Are you really betrayed when a buyer goes to a FSBO?

The Truth Hurts sometimes! Here in Texas we have what is call Buyer Tenant Representation agreement. This is a Texas Association of Realtors form. This agreement when signed by the buyer and agent completely and dated is a commission protection for situations like the FSBO.  A problem I have run into with FSBO'S and Builders has been to enforce it. Most of the buyers who I have found to go around or past the agent have been under $200,000 if it were higher dollar it may be worth it . Taking the time to hire an attorney, sue the buyers for the commission and attorney fees, takes lots of energy and negative emotions which has been wasted on buyers who were liars. I took into consideration that I could SELL and CLOSE several homes which would have added up to more commissions than that 1 buyers or so called bad apple. In regards to builders I have had success of being paid when showing them the Buyers Representaton  agreement. I shared with the builder that this was a binding agreement and if they did not honor my commission I would file suit and the buyers would have a hard time obtaining a loan with a pending law suit. This worked and I have been paid my commission twice from buyers who went to builders without me after months of showing them properties and staying in touch with them. When I asked the buyers why they went without me I was told by the buyer the builders sales rep said I would get a better deal without the realtor. The buyer did not realize or put 2 and 2 together that the builder is the seller and the builders sales rep works for the seller so they were being discouraged from being represented.

This was a great Blog and happens often with FSBO'S.

Ouch, guess I'll be the dissenting opinon here. 

Realtors have a system in place to locate homes...it's called the MLS.  This one of the reasons buyers look to us for assistance.  If buyers wish to look at homes not listed in the MLS, they're welcome check the many FSBO web sites daily, search the classifieds for FSBO's daily, and spend countless hours driving  neighborhoods daily, etc. in an attempt to find a home that "may" be right for them. 

However, using your example, should you not do a mail-out to your entire city to see if anyone is thinking about selling a home that fits your client's search criteria?  Are you not obligated to spend any spare time you have driving your city looking for FSBO's.  No Anona, it's NOT my responsibility to do the above listed things to find them a home anymore than it's my responsbility to mow my seller's yard and clean his toilet bowl to make sure the showings are productive (and yes, I had an agent tell them this WAS her responsibility too).  The point being, where do you draw the line.

I certainly don't fault you for your strong desire to deliver exceptional service, but I'm not quite sure that this desire is based on good business practice and experience.     

Anona- There are a lot of good points so far from the comments.  I agree with you that we need to do more than just show them the MLS or at least keep our eyes out for FSBOs.  We also need to explain the FSBO situation to our buyers and in the spirit of WIIFT (what's in it for them) explain why hiring a Realtor even to represent the buyer's side only can protect them liability wise, etc.  

I also won't show a buyer a FSBO who is unwilling to pay the fee for my service to handle one side of the transaction.   But in the end if they go that route without me, it's there choice.