DON'T CALL THE LISTING AGENT HE WORKS FOR THE SELLER!

By
Real Estate Agent with Benchmark Realty, LLC (615) 495-0752 or www.TWRealtyGroup.net TN License #315195

DON'T CALL THE LISTING AGENT HE WORKS FOR THE SELLER!

blueprintsYesterday, while out with a buyer for the tenth time in about two months, I suggested that the buyer might want to consider building a home. It seems that every time we go out, another obstacle to buying an existing house pops up. The criteria seems to be constantly changing.

He casually mentioned that he called a listing agent off a lot sign and the agent rushed over to meet him. I reminded him that we had a signed buyer's agreement and that he should have contacted me. After all, that is my job to protect his financial interests and help him find the right place.

He made it sound like it was no big deal. Just a casual conversation. I mentioned that the neighborhood he was interested in had many building restrictions so before purchasing a lot, we should meet with a builder just to make sure he could build exactly what he wants for his budget.

Then he nonchalantly says, "I offered $150,000 for a lot priced at $170,000." My heart skipped a beat. "You did that verbally right? Did you put it in writing?"

signing contract"No, the listing agent countered at $160,000 and we're not going to do that." I, once again, reminded him that the listing agent works for the seller. His job is to get the best price for the seller. My job as his buyer's agent is to get the best price for him. I told him not to have any further contact with the listing agent. He agreed.

As I was driving back to my office, I called the other agent. Of course, he didn't answer his phone and I left a voice mail just to inform him that I was working as Mr. XYZ's buyer's agent and that we would be meeting with a builder prior to making an official offer.

Within minutes, I got a call back from the listing agent. Apparently, my client had submitted a written offer. I tried to remain calm but I could feel my blood pressure going up. I said, I'm sorry my client didn't mention any such written offer.

The listing agent went on to say that they don't use a standard Tennessee Association of REALTORS® (TAR) Purchase and Sale Agreement. The listing agent just typed up the offer and had my client sign.

You see, my client is an international. He has lived in this country for years but he doesn't always understand what people are asking him to do. He is very trusting and doesn't believe anyone would take advantage of him.

The listing agent said the seller had countered but there was still no response from the buyer. Then he told me that the counter was based upon the buyer being unrepresented and that counter would be off the table if my buyer expected the seller to pay me. Good. I told him I would speak to my client and get back to him.

I called my client and arranged to meet him right away. When I arrived at his home, I asked him again if he had written an offer. He told me that he had signed a form but it didn't look anything like a TAR Purchase and Sale Agreement so it wasn't legally binding. (We had written two previous offers on TAR Contracts, that's how he knew what they looked like).

rejectI went on to explain that not all agents and sellers use the standard TAR contract and that even though it didn't look like an official document, it was a legally binding contract. Fortunately, the listing agent had sent a counter which my client had not signed. WHEW!

The buyer then apologized, he said he didn't know he was suppose to call me. I had explained this at our initial consultation but that had been two months earlier.

He didn't know that when he signed this document prepared by the listing agent that he would be legally obligated to buy the land. As a matter of fact, the counter offer prepared by the listing agent, didn't even give my client the option to reject. By signing it, he was agreeing to all the terms stipulated in the document.

I simply drew a line across the document put the word
REJECTED across each page had my client initial and date. I prepared an official TAR Counter Offer rejecting the counter and my client signed that as well. I emailed the documents to the listing agent. CRISIS AVERTED!

I spoke with several builders and we have appointments scheduled for next week to see if my client can build exactly what he wants within his budget.

moneyUpon further investigation, there are many things about this neighborhood that may prevent my client from building; such as, size and style restrictions. It's possible the buyer would have purchased a lot that he couldn't even afford to build on. If that had occurred, he would not have even had the ability to buy an existing house as his down payment would have been depleted.

This would have been a sad turn of events for this buyer who has waited many years to get into the house of his dreams.

The moral of the story...

DON'T CALL THE LISTING AGENT HE WORKS FOR THE SELLER!

Call your buyer's agent, he has your best interest in mind. He will prepare a competitive market analysis and make sure you don't overpay for a house or a lot.

If you don't have a buyer's agent, contact another agent who can help advise you or feel free to give me a call at (615) 495-0752. I would be happy to help you with the purchase of your new Franklin TN home or lot.

Posted by
************************************************************************************ 
 
Tammie White, REALTOR®
TW Realty Group
Benchmark Realty LLC
318 Seaboard Lane
Franklin TN 37067
(615) 495-0752 Direct
Email: Tammie@TWRealtyGroup.net
 
 
This posting with the content written here and photographs displayed are the intellectual property and opinions of Tammie White of Benchmark Realty LLC. Any party who uses this material without the permission of Tammie White is subject to copyright infringement and possible lawsuit.
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  1. Kathy Streib 09/15/2012 10:30 AM
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Topic:
Home Buying
Location:
Tennessee Williamson County Franklin Franklin
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Ambassador
828,202
Connie Harvey
Realtor - Nashville TN Real Estate
Pilkerton Realtors

Tammie, he has no idea how lucky he is to have you taking care of him!

September 16, 2012 12:54 PM
Ambassador
1,074,665
Tammie White
TW Realty Group, Franklin TN
Benchmark Realty, LLC (615) 495-0752 or www.TWRealtyGroup.net

Tiffany - You are absolutely right. All buyers need representation.

Lloyd - Yes or he would be under contract and possibly not even be able to build there.

Christine - Thank you.

Richard - The friend is a relative who stands to inherit. Therefore, they are letting him have more say than he should. Really complicated.

Connie - I wish he knew that.

September 16, 2012 01:20 PM
Rainer
71,505
Bas Panch
SCV Home Buyer

Hi Tammie,

Wow, close call! I feel kind of bad for your client, I think he honestly just didn't know what he was doing. Lucky you had his best interests at heart and were able to help him out of that situation. Keep up the good work as a top Franklin TN short sale agent!

September 20, 2012 07:10 PM
Rainmaker
752,154
Marte Cliff
your real estate writer
Marte Cliff Copywriting

With all that's been written about these matters, you'd think buyers would understand. But no - they don't.

September 20, 2012 08:58 PM
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1,074,665
Tammie White
TW Realty Group, Franklin TN
Benchmark Realty, LLC (615) 495-0752 or www.TWRealtyGroup.net

Bas - It was a close call and I do believe he didn't really understand.

Marte - I agree.

September 21, 2012 10:09 AM
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Tammie White

TW Realty Group, Franklin TN
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