We get calls like this all the time…
“Hi! My Realtor is busy, can you show me a home?” (note, this is NOT our listing)
“So you are working with a Realtor?”
“Yeah, but they are too busy, and we really want to see this home. We just need you to show it to us.”
OK folks, here is the deal….
Can’t I use any Realtor to show me houses?
We CAN’T show you a home if you are working with another Realtor. “Why not?”, you may be asking yourself.
Well first, if I may be so blunt, why should we? You want us to get in the car, drive over to a home, open it up, show you around (and assume the legal liability surrounding this process), and answer your questions. Then, if you like the home, you plan to return to your too busy Realtor so they can write up the offer and proceed to collect their commission check.
Meanwhile, what do we gain from this endeavor? We earn our living helping people through real estate transactions. We can’t earn a living driving other Realtor’s clients around acting as a showing service.
I will freely admit that one of the best things about being a Realtor is the “warm fuzzy” you get from helping people through an often daunting process so they can enjoy owning a new home. It’s a great feeling. I do however, have to feed my children and pay my own mortgage. I do this by helping MY CLIENTS through this process. I have plenty of clients. I love my clients. I do not have time to show someone else’s client a property just for the fun of helping a fellow human being. Doing so takes time away from my own clients, and from my own business needs and development (not to mention what little personal life I may have).
The other reason I can’t show a home for another Realtor revolves around our Code of Ethics, the sometimes confusing subject of procuring cause, and my own personal ethical standards. You see, I’m obligated to not “steal” a client from a fellow Realtor, no matter what their competence level might be. Now before another agent jumps in here correcting me, let me make this clear…
Technically, I can’t solicit a client who has signed an agreement to work with another Realtor. Technically, I COULD show a home to another agent’s “client” if they have no signed agreement, and I could make an excellent case that I was the “procuring cause” of the transaction and am therefore entitled to the commission on the sale.
I don’t work that way. If an agent is actively working with someone, in my mind that someone is their client, regardless of whether or not they’ve signed a binding agreement (commonly referred to as a Buyer Broker Agreement). Here’s one place (of several) where my own personal ethical standard is at a higher level than the National Association of Realtors (NAR) Code of Ethics.
Honestly, it makes me ill when I get calls from people who say their Realtor is too busy for them. Or if they say, “My Realtor will only show me five homes, and I have a couple more I really want to see”. (I’m not making this one up folks, I’ve heard it more than once.) Those people made an unfortunate choice in Realtors. But again, I’m ethically bound to not bash my fellow brethren, so I can’t tell the poor souls in this situation what they should do. (namely, RUN AWAY and find a good agent — and there are MANY of those).
I will gently explain the our situation to these folks, as well as discuss options that I’m permitted to discuss. A significant portion of calls like this come from people using friends and/or family members as their agent. Bad idea most of the time, but that’s a whole ‘nuther blog entry.
So to those out there who find themselves in a situation where they are working with a Realtor that’s too busy to help them, or are working with a Realtor who has the ludicrous practice of limiting the number of homes they’ll show, about all I can say is take a step back. Reevaluate your commitment to using this Realtor. You are working on what will most likely be the single largest financial transaction of your life. You need, and deserve, to work with the best. And there are many many great agents out there. Unfortunately, there are several bad apples as well. Be careful.
To the Realtors out there with clients that have to resort to calling another agent to get help, about all I can say is…. shame on you. Perhaps you should consider another profession.
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[tags]Procuring Cause, Buyer Broker Agreement, Phoenix Real Estate[/tags]
The Phoenix Real Estate Guy was started by Jay Thompson, and I have a little blogging problem... he liked to say...
Jay, I wholeheartedly agree with you.
Can you say Redfin?
😆
Jay, great post. And I don't know where you find the time!
Sure I can show you a home. You have $200 right?
As the listing agent though, I'm still duty bound to sell my clients property… and if I do get a call on my listing from another agents client wishing to see the home… I will do it each and every time.
Of course I make a phone call to the other agent first letting him or her know what I'm about to do. Can't get the agent on the phone?? I leave a voice message and also send an email. If I don't have the email of agent, I email his or her broker.
I'm normally a 'work for one client in a transaction' kind of agent. So I don't get all worked up about dealing with another agents client. I haven't had this situation turn into one where the other client asked me to write a contract for them as of yet.
There are some interesting documents for buyers and sellers on the AAR website that I'd probably hand out if a situation like that actually ever did arise. Information on abandonment and whatnot.
Todd –
I agree completely that if it's our listing, I'll show the property. I don't even care about procuring cause in that case. I want my client's property sold.
I should have been more specific. We get these calls from people finding us on the web — for listings that are not ours, or anyone in our office.
I too avoid dual agency at all costs. But I can't serve my clients at all if I'm playing chauffeur for another agent that is "too busy" for their own clients…
Just yesterday Francy was showing a house. When she pulled up, a couple popped out of a car. They said, "We're from out of town and saw this house. We called the agent on the sign to see it, but she was busy. She said you had an appointment to show it and wouldn't mind showing it to us too."
A courtesy call from the listing agent would have been nice. Maybe she doesn't do dual agency either. But to just assume Francy would show it, WHILE SHE'S WITH OTHER CLIENTS was a bit presumptuous wasn't it? Francy did show it. They didn't particularly like the home, but she's taking them out next weekend to look at other $550K homes. Almost feel like we should offer that listing agent a referral fee. Thanks for the incredibly well qualifed and anxious buyer!
I get these people calling me or writing me every other week who are about to write a contract. They lay out the situation–info about the house, its features, list price, etc. Then they ask me for advice even though they are writing this contract with their own realtor. But its my advice they want…probably based on blog posts I've made. But I can't believe how asinine it is to seek my advice when the already have a realtor….But I am honored by the petition.
jay
"That's fine if you're already working with another Realtor. Feel free to use my website to search for homes. When you find a home you like you should write down the MLS number and call your Realtor. Have a good day."
That's odd…my home was listed by one REALTOR®, but sold by another…
http://outsider222.wordpress.com/
Linda wrote: "That’s odd…my home was listed by one REALTOR®, but sold by another…"
That is usually the way it works Linda. The vast majority of homes are listed by one agent and sold by another.
What I was trying to say in this post (and may not have been clear) is that we get calls from people who just want us to show them a house, and then they will have their agent write the contract. This in effect, turns us into a chauffer service.
In other words:
Agent A lists a home for sale. Agent B has a buyer, but is "too busy" to show the home to his client. So the client calls us, Agent C, to show the home. Agent B then writes the offer, and gets to split the commission with agent A. Agent C gets absolutely nothing.
Since Agent B and his client are in an "agency relationship", I *can't* work with the client. So even if I felt like working for free, I can't do it.
Make sense?
Actually, as it turns out, the buyers and sdellers agent both worked for realty of Maine.
Interesting dilemma. We work in a different market, and rarely come across this.
You come across all sorts of weird things in Maine. They do pretty much what they want up here.
(As it turns out, they were all crooks)
http://outsider222.wordpress.com/2008/02/10/bango…
It must be Maine. 😉
Well, let say you showed me the house and client is willing to buy with his/her agent later. However, back off from deal since you showed the property. Can you still sue the client for wasting your time?
Realtors are on the out like travel agents were when people realized they didn't need them anymore. The whole business is a scam, especially when you see that they are all driving around in luxury cars!!! What is the world coming to? Smart, intelligent people will find their way around the 6% commission as much as it hurts the mercedes driving, chip on their shoulder, egotistical realtors who have been living the high life for doing no more than opening a door.
Kenny – I can't imagine suing a client for wasting your time…
Jill – not all Realtors drive luxury cars. And there is far more to being an agent than opening doors. Some Realtors are actually decent people, believe it or not.
Well, we are using a friend…cough cough…who has another job while the market is slow. She has been able to shows us like….4 homes. Yes, 4, of which I found all of them. I have asked for appts on like a dozen other homes and she is always busy, but now that we have started with her….I don't know how to fire her with our pissing her off. She is a dear friend of the family, which I warned my fiance' about when this mess started. So I called the sellers agent to ask a couple questions about the property. I didn't know nor did I care if I was out of line. I wanted to know if the property was a short sale, etc….He offered to take me through the house, but I was worried our friend would get her commision and she would be hurt / mad. So I declined and said I would make an appt with our realtor. I am in a pickle….
You just need to explain to your friend that you need them to make the time to show you homes when you find one you like, and if they are going to represent you as your REALTOR, they need to look for homes for you also.
You understand that they have another job to make ends meet, but you can't afford to miss the house of your dreams. Nice homes are still selling fast, and are receiving multiple offers sometimes; especially on REO homes.
really nice post! I enjoy reading your blog…
I was in the market recently looking for a house and met a Realtor at an open house who offered to show me a couple houses in the area. I went for a lot of open houses every weekend by myself, and also looked up listings online. Since I live in a small town, I didn't really think I needed a Realtor to 'find' me a house, but i would need one maybe to negotiate. I ended up buying one of the two houses the Realtor showed me that day, but worked with the listing agent directly. I was wondering if the Realtor who showed me the house can sue me for commission. I felt bad and offered some reimbursement to him (maybe gas money; though i didnt specify that to him)..am I asking for legal trouble? FYI-no contracts were signed but we did exchange a few emails..
thanks!!
It is definitely important for a home buyer to interview real estate agents and to find a "meeting of the minds" with the Realtor they select. I always meet with new clients in the office first. I will never just jump in the car and go show a home to someone who calls. Just as the home buyer needs time to interview the agent, so the agent needs time to interview the client. There is some people who I won't work with. If don't feel that I can meet or exceed their expectations then I'd rather just part ways at the beginning. Otherwise no one will be happy. And, the commitment between Realtor and client is a two-way street. Loyalty is important to any professional relationship.
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@Jay I know this post is an old one but it's very refreshing to see someone with your level of standards and ethics.
Without getting into detail, I've been on the receiving end of poached clients because of not having my clients sign the agreement up front and it's something i've given a lot of thought about changing. Anyways, I wish more people out there shared your level of integrity and worried less about a paycheck.
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