The Rite of Passage
About 2 years ago, I wrote a post entitled “You Aren’t in the Real Estate Business” about things that eventually happen to us in the industry that aren’t terribly happy rites of passage. It was a long list, and had the usual pitfalls of our industry- losing deals, foibles of dealing with the public, and other things that make us just a tad masochistic to do this for a living.
As a broker with a team that includes newer agents, it still kind of hurts to see a rookie go through one of these experiences, and just such a thing occurred to one of my newest agents yesterday. She had been working with a buyer for a number of weeks- phone calls, shwoings, emailing listings, picking my brain about how to handle their needs, and then she got the phone call. They bought a home with another agent.
It never occured to either one of us that they were dealing with another agent.
I wonder if those folks realize that unless they close with an agent they put through those rigors that the agent will never get paid for their efforts.
The details of the story are largely unknown to me, and we may never know all that occured when the buyers were not with us. They said it was a home they saw months before meeting my agent, although that really doesn’t make it OK- we still could have helped. If a buyer walked into an open house and dealt with the listing agent back in March and nothing materialized, then got a phone call from that agent that the price was reduced, they could easily have said they would contact their agent and explore moving forward.
Or, they were simply playing the field, operating under the false assumption that using multiple agents would cast a wider net. That’s not terribly honorable, and doesn’t really work out so well for the consumer experience either, since the MLS database is the same marketwide. Some people just disappear; at least in this case we had a heads up.
Early in my career, I devoted an enormous amount of time to a family looking to buy their first home. They contacted me through a mailer I sent their apartment complex, I prequalified them with my mortgage contact and we helped them fix some credit issues so they would actually get a loan, and then we saw dozens of homes together over the months. On two occasions, we made offers that were accepted but fell through because of issues on the seller’s part. When the last one occured on a Friday, I arranged a monster day of showings for them on Saturday, putting everything else on the back burner. They called me that morning and said they were ill and couldn’t make it. The following day they walked into an open house and bought the place directly through the listing agent, who basically told me to jump in the lake when I contacted her. At that time, buyer brokerage agreements were rare.
I’ll never forget when the loan officer called me Monday and warned me that they applied for the mortgage on a home I didn’t sell them after all we’d been through. I’ll never know if the listing agent, who didn’t work for them, arranged the sort of deal they could have procured with true representation. I lost a sale, but I doubt they were ahead either.
What can you say? It happens to the best of us. Welcome to the real estate business.
Equal Housing Opportunity. Equal Opportunity Employer. /
June 24, 2012 at 6:59 pm, BB said:
Yep. I’ve learned in my first 7 months that all of those things happen. Had two accepted offers, both retracted by buyers, had renter showed 12 properties who took something on their own, and worst was a multi-generation family who I worked with for 4 months, showed over 25 properties..just disappear with no follow up emails or calls. I always ask if working with another broker and always mention to new buyers that I’d sincerely appreciate it when they go to open houses to put me as their broker. Most have, but the others I know are using my site to find properties then calling the brokers directly! Onward and upward. That next one may just be a really nice client who works with you. Others can’t worry about.
June 24, 2012 at 9:17 pm, J. Philip Faranda said:
Barbara, you will have some stories to tell- talk about a baptism by fire.
June 24, 2012 at 8:09 pm, John Wake said:
I’m still mildly depressed about a client I spent a ton of time helping last summer… and I thought we had become friends. I really went above and beyond to help him. He bought from an open house (and a house that didn’t have one of his top “must haves”!). He knew exactly what he was doing, that he was screwing me. He’s a lawyer. The betrayal still stinks a bit. I had completely educated him on the market of the weeks…
June 24, 2012 at 9:16 pm, J. Philip Faranda said:
John, in the case of a lawyer he’d HAVE to know what he was doing was going to hurt you. Shame on that guy.
June 25, 2012 at 11:25 am, Lori Cain said:
I had the exact thing happen to me by a FRIEND – showed her homes off and on over the course of a year, then she purchased a home through the Listing Agent after an Open House. I still continue to invite her to established parties, but can only be polite. So sorry your new agent had to experience that.
June 25, 2012 at 1:51 pm, J. Philip Faranda said:
Lori, I have never spoken with an established agent who did not have a similar story. Once it happens, you learn what questions to ask.
August 09, 2012 at 11:07 pm, Tni LeBlanc said:
As I read this I thought … win some lose some … keep moving. Of course, these are the things we tell ourselves as agents so we can live to show another day. However, I’ve been in the business for 9 years and still managed to get surprised (and hurt) by some of the things prospective buyers do. It floors me. And, the public thinks real estate agents are cut throat…they should try working with homebuyers.