Are Home Buyers Being Tricked Into Agency Relationships?

By
Real Estate Agent with Homebuyer Representation, Inc. DRE# 5467433

CASE:

  • Buyer does not have an agent.
  • Buyer sees a home for sale on the internet.
  • Buyer calls Listing Agent to see the home.
  • Listing Agent sends an "Associate" to show the home to the Buyer.
  • Associate asks Buyer if they have an agent.
  • Buyer says "No."
  • Associate shows Buyer the home.
  • Buyer says they may be interested but still need to find an agent to represent their best interests.
  • Associate says, "If you want to buy this home, I will be the one to write up the offer because I'm the one who will get paid. You are free to get your own agent, but your agent won't be paid."

What is the "Associate" talking about?

Why will that Buyer's agent not be compensated?

Do you see anything wrong (anti-consumer) with this picture?

How could the listing agent and/or the "associate" have better handled the situation?

(I know the answers to these questions, I would like to hear your comments though.)

 

 

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If you have excellent credit and will be buying a $250,000-$750,000 home in the next 30-60 days and would like an agent who will work exclusively for you, call us at (801) 969-8989 or contact us via the link on this page.

©2008 Homebuyer Representation, Inc.  "The Real Estate Agents on the Buyer's Side" ™ Exclusive Buyers Agents (EBA) - All Rights Reserved

Exclusive Buyer Brokerages do not list homes and never represent Sellers.  Their agents represent Buyers ONLY on the Buyer's side of the transaction. They work to get BUYERS the Best Price and Terms when they Buy...

 

©2008 Homebuyer Representation, Inc. - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

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Tags:
buy
home
relationships
agency
procuring cause
offer
compensation
nondisclosure
trickery
incompetent

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Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate

The associate has purcuring case on this one house, or the houses he showed. However, in this market, any agent should be glad to get an offer from another buyer agent.

Jun 03, 2008 10:36 AM #1
Rainmaker
151,716
Carol Lee
Dilbeck Real Estate - Oak Park, CA
Realtor - Agoura, Oak Park, Westlake CA Homes

I spoke to my manager recently about something similar.  I got a call to show a home I had listied a couple of years ago, and now happened to be on the market with some one else in my office.  (which I was fine with, by the way).  the guy said he had a agent, who was a neighbor, but he went out and looked at homes, and if he saw something he liked, the neighbor would write it up.  He said he had nothing in writing with the neighbor, nor would he sign a broker/buyer agreement with me, though he verbally said  he was fine with me giving his neighbor a referral fee.  (I know, that agreement is worth the paper it was written on.)  Anyway, my manager said I would have to show an ongoing relationship with that buyer to get procuring cause.  But enough about me.

There are certainly ethical, if not legal, issues with the scenario you wrote about, and as the discussion with my manager showed, one showing may not be enough for procuring cause.  If the "associate" is  a partner with the listing agent, or an assistant, why is s/he so insistant on the double pop?  I know listing agents that will not "double end" a listing because of potential conflict of interest, but will refer the buyer to someone else,  The listing still get a referral fee, so make some money, the buyer has an agent dedicated to them in negotiations.  Seems like a win'win to me.

If I were the buyer on the above situation, my gut would likely say "I feel like my arm is being twisted here, and I don't like it."  Personally, I don't like pushy people, agents or otherwise.  AS opposed to telling the buyer how it was going to be, some discussion about what the buyer was looking for, and how they could get it may have been a better approach.

Jun 03, 2008 11:09 AM #2
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Benjamin Clark

Buyer's Agent - Certified Negotiation Expert
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