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Do Buyers' Agents Actually Explain Negotiations to Their Buyers?

By Donna Harris

Real Estate Agent with Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com 0480809

November 17, 2008 01:50 PM

I sometimes wonder is Buyers' agent actually explain things to their buyers in terms that they'll understand. If they do, why do so many things happen that don't make sense.

My latest example is this: I have a listing under contract. The buyer did their inspections and presented an amendment to the contract. My sellers countered back.

The counter included agreeing to one repair, giving the buyer a $500 repair escrow, and leaving the $1200 fridge that is barely 2 years old.

When I presented the fridge, I reminded the agent to let the buyers know that if they feel they don't have a need for the fridge, they could always sell it on Craigslist or at a garage sale and probably get a good $500-700 for it, but we were neither doing nor compensating for any other repairs on a house that had been completely updated and was a great deal. The sellers didn't want to move the fridge out of state so leaving it was no big deal.

The agent kept telling me they agreed to our counter, but were thinking about the fridge. What's there to think about? I got an email saying I would get the amendment "today". Then the next day, I was told I would get the amendment "today".

I called the mortgage person the next day and asked if he had heard from his buyers and if he knew if they were moving forward or not as that day was the last day of the option period. The mortgage guy said he was told the buyers were signing the final amendment and I would get it "today".

I finally got it on Friday. I read it to make sure everything was on there that we discussed. I get down to the special provisions section and it says "Seller to remove the fridge." Huh? Why do the buyers want the fridge removed? It's a nice fridge and they could easily get more of their "high estimate repairs" completed with the money they would get.

I called the sellers to let them know I was sending the amendment for them to sign. I told them the buyers didn't want the fridge. They were as confused as I was. The buyers basically forfeited a few hundred dollars back to my sellers, so the sellers can now sell the fridge and make back the $500 escrow they agreed to along with the small repair, and get out of there with nothing extra out of pocket.

Did the buyers' agent actually explain this to his buyers? It makes me wonder how things get lost in translation like that... Maybe I wasn't speaking English?

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Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

Seems to me, as a Buyers Broker, that the buyers probably had their own reasons for doing what they did. Makes perfect sense to me.

1. They may consider selling a used frig. a pain in the butt. I would agree.

2. The seller can now do what they wish with the used frig as long as they have it out of the buyers' way prior to settlement.

3. Sometimes folks time is more important than a few hundred dollars. Keeping a transaction simple has it's merits.

4. Seems to me that trying to force a buyer to take a frig that they neither want nor need and don't want to bother with is risking the contract.

Unless the listing agent is present during all conversation between the buyer and their agent, one need not assume that the buyers agent is doing something wrong.

If the seller agreed to remove the frig, just make sure it's done.

Nov 18, 2008 02:19 AM

Donna Harris

Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX

Realtor,Mediator,Ombudsman,Property Tax Arbitrator

Debbie, Good to know I'm not the only one.

Focus, Did I say they didn't know what they were doing? I asked if they explained things in terms that the buyers understand.

Eileen, But did their agent point out the possibilities? He hasn't acknowledged that to me. He just said they don't want it. I wasn't going to volunteer money from the seller though the sellers and I already discussed that and they were willing to accept a cash value counter.

Ihor, You might be right. Plus, I am a tough negotiator.

Chad, Actually, I had already prepared my sellers with a cash value counter. They had a friend who wanted to buy it, but I thought we could use it as leverage. It worked and the friend still gets to buy it.

Lenn, I never said something was wrong. I just asked a simple question on whether or not agents exlpain things to their clients because sometimes their decisions don't make sense.

Nov 18, 2008 02:42 AM

Bob Anderson

Remax Jazz Inc. - Oshawa, ON

For some people the pita factor means a lot more than the money. I know a builder that will demolish a house, barn, and workshop next year to make room for the new developement. Trying to move them is more trouble than it's worth. Guess the Buyers felt the same.

Your Seller gets to pocket another $500. Sounds like a happy ending to me.

Nov 18, 2008 02:43 AM

Harrison K. Long

HomeSmart, Evergreen Realty - Irvine, CA

REALTOR , GRI, Broker associate, Attorney

Donna ... thanks for sharing your experience here about whether negotiations were explained by the buyer agent. It doesn't look like the buyers' agent actually read the contract and proposed counter. Best wishes. Harrison

Nov 18, 2008 03:32 AM

Chad Baird

Re/Max Spirit - Dayton, OH

So as I suspected, you not only sold real estate, you also brokered a deal for a fridge. The buyer is happy, the seller is happy. So let me ask you this if I may.

Had you of been representing the buyer as opposed to the seller. Knowing that no party really wants to deal with an extra fridge, would you have pushed the seller for more escrow monies for additional repairs?

Nov 18, 2008 03:49 AM

Susan Manning

Realty Executives - Temecula, CA

It doesn't sound like the buyers agent was communicating witht the buyers. The buyers could have been leary of messing with the frig too. Sometimes people are very low tech and want to be hassle free when it comes to stuff like that. I hope your sellers sold the frig and got at least $500!!

Nov 18, 2008 03:49 AM

Donna Harris

Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX

Realtor,Mediator,Ombudsman,Property Tax Arbitrator

Bob, Yes, it'll be a happy ending once it closes.

Harrison, Yeah, some agents thing they just need to hit the forward button, and not actually discuss paperwork they're sending.

Chad, I'm a Jack of all trades! And Yes, if I had the buyer, I would have asked for some of the value. I presented the fridge as something that the buyer would probably sell for $500-700 if they didn't want it. If I was told that, and my buyers didn't want the fridge, I would have countered back saying the sellers can go ahead and sell it for the $500-700 and we'll take the lower estimated value, to put a total of $1000 in escrow for the repairs. As I mentioned, I had already prepared my sellers for a response like that, so we were ready for it, and it was just icing on the cake when they didn't do that. Just like if I had the buyers and we really only need $500 for repairs, we ask for $800-1000 in order to get the $500 as I prepare my buyers for a counter somewhere in the middle. Better negotiators will usually counter higher than the middle in order to not give the other party room to counter back without being petty.

Susan, They'll be in town this weekend to sell it to their friend. Not sure of the amount, but anything over free is good.

Nov 18, 2008 04:25 AM

Adam Anderson

Northwood Realty - Pleasant Hills, PA

Donna,

Communication is the key here! In my experience not all Realtors are great listeners. A lot of agents in my area have these big egos and want to have the last word. I had this happen in the past and sometimes you'll just be dealing with that agent who needs to think that they "won" on the deal. I pass this info along to my sellers/buyers before hand that a lot of negotiations have to do with psychology - and letting the other party have the last word lets them think that they have won. I might have given them the choice to either keep the fridge or we will remove it. At that point, the buyer would have had the last word and they "win" in a sense (in their mind) without us giving up anything extra.

Good post!

Nov 18, 2008 04:53 AM

Chad Baird

Re/Max Spirit - Dayton, OH

We'll assume that I'm the buyers agent for this.

We have been negotiating the deal. You (the listing agent) has now told me that your client will not pay for any more repairs and we can have the fridge. My buyers do not want the fridge, have no use for the fridge, and I (as their agent) i'm not getting rid of a fridge.

I (as the buyers agent) am not privy to your clients thinking, much like you and your clients are not privy to my clients thinking. All I know is my client wants this house, they do not want a fridge. What we do not know is that your client is willing to sell the fridge and give us the proceeds, but you as the listing agent has already told us this is the final offer. My buyer and I decide we pushed the seller enough, and accept.

You can't say that the buyers agent was not doing his job though. The agent put the deal together. I would have done the same, and I would have not have offered to find a buyer for the fridge. I would have asked in the contract that it be removed also. I'm not in the business of selling appliances or relocating them as well. Im in the business if brokering Real Estate deals.

Nov 18, 2008 05:13 AM

Donna Harris

Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX

Realtor,Mediator,Ombudsman,Property Tax Arbitrator

Adam, You're very right. You can always sense in a deal who needs to have the last word.

Chad, Keep in mind that every counter should be presented as "the final". I never once said in my counter this is "the final". That should always be a given. Even when people present to me that their offer or counter is a final, that means nothing. Kinda like when people put a date in a contract for a response. In Texas, this is considered practicing law, and dates are not "allowed" to be put in the contract like that, but many still do it. Even with the date, if you go past the date, it's always up to the other party to accept, reject, or counter. But for the record, I do see your point.

Nov 18, 2008 05:23 AM

Benjamin Clark

Homebuyer Representation, Inc. - Salt Lake City, UT

Buyer's Agent - Certified Negotiation Expert

Donna - I can't speak for the other agent or their client but I can tell you we recently negotiated an old deep freeze out of a transaction during the repair negotiations. The Seller thought it was a great freezer and surely there must be some value for the Buyer.

Sure, the Buyer could have sold it on craigslist, but they didn't want to worry about hauling it up the stairs or having someone else haul it out after closing. Our contract reads that any property damage from moving out is to be repaired at the Seller's expense.

The $300 the Buyer might have made from keeping and selling the appliance was just not worth the hassle to this first time homebuying couple. (There was also an old tub in the yard we had the Seller remove. It was being used as some sort of a planter or garden fixture that my Buyers also did not want to have to worry about hauling off or trying to "sell".)

We, of course, got everything in writing the same day. So I can't help you out there either.

Nov 18, 2008 05:45 AM

Scott Guay

Berkshire Hathaway Home Services PenFed Realty - Ocean Pines, MD

Associate Broker. Ocean City and Ocean Pines MD

You never know what will push someones botton. As long as your sellers are OK with it and the deal stays together it does not matter in the end.

Nov 18, 2008 06:17 AM

Donna Harris

Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX

Realtor,Mediator,Ombudsman,Property Tax Arbitrator

Benjamin, That's great you wrote about any damage being caused. And same day results? I always try for that, but usually only happens when I have both sides.

Scott, Yep, we're alll good, just confused, but all good.

Nov 18, 2008 08:17 AM

Loreena and Michael Yeo

3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. - Prosper, TX

Real Estate Agents

Yup, I do see your point. Again, some people have no patience for negotiation. I've met some clients like that. It's not worth it to them.

Nov 18, 2008 02:10 PM

Donna Harris

Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX

Realtor,Mediator,Ombudsman,Property Tax Arbitrator

Loreena, True.

Nov 18, 2008 11:40 PM

Patricia Beck

RE/MAX Properties, Inc., ABR, GRI, SRES - Colorado Springs, CO

Colorado Springs Realty

Sounds like the agent may have not communicated this with his/her buyers unless the buyers didn't want to be stuck with a fridge to sell. People can be so quirky about things sometimes.

Nov 19, 2008 12:58 AM

Donna Harris

Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX

Realtor,Mediator,Ombudsman,Property Tax Arbitrator

Patricia, Quirky is a nice word for many people.

Nov 19, 2008 07:13 AM

Sara Davalos

United Real Estate Miami - Miami, FL

Real Estate Consultant in Miami

All good comments, but I agree with Ihor.

Nov 19, 2008 09:41 AM

Heather Lord

The Boulevard Company - Charleston, SC

HeatherLord.com

I can think of people who just couldn't be bothered with the steps involved to sell the refrigerator... You are moving - perhaps relocating - starting a new job ... and may know absolutely nothing about Craigslist - etc. etc. I know for most of us it seems incredulous but then diversity is one of the reasons I love this industry...

Nov 21, 2008 02:01 AM

Buffy Creekmore

731 Village Realtors - Lexington, TN

Realtor / Broker in Lexington Tennessee

It doesn't surprise me, as the saying goes it takes all kinds to make the world go around and in 3.5 years of being a realtor I have seen people do the craziest things! Better for your seller thats what counts.

Nov 22, 2008 03:04 AM

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This blog is to help educate Buyers, Sellers and even other Realtors across the country. Each market is different and the way Real Estate is done is different. Austin Real Estate is completely different than Dallas, California and Florida and everywhere else in between. Some times there will be other things besides real estate as I like to rant and rave as much as the next!! Come back often!

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