In Real Estate, you can't "lose" what you haven't earned.

By
Real Estate Broker/Owner with (831) 626-4000 CA #01772851 HI #RB-21268

Today, my server at the restaurant told me she had considered going into real estate when she found out I was a real estate broker. According to her story, she talked herself out of it when a REALTOR friend told her this tale of woe.

Namely, that ANOTHER agent had "stolen" her listing and she had "lost" $10,000.

I can understand the reasoning of the server because she did not know any better, but that agent?

JUST BECAUSE YOU HAVE SNAGGED A LISTING, YOU DO NOT HAVE ANY MONEY.

When you are an agent and you find a seller who will give you the listing you still need to:

1. Make sure that the seller signs the listing agreement.

2. Then you have to do a competent job and find a buyer, or a buyer's agent with a buyer.

3. Once you have a binding offer, you need to get the transaction to close, which can be a lengthy ordeal.

4. Once you get the transaction closed, THEN you have earned your commission.

HOW CAN YOU HAVE THAT LISTING 'STOLEN' BY ANOTHER AGENT?

If you have a valid listing, there are pretty much only 4 ways to "break" it:

(1) The agent gets out of it if the seller does not perform per the contract.

(2) The seller gets out of it if the agent is "incompetent" and does not perform as per the contract.

(3) Both agent and seller mutually agree to cancel the contract.

(4) The seller decides to take the listing off the market. Or the listing burns to the ground. Or the seller dies or gets incapacitated. There are a few loopholes here where the listing agent usually lets the seller off the hook.

ONCE THE PROPERTY IS NO LONGER UNDER A LISTING CONTRACT, THE SELLER CAN RELIST IT WITH ANOTHER AGENT.

I don't consider this "stealing" by the other agent.

WHAT IF ANOTHER AGENT GOES AFTER YOUR SELLER WHILE YOU ARE IN CONTRACT? TRYING TO 'STEAL' IT?

This is "tortious interference with a contract" and there is plenty you can do about it. Find out your rights and take the action(s) that pertain to this interference.

BUT MAYBE YOU ARE NOT  IN A CONTRACT, YOU ARE JUST SHOWING A 'CUSTOMER' HOMES WITHOUT ANY SORT OF WRITTEN AGREEMENT?

This is on you! You, the real estate agent, need to protect yourself and have them sign a "Buyer Representation Agreement".  If the buyer doesn't want to do that, all kinds of things can happen which will make you, the agent think you have "been robbed" - but you haven't' it's YOUR fault.

1. They will have a relative actually make the offer, leaving the hard-working agent who actually showed them the homes out in the cold.

2. Go visit a "new construction development" without their agent and sign in without them. The developer will then not pay the agent.

3. Or they have been using several agents all along and you, the faithful agent, had no knowledge of this.

4. They are friends, you don't feel you need to go into a contract with them, but they still get talked into using another agent. These are the ones that HURT!

BUT NONE OF THESE ARE REASONS TO GIVE UP OR NOT GO INTO REAL ESTATE.

Real estate is a fabulous business for someone who enjoys the challenges, can shrug off the "downs" and enjoys the "highs" of this fast paced profession.

Most clients want nothing more than have a hardworking agent on their side to help them. But the agent needs to EARN their trust, establish a relationship, and give them an experience that they will brag about to their friends who will then hire you.

And buyers and sellers, if you read this and want a hardworking real estate broker on your side, plain and simple, call me and let's discuss what your real estate needs are and find out how I can help you.

 

 

 

 

Posted by

Hella Mitschke Rothwell, Broker/Owner/REALTOR 

 

Let me be your independent real estate broker for oceanfront and oceanview property in California and Hawaii.  If you are a seller/owner, I will travel to your property to help get it ready for sale, then list and market it. If you are a buyer and we have a Buyers Representation Agreement in place, I will preview property on your behalf anywhere in California and Hawaii.  Please call me to discuss how I can help you.

Search Hawaii Listings on www.HellaHawaii.com

Member: Honolulu Board of REALTORS; National Association of REALTORS; Hawaii Association of REALTORS; Del Norte Association of REALTORS; California Association of REALTORS; MLSListings, Inc., the premier MLS listing service in Northern California.

 

________________________________________________________________

Hella Mitschke Rothwell (R)

Real Estate Broker/Owner/Realtor®
Licensed in California #01772851 & Hawaii #RB-21268

Tel. 808-226-1095 or 831-626-4000 

Fax 1-877-822-9332

www.HellaHawaii.com

www.HellaRothwell.com

www.RothwellRealty.com

HAWAII OFFICE: 1128 Ala Napunani Street, #1809, Honolulu, HI 96818

 CALIFORNIA OFFICE: Su Vecino Court, Lincoln & Dolores between 5th & 6th, Carmel-by-the-Sea, CA 93921

MAILING: P.O. Box 4554, Carmel-by-the-Sea, CA 93921

 
Email: HellaRothwell@gmail.com


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Disclaimer: Hella Rothwell does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

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Ambassador
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Fred Griffin
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

       The misconception of a would-be real estate agent, fed by the sour grapes of some agent whose listing presentation was a bust.  Great explanation of how it really works!

Jan 05, 2018 07:19 PM #1
Rainmaker
860,951
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Most of us lose a great opportunity when we trust each other. I lost one of the best deals when the husband will not listen to his relatives putting most of the downpayment and have his loan agent selling it in the midst of title search an wet signature power of attorney.  I should ask the power of attorney to sign in to stop that non sense. 

Jan 05, 2018 07:21 PM #2
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Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

There really are so many misconceptions out there about our field and the way it works and this just shows that sometimes it's agents putting them out there.

Jan 05, 2018 08:37 PM #3
Rainmaker
2,751,601
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Hella great points, on a side note I find it interesting on the other extreme where people think that all Realtors all make huge amounts of money...and that money is easily to earn...

Jan 05, 2018 11:53 PM #4
Rainmaker
2,439,151
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Great post, Hella... I've heard this many a time over 25 years. It's sort of like agents who call leads, clients. They are not clients and they've yet not lost anything.

Jan 06, 2018 05:43 AM #5
Rainmaker
3,036,643
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Hella. This is so funny but true. The general public really had no idea.

Jan 06, 2018 07:19 AM #6
Rainmaker
2,013,255
Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Lyon Real Estate - Sacramento, CA
Put 40 years of experience to work for you

Yup, all clients are up for grabs if they are not under contract. Nobody owns a client. However, an agent is prevented from interferring in another's agent transaction in the Code of Ethics if that agent is a Realtor.

Some agents don't even realize they are inteferring. Like the "well-meaning" agent who goes to preview your listing, runs into the seller, and starts giving her home staging advice, helping her to move furniture around. That guy? Interferring!

Jan 06, 2018 11:09 AM #7
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Hella I often hear Realtors complaining about losing a listing, but don't think I have ever heard one claim what this Realtor was claiming.  No wonder the public has a bad impression about the Real Estate business, when those in this business make spread incorrect stories.

Jan 06, 2018 04:59 PM #8
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

You have shared some of the down and dirty about the business. Some of it is ignorance and others just don't have any ethics. It is something we all don't like to deal with.

Jan 07, 2018 03:32 PM #9
Rainmaker
2,177,734
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

I like your thoughts expressed in this post, Hella.  It ranks even ahead of agents who count their commissions before transactions have successfully closed.

Jan 07, 2018 03:59 PM #10
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

WONDERFUL explanation, Hella! You're so right - we don't 'own' a client anyway but, if they haven't signed with us yet, the onus is on US to retain them by having them sign. 

And, tortious interference - there's not a lot I will report agents for but, this is one that would get my blood boiling! I work very hard to secure clients and someone on a mission to interfere with that relationship is going to get slapped in the face with complaints to local, state & national associations...without hesitation! 

Jan 13, 2018 07:13 AM #11
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Hella Mitschke Rothwell

Hawaii & California Real Estate Broker
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