Let's call a Real-a-tor, they'll do anything!

By
Real Estate Broker/Owner with Tutas Towne Realty, Inc and Garden Views Realty, LLC BK607690

 I had a call earlier today, from a Buyer, that had seen one of my listings yesterday with another REALTOR®. She called to let me know that she really liked the house and she wanted to make an offer. Now folks, I like offers, so this sounded pretty good to me. So like the good little Broker that I am I suggested she call her REALTOR® and have them write it up and send it over to me. Well, she didn't want to do this. She wanted me to write it up because she figured she would "get a better deal" with the Seller not having to pay another REALTOR® and all.

Of course, I explained to her that this isn't the way it works. She didn't seem to think anything of the fact that she had a REALTOR® take her out on a Sunday to show her houses. I'm just glad it wasn't me. I value my Sundays and rarely if ever work and if it was with a Buyer, I would certainly be sure they had signed a Buyer's Broker Agreement first. Would you?

****CLICK ON THE PICTURE TO VIEW A REAL ESTATE SHOW

Anyway, she couldn't resist, so she gave me a verbal offer over the phone "just to feel the seller out". It was pitiful. 30% below list price with the Seller paying all of her closing costs. She did ask me if I thought she was wasting her time so I politely told her she was. Fortunately, I am expecting two other real offers today. "But Broker Bryant, you have to present all offers to the Seller". Well, yes and no. My listing agreement states that I will not present verbal offers. My Sellers have agreed to this at time of listing. Also, I spoke to my Seller on Friday and we are on the same page with pricing. My Seller is a busy man and would prefer I don't waste his time with nonsense. I have no problem with that.

I did however, reiterate with the Buyer, that she should contact her REALTOR®, if she is serious about making an offer. She didn't seem too excited about that. So we'll see.

After I hung up with her, I called her REALTOR®, to give her a heads up. She didn't seem very surprised. The Buyer had called her yesterday morning wanting to look at houses and I guess she was so excited to have a "lead" she just jumped in her car and met her to show her houses. Would you do that?

I can assure you that I wouldn't. It just seems like a waste of valuable time to drop everything and show houses without first doing some home work. I'd much rather be working on my tan. Maybe this is why folks don't respect our time. Maybe this is why so many deals fall through. Maybe this is why so many REALTORS® fail. As professionals, we need to do our due diligence. At a minimum:

  • Make first contact at your office.
  • Make sure they are qualified.
  • Verify funds.
  • Find out their reasons for purchasing.
  • Find out if they have been looking at homes with another agent.
  • Have them sign a showing agreement. Then they can sign a BBA after you have built a relationship.

Or, you can just wait for your Buyer to call me and try to cut you out of the deal. Your choice. Me? Well, I'll just keep working with Sellers. What say you?

All content copyright © 2007 - Broker Bryant Real Estate Ramblings

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Comments (71)

Ana Connell
G & C Properties - Burbank, CA
Burbank Real Estate Agent
Great post BB, excellent suggestions and great comments by everyone!
May 07, 2007 05:40 PM
Randy L. Prothero
eXp Realty - Mililani, HI
Hawaii REALTOR, (808) 384-5645
What a bad combination.  I lousy client and an inexperienced real estate agent.
May 07, 2007 06:14 PM
Maggie Dokic | Miami, FL | 888.883.8509 X101
eXp Realty LLC - Miami, FL
GREEN, CDPE, SFR, Pinecrest | Palmetto Bay |
Broker Bryant strikes again.  Well done!  I hope the other agent learned something.  Not everyone would have done the right thing like you did.
May 07, 2007 10:09 PM
Cynthia Sloop
Community Association Manager - Indianapolis, IN
Another important point and great post.  How's the tan going by the way?  You always sound to busy with your sellers to really work on that tan?!?!?   Thanks for the post.
May 07, 2007 11:25 PM
Karen Rice
Joseph J. O'Brien REALTOR Inc. - Greentown, PA
Northeast PA & Lake Wallenpaupack Home Sales

I HAVE NOT FINISHED THE BLOG YET, I can't get past the cool slide show and awesome music.  I'm expecting John Wayne to pop up and say "Well are ya gonna make an offer or ain't ya?  Yer burnin daylight ya know.."

 LOL!  I love it!

siggy

May 07, 2007 11:57 PM
Karen Rice
Joseph J. O'Brien REALTOR Inc. - Greentown, PA
Northeast PA & Lake Wallenpaupack Home Sales

Okay, now I read the blog and I admit, that I would probably have been like that agent, though I think I would have at least asked for a signed buyers agency agreement.  For some reason REALTORS seem afraid or even ashamed to put them before their client.

 

May 08, 2007 12:03 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Well good morning everyone. I guess this is a good topic. Great comments! I have to work this morning so won't be able to answer every one individually BUT according to my poll results 76% don't care how I respond. So thank you for that:)

A few have asked about a showing agreement. A showing agreement is basically just a one page agreement that relates to specific properties. It's almost like registering the buyer except it's between the REALTOR(R) and the buyer instead of the seller. It's a good first step to getting your potential buyer to make a commitment to you. I think I'll do an additional post on this topic on Thursday. It will be about the reasoning behind having a buyer sign these things. There's more to it than just locking them in. It's part of an overall sales technique and laying the ground work for future decisions. So stay tuned......

May 08, 2007 12:26 AM
Joe Dallorso
Ocala, FL
Ocala Real Estate

Hello Bryant

My broker doesn't think verbal offers are legitimate offers & do not need to be presented. She thinks they are a technique to find a sellers best price & to participate in such is violating your agreement not to disclose the sellers information, further upon accepting a written offer the offer becomes a contract unlike a verbal offer, which is therefore not an offer at all.

May 08, 2007 02:24 AM
Dick & Sandy Beals
Wilmington Real Estate 4U Wilmington, NC - Wilmington, NC

Hi Bryant,

I have been using a comeback line I heard at a seminar, when the low offer or verbal comes in,  counter it with an equally absurd counter-offer.  It goes something like this......."Thank-you for your offer, the seller would like to counter your offer of $329K ( on a $459,900 listing) at $856K".  Wait for response, say, "don't get mad at me, they wanted to counter at $1.2 million, I got them down over $400K".   Agents realize they need to come back with a sensible offer and actually work on getting the transaction together.  Buyers...who cares, NEXT

Dick Beals 

May 08, 2007 03:03 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

I just got to the comment about "showing agreements".  This is what I use when showing a FSBO.  It is permission to show the house on a date, time.  I also provide them with an agency notice that I represent the buyer. 

Since I'm not looking for listings, the sellers are usually very cooperative.  I don't include any selling fee or co-op because if my buyer is interested in the house, I handle that through the offer. 

Not a problem.  I like to sell FSBOs.

 

May 08, 2007 06:18 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Joe I agree with your Broker as long as the Sellers are in agreement. Remember we work for them so it's their decision not ours. Put it in the listing agreement and you are covered.

I love that startegy Dick. Len Harley mentioned she does that as well. Really catches them off guard.

Lenn, Thanks for expanding on that Lenn. In our area we have that same agreement. It is the best way to handle a FSBO if you are not interested in the listing. 

May 08, 2007 08:49 AM
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate
yes, yes, yes. Great post ! I don't allow my TEAM to show houses without a pre-approval...a waste of our time.
May 08, 2007 10:22 AM
Anonymous
jason

Arogant... I am sure you have lots of business, but most of your buyers and sellers just one home! On the one hand I hear whining about why we need real estate agents to navigate the complexities of real estate...then you use the fine print not to give your seller an offer. It is there home, and do you really think they go line by line on the agreement. THEY DONT know how offers come in/// verbal/ written.

Another classic example of how the profession screws the seller or buyer. Oh yeah 'its complex' we need you, but in the end we are going to use the fine print or any other tricks for two things only...

 

Our commision and making sure we support the 'union code'

 If I asked 100 sellers, I bet 90% would want to hear all offers

May 08, 2007 11:20 AM
#64
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time
Jason, I speak with my sellers just about every day. We are on the same page and he has instructed me to not present verbal offers unless they are within a certain range. Personally I don't belong to any union and have been helping sellers for years with selling their properties. Why wouldn't I want to present an offer? I only get paid if a transaction is successful. Is there some advantage for me to not present an offer? I think I am missing your train of thought. I don't work with buyers so double siding the deal is not the issue. Could it be you have had a bad experience with a REALTOR in the past? Hey I can relate to that I deal with them every day:) Thanks for reading and commenting.
May 08, 2007 11:39 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Good post, Bryant. It makes sense provided the seller is in agreement. Why waste time on a verbal, and without knowing that the buyer is even qualified to purchase it is just a waste of time. And it suggests a significant lack of serious intent.

Love your response, Lenn.

Jeff 

May 08, 2007 12:32 PM
Leigh Brown
Leigh Brown & Associates, RE/MAX Executive - Charlotte, NC
CEO, Dream Maker - Charlotte, NC

Sorry to skip comments, my eyes are getting tired.  So did you have an attorney make up your language about not presenting verbal crap-ahem 'offers'-on the listing agreement?  I want to copy you on that one.

May 08, 2007 01:17 PM
Robert McArtor
RE/MAX Components - Fallston Maryland - Bel Air, MD
Top Listing Agent for Baltimore and Harford County
Jason, looking forward to you joining Activerain, creating a profile and Blogging. I would love to comment on your wisdom of "how this profession screws the buyer and seller".
May 08, 2007 03:03 PM
Chris Griffith
Downing-Frye Realty, Bonita Springs, FL - Bonita Springs, FL
Bonita Springs Listing Agent
Don't you just love bougainvillea  in any Florida photo.  It just makes it look so dern purty.
May 08, 2007 11:58 PM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Leigh, It's actually a standard clause in our Florida listing agreement. How great is that?

Chris, Me too. The ones in this picture are a little out of control but they are too purdy to cut.

Robert, All of my posts are public so I get quite a few folks that come in with REALTOR(R) bashing. But that's OK, they're entitled to their opinion. I just wish they would come back and have an intelligent debate and defend their position instead of just spouting off words with no substance.

Jeff, A serious buyer will always take the time to present a written offer. I agree verbals are mostly a waste of time and effort.

May 09, 2007 12:58 AM
Scott Daniels Florida Real Estate 2.0. Agents Earn 100% Commission.
Florida List For Less Realty, Inc. Broker/Owner. - Cooper City, FL

BB,

I find that 95% of people who make verbal offers aren`t very serious. They`re in lala land...

May 11, 2007 12:14 AM

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