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Beware the seller...

By
Real Estate Agent with RE/MAX Signature Properties

who won't allow you to have representation!  As a buyer in North Carolina, you have the right to real estate representation during the buying and/or building processes.

I have a wonderful set of clients who are looking to buy.  I found a nice home that meets their needs to a "tee."  I know it is perfect because I interviewed for the listing.  The house is right for them.  I received a call from the sellers telling me that they were not going to list the home.  They had decided to go FSBO.  My first thought was, "Great!!!"  My second thought was how perfect the home still is for my buyers, so I called to schedule a showing and make sure the co-broke was not a problem.  They said they would co-broke but my commission would be added to the price they are asking.  Fine, it is a llittle high when you add the commission above the listed price but I talked to my buyers and they WANT my representation so it was all good.  

Then I received another call from the sellers; they do not want agents to show the home.  My buyers are happy to add the co-broke fees to the list price but the sellers do not want to work with any Realtors.  

My question would be, what are they trying to hide?  Buyer representation is a right in NC.  As a buyer and as an agent, I would urge caution in proceeding in a transaction where a seller tells you they do not want you to be represented.  I, personally, know that this seller has plenty of "professional" advice from a builder in their family. 

I have also seen several builders lately, who are offering programs and incentives to urge buyers to not have representation.   Buyer representation costs have always been built into the prices of homes in our area.  The builders, generally, do not have dual pricing (one price with commission and one price without).  Why would anyone want to encourage a buyer to "fly blind" through what can be a difficult process.

Buyer representation offers a level playing field in the realm of real estate.  The buying and building processes aren't always difficult, however, issues can and do crop up on a fairly regular basis.  As with any other field, you work through the issues as quickly and conveniently as possible to move on.  It is in any buyer's best interest to have a professional working on their behalf, someone who knows what to look for and how to handle to handle the transaction through to close.  My job as a buyer agent just starts when we get to contract.  The days between contract and close are when my job becomes crucial.  That is where I earn my comoensation.

Mana Tulberg
805 County Real Estate - Camarillo, CA
Real Estate Agent - Camarillo CA
Virginia- tell your buyers to stay away from that house. Something is wrong and they are trying to take advantage of your buyers. If the buyer is paying your commission then I don't see why they would have a problem with you representing your buyers. 
May 08, 2007 03:29 AM
Mark Mangione
Rector Hayden Realtors - Lexington, KY
Sounds to me that the builders have a strong chip on their shoulders in NC. Times are a little hard and builders are feeling some pressure. I personally hate dealing with some of our builders here in KY especially if they have any impact on other people trying to list their house.
May 08, 2007 03:32 AM
George Tallabas
RE/MAX Advantage - Nampa, ID
Idaho Real Estate
Virginia...I'm sorry for you that you are seeing that kind of attitude in sellers and sellers as builders.   I feel  anyone buying anyting of major value appreciates and wants representation.  If it were me I would work hard to find your buyer another property they really liked.  I would not give a seller or builder with that kind of attitutude anyomore of my time.  If your buyers absolutely want that home can they pay you a buyers broker fee?  God luck my friend.
May 08, 2007 03:50 AM
Kelley Eling
Fathom Realty Group - Sonoma, CA
Realtor Extraordinaire
Why don't you just get a separate Buyer/Broker Agreement where the Buyer pays you to represent them separate from the Seller?  The Seller would not be getting the additional monies, and you would be representing your Buyers, at your Buyer's cost.  Similar as it would be with an attorney.
May 08, 2007 04:43 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Without their own agent, those poor buyers are buying a pig in a poke.  It's infuriating when a FSBO expects a buyer with an agent to pay more than a buyer out there flying without a parachute. 

I can't believe that the buyers would go forward with that property.  Too bad you even knew about it.  Those sellers need to sit on that house for about 8 months and things may change. 

Let's fact it.  Some folks just do not like, appreciate or respect what we do.  Let that house sit.

 

May 08, 2007 05:21 AM
Larry Estabrooks
Independent Real Estate Agent - Moncton, NB
100% representation means NEVER DUAL AGENCY !

Virginia, this is a great consumer post.
And you may wish to add :

Beware the Seller who won't allow a potential buyer to

  • Bring in an appraiser 
  • Bring in a property inspector
  • Bring in a pest control inspector 
  • Bring in a private well tester (if applicable)
  • Bring in a private sewage sytem expert (if applicable)

All professionals with special skills, just like REALTORS.

Any other professionals consumers rely upon for a property purchase?

May 08, 2007 07:05 AM
Andrea West
Hagood Homes - Wilmington, NC
The SMART builders are still willing to compensate buyer's agents in Wilmington, NC.  You're right, it is built into their budget (or should be).  I can't count the number of times I (as a seller's on-site agent) have had buyers ask me if they will get a better deal if they don't have representation.  Obviously they learned that somewhere.  Subsequently, as a seller's agent, I don't want the responsibility for your client, and I would rather communicate through the buyer's agent in most cases (follow-up) My company does it right by compensating me the same regardless if a buyer's agent is involved!
May 08, 2007 07:42 AM
Toronto's 2 Hounds Design: Decorating + Staging
2 Hounds Design + Home Staging - Toronto, ON

Virginia, what a situation! If I was the buyer (your client) I'd be on the phone myself with the sellers telling them it is not their business if I have representation or not, that it is infact my right. If they are going to refuse my right, what are they hiding?

I can't wait to hear what happens!

Keep us updated.

May 08, 2007 08:04 AM
Virginia Halter
RE/MAX Signature Properties - Harrisburg, NC
ABR, CDPE, CRS, GREEN, SFR, SRES

My buyers already said they would like to move on.  I am interested with how this turns out for the FSBO as well.  I will keep an update on things as I can find out. 

The sellers basically said they wouldn't allow me ot show the home (because I am a Realtor).  I haven't run into this before at all. 

I suppose I could get a seperate agreement written up to represent my buyers without scheduling the showing, just have them schedule it themselves.   Hmmm....  good idea I guess.  This still makes me nervous.

May 08, 2007 08:44 AM
Nancy Siau
The Lachicotte Company An Exclusive Affiliate of Christie's - Pawleys Island, SC
Selling Coastal SC

Virginia, It will be interesting to see how this plays out.  I am willing to bet if the seller thinks they are going to loose the sale and your buyer walks away you will be hearing from the seller again!  Especially since  they "just decided to go FSBO", after talking to agents and getting all the info they needed.  

Keep us up to date, interesting post!

 

May 08, 2007 09:06 AM
Joe Gomez
Realty Executives of Treasure Valley - Eagle, ID

Sounds like something's wrong with this listing and the sellers are hiding something ; Buyer Representation is paramount in this or any scenario , like my now client that purchased a property on an Owner Carry , contacts me 2 years afterwards to find out that the seller cut off the irrigation supply line and they signed a contract with no water supply for 3 acres !  Always be represented even if the comission is payed on top of the purchase price .

May 08, 2007 09:53 AM
Anonymous
jason

Good for them. The real estate market is kept so cloudy by NAR and others...its a shame! It reminds me of union negotiations! I hope the down turn provokes some backlash against a market that is so closed, coludes on price and otherwise obstructs the market from working efficiently. My experience is 80% of all agents would screw their mother for a commision. Why won't MLS give realitor.com access to its listings? Its all the same...we put up with this crap when the market boomed! Time to clean up this out-dated system and make the professionala work for a living. Too many under-educated morons in the biz who add no value. I have bought and sold 7 homes without an agent and all it ever did was add to my bottom line.

 

YES there is a real place for agents! NO artificially price fixing commisions and keeping public records obscure (great lobbying) just means buyers and sellers lose!

Real estate agents are the same as divorce attorneys!

May 08, 2007 10:41 AM
#22
Kay Van Kampen
RE/MAX Broker, RE/MAX - Springfield, MO
Realtor®, Springfield Mo Real Estate
I would be suspicious if the sellers didn't want a good sale and still net what they were asking.  We just sold one that wasn't on the market, with the sellers paying commission to two agents.  They were happy that a number of agents weren't showing on a daily basis.  Those people must have a good reason, or they are just plain "stupid".
May 08, 2007 12:17 PM
Virginia Halter
RE/MAX Signature Properties - Harrisburg, NC
ABR, CDPE, CRS, GREEN, SFR, SRES

Jason - I have a few "Amens" for you. 

"Too many under-educated morons in the biz who add no value."  Amen!!!!  I completely agree!  I fully believe there should be more requirements in the educating of new Realtors.  I believe that being a member of NAR should be required of every agent so there is a level ethical playing field.

"Time to clean up this out-dated system and make the professionals work for a living."  Amen again brothers and sisters!!  These "transitional markets" that much of the country is currently falling into will help clean out much of the chafe. Again, it comes back to education!  People need to understand that Real Estate is a business.  We have to run our businesses correctly to have a successful business.

I am sorry that you think 80% of agents would screw their mother for a commission.  You had to have had a pretty rough road with a Realtor to have you feel that way.  Are you also aware that over 80% of people who get their licenses never sell anything?  They get into a field thinking, "Real Estate looks like fun.  I'll give that a try."  You don't need me to tell you that isn't a good, ethical, or successful way to do business.  I, too, want those folks outta here!  They do me a disservice by ruining my field's reputation.   

May 08, 2007 12:31 PM
Sharon Simms
Coastal Properties Group International - Christie's International - Saint Petersburg, FL
St. Petersburg FL - CRS CIPS CLHMS RSPS
We're quick to say that there must be something wrong with the house - it's also possible that the sellers had a REALLY bad experience with an agent - perhaps causing them to lose the transaction anyway.
May 08, 2007 12:36 PM
Rick Beal
Coldwell Banker Residential Brokerage - Portland, ME

Some of the ideas that come out of FSBOs continue to amaze me. 

May 08, 2007 12:45 PM
Leigh Brown
Leigh Brown & Associates, RE/MAX Executive - Charlotte, NC
CEO, Dream Maker - Charlotte, NC

Hey Jason-thanks for stopping by, it's great to get a consumer viewpoint!  I'm curious as to why you compare real estate agents to divorce attorneys?  That gets to me on both sides-I work my tush off to be an honorable, ethical Realtor who believes wholeheartedly in transparency for commissions and everything else, and my aunt is a tough cookie of a divorce lawyer who constantly has to clean up the messes of the less-than-above-board attorneys out there.  A few bad apples spoil the barrel as with everything else in life, I guess.

Most of us aren't mad when a seller successfully represents themselves in a transaction-but I can't see where it's wrong for the buyer to choose to pay their own agent.  This is an educated buyer who knows what money is going where.  The seller's not paying for anything but instead wants no one in the transaction to have a license at all.  I think you're slamming the wrong agent.  Virginia has worked hard so that everyone knows who is working for whom and who is paying whom.

May 08, 2007 12:51 PM
Robert McArtor
RE/MAX Components - Fallston Maryland - Bel Air, MD
Top Listing Agent for Baltimore and Harford County

Jason, I have read a couple of your comments elsewhere on Activerain. Why not join in? Create a profile for yourself, post a few informative Blogs so we may comment on your great wisdom of not using REALTORS in Buying or Selling Real Property.

"The Bar is there for a reason Jason.....Now Rise Above It!"

May 08, 2007 02:58 PM
Christy Powers
Keller Williams Coastal Area Partners - Pooler, GA
Pooler, Savannah Real Estate Agent
Wow....that's horrible. Do they realize that they are cutting out a lot of buyers? That's just crazy!
May 08, 2007 03:01 PM
Larry Hammelman
Mel Foster Co. - Sterling, IL
Sterling, Illinois Real Estate

Virginia

Glad to hear that your buyers are thinking of moving on, it sounds like there is something wrong with this house. If your clients have agreed to pay your commission, then they are entitled to have you represent them at the showing of the property. Let us know how this turns out. Good Luck!!

May 10, 2007 04:23 AM