Last week I was approached by a fellow agent who asked for a
column dedicated to buyer etiquette. Let’s first look at my own
murky history as a buyer.
My first property was a condo. Located in the San Francisco bay
area, it was an apartment complex which morphed into an opportunity
for entry-level home ownership. I bought it by walking into a sales
office. I sold it a few years later the same way.
Last week I was approached by a fellow agent who asked for a column dedicated to buyer etiquette. Let’s first look at my own murky history as a buyer.
My first property was a condo. Located in the San Francisco bay area, it was an apartment complex which morphed into an opportunity for entry-level home ownership. I bought it by walking into a sales office. I sold it a few years later the same way.
My next home I found with a Realtor. But as we were looking (a process that took a few weeks) another agent I know asked if she should be looking for us. She didn’t know we were already working with an agent. I said, “Yes!” thinking, “The more, the merrier.” My husband, however, was smarter than me (I hope so, he’s Tim Foley, San Benito County Superintendent of Schools!) and told her we were already working with an agent.
Lots of people, especially those new to the market, don’t realize agents only get paid when a deal closes. They don’t get an hourly wage, a draw against future commissions, or any other stipend.
I hear lots of stories similar to this one: An agent works with a couple. They want to buy a house. The agent introduces them to a lender who assists them in getting pre-approved for a mortgage. The agent gives them a list of houses in their price range with features matching their requirements. They are given instructions to cruise past them, and decide if they would like to see one, a few, or all of them. They return breathless late in the afternoon. They drove past one, and they loved it. It was having an open house. They went in and bought it from the agent holding it open.
When the first agent expresses disappointment the couple didn’t make the offer with him, they said, “Well, we didn’t think it mattered. The agent is from your office.”
The sellers might be very fond of the original agent. They might actually prefer to work with the original agent. But they didn’t understand how the system works. That’s not their fault. But the agent who writes the offer receives the commission at completion of the transaction.
Of course, if they truly prefer to work with the first agent, they could go to the second agent or the broker of record for the company and explain the mix-up. The customer (in this case the buyer) is always right!
Let’s look at the mistakes the original agent made. First of all, the buyers should have been educated to understand how the process works, and what they can expect throughout the transaction. Second of all, the agent should have given them a handful of cards and explained that they should give one to any other agent they run into on their journeys, declaring their working relationship with the initial agent.
So, whoa, doggies! What’s a person to do? Obviously, if you’ve followed my excellent advice and created a partnership with a Realtor, you as a buyer or seller have no problem. You let it be known who your Realtor is, and other ethical agents will respect that relationship.
But if you haven’t done that (shame on you!) please pick one agent to work with as soon as possible. That doesn’t mean you can’t switch agents if that one isn’t meeting your expectations, but it does mean you don’t work with an agent for a long period of time and then run out and buy a house with someone else.
Imagine YOU are a Realtor on floor. A relatively common scenario is this: You have someone who calls on a house featured in an ad. You ask them if they are working already with an agent and they say no. You take them out to see that house and a few other properties. For the next few Saturdays, you spend a large portion of each day motoring about with these people. Finally they discover a home absolutely perfect for their needs! They are excited, but want to go home and sleep on it…just to be sure.
The next day an offer arrives for the listing agent from “your” clients. The offer is written by their mother (or sister or aunt or best friend or brother-in-law or former co-worker) who lives in San Ramon and couldn’t be bothered driving down to show them around but would love to have that commission check.
It is very demoralizing when something like that happens. Not only do you as an agent waste a lot of time you could have spent working with other clients or enjoying your family or taking care of life maintenance issues (laundry, gardening, cooking, etc.) but you end up feeling that people aren’t very nice or honest or ethical. That’s an icky feeling.
Let’s review the basic etiquette: Find an agent you trust and respect BEFORE you have need of their services. Be open and honest with your agent. Remember the agent only gets paid if the transaction closes. Commissions are not a general pool of money shared by everyone in the same office.
And be kind to your Realtor!
