

RE/MAX Executive Realty - Happily Retired - Franklin, MA

Previously Affiliated with The Todaro Team

Michael....I think it's very important....

Robert....yes, there are more present than not....but we do alot of deals, and there are too many buyers' agents who got paid for doing nothing.

Jun 01, 2011 09:52 PM

Kimberly Brandon

Smart Moves Real Estate - Venice, FL

Broker/Owner

the answer to why is because most buyers are not that well educated on how to best purchase real estate.

Jun 03, 2011 03:44 AM

Barbara Todaro

RE/MAX Executive Realty - Happily Retired - Franklin, MA

Previously Affiliated with The Todaro Team

Kimberly.....that's right they are not and as a result, many buyers' agents are not getting paid as they should....

Jun 03, 2011 05:30 AM

Karen Feltman

Cedar Rapids/Iowa City, IA KW Legacy Group - Cedar Rapids, IA

Relocation Specialist in Cedar Rapids, Iowa

When I sit down with my buyers at their initial consultation, we discuss the issues surrounding agency and sole representation. We also discuss open houses, builders, and FSBOs so that there is no question on the right thing to do if there is one that they are interested in seeing in person. Representing the buyer to the fullest of our ability cannot be done if the buyer does not understand the value that we offer. I think that it is great that your builder and you, subscribe to paying the co-broke offered in the MLS when a buyer indicates that they are working with a buyer's agent. There are too many builders in my area that say that if the buyer comes in without their agent, then there IS NO AGENT! Thank you for starting the discussion.

Jun 03, 2011 02:22 PM

Barbara Todaro

RE/MAX Executive Realty - Happily Retired - Franklin, MA

Previously Affiliated with The Todaro Team

Karen....the builders in your area are very shortsighted....they would put more deals together if they marketed to agents....gave them bonus of a gift card with every purchase and sales agreement plus their full commission....that's what toll bros did here in Franklin because agents where not showing their properties....eddo

Jun 03, 2011 11:14 PM

Older Post

Newer Post

Buyers' Agent...Your Buyer Just Signed A Contract Without You...But I'll Gladly Pay You!!!

Comments(101)

Barbara Todaro

Service Areas

Real Estate Resources