Dear John Letter (or in this case Dear Kristal)

By
Real Estate Agent with KB Home Bre # 01424127

Dear John Letter (or in this case Dear Kristal)

Well it happened earlier this week. I received the Dear John Letter from one of my clients. We thank you for your help blah, blah, blah... but we have purchased another home. The clients decided their interests were best served by submitting the offer through the Listing Agent.dear john letter

During our initial buyer consultation we discussed the various strategies we would utilize in pursuing their dreams of home-ownership. Our market has more than 50% short sale transactions; often very desirable properties in good neighborhoods but they are lengthy transactions with no guarantees promised. However I do not submit multiple short sale contracts. I discuss the steps involved so that the buyers understand the nature of short sales and my reasoning:

  • What if two contracts are accepted at the same time? (Unlikely I know but anything can happen now days.)
  • What about the distressed seller? Imagine his relief when he has a legitimate offer to submit to the bank. Should we burden the distressed family any further by casually canceling a contract?

Mrs. Buyer really didn't understand my concerns and wanted to submit multiple offers. I thought we had gotten over the dilemma as we continued viewing other properties. After several months (we submitted offers on REO's and were outbid several times) we finally submitted an offer on a beautiful short sale property which fit all of their needs and was well within their price range. Well on Tuesday she emailed me canceling the transaction.

But the saga continues,

Today I received a call from an extremely agitated Mrs. Buyer. You see she has just received the counter offer from the bank, from her new agent (the Listing Agent.) The bank is requesting a cash contribution. She wanted my advice concerning her responsibilities and options.

Imagine that....

I spoke with her for a minute because we have (or at least I thought we had) built a relationship over these past few months and I would hate to see someone take advantage of them (although I never offer legal advice.) But after our conversation was over I paused to think over the situation.

Perhaps a buyer agreement is in place to protect the interests of both the client and Realtor. I thought if I did my very best for each client there would be no need to have a signed contract between us. I've learned my lesson.

Buyer agreements will now become part of my initial buyer consultation.

Posted by

 

If you are considering  buying or selling new construction in the Inland Empire ~ Give me call or email me 

Cause We Like Em' New!

 

Kristal Wilson                                           

cell: 951- 288-7079

Shoot for the moon & if you miss you'll be among the stars

 

 

Comments (9)

Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Kristal- I am not a Realtor but I have had positions where I did a lot of work only to have my "client" go through another person.  I think some people just never understand the concept of someone working on commission. Wishing you better luck with the next Buyers!

Aug 25, 2011 11:45 AM
Peggy Dowcett
Coldwell Banker Residential Brokerage - Concord, MA
978.302.3988, Concord, MA - Mass Real Estate

It happens a lot more than we think and sometimes you have to take a buyer out once or twice before they are willing to sign. Good luck!

Aug 25, 2011 11:55 AM
Linda K. Mayer
License # 01767321 - La Verne, CA
Realtor, SRES, SoCAL, A REALTOR YOU CAN TRUST

Kristal, from what I've seen, most people will not get "locked in" by a buyer/broker agreement.  I wish...  I understand how these things happen.  It happened to me, as well.  We got an accepted offer and when I was away for one weekend, my buyer went out with another agent, put another bunch of offers out there and canceled with me... go figure!

Aug 25, 2011 11:55 AM
Laura Sargent
Carolina One Real Estate - Mount Pleasant, SC

Your story is one I hate to read... I'm amazed (not) that people ask for free advise from someone they clearly didn't use to help them.  NEXT

Aug 26, 2011 04:28 AM
Kristal Kraft
Novella Real Estate - Denver, CO
Selling Metro Denver Real Estate - 303-589-2022

It is truly sad when consumers don't understand that the listing agent is bound by law to represent the seller and not them (at least in Colorado it is!).  By using the listing agent they give up their right to representation.

I don't understand why a consumer would do that when having representation doesn't cost them anymore. In fact it costs them less, or would have in your situtation.  So sad, some people must learn through having a bad experience.

Maybe now they will get it!

kk

Aug 26, 2011 03:39 PM
Robert Bob Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX ( West of Houston) Real Estate Expert

Kristal,

I always ask for a buter rep upfront as there are way too many folks who just want pro bono work from us.

Thanks for making a comment on my blog as I always appreiate it.

Aug 27, 2011 05:37 AM
Kristal Wilson
KB Home - Fontana, CA
Cause We Like 'Em New ~ New Home Specialist!

Kathy ~ I hope presenting the buyers agreement upfront may help with some of the misunderstandings.

Peggy ~ as a new strategy I am going to explain the agreement at the first consultation - I just saw a great training video.

Linda ~ I have been watching training video's and believe the way the agreement is presented determines wheter or not a buyer will sign.

Laura ~ I was suprised that the client would call for my advise after firing me.

Kristal ~ It is also true here, the Listing Agents responsibility is to the seller but buyers believe they may get a better deal by going directly to the source, unfortunately some LA's have encouraged this strategy.

Robert ~ I am hoping that by setting a clear expectation buyers will sign the agreement.

Aug 27, 2011 07:22 AM
Jim Frimmer
HomeSmart Realty West - San Diego, CA
Realtor & CDPE, Mission Valley specialist

I started off the same way, and the exact same thing happened to me. After being out with my Clients for the whole day and showing them billions of property, they saw an open house on the way home, stopped in, and bought the home through the listing agent. I learned my lesson. A buyer's agreement sets the expectations between the employer (buyers) and employee (me). Every company in today's world has an employer/employee agreement. Just because I'm an individual doesn't mean that I shouldn't have one also.

Aug 27, 2011 01:07 PM
Kristal Wilson
KB Home - Fontana, CA
Cause We Like 'Em New ~ New Home Specialist!

Jim ~ Using the buyer agreement just like an "employer/employee agreement" is a compelling analogy. Now I am rehearsing my script for introducing the agreement.

Aug 28, 2011 08:41 AM