The phrase "My Agent is Busy Can You Show Me Some Homes?" is becoming more and more common since we started using IDX. Instant access to view a sampling of homes for sale on-line has brought out the home buyers, and the tire kickers in droves. Many of the callers even if they do not come out and say they have an agent right away, when qualifying them it just kind of slips out! "I already have an agent!" When you ask them to have their agent show them, they will give you excuses like, "My agent is very important, she doesn't have the time!" or "Out of town on vacation!" "Working their full time job!" and many more lame answers. Of course our answer is "NO!" Very selfish of them isn't it! No matter what you explain to them the ususal reply is that "So are you going to show me homes or not?"
Any agent worth their salt that is working real estate will have an agent fill in for them if they cannot be available for their clients. True professionals do not go on vacation or go out of the country for a month at a clip and leave their clients in the lurch! True professional agents do not pawn off their clients on to other agents to do the dirty work for them, and then write up the contract! hose actions are not those of a professional agents that are responsible adults. If I do show a person that has another agent, we sign a buyers agency agreement for the particular properties. Most of the time, they are not under any signed agency, but will not commit to you.
The real reason this is happening more and more often is the buyer rebate programs that are being used by real estate agents that are sleazy! Their agreement with their buyers is based upon the number of homes they show the client. If they show them more than 5 homes, they only get back $500 as opposed to lets say 1%.
So what do they do? They tell their buyers to call up other full time agents, have them show them homes. Pick the other agents brain, and when they identify the home, call the original agent. They will write up the contract. They are told not to return the call of the agent that has done all the foot work! Sleazy isn't it! It is taking place today! It isn't just wrong, it's raw evil!
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It certainly is taking place here as well..very unethical and very outrageous! Helping out is one thing, being taken advantage is another. I can usually tell when I am being taken advantage of....not gonna happen.
Hi Jim,
Thanks for sharing, and soooo true. It's seems like I hear about a new one every week or two, a new rebate plan or whatever? If someone wants to work for $1 and give all the commission back that's just fine with me...but don't expect me to do their work.
It's happening all around us. As REALTORS I feel it's incumbent upon us to ask the appropriate qualifying questions right up front. At that point we can make an informed decision whether or not to work with that individual.
Stephanie They never identify the agent. They are very loyal because of the dollars!
Michele It is beyond my comprehension how people can be so self centered! Gives new meaning to the phrase "It's all about me!"
Lunda - Do a real estate exorcism! Qualify them first, then have them sign buyers agency. It is like sprinkling holy water on unclean spirits! If they go wild, they have an agent!
It is a risky move....especially because alot of agents think they have a buyers loyalty (verbally) and can very well end up pawning them off to another agent willing to put them into Buyers Agency.
Jim,
I think this will be an on going issue and is only going to get worse as more buyers agents are cutting commissions.
Michele If you do not have a signed agency, there is no loyalty.
Dan I agree, unless we all do our jobs and do not put someone in the car we have not qualified!
I had my first one of those the other day, on a very hot property that had just gone on the market. The caller said their agent was out of town and they wanted to see the house because they didn't want to miss it. I was going to be in the area anyway, so agreed to show it. Guy showed up with his wife, we looked at the property. As we were waiting for the wife to park her car, I commented, "So your agent's out of town?" He actually blushed and said, "Not exactly." We toured the home, which they liked, and they went on their way.
Later that afternoon I was at the home again meeting with the seller picking up some papers. Who should show up but the gentleman in question, with the woman who was presumably his agent - he wanted to check something out before writing up an offer. That was somewhat embarrrassing - but not for me!
Yes, I was polite, no, I didn't say a word except to introduce myself to the agent and greet him. But somebody got busted and it was clear they were aware of it.
Jim, you say if they have an agent you write up a buyer's rep agreement for that particular property. Here in Texas, if a buyer has a buyer's rep agreement with an agent for a particular area, they'd have to get out of the previous one before writing up a new one for any property in the area. Not so in Georgia?
Tricia 99.99% do not have a signed buyers agency agreement. If they refuse to sign we don't show the home! They go crazy, but we are not door openers.
Amber Evil is being kind to them! It is as low as you can get!
This level on service makes me ill. This happens all too often in my market, and I started to wonder about who we should be blaming. It doesn't make sense to blame the buyer. They have no code of ethics to follow, and they're just trying to save a buck. The sleazy Realtor seems to have found a scheme that is working for him/her, so they probably see it as being "next-gen realty," or "cutting edge business model." Their argument is usually...."It's a changing market, and we all have to adapt."
I can't believe that agents are so lazy or feel that they are so special that they don't have to take their clients on showings. It really disgusts me that there are agents that do this.
It saddens me to know that people out there are using these agents. If they just did a little research they could have a professional Realtor instead.
Wow...are there really agents doing this? I always ask if they are working with another agent....some have lied and said no....the ones that say yes of course I tell them no and they need to work with their own agent and if their agent is too busy for them....well, then what is the process for a transaction going to look like when they finally find that "dream home"?
It happens everywhere the buyer that spends 3 weekends with you and then, nothing. No answer to your phone calls, emails and you never see them again. They either bought with another agent or a FSBO.
Smart response Eric!
Richard they are or they are doing this part time at others expense. I know this is more widespread than we are acknowledging here. Since most of our business is Internet, we seem to be on the front lines of this. It is ABUSIVE! Wow!
Wow, haven't seen that here yet Jim. If it's my listing they're calling on, and I knnow the other agent, I'll show the home for them.
If they are asking about other homes, firdst question is if they have an aent and have singned a buyers contract. If they have...have a nice day. If they have not, they are informed they will be required to sign one with me. If they won't...have a nice day.
Yep. I get those call all the time. I just get their agent's name, look up the name of their broker and give that name and phone number to the caller.
I assure the caller that the broker has arrangements to cover for the agent.
The Devil makes me do it.
Lenn the Devil did make them do it!
Thesa Everyday of the week!
I think that would be an appropriate response.
As for me, I don't show homes to people if they are not my clients. It's too dangerous to do that.
Hi All,
I have been taught that if I show it, I get to sell it. Yes, I ask everyone if they have an agent and if they say that they do, I try to get more information or a name out of them. I also make sure to document everyone that I show a home to, including time and date.
If its at an open house, the rules are slightly different, but I still make sure that one of the first things out of my mouth after hello and welcome are "do you have an agent?" If they say yes, they do, I ask where their agent is and why they aren't with them like they should be. That's usually when I hear the my agent is a family member/friend/busy/ill/on vacation/a Venutian excuse.
I can't do much at an open house, especially because it is usually not my listing. But I do explain that if I show you a home at any other time, you become my client unless you have signed a contract with someone else. If you have signed a contract with someone else, you need to have them show you the home period. If the agent asks me to show the home to a client they have under contract, then I ask them to sign a referral fee agreement with me before I will agree to do their work. No agreement, no show. Fair is fair.
Take care all, help lots of people and have a wonderful Earth Day!
Tisza
Great post, Jim. I've not had any issues personally but know people who have, and the options for buyers keep increasing and more are looking for deals any way they can. I like Lenn's respone - great idea. The problem is that some buyers are not honest and say they are NOT working with anyone else when specifically asked.
Jeff
Hi Jim -
the title caught my eye because I have heard this line too. I haven't considered the reason being because of a rebate program. I have several theories on "why" people do this and one of them being that the "looker" doesn't think about how "we" get paid. We are the suppliers of information so why not be the suppliers of time and showings?
No matter what the reason, it is getting old! Good points, true problem and good discussion.
I would be so pissed of this happens.... But I would not take it out on the customer.. I would say I would gladly show them the home because my duty's as an agent toward my sellers. 1) Then I would send a bill to the other agent for 50.00 showing fee then 100.00 per hour for my time... I would send it to her/him a few times until she called me and I would be an ass to her/him. Also arises the Procuring casuse.. 2) I would type up a doc. on Word that I would have the buyers sign that says I am the procuring casuse for 123 elm street if they decide to buy and I am entitled to a 30% referral from such transaction because their agent pawned them off on me (did not satify their part of their duties)if the transaction was to take place.. Please email me your thoughts on this..
Mike
mdvanacore@yahoo.com
PS: i know this won't fly but it will make the buyers and their agent pissed at one another and the buyers might want to get out of that relationship with the agent that blows..
I get alot of calls from people moving into the area from an area about 50 miles away that want me to "just" show them the house because their agent doesn't want to drive over here. I politely decline and tell them to have the agent call me.
We belong to that area's MLS, but those agents keys don't work on our lockboxes unless they spend the money to have dual keys (like most of us do in this area do) and they don't want to join. It is a constant battle between doing our duty to the seller of trying to get their home sold and dealing with showing for another agent!
Hi Jim
An interesting solution in my MLS-
Agents can post notice in the listing that unless the agent actually shows the property, that agent will only receive a 20% Referral Fee at closing.
Seems pretty fair to me. :)
Jim,
As always, you bring a timely & provacative subject to the front edge of our awareness! This will become a larger problem until 1 or 2 events take place... If the various MLS boards would allow "tiered" brokerage fees, based on whether the LA was used to show the home, this would help A LOT. In effect, a lower fee is paid to the SA when the LA was "used" in this fashion... The other change is completely in our control - the Buyer Broker Agreement! This document exists for a reason! Use it! We have no problem "listing" a seller, so why the hesitation to "list" a buyer??? Then, when we get these wishy washy buyers, we would know that they are either un-signed buyers, or they were working with agents afraid to use the BBA. The solution is to raise the level of professionalism. Asking buyers to be "loyal" will only work when they have a reason to - and then take the next step and sign the BBA!
Nothing new here. Oh it is been happening for a while. The great thing about Active Rain is we can get the word or to other agents. It is such a waste of time. Conversing with the client, taking down info, making appointments, confirming appointments, driving over to the home, spending gas money, showing the home, sharing our experience and insights perhaps going through the seller's property disclosure at the property, giving opinions of value and worth, suggestions for improving the property etc.
No the problem with all of this..we cannot bi-locate! We cannot be in two places at the same time. We have pushed away other business for absolutely no valid reason.
Some thoughts:
Buyer's Agency Contract.
I have them and I'm going to USE THEM!
I'd rather slit my wrists than take out a buyer BECAUSE THEIR AGENT IS BUSY.
TOO DAMN BAD! NO HOUSE FOR YOU!
KEEP CALLING DOWN THE LIST UNTIL YOU FIND A CHUMP WHO WILL WASTE THEIR TIME ON YOU!
Ok ::::::maintaining composure:::::::::::
Also, on the same vein...I've determined after the last few calls from my relocation bureau that from now on....any PRE-DECISION TRIP buyers MUST sign a buyers agency contract with me....FOR ONE FULL YEAR. Otherwise, especially in this case, I am truly a FREE TOUR GUIDE. That could be a whole 'nother post!
No, Jim, I love you! Thank you for bringing up the subject! LOL! Gee, I should just shut those unloyal scoundrels entirely and tell them "That dog dont' hunt no more!"
Of course, that's all fun talk amongst ourselves. I am going to let our RELO office know that any "shoppers" are due to an obligatory buyer's agreement meeting and contract signing. Or let me go about my regularly scheduled activities!
George what if it is not your listing as in IDX? If it is my own listing, I gladly show it, because I will sell it. My obligation is to the seller first.
I guess there is more to it than just having your buyer sign an agreement, there is also the obligation side of the agreement. A good lawyer or court would tell an agent no commission is due if there is absolutely no work done!
Hello Jim,
I understand your feelings on this topic. I try to do my best to sell my own listings. In this market I am not being as hard as I used to about not showing others peoples clients. I just let them know what I can do for them as their agent.
Yep...happened to me the other day on one of my listings. The "buyer" called me at 7:30am then again at 8:05am with the sense of urgency that would make a "green" agent run stop signs to go show the property! In my qualification questions I learnt that his friend "the REALTOR" will write up the contract and represent him. I advised him that I cannot show the house since he is a represented buyer, but I invited him to stop by at the OPEN HOUSE along with his REALTOR the following week if that would be convenient for his buddy or since the house is on lockbox, the agent can certainly show it.
After trying every persuasive technique in the book he finally gave up and said he'll talk to his agent - I have yet to hear from him.
Cheers,
Uzi Husain
Arizona Realtor, serving Goodyear & The Phoenix metropolitan area
Are agents so hungry that they don't care if they are violationg the NAR Codes of Ethics? I worked a contract last month where I showed the buyers one of my listings. When the offer came in, even the seller knew I had shown it, not the other agent. Fortunately, they made a terribly low offer and the seller said for them to take a hike! I'm watching the other agent carefully to make sure he doesn't try it with me again. Oh, by the way - I called him out on it. He couldn't describe the home to me.
Uzi That is exactly how it happens! I get about 5 allls before 9 MA starting at 7 AM ...like it is a life or death call!
Kay A friend of mine won an arbitration under a grievance with local Realtor board, even on the commission. The other agent never even saw the home. The offending agent refused to pay, so they revoked his REALTOR status. It still means nothing to them!
Jim, yes...I get calls like this quite often. I refuse to even have a conversation with the buyers and ask them to contact their agent.
I didn't know about a rebate program... HMMMMM So many flakes out there.
Great post!
Interesting reading, both the post and the comments. I will probably reread this. We go about it a little differently in Idabel, OK., on showing each other's properties. If it's my listing and someone calls to see, we show it to them, no problem. (Oklahoma does not have agency law for real estate....Brokerage relationships are defined as either transactional or single-party). If I show another broker's listing, I call to set it up and tell them the name of the person that I am wanting to show the property to. They check to see if they have already talked to this person. If they have, i do not show the property. The buyer has to go back to the listing office that they had already talked to. If that office has not talked to them, I show the property and if my buyer buys, we co-broker.
Some offices say that they co-broker but when you try to reach them on a deal, forget it. It's just talk.
If a "buyer" asked me to show them the home because their "agent" was too busy...
Sure. I bill out my time at $250 per hour with a four hour minimum. Your check needs to be made out to our brokerage.
Yeah, I wish. I usually just tell them I am too busy working with MY clients!
I have actually sold four homes to buyers who, after I showed them a property, (or more specifically, they came through one of my my open houses) informed me that they already "had" an agent (at one time)...
In talking to them further, it always came down to this.....they met another agent at an open house, or called into their floor duty... he/she showed them a few other houses... they never heard from him/her again after a few weeks...other than the occasional Christmas card...
I then asked them if they had a signed "Exclusive Buyer's Agency Agreement" in place?
And when they answered "No"... I ask them if they would rather work with the other agent...
every time the answer is "No", not particularly!...
that's end of story...
My client, my sale...
No guilt on my part at all...
Gary Correct meet at office never at home! Thansk for sharing, buyers really are liars!
Paula we have an obligation that unqualified buyers never set foot in a sllers home, and even a bigger obligatrion that unqualified buyers never set foot in our cars!
Irena Way too many flakes, but clever!
Jeff you have one of the best responses. Sometimes we are too much in a rush to grill a potential buyer over the phone. In the old days the trick was to get them into the office and make them your client with salesmanship! I also like that rebates are illegal in Mississippi.
Judi thanks for the insights!
Diane they are growing in popularity, but I expect them to implode in this market. It doesn't pay the bills!
Thanks George
Debbie I LOVE IT!!! "Very valid point to comply with brokerage laws "Your check needs to be made out to our brokerage."
Paul over the years we sold many homes to buyers...many do not actually have agents, they say they do so you will not hound them! The object is to win them over with market knowledge and superior service. as I mentioned before most will not have signed the buyers agency. Soemtimes it is listinging to your heart after you do the best job yu can by qualifying them. Over the years if I could estimate the amount of deals we converted, it would equal a very big sum!
Chris! Great comment! I have a very funny story to share...it remain anonymous... An Agent I know was showing homes all day in the middle of nowhere, coffee, lunch, and pit stops. The buyer slipped and mentioned they had an agent. The agent pulled over to the side of the road, and the buyer advised the agent they will buy with the other agent. The agent then told them that is all I need to know. GET OUT OF THE CAR IN THE MIDDLE OF NOWHERE! They asked what were they going to do, they agent advised them they should of thought of that before they planned a whole day around lies and deception and the showing agents expense! "NOW GET OUT!" "he broker backed the agent!
Lots of great advice here! I think I like the idea of billing the buyer. From now on, I think I will tell these callers that I will show them the house, but I need to be paid for my time. $500 ought to do it. PER HOUSE!
Seriously - why is it so hard to educate people on how realtors get paid? Are we keeping this secret on purpose?
After reading through all the responses I don't know how to make just one comment. My best (worst) story is shame on me I went out with a buyer. It was back in December I was slow, so I showed them my listing and 4 other homes. The buyers ignored me for about a week but I had 2 showings on my listing. It turns out that the buyers "forgot" about the realtor they had used in the past and decided to go back to the other realtor. Oh well, lessons learned.
Mary Ann If you try to sell yourself to someone that only wants to sss a home, they get annoyed. This is just an example... It would be easier to say oh the home by where the new highway is going in? You have to have some knowledge that they realize the other agent is not working for them, or that they really need someone that has all the answers.
Ethan we all have been tricked at one time or anothter. As they say in New York Take a numbah! LOL!
I am a loan officer, so I don't pretend to have a full understanding on what Realtors go through. My questions is, why would you show homes to someone who has not signed buyer's agency with you??
Alternate news on the City of Redmond from a Redmond citizen. You are invited.....
Spring has sprung and I hope we are getting beyond the heavy tree pollen days and into some steady sunshine!
I wanted to remind you about my Redmond Neighborhood Blog (it's free!) and update you on some recent topics, as follows:
1. "The Avondale Crest "death trap".
2. "Election Notes (and resources)" candidate websites, "follow the money", etc.
3. "Council Leadership needs to blame less and be more responsible"
4. Avondale bioswale - water quality treatment issues
5. "Design flaws from cramming in certain subdivisions.
6. "My Tent City Diary"
7. "Editorial - Councilmember Richard Cole runs again"
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Thanks Bob!
Sally! ((((((THANKS!))))))
Jim,
Hooray for you for insisting on a signed buyer agency agreement! Who do these people think we are, chopped liver?
Wow Jim!
Great post. I must admit that I have yet to use the buyer's agreement with any client after years of being in this industry. I guess my level of comfort isn't there to ask them to commit. What are some of your "scripts" if you will...to get the buyer(s) to sign one?
Great post jim. I have never heard of the rebate but agree that if they don't sign they don't walk over the threshold. Our Office hammers into us that it is very unprofessional to leave town with out someone too watch your business. I know some that will compensate an agent to show property if they are too busy.
If someome told me they wanted to see a house but their agent was too busy I would tell them fine but first I need to talk to that agent first and square up some paper work. I would then send the agent a referral form for 30% to 40% of the commistion on that client if they fill it all out and return it then we can go look at property.
I doubt many will sign.
Jim - this is a great post, and so sadly needed. I can only wish that 'those' kinds of agents will actually read this post and pay heed to it. But they won't, will they? I've had a few calls from buyers like this over the years, and I just clearly and emphatically tell them I'm happy to show my listing when their agent contacts me for an appointment on whatever that property was that they called on. And as Lenn Harley, and others have said, a good honest agent will have someone else covering their business for them if they're away. We deal with enough other stuff in this business that we don't need other unscrupulous agents and sometimes sleazy buyers piling more on us like these kinds of situations.
Hooray for you for writing this post!
Ann
Stefan They do no thave any regard for us, except for their own needs!
Tracy I don't use scripts. Remember I'm from New York, I prefer to take hostages. I use the questions above that I posted!
Keith They won't sign, but you'll get them off the phone, and you will not waste a day.
Kaushik Thanks
David Thanks, You are right times is money.
Years ago I learned that asking if they were WORKING with an agent wasn't always getting me the correct answer. Many buyers haven't yet made the committment to the agent so in their minds they're not working with that agent. It's a semantics issue! So I changed my wording to "have you VIEWED any other homes? (sorts out the new builds & open houses). If the answer is 'yes', then the next question is "which agent showed you those homes?" Now, this always gets me the info I'm wanting.
I've had the 'my agent is busy' calls as well. I just tell them that usually agents make arrangements for someone to handle their business and they should call that person. If they then say the agent is just gone for the day, then I tell them to wait, since I'm sure their agent will want to view the home first before writing a contract and they should really view it with the agent. (we don't have the rebaters).
I am going to start doing what was said in the last comment. I LOVE that!!!
You can also tell them that any house you show them that they buy - at least around here - entitles you to a commission that is due to you because you are the "procuring cause" for that transaction. If there is no buyer agency agreement or they tell you the "stand in" agent there is none, their agent - and eventually you, they buyer, will be paying it.
I am not too busy for my clients, but I am too busy to work for free.
:)
Eva
Elaine You are a true professional! Great approach!
Eva never work for free! By the way I used to live in PG County in Hilcrest Heights years ago by the Iverson Mall! Then I moved to LaPlata in Charles County! I miss the DC area!
Jim,
Another regular occurrence here in FL.
If the agent is good enough to admit that they can't show it for laziness reasons then I will open the door if the client brings their agents card and I will honor it.
I had one where the customer called me direct and said they were not working with another agent , then I made sure they understood that they will be working with me that particular property.
The buyer then tried to get me to give back my other side of the commission and even went as far s to show up at the sellers house and tried to manipulate her into believing I was trying to kill the deal.
I ended up sending him a contract with the address and my info on it and assured him
I was willing to submit an offer.
He said he wanted to think about it and then had another agent make an appointment for him to come back with them..I knew immediately who it was and instructed the other Realtor that we will close on this property if it goes through but that after the deal closed we would seeing each other at FREC.
The agent said they only figured that I would be willing to give my commission back to save the buyer money on the offer.
By the way..the buyer was a mortgage broker and so I said if he was doing his own mortgage that he should take the difference he was looking for from his pocket not mine.
I know this was a little off subject but it was an interesting situation that started out with a lazy Realtor who could have just showed and they would have collected on his side.
Jim,
I don't have to tell you that this is a great post. The number of responses will speak to it. This is a problem in the industry. In my area, I used to get this occasionally when I started 5 years ago, now it is becoming common practice. Giving rebates or whatever, I don't really care about, because if they choose to give away their money, then that is their business. What kills me is that agents - knowing how we all make a living in this business - instructing their "clients" to engage in unethical behavior because they are too lazy to do the showings.
Do they not know that by doing this, they (we) are training these clients and telling them it is ok to screw us? By providing this training, they are ensuring they will be at the other end of the screw job somewhere down the line. The industry as a whole is victimized. They are only kidding themselves if they believe this will not happen to themselves. Remember the GOLDEN RULE my unethical friends: treat others as you would like to be treated. Shame on you screwing your colleagues!
Steve, thank you for a great response! First of all to these commission hungry agents and brokers...these buyers are not clients, they are a cash ticket to real estate agents and companies that operate in this manor. The real losers are the consumers that get absolutley no representation, and the other agents that were used. We cannot be un ethical and at the same time say we are representing our client. As they say down south, "That pig don't fly!" A quote below sums it up best!
Mahatma Gandhi's Seven Deadly Sins:
Jim,
Thanks for responding to my comment. It never ceases to amaze me that people think they can break fundamental laws of business, sales, or whatever and still succeed. I used to know a Realtor that didn't like listings. I asked her, "doesn't all the big real estate gurus say you should list?" and she replies, "Yeah, I know I should but I don't like it and I'm going to." After that I basically asked if she believed that she would succeed while going against a principal even she believed to be true. She said yes!
Our market is the same with lending. It is getting more and more competitive right now because we are in a cleansing cycle. The refi boom is over and the market is shrinking so fly-by-night brokers are out there doing loans for free almost.
There are a few agents here in Lexington, KY that have the "Rebate Program"....but I didn't know about this side of the deal. My opinion is...if the Realtor was a professional, he/she would educate the Buyers on being loyal. We use Buyer Representation Agmt's., and especially never leave them alone if I were to ever go on vacation. I don't want my clients out there working with other realtors...it is my DUTY to service them completely, and if that means showing them many many houses, then so be it.
That just shows the lack of dedication and professionalism that can happen in this business.....these people are the one's that give us a bad rep.
Sorry I seem a little hostile, I haven't had lunch yet today....little hungry!
Ross AR is a great resource for agents / brokers and the real estate industry!
Michelle agents without skill have to give it away! That is all they have. That is OK because I have loads of those agents that have left those companies, and tell me how it works! They cannot make any money by giving money back! The cannot drive a person around and show them 80 homes. It will not even pay for the tank of gas, never mind wear and tear on their cars! The buyers lose BIG time, and the agents starve to death!
Jim, great post. We have a lot of agents who give rebates to their buyers. When I get a call from someone telling me their agent is out of town or too busy to show them properties -- first question I ask is "Have you signed a Buyer's Rep Agreement" with them. They don't usually know if they have or not -- but I also know that the other agent has actually "bought" the caller's loyalty by promising them a 1% rebate after closing. I tell them to wait until their agent is available to show them the property because of Realtor Code of Ethics doesn't allow us to "steal" another Realtor's clients. They usually get angry and tell me it's my job to show them the property -- hahaha -- it's not my job if I'm not gonna get paid!!!
2 ways, you can use the buyer's agency as an idle threat (softly) to see if they are committed to the other agent or to find out if there is another agent...if so...why show at all? It does not make sense unless it is your listing! Or if they insist about seeing hte home, you've protected and documented that you are the procuring reason if it does sell, and are entitled to a commission. If they don't want to sign at this point, and you are not the listing agent, DO NOT SHOW THE HOME!
Example:
If someone walks into a doctors office, and says I am not going to use your services, but I want to walk throught your entire facility just to satisfy my own curiosity....would someone else allow this behavior? The doctor would probably call the police! But in real estate we do this every day! We are not professionals!
Wow - you seem to have hit a nerve here with all the responses. This has happened to me, too. As an ethical Realtor(R) I feel compelled to respect Buyer Agency relationships of other agents. I would think a reputable agent going on vacation would have someone else cover his or her business.
When a buyer calls me, my first question is, are you already working with a real estate agent? If they say yes, but my agent isn't available, my second question would be, can't someone else in your agent's office set up a showing for you?
This is a huge pet peeve of mine! Agents who go away, and don't arrange for someone to cover for them -- and this goes for both, the buyers they are representing, as well as their listings! Summer is coming, and I can only guess at the amount of calls that will be coming in once again with requests for showings because their agent is "at the shore". What irks me even more, though, is when a listing agent is away and has not arranged for coverage -- and I have an offer to submit and am told that they will be back in two days or so and will present it then. So, we're at risk of having another offer coming in while the agent is sunning themselves.
I haven't really seen any effects of buyer rebates here - I belive I've seen them offered but don't really think it has taken off.
Brian That is how things are supposed to be in the real world. We've already this morning alone, have received several calls where they have an agent already. Then they get mad at us for not doing that agents work! I men who is getting paid here.
Bill I remember those days well! Maybe because I work the Internet...
Jeanne any agent worth their salt has someone cover for them. However there are a lot of part time real estate agents that work other full time jobs, and we still will not get paid to do work for them! It is very unprofessional! I wrote a bog about part timers killing our industry! The rebate thing is the most unprofessional of all real estate practices.
I agree!
I am a home buyer and I am actually working with a rebate broker. He actually took me to 15 houses that I fonud. The only thing he asked me was to make sure we see the houses that I am really interested in. My broker actually took the time to explain the pros and cons of each house and was a lot more knowlegeable than the a typical broker. There are bad apples in every bunch and for you to come out and say all rebate brokers are sleazy is wrong. I am saving over $3000 in the purchase of my home. $3000 which would have ended up in your pocket to buy a new cadilac or to have a bigger website to bash rebate brokers and take money out of pockets of buyers such as me. I am happy with my rebate broker and will use them next time I am planning to buy a house. If somebody wants their hand held every step of the way, then they can use a full house broker. But if I am going to look through the internet and find houses, then I don't see why I should be paying more for a brokers services. My broker is very ethical and we never resorted to the tactics that you describe in your article. I think you need to face the reality of things, customers are becoming more savvy and with the internet, we will probably not need brokers pretty soon and maybe all of us can afford to live in nice houses and not just the agents.
Thank you
Hossein
Well, the issue here is with the rebate brokers in question who do NOT take their clients to see the homes but want other agents to do that legwork for them. Those, I think you'll agree, Hossein, are not providing the service that you say that your agent is, and, from what is being said here, that kind are not rare by any means.
Also, finding the house is just the beginning - and the most fun part, really - of the value of an agent. If an agent is going to slack on that, they're even more likely to slack on the hard part that comes after the house is found, it seems to me.
Congratulations on finding an agent who meets your needs. By the way, I drive a 1997 Dodge Ram 2500 Pickup - a farm truck - not a Cadillac or even a Toyota. Paid cash for it long before I became an agent - couldn't do that since I became one. (Thinking about the agents I know personally and none of them drives a luxury car, come to think of it.) Live in a 1930's farm house out in the country because (among other reasons), it's more affordable than living in town, never mind living in town and paying board for my horses.
So while you complain about agents saying that all rebate brokers are bad, aren't you doing exactly the same thing with your comments regarding where the commission will go? (Which, by the way, isn't into our pockets entirely - we get a split with our broker, and a lot of our part of the split goes to pay for marketing, gasoline to drive people around, professional fees, required (and not required but necessary to keep up) continuing education costs, health insurance, and a whole host of other expenses that anyone in business for themselves has to pay in order to stay in business. Never mind taxes. The broker's share goes to provide the building we do business out of, some of the advertising, office equipment, office help, insurance, and on and on and on.
Hossein The difference between full service adn rebate service is that an experienced agent will tell you which are the best homes to meet your needs and qualify them accordingly. Supposed you did get $3000 doilars back but bought a home that was priced way over market by $25,000 or the home has issues such as polybutalene plumbing, aluminum wiring, EIFS, synthetic stucco, LP siding...etc. did you receive advice there? Did you recieve a market analysis of the home you purchased to make sure you were not overpaying? Did you negotiate teh sales price, closing costs, use a home inspector that was code certified CABO? It is my expereince that you may save on commission, but you lost big time elsewhere. That is your choice...I prefer real advice as opposed to pick 15 homes you really want to see. By the way I also do not drive fancy cars, but I do sleep at night with a clear conscience that I found the best deal for my clients, and negotiated an incredible price, and full home inspection. Peopel buy homes everyday that they think are great, and perhaps they are. But the real value of what you purchased you will never know until you try to resell the home. That is when a lot of people all of a sudden realize they did not get the deal they thought they had.
Tricia thanks for your comments.
Some great discussion about the practices we would all like to see avoided.
But I don't see much discussion that as a Listing Agent I have a fiduciary responsibility to the Seller to do everything I can to facilitate the sell of their home, including possibly showing the property to a prospective buyer who may be working with another agent.
Someone asked in the discussion if have a Buyer Broker Agreement would "prove" Procuring Cause. NO! A Buyer Broker Agreement may mean a Buyer will have to come out of pocket to pay you (if you take them to court to enforce the Agreement), but it has nothing what-so-ever to do with Procuring Cause.
Just last week I chaired a Procuring Cause case at our board. Wow, a group of 6 Realtors was split down the middle as to which agent had been the Procuring Cause and was entitled to the cooperative commission. In this case the Listing Agent was awarded the commission. And yes, the Selling Agent did have a Buyer Broker Agreement.
Wonder if the Selling Agent explained to the Buyer that they might be on the hook for the percentage they agreed to pay the Buyer's Agent since the Buyer's Agent didn't get the commission split. That would certainly wipe out any potential rebate huh?
Hossein, it's clear you did not take the time to read Jim's post. I suggest you take a minute to read it an understand what his gripe is about. I don't have a problem with rebate brokers and I would even rebate myself, but what's described by Jim is a sleazy practice.
Having said that, before you give your soul to your rebate broker how do you know you got the best deal? Just because you're getting $3k back at closing doesn't mean you did better than a non-rebater. What if Jim found you a house at full commission but the final price is $5k less than Mr.Discount found you? Who did the better job then? The point is: you owe it to yourself to look at the full picture.
- Tchaka
Thanks to all of you for helping me figure out some ways to stop this. It is happening alot here in the Upstate of South Carolina!
Sheri Sanders
Tchaka Thank you. How does anyone know when they got the best possible deal?
Sheri you are more than Welcome!
iIt sure takes away from the professionalism.
I had an interesting situation. I met a young man at an open house, who told me he was just starting to look and didn't think he was really a buyer at the time. I really stressed to him what an opportune time it was to buy and I did get his e-mail address and forwarded him three properties in areas I thought he might like. The next day he called and asked me to show him two of the properties. He liked one very much and has his significant other with him on the second showing.
He then asked me to do a market analysis for him on his present home and I suggested he get pre-approved if he was interested in this property. So off he went to my loan officer and was pre-approved.
THEN he tells me another agent had shown him another property and offered to pay him $1,000 of the buyer commission. He asked if I would consider doing that on this property. I told him I would have to think about it and let him know. We talked again and I told him I reluctantly would do so......(however I did tell him that never in my 35 years+ of selling had I a buyer asking me to pay back part of my commission.......so it gets even better. Then he said, that he wanted the listing on his home at 5% and another $1,000 paid to him from the listing end and he went on to tell me exactly what my dollars earned would be with both transactions. THEN, he proceeds to tell me that the other
agent had offered to do this and on this specific property also. I told I was not willing to "go there"
and in my opinion it was very unprofessional and unethical to do so. However, the bottom line
is MONEY and an agent that is either very hungry or just as you say "sleazy". So the rest of the story is the agent probably never even showed the home, but wrote the sale and got the listing. It was a hard pill to take that this is what is happening in our market place and is not against the license law or Code of Ethics. The more difficult the market and the hungrier the agents, we will be probably be seeing a lot of this going on much to my chagrin.
Great article...well written and good observation. These are the lazy agents too! I have an article about discount agents.......very similar theme.
Keep up the good work and anyone outside of AZ....register for referrals on our website...as long as you arn't an "evil" agent!
www.boldtalent.com