Buyer Agents....What's Your Definition Of Proper Representation...Writing the Offer??

By
Managing Real Estate Broker with RE/MAX Executive Realty

Listing agents, are you aware that you must offer buyers the opportunity to use a buyer’s agent? Most buyers are not educated about buyer agency and they are not aware that they SHOULD have proper representation.

How many listing agents do this properly?  My guess is that not many do.  Listing agents are obligated to ask the buyer if they would like to be represented.  That puts a damper on making a full commission, doesn’t it!!! 

There are some buyers who want us to give them a tour of our new construction; explain all of the details of the construction; make them aware of upgrades and optional extras; and then they’ll find representation.  There are some real estate agents to whom we have paid a co-broke fee, and they have never seen the property.  They wrote up the offer and tried to negotiate a deal, after we were already told by the buyer all the details of their finances.

This happens often, and we allow it to happen.  It’s our job.  We pay the buyer’s agent, but the buyer has already informed us of all the information that we need and they've shared their interest in the property.  It’s a little late, at that point, for proper representation!!!  Don’t you think, buyer’s agent????

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Topic:
Real Estate General Information
Location:
Massachusetts Norfolk County Franklin Top Listing Real Estate Office Re/max Executive Realty
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Ambassador
1,068,700
Tammie White
TW Realty Group, Franklin TN
Benchmark Realty, LLC (615) 495-0752 or www.TWRealtyGroup.net

Barbara, I always want to be present when my buyer is looking at new construction for this very reason. I advise my clients not to visit without me. However, I had a situation not too long ago where the buyer went to the on-site agent without my knowledge.

I had specifically warned him not to do this as it would cost him when it came time to negotiate. Of course, he thought all I was concerned about was my commission. That wasn't it. I wanted to get him the best price for the home.

I stopped in the new construction office one day to pick up some materials for another client, the agent informed me this particular buyer had been in 6 times within the two week period. He didn't tell me anything about these visits even though I had spoken with him multiple times on the phone.

You can guess what happened...he got taken because he had given away too much information and really wanted the home. I tried to explain that he was paying way too much in comparison to the other homes in the community. He said (right in front of the agent), that's the home I want and I'll pay what I have to. Well, he sure did. What's the point of having a buyer's agent if you're not going to use her?

January 12, 2012 01:35 AM
Rainmaker
1,822,870
Barbara Todaro
"New Franklin MA Homes"
RE/MAX Executive Realty

Tammie....I think some people don't believe the story....this happens to Lorraine all the time....she does all the work with the buyer; establishes a good rapport; and in turn gets the secrets of the world about the buyer....then the buyer finds the buyers agent and pays top dollar!!!!  this happens often with new construction.....only once to us with a resale...

January 12, 2012 05:03 AM
Rainmaker
1,822,870
Barbara Todaro
"New Franklin MA Homes"
RE/MAX Executive Realty

Praful....you're required to offer them the opportunity to have a buyers agent

Francine....we see it all with new construction, especially when the buyer gets excited...

Ruthmarie....yes, we do it properly.....the buyers don't take the cue..... our builders love it when it doesn't cost them any upgrades!!!

 

January 12, 2012 05:17 AM
Rainmaker
314,298
Karen Feltman
Relocation Specialist
Cedar Rapids/Iowa City, IA Skogman Realty

Buyers that are unrepresented definitely pay more, new construction or not. It is a shame that a buyers agent will just write an offer and never see the home. Good for you in explaining about representation. I am sure most do not. 

January 12, 2012 12:10 PM
Rainmaker
1,822,870
Barbara Todaro
"New Franklin MA Homes"
RE/MAX Executive Realty

Karen.....In MA they are required to do so....

January 12, 2012 12:12 PM
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Rainmaker
1,822,870

Barbara Todaro

"New Franklin MA Homes"
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Additional Information

The Kuney-Todaro Team is the "#1 team in Franklin's #1 office." Our expertise is in marketing new construction and resale properties. New construction is our niche and we have sold 40 subdivisions in the area of Franklin MA.