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????

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate General Information
Location:
Massachusetts Norfolk County Franklin Top Listing Real Estate Office Re/max Executive Realty
Groups:
Active Rain Newbies
BananaTude
POSITIVE ATTITUDE for the Weary Soul
Real Estate Rookie
RE/MAX Active Rain Bloggers
Tags:
buyer agents

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the umbrella to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the cloud to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
260,401
Jeanne Dufort
Coldwell Banker Lake Country - Madison, GA
Madison and Lake Oconee GA

It is our job, but I also believe that you should bring value to earn your paycheck.  I carry a fair amount of listings - and I always offer buyers the option to have representation.  We discuss the difference between a customer and a client, and then they decide what services they really need.  I rarely encounter the situation you describe - when the buyer has everything they need detailed, and then turning to another agent to "write it up".  Thats not actually buyers's agency, IMHO.  If we get to the point where a buyer is satisfied, they normally just sign the customer acknowledge and we proceed.

January 11, 2012 07:13 PM #1
Rainmaker
1,937,450
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"New Franklin MA Homes"

Jeanne....if they want to use a buyers agent, they can....and in many situations, we are asked by the buyers to show the property....they discuss their situation and show interest....then they call an agent and write the offer....we don't have to pay that agent, but we do.... and not all buyers conduct themselves like that....some don't want to use a buyers agent....we tell them verbally and in writing that we are agents for the seller.... they don't care...they want the property....

January 11, 2012 07:19 PM #2
Rainmaker
680,325
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Barbara - You obviously are doing things the right way.  There are two big projects in my area that are like night and day.  One is doing it all the way it should be done and the other is a NIGHTMARE for agents.  The agent threw me under a bus and stole a client by not answering me in a timely way.  Long story, but I don't go NEAR that place without a buyer agency agreement. (Usually my policy is to take people out once without one and then have them sign up.)  In this case, that lost me the buyer.  The fact is that you ARE serving your seller by doing things correctly.  Will buyers agents be happy to go to a development where they can't trust the agents?  I don't think so. 

January 11, 2012 08:28 PM #3
Rainmaker
194,105
Francine Viola
Coldwell Banker Evergreen Olympic Realty - Olympia, WA
Realtor, In Tune with your Real Estate Needs

In the state of Washington, we have The Law of Real Estate Agency pamphlet that we are required to give to all buyers and sellers.  This pamphlet discusses what a listing agent, buyer's agent and a dual agent is as well as defines their respective duties and loyalties.  The section about being a dual agent gets buyers' attention, and they realize it might be a good idea to have their own agent.  But you are absolutely right - many buyers do not see any need to have their own agent, and speak freely about their personal and financial situations.  They are so excited about the home, they could care less who is writing up their offer, and this is especially true with new construction.

January 11, 2012 09:39 PM #4
Ambassador
1,295,423
Praful Thakkar
Keller Williams Realty - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

It's always great to ask the buyer if they are represented by a buyer's agent. Though in many case, I show them my listing making it very clear that I represent the seller and not the buyer. If they still insist that they want to work with me, I have a one property agency disclosure signed with them. If I take pain to show the property, I do not want anyone show up to write an offer. By signing the disclosure, the buyer has accepted that they do not want the representation of any agent!

January 11, 2012 10:51 PM #5
Ambassador
1,164,601
Tammie White
Benchmark Realty, LLC (615) 495-0752 or www.TWRealtyGroup.net - Franklin, TN
TW Realty Group, Franklin TN, South of Nashville

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 #6
Rainmaker
1,937,450
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"New Franklin MA Homes"

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 #7
Rainmaker
1,937,450
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"New Franklin MA Homes"

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 #8
Rainmaker
338,628
Karen Feltman
Cedar Rapids/Iowa City, IA Skogman Realty - Cedar Rapids, IA
Relocation Specialist

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 #9
Rainmaker
1,937,450
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"New Franklin MA Homes"

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

January 12, 2012 12:12 PM #10
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the pants to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
1,937,450

Barbara Todaro

"New Franklin MA Homes"
Ask Barbara Todaro a question...
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the chair to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information