Buyer Agency – The Good, The Bad and the UGLY
January 24th, 2008 Categories: Alexandria Dirt, Arlington Dirt, Falls Church Dirt, First Time Buyers Club, Home Buying, McLean Dirt, Reston Dirt
Today’s topic is sometimes a sticky one – sometimes misunderstood – sometimes abused – but most of the time, it works out wonderfully for all parties involved.
Today I came across some information that really surprised me. I received a referral from another real estate agent this past winter and worked with
this particular client for 2 1/2 months to help them find their dream home under a buyer agency representation agreement. During that time, we wrote one contract that didn’t go through due to the presence of a better offer. In my estimation, we looked at somewhere between 50 and 60 homes together. That’s A LOT!!! At the end of those months together, they seemed exhausted and frustrated and decided to take a break – they told me they were renewing their lease for another 6 months and would resume their search thereafter. They thanked me for my diligence, my patience with their schedule and my hard work to date, promising to get in touch when it was time to resume the search.
I found out today that 11 days after they told me this, they SETTLED on another property in a neighborhood we’d been looking in. When I contacted them today to ask them what happened, they were surprised to hear that I felt that compensation was due, not to mention that the buyer agency agreement that they signed said it was due. Imagine – they felt that they found the property and consummated the deal without my assistance so therefore I was not due any compensation. What about the 2 months that we worked together? 2 or sometimes 3 days/week – 5 and 6 houses at a time? Missing family events, running out on short notice, quickly previewing new listings and actively chasing down possibilities that weren’t even on the market in their “dream” neighborhood? Hmmmmmm
Obviously feelings are involved, at least on my part – I worked hard, put their needs first, helped educate them, both on the housing market and on lending options, helped them explore different neighborhoods, communities, home styles, etc… my feelings are hurt that all of this effort was not rewarded with compensation. Their feeling is that it’s the nature of the business and I should just deal with it and move on.
Signing a buyer agency agreement is putting in place a contract hiring a qualified, competent real estate agent to work for you. That agent is putting in the time with an agreement that at the end, compensation will be earned. What other business can you think of where someone works for free on the hopes that it all works out? This is very much of a relationship built on trust. The beauty of buyer agency is that the SELLER PAYS THE COMMISSION!!! This is the way I put food on my table for my family – it’s not something I do recreationally for the pleasure of serving others. Don’t get me wrong, for the most part I enjoy each and every one of my clients and we have built long lasting, solid relationships because it’s a mutually 
rewarding and respectful relationship. But it’s how I earn a living.
I’d love to work with you – but please respect me and my time. I will give tirelessly in the pursuit of the perfect place for you to purchase – but I look for mutual commitment. Like I said in the beginning of this post, 99% of the time, buyer agency is a beautiful thing!
Happy Thursday
Jennifer
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Will they be following through on their contractual obligation?
Unfortunately, Regular Reader, in this case they will not. At one point it’s an issue amongst brokerages – once someone goes through with a FSBO it must go through the court system. The contract is clearly on my side – I also believe ethics are on my side, but they felt differently.
I would encourage anyone entering into a buyer agency agreement to take that agreement seriously. That buyer agent is your #1 ally in the transaction and one that can save you money, protect your interests, etc… And it’s FREE! Feel free to call me to discuss further and I’d be delighted to be YOUR buyer agent!
Nice post on an issue that comes up a lot but is not discussed much.
I am not sure if it is based the overall public perception of real estate agents or if this is just how a lot of people act, but wasting a person’s time (especially if that is how they make a living) is simply not acceptable. Maybe as real estate agents are viewed more as professionals than overpaid taxi drivers, this will start to change.
I have been burned several times by buyers & sellers. Unfortunately, the time and efforts spent going after the party who damaged you might not be worth it.
Good luck with it.
Jennifer -
Boy, do I feel for you. One of the first things I did after becoming a realtor was to get liscensed as a ABR because I think that kind of representation is so important for buyers. I haven’t gotten burned yet but your experience is definitely a good reminder of what can happen when clients don’t fully understand their obligations.