Sign Here That You Are Honest...

By
Real Estate Broker/Owner with Daytona Condo Realty, 386-405-4408

No, I am not writing it to express my deepest disbelief in Buyer Broker Agreements. There were too many spears broken over it. I guess there is no right and wrong here. Some States require them as I heard, so the whole point there is moot…

I read E.J.”Mike” Carlier’s post  Why should I sign a buyer's broker agreement? Well written post, gives customers some clarification…

But the reasoning made me speechless. Basically, Mike made it clear that unless there is a signed BBA, he can instead of writing an offer, as asked by the customer, turn and buy for his own use.

“For example, you ask a neutral agent to show you a home.  He agrees, shows the home, a great home offered at a great price.  You tell him you're thinking about making an offer.  However, he buys the home for his own investment purposes.  That would not be allowed if you had previously engaged the agent as your buyer representative.” 

Really? I never heard this happening before. We follow a simple rule that if I showed or even mentioned something to my client in the conversation or e-mail and they showed a tiny bit of interest, they have the right to buy it and this right is over any of my rights.

It is quite often that I say to my customers after showing a unit, that if they are not interested, I might have another party. Usually, these are hot properties, and I would set the time for my customer to tell me if they are interested or not.

But under no circumstances would I buy from under my customer. No way.

For me Mike is very wrong. He is wrong because it is not BBA that protects customers/clients. It is how we, agents, act/operate. There is no Agreement in the world that makes you or me an honest man, and presenting it this way to a potential buyer is a huge stretch.

Look at it from the Buyer’s perspective.  If I am told that if I do not sign this agreement, then the agent can and will screw me… do you think I would ever sign it? It is bullying me, plain and simple, and I am not going to accept bullying… even in its PC-est form.

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Rainer
131,018
Gloria Commiso
Keller Williams - Hermosa Beach, CA
Hermosa Beach
Hi excellent feedback I guess it depends on how the bba is written? it's becoming a sellers market I think a buyer would like a committed agent but your write it's not about what we say or sign it's who we are that ultimately bind are clients to us. demonstrate your value proposition and you may not need to force anyone to sign a bba
May 13, 2012 04:12 PM #1
Rainmaker
564,835
Than Maynard
Coldwell Banker Heart of Oklahoma - Purcell, OK
Broker - Licensed to List & Sell - 405-990-8862

I must agree. I work with several investors and they ALWAYS have first dibs at a property I show them. I did actually buy one 2 years ago that I showed to 2 investors, but both passed on it and told me to have at it. (I think they were far smarter than me, btw.)

May 13, 2012 05:23 PM #2
Rainmaker
578,664
DeeDee Riley
Lyon Real Estate - El Dorado Hills CA - El Dorado Hills, CA
Realtor - El Dorado Hills & the Surrounding Areas

Hi Jon,

Different perspective on the BBA.  We learned this week in a legal update that basically it committs the buyer to paying us commission even if they buy from another agent, ie the listing agent, in the event we aren't paid by them. 

Great post!

May 13, 2012 05:57 PM #3
Rainmaker
516,785
Jill Sackler
Charles Rutenberg Realty Inc. "Said and Done!" - Merrick, NY
Long Island's South Shore Real Estate Agent

If you believe in using BBA (or are made to) there are all sorts of great reasons to do it but this example is a new one on me. I've never heard it before but I suppose it could happen. I agree with you though that it makes the agent look bad and look like we're out to screw our customers. How much worse can we look?

May 13, 2012 06:10 PM #4
Rainmaker
558,742
Mark Loewenberg
Keller Williams of the Palm Beaches - Palm Beach Gardens, FL
PA 561-214-0370

what a great point as another method of educating buyers on why this is important to them!

May 13, 2012 06:42 PM #5
Ambassador
1,332,367
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Selling Daytona paradise for heavenly good prices

Mark - what point your are talking about? I am saying that this is horse$hit, you are saying that this is important to them, adn at the same time sounds like you agree with me...

I am confused

May 13, 2012 08:09 PM #6
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Selling Daytona paradise for heavenly good prices

Gloria - I think buyers start with simply trying to look at the properties, and for me it is the time that allows me to demonstrate that I bring value to the table, which they did not see before. It is an opportunity to show them how much more I know which they don't and how this knowledge is important for their successful purchase

May 13, 2012 08:11 PM #7
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Selling Daytona paradise for heavenly good prices

Than - I do the same, and I am sure any decent agent would do the same. I am sure that Mike would do the same, and is using it to affect the buyers.

May 13, 2012 10:47 PM #8
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Selling Daytona paradise for heavenly good prices

DeeDee - true. the whole point is that BBA has a lot for the agent, but not much if anything for the customer. But this is not how it is presented in the post

May 13, 2012 10:48 PM #9
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Selling Daytona paradise for heavenly good prices

Jill - it just plan bad. I can't imagine coming to a buyer and telling him that he better sign the agreement with me, or I can compete with him

Ouch

May 13, 2012 10:49 PM #10
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Jon Zolsky, Daytona Beach, FL

Selling Daytona paradise for heavenly good prices
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