Maggie, nice Gals finish last. At some point we've all be guilty of laxity with the customers. If they can't afford the time to visit me, they don't need my time or services.

Maggie...

I think way too many Agents work without BBA's. My thought is that a BBA is much like an employment contract. No contract...No job...No paycheck. Who really wants to work for free? :)

TLW...ROAR!

Unfortunately, it sometimes takes something like this to wake us up! I've delayed on this with a big corporate buyer and it's reminded me that we need to have the conversation and paperwork completed on Monday!

What a well written post. I had a similar situation just a few days ago, but.. I am not ready to go with BBA's. I as a buyer would not agree to sign one, and I, as an agent, can;t force myself to do that.

Oh well

Maggie - This is superb!  You wrote about something has plagued many agents recently including myself.  Sometimes we strecth ourselves too thin trying to take care of and service everyone who contact us and don't take the time to realize we are shooting ourselves in the foot by doing so. 

Maggie - What a crazy story!  I'm not certain what I would say in this situation, but it is classic.  It sounds like you have the perfect attitude about how to move forward. 

This reminds me of something that happened to me awhile back that I need to blog about sometime soon.

You go girl! And yes, we need to use Buyer's Agreements all the time ... to be sure that we get paid! And to be certain too that the buyer understands what all we do for the money we finally make on a deal ~ most buyers have no clue the services we provide!  :)  Happy Selling!

Love your post!  Boy, that's a new one....two agents scheduled at the same time?   Not a fun situation.  Hopefully, both the Buyer AND the other agent will also have learned something from this, as well. (I sinderely doubt it, but one can hope.)  Best of luck in the future with getting the BBA and knowing where you stand!  You deserve it!

It happens to the best of us...only with my clients they DID sign and BBA and then the day after the agreement expired, they had an accepted purchase agreement in place with another agent who was doing dual agency.  After researching the county records and MLS, all I can say is they got what they wanted and what they deserved.

We as agents want to do good but at times we forget to put a value on ourselves.

Next time, before you even do all this work for any client, make sure that they're preapproved and that they GET a copy of their preapproval letter or proof of funds to you before you even begin working with them.

Doctors ask for copays upfront, lawyers ask for a retainer upfront, but why is it so hard for us as Realtors (of which we also are considered professionals) to ask for a BBA, Preapproval and/or Proof of Funds?

You don't get if you don't ask.

Hi Maggie ~ That's quite a story. I'm another one who doesn't use a BBA. Will I learn from your epiphany? Probably not, but I am a step closer. (Deep down I know it's a good idea).

Denise

YAY MAGGIE!  Been a while since I have seen you here girlie!  Hope this buyer didn't suck up too much of your time!

Not only BBA but we are starting to charge "investors" retainers.  Investment groups come to town to learn the insides of our real estate.  They go and buy at trustee's sales and in bulk from the servicers after learning their best potential - FREE FROM AGENTS. 

Gotta love those who use and abuse what's available and free to them.  That's where we, in turn, need to realize that our hard work, expertise, experience and knowledge is worth SOMETHING and if they want it they will be loyal by signing a contract and/ or pay for it.

Maggie

I wrote a post about this frustrating situation as well!  I've had way too many "epiphanies" and I think most agents have as well.  The BBA or some version of it is the only way to know for sure what's going on with the client.

Maggie -

Love your post - and your attitude. Sometimes I think we are very Pavloivan - a customer calls, asks to see a property and we say SURE, no problem.  Time to step back and ask the hard quesions isn;t it?

Michael

Hi Maggie!  This is a tough lesson to learn and I believe that any agent who has been around for a while has had this happen to them.

I usually go out and visit one home with a buyer, and in that home I ask them to look this BBA over and by the end of the day we can sign it.  I tell them that this is a contract between us.  Their loyalty for my work.  If they don't sign, then I am out a days work or at least a few hours.  But that has never happened to me!  They always sign when I present it this way!

Maggie good to see you ...

I believe in buyers agreements and often get them signed without a lot of drama then other times...

I always get a "buyers agreement " signed before I wast my time....

Patricia Aulson/portsmouth nh homes

That's typical Maggie...happens to the best of us...my favorite is when they say...you know I'm working with another Realtor don't you? And I look at them with this real dumb face and I say....no really?....they hate that one...I think of it as touche!

Maggie,

Whoa, this has happened to many Realtors but not quite like this. With some people, even the BBA would be a waste of time.

Rich

Maggie - I am going to send this to my team!

Maggie, This post just reminds me again why I only look at houses AFTER the buyer's offer has been verbally accepted. I decided to skip the BBA and go straight o the purchase agreement. Works for me.

Well with the title you had I just had to read this post. And I am glad that I did. You are looking at this isn EXACTLY the right way . Good for you

Thanks Maggie, I needed that.  Just happened to me this past week and I swore I would never let it happen again.  I had a buyer's agreement that I agreed to cancel with my buyer because they had changed their mind and wanted to rent instead (they said).  I let them go and three days later they wrote an offer with another agent.  It won't happen again, nice guys finish last.

Hey Maggie - absolutly use a buyer broker and set up that all important first 'education' meeting with new buyers.  What 's really cool about you is that you saw what you created - and then moved on with a solution.  That's real success.  Leaving what doesn't work behind and moving forward. You go Girl!

This conversation has been coming up a lot in my office lately. Like you I have also learn that I need to change my ways. These buyers need to know that we are professional agents and we are only working with motivated loyal buyers. By sign the contract means we are worth our times and that we will provide the best service to our loyal clients.  Great Post!

Congrats on your epiphany !  It has happened to all of us at some point.  The worse stories are when someone actually shows someone 50 properties and then they end up purchasing with another Realtor and the buyers agent never got a buyer agency agreement signed.

Whatever it takes Maggie! You have learned the lesson and you will never disrespect yourself again! Just know that a buyer (or seller) who treats you with disregard is a problem from the beginning until the end and you will always be better off moving forward without them! Good luck and congrats on getting past a tough lesson!

I've got to say, if I had gotten to a property and the buyer with whom I had the appointment was there with another agent, I would have laughed my sides off.  In fact, I'd probably still be laughing.

You see, the fact that she was with another agent saved your butt.  In fact, you might have thanked her for keeping you from thinking for a nano-second that you'd be wasting time with a buyer with no character, no ethics and probably no money. 

Perhaps I see things differently.  If I were in your shoes when you realized that you didn't have to work with that buyer, I'd have thought "GEEZ!  I just dodged a bullet".

Good blog Maggie.  Your story is as old as the MLS.  I have lost count of the number of agents who told me they spent their valuable time showing many homes then sadly discover their erstwhile buyer's brother-in-law, who did not have MLS access, wrote the offer.

Maggie,

I don't think I could haev kept the shock of MY face!  I wonder how that other broker felt?  Was she two-timed, too?! Great story.

So true, so true! I love this post....I appreciate your humor hitting a topic that needs to be addressed!

Let ne say it for you . . you worthless buyers! You don't deserve an agent like Maggie. :) You are lucky I don't live near by. i may have kicked your butts! . . can we say butt on Active rain?

Maggie thank you for such a great post. I will be forwarding this on to all my agents, so that they can see exactly why they sould be working with a contract.

I have always said that real estate is just like dating - if you feel like someone is cheating, they are; if they won't answer questions with straight forward answers, won't get prequalified (meet the parents), don't acknowledge that it is your valuable time and energy and expertise going into the process...they aren't the right date for you.

Pop Tarts sell a few homes, but true professionals create committed relationships with Raving Fans!

Hi Maggie,

Excellent post and a great read. You got me thinking bigtime! I am guilty like you were of being to lax with the BBA. It is simply too important. Thanks for putting this email together to share. I have three buyer clients off the top of my head , that I just started working with in the last few weks . . . all 3 are gonig to get the BBA to sign this next week.

Cheers to you Maggie!

Paul Weir
United Country - Town & Country Realty
Grass Valley, CA

Maggie,

I'm gald to see that you've learned from a less than desirable outcome... we had one recently on the listing side.  This couple was particularly challenging when after 60 days without an offer, a price repositioning based on comparables in the market met with huge resistance.  Improper marketing was the sure cause of the problem, not the price or interior decorating, end of discussion.  With the listing expired, it became apparent when it showed up higher priced with another agent.

Good luck to her, 'cause we are done with unrealistic, unmotivated buyers with no where to go and all the time in the world to get there.  I'll sleep better and have a higher quality of life without them and so should you with Tina out of your life!

This is AWESOME!! I always see shocked faces in my office when I say that I have this signed before even setting up showings. It's so nice to hear that it is in our best interest to protect our business and relationships.

Great post...keep up the good work!!

Maggie, I can't believe the phone in her pocket rang. You are far better off. We do need to do things the right way, I really like to get paid for my work, but sometimes you just dont' get to it. Great post!

I have to say that I have been through that several of times.  It also happens when they do come into your office so don't be fooled even if they do come in.  As we move forward into this day and age of instant information, we also have to deal with the fact that it brings a level of disloyalty.  Regardless of how good you are, for some, it will never be enough to change their minds of what is in it exactly for them.  With that same mentality, she actually ended up losing.  Let's hope it never happens again!  Thank you for the story!

I alsways say it's not a mistake as long as you learn from it! I'm glad you had your epiphany.

Maggie:

Always get a buyer agency agreement signed.  Otherwise, you will be working for free. That buyer was obviously not worth your time but if you had screened her with an agreement, you would have known it sooner.   Best of luck.

Maggie-

I feel your PAIN! If this makes you feel any better, it may or may not....I had a situation with a "FULLY EXECUTED BUYER'S BROKER AGREEMENT" and the Buyers dumped me after weeks of  hard work. I had no idea how to enforce this. Does anyone???

When I saw the title of this post, I thought it might be about selling a second home to a buyer.  How great that would have been!

I was very fortunate that when I first got my license, the broker trained me to never work with a buyer without a BBA; and that is what I have done.  It's worked well for me.

Good for you Maggie...

Sounds like you kept your cool. Not sure how I would have reacted.

Thanks for sharing.

Debra

Maggie, good for you.

I had a similar experience with a "friend's" mother who wanted to purchase. I neglected the BBA, which I never do, and she bought using the listing agent.

I, unlike you, was speechless.

Maybe I should drop by a new homeowner gift on the porch.....any suggestions?

Maggie, sometimes it takes these situations to wake up us. I actually have no idea what I would have done.

Excellent post Maggie! I had a buyer go see a property. I sent them on their own because I couldn't make the showing. When I submitted an offer the listing agent wanted to pay me a referral fee because in her opinion I didn't deserve the full 3.5% she was offering. She thought the buyer wasn't working with anyone and she deserved the full 7%. It had only been listed for 5 days and she wanted her full $24,000 because she worked really hard in those 5 days and drove a full 3 hours round trip to show it. That's about $8000 an hour and darn it she deserved it and I didn't even though I had been driving all over town for almost 3 weeks with these folks but who cares what I did.

Let me say this now to ALL listing agents: ITS THE BUYER'S AGENT WHO SELL LISTINGS AND THEY DESRVE EVERY PENNY! I am primarily a listing agent but I truely appreciate a buyers agent selling my listing, in fact I almost always offer them a higher commission than I earn on a listing, they deserve it.

Bravo Maggie and congrats on your feature. Nice to see another pro from our area making a difference.

Maggie, I'm also guilty of not using BBA's.  Personally, if I decide I don't like someone, the last thing I really want to do is strap them to my hip for however long.  If I were a buyer, I would be very hesitant to sign a BBA during the initial meeting; and it's equally as scary for me.  I am blessed to have clients that really enjoy working with me, as much as I enjoy working for them.  I do not want to work with anyone that doesn't want to work with me.  So....I say chalk it up to poor character on their part and be thankful you're not locked in with them for the next 30, 60, 90, 120 or 180 day.  :)

Maggie,

I share your pain.  Live and learn; experience means everything. It does pay off!   love your blog by the way!

Great post.  I think this is such a great tool, not only for our business but for our self esteem.  Time is money and I am running out of both.  If I don't think I am worth it ---no one else will hanaks again for sharing your esperience.

Great post.  I think this is such a great tool, not only for our business but for our self esteem.  Time is money and I am running out of both.  If I don't think I am worth it ---no one else will hanaks again for sharing your esperience.

Maggie:

I just want to respond to Deborah Stone - The way to enforce that buyer's broker agreement is to take them to court.  A buyer broker agreement has the same weight as a listing agreement.  The buyers should not get away with that. (I have no idea of the wording of your particular agreement, but it should have been binding.)  Best wishes,  Claudette

Maggie- I had the same thing happen except I was the agent showing the client property when another agent walked up to her and asked what she was doing there... Very embarrassing for me and the other agent but the client didn't think she had done anything wrong... first and last appointment!

I have struggled with getting a BBA signed. If your buyer does decide to use another broker and you have to sue the client what does that do for your market image? Or can you just use it and show it to the other agent?

Maggie - Two timing Tina - was that her real name, or did she give you an alias? What an excellent post. As long as we learn from our mistakes, we will come out ahead of the game.

Now that the deadwood is cleared you can move on to bigger and better things. You know what to do - go sign some contracts!

Maggie,

I never use them.

I would like to ask you a question:  How many negative experiences have you had with buyers?

How many positive experiences have you had without a BBA?

In reality, at best, it is a VERY awkward situation.  I'd rather take the risk of a bad situation happening than:

1.  Putting a buyer through the awkward moment--when JUST meeting them-and have yet to build a rapport;

2.  Risking a relationship with a "real" buyer who (most are not accustomed to this) may not want to sign an agreement---JUST TO LOOK AT A HOUSE.

I would have reacted like this:  "oh well, it happens and it is a REALITY of the biz," and move on.

Everyone chooses how to deal with it.  I probably think the ratio of good experiences to bad ones is for every ten "situations" eight will be good and 2 will be bad.  Pretty good ratio, if you ask me.

Hey there - I had a client that was looking for an investment property.  Around 100K as he thought over the next 3 years he could make more money owning a rental.  We looked at properties.  I had to go out of town for 5 days in May.  He has another realtor friend and used him.  Couldn't wait until I got back.  Not only could he not wait, but he refers me to some of his clients that live in retirement communities - he is an estate lawyer.  Have known him for years, our sons are the same age.  We are still friends, but I let him know I did not appreciate his being too impatient to wait for me.  He evidentally thought that the first realtor to find him a home would be best.  I had no idea I was competing against another realtor.  He had never been talked to the way I talked to him.  He did realize his error.  He even commented that I did not have him sign a Buyer/Broker Agreement.  Didn't think I needed one with him but his other realtor friend knew he was competing and had him sign the agreement.  We just never know and have to watch our backs all the time. 

Maggie,

Great job handling this...I am impressed that you turned this into a learning experience instead of letting it throw you!! I have a short story with a similar twist...I'm the listing agent, I receive an offer, I contacted the lender before I met with my seller to confirm the buyer's pre-approved status...the lender asks me "Is this the $215 or the $225 offer and which of the 2 agents wrote it?" I am almost certain the agents didn't know they were being played against each other...my client did not accept the offer!

Again, no good deed goes unpunished.....good for you to make the adjustment in your business practices....great story!!

In Canada we call it a buyers agency agreement, I use it to qualify clients on their sincerity in buying a home. I figure if they don't want to sign one then they are either tire kickers or they have an agent elsewhere and are using me to get listing information or into homes in my area.  I will do the basics, but once we start showing houses in quantity they better be signing one.

Even if it was my best friend, I would have him sign a BBA.  Of course you wouldn't think that a friend would use another agent, behind your back, but it happens all the time.  The purchase of a home is a business transaction, and should be conducted with a friend in the same manner as it would be done with anyone else.  Get them to sign the BBA. At least it will show them that you are a serious professional.

Amen, Maggie!  I am definitely a believer!

I just finished working with "friends" (last night) that I sensed early on were very sketchy - a somewhat similar situation to the one you mention.  Because they want more than they can really afford, they were becoming agitated with the entire process (mainly the wife).  Countless days later of showings, offers, followups and even an existing contract on a Short Sale, they informed me that they were going with another agent.  So, they're out there looking for another home with another agent while I still represent them on the current contract that is pending bank approval.  I'm pleased they're gone and I realize that these are not friends I want as friends at all.

P.S.  An agent I know gave me a courtesy call last week to inform me that the wife had called her for information behind my back.  Understanding what was coming, I asked if she would like to work with them as a referral from me.  She DECLINED - stating that she didn't need that kind of negativity in her life (smart agent)

Maggie; Brilliant!  Thank you for the reminder.  My first experience was pre-license when a friend, whose wedding I attended, said joyfully "Oh, maybe you can find us a house."  Of course, I replied "I'd love to".  This was in August while I was taking the state required classes to qualify to take the state exam which I took in October.  You guessed it.  They (she) couldn't wait and purchased in the interim.  The sad ending of the story is: she and new hubby were filing for divorce within six months of the purchase.  She shoulda waited!

Hi Maggie, Congratulations on the feature! Wow, what a great "wake up call" !

Hi there Maggie!  It's a hard lesson to learn, however it's one that you'll never forget, and you will be sure to have the agreement signed prior to taking a prospective client out to view properties next time.  I had worked mainly in new home construction directly for builders for many years, so I was use to the buyers looking at over twenty-five or more builders, but upon going into general real estate, I had already heard these stories from friends of mine already working in general RE, so I was lucky. Although many prospective buyers are reluctant to sign, I always tell them it's only the fair thing to do to establish loyalty and respect right up front.  I don't like surprises, and I know you didn't appreicate it either!  Moving forward and staying positve is the best thing you can do.

In todays market it is almost impossible to think you can ever meet every client in office and give a buyers consultation. However, you showed true class and I agree we all need to use BAA and maybe even work together instead of against one another and ask the question "Are you working with a Realtor?" This is very important and it takes the car sales mentallity out of the picture!

You are a true class act and I hope we all can learn from this.

I'm definitely in the same boat as many of you, but haven't (so far) gotten bitten by it.  I'm sure my time is coming...

One question that I have is whether you would have a case for procuring cause, if the buyer ended up purchasing a property that you originally introduced them to.  I don't like the idea of going after another agent's commission, but if your'e the one that did the leg work and introduced the property to the buyer, you have a legitimate claim for it.

Wow - that is so awful and how weird that you were both there at the same time!  The sad thing to me is that I hear of people who sign more than one buyer's rep - not sure what to do in that case!!!

Thanks for sharing!

Maggie, we have just had somewhat of the same experience. Lady from out of state was referred to us and so proceeded to communicate with her by email. Stated that she was going to buy when in town in mid September.  After speaking to hear finally on the phone, she made a comment about her sister looking at house for her in our area, sooooo, I called her again and told her about Buyers Agency and that her sister should contact us so that we could check out the homes together..I also emailed her the Working with Real Estate Agents brochure. You would have hought I had told her that we were all going to be married to each other...now she had just come through a nasty divorce and is of course very bitter, BUT, no excuses..I told her the benefits of BA etc. and left it at that. Haven't heard from her since, and to be quite honest am relieved,do think that she would have been a difficult client...sometimes loosing a client is really much better for us.:o)

Maggie: Great Post - I'm sharing it with my team and the light bulb went on!  We all know we should do this yet so many things get in our way - I love it!  Thanks for this great reminder.

I will never again go out with buyers without a BAA.  Many times when it seemed unnecessary in the past, I got burned.  It is always necessary simply for the sense of commitment.  Even if you have an agreement, they can still go behind your back and do what they want.  And what are you gonna do, go to court to get your money?  Hardly.

Bottom line is , are they committed to you or not.  If they change their mind after signing an agreement, best to let them out of it.  You only want to work with clients that trust you and are committed as well. ( so always get that BAA agreement in the first place.)

I'm so sorry this happened to you. The real truth is, though, that some people will treat you badly and it won't matter if they have signed a contract with you or not. Buyers will lie to your face, in fact.  My encouragement is to start the dialogue about your services before you agree to do any additional research or work for the customer--even e-mailing homes. It's in the same conversation that you ask if they have already become pre-approved. It's not true that a BBA will save your commission, as so many folks have attested. Here's a sample dialogue:

"Do you have a relationship with another agent? I ask so that I can make a good faith effort to meet your needs. As you may not know, the buyer's agent commission is built into any home listed by a Realtor. So, the trick is to find an agent YOU trust who will work for YOU! Since I work strictly on commission, I invest my time in buyers who are willing to be loyal to me--and respect the time it takes to show you homes. I will commit my 10 years of experience, my time, cell phone, computer and car to finding you a home. I will ask that you respect my time and work enough to treat me honestly. I will be here as long as it takes to find your home, and I will show you one home and allow you to meet me and get a feel for my way of doing business before you commit to me. Sound fair?"

If a buyer is seeing property with another agent--or won't agree to meet with me to see why I am worth my weight in gold--then I am not the agent for that buyer. I've learned the hard way and hope you will find a dialogue that works for you--even BEFORE the first meeting to sign a BBA. The best thing this conversation does is scare off the liars and cheaters, in my opinion.

You are doing the right thing in moving forward. When you free yourself up from chasing disloyal, dishonest buyers, you free up your time for great customers who will become lifelong clients. Best wishes!

First let me say GREAT post!  This is a lesson everyone should learn from at least once.  As sales manager, I am going to share this post with the agent's in my office.  In my state, at a minimum the agent is required to provide the buyer with our State's Agency Disclosures for Understanding Agency and a Consent for Dual Agency if showing a property listed with our Brokerage.  Also, a Buyer Agency Agreement is required prior to writing an offer on behalf of the buyer.  Unfortunately, there are a lot of agents who received their licenses before the requirements went into law, so not everyone follows through.  That lack of follow through affects everyone else by not educating the buying public on the proper method of hiring a REALTOR to work exclusively for them.  For those that don't get one signed (if only for a few days while showing), take note; "Your Buyers" are not "Your Buyers" and are fair game to the rest of those hungry agents, so don't get too upset when they buy from someone else.

Dear Maggie,

I enjoyed your post very much!  I've been there as well, but no more.  If my client's are not willing to sign the BBA then I'm not willing to spend my time on them.  It's all about our own mindset.  The first two times presenting the BBA to my clients I felt awkward, but now it's second nature and a MUST!!!!  It's all in the delivery as well.  I had a conversation with a new buyer the other day about working with multiple Agents and I believe that she honestly didn't know what was wrong with it and she thought that everyone does it.  Well, I had to educate her and she understood.  I've become to brutally honest (in a nice way of course) to my clients, which saves me time and hassle in the longrun.  I'd rather loose an unloyal or unrealistic buyer than spend my time or gas on them.  Don't give me wrong, I love working with buyers, but only those that I choose and that are loyal to me.  I have clients who never bought from me or anyone else, but have become my friends and refer other people to me.  It's much more rewarding this way.  There is a book that I can recommend to anyone who does not "fire" some of their clients, it's called "Book Yourself Solid" by Michael Port.  Read it and you'll understand.

The best of luck to us all!

Claudia
Southern California

Fantastic post!!! And a great reminder that we deserve the same loyalty that we give. Sometimes it's great to be fired and/or to fire.

Thank you for a needed reminder that our time is valuable.

If you have someone moving to Toronto I have a bag full of colourful Canadian Money I can send you way for the referral

David Pylyp

Living in Toronto

Hi Maggie, I had similar experiences. Here are some tips when signing a buyer broker agreement:

1) Make sure they are motivated to buy. 2) They have a certain time frame in which they want to purchase. 3) They are realistic in what they can buy. 4) They speak with a mortgage broker, preferably yours.

Just some tips to help you. Even with a BBA they can still have no motivation to buy, so you will still be out of luck. Also, when using a BBA agreement you can explain the different agency representation, that is what usually sells the buyer on using the agreement. I am now working on charging a retainer fee, which will be used towards their closing when they purchase through me. Whats the sense of working with a fake buyer, when you can be chasing down real leads who want to buy or sell. Also, when filling in the areas where they want to purchase I type in the whole county, and any neighboring counties.

Way back in the dark ages when I was selling real estate - and before Buyer Agency came along - I had a couple who looked at houses every Saturday for about 2 months. Nothing was "it."

Finally we ran out of suitable listings, so a couple weeks went by. I had the list of exactly what they wanted and one day there it was, so I called them to set an appointment.

They were very vague and I knew something was up. Turned out they had just signed an offer with another agent.

The part that really made me upset was the guy's Mom was a friend of mine.

So... feel happy that you at least didn't give up a couple months' worth of Saturdays for Two-timing Tina.

Maggie - Good for you!  I think we all get complacent at times, and it just takes one to snap us back into reality.  No consultation at the office, no look at houses with me!

A smile and a handshake does not do it in these times...it is so sad....BUT that is the way it is...I had a buyer tell me once, after he refused to sign a Buyers Agreement," The other 5 agents i worked with did not ask me to sign one of those."

I WANTED to ask him...why are you not working with one of them NOW?????

;-)

Maggie!! I was there with you at one point in my real estate career then I woke up. During my first 7-8mths of being licensed I would drop everything to show a listing but those days a long behind me. I started running my business, not allowing the business to run ME...you know that saying "work smarter, not harder".  If a new buyer cannot take the time to meet with you for an initial consultation F2F then they are not willing to work with you exclusively...don't waste your time and move on to the next buyer. I do not show a property without a consultation, buyer agreement and loan approval letter...lately I've even required a retainer fee upfront to cover gas and time in case they never buy. Use your judgement on retainer fees but just because they sign a contract doesn't mean they will  buy...some people are what I call "serial home shoppers". They love LOOKING at properties but never buy.

Once you have a new buyer in your office and you've went through your buyers questionaire, discussed their needs, explained hoe you will serve them, answered all their questions etc. The last question before they leave, " Are you prepared to be loyal to me by hiring me as your exclusive agent?"  If yes, type up that contract right then and there and if no, be happy that you did not waste your time and gas showing properties.  Good luck!! 

Great blog. I have been resistant to BBA's, (maybe lack of confidence) but your blog made me reconsider. In this market, I've had more than one buyer call and say they are working with another agent, but whoever finds the house first is the realtor they'll go with....horrific! How unkind and rude to pretend our business is some sort of contest. Thank you for your enlightening story.

BBA's are very important in our line of business, you should consider writing a book for experiences realtors face.  This article was just so entertaining!  Thanks for sharing it with us.

It is important to educate your buyers that they will see all of the available properties that meet their needs, and that there is no need to use multiple agents. They also must understand the fact that it is just unfair to ask you to spend hours working with them only to have them do a deal with someone else. I alsways ask new clients if they are working with other agents and explain to them that I will not work with clients who are not comitted to working only with me. After getting their agreement, I usually do not get them to sign an agreement, as this often makes them uncomfortable to read all the legal language in it. What I am looking for is an honest relatioonship and I realize that even if I have a signed agreement, if someone is not comitted to working with me, that it is not worth the effort to pursue damages through the courts.

Great post, Maggie. What always amazes me is how many times agents don't even get one - when it is only for one specific house. Even if a buyer doesn't want to sign one to work exclusively, you could just specify the ones you are showing. If they won't sign that, it's ususally a sign they are not to be trusted. Thanks for sharing a great lesson - loved reading your post.

Thanx for sharing that Maggie... Your story is a good reminder to all us :)

Hi Maggie,

I do not use BBA's and never will.  Like Kevin I would prefer to avoid the awkward moment and I don't want to be that committed to any buyer initially.  Often I decide to pass on conitinuing to work with buyers for one reason or another.  I have the luxury of many leads and contacts so I can pretty much pick and choose who I want to work with.  I like it this way.  

As for getting them into the office for the appointment before working with them............well............I would agree with that for buyers at a certain level..............but I don't always subscribe to this idea either. 

All cash buyer up to $2 million wants to see a specific house, I will chat with them on the phone and meet them at the appointment.  As a matter of fact I have a check in my hand right now - I just showed this particular buyer a 2nd home $1,850,000 and am writing an all cash offer on it right now.  

Real estate is a funny business.  You need to listen to your inner voice sometimes and go with your instincts.  The person you should be able to trust the most is you.  Go with what you feel is right for each situation, just don't "lay down the law" because it just doesn't always work like that. '

Stay well,

Laurie

Hi Maggie,

Great post!  Thanks so much for reminding us about the BBA.  I'm a firm believer in CITO (Come Into The Office).   If they don't want to come to the office to meet you and allow you to go over Company Brokerage Policy, etc., then they aren't really serious.

Mary Ann

Georgia

Maggie! Fabulous and extremely well written. We would love you to post this on our new group "Be the Best in Your Field" it is very fitting.

Maggie, Absolutely amazing and like you, there are key things I should do ... and don't always. Thanks for the reminder and good luck.

PS Now following you on Twitter

Maggie,  Nice post,  I like to ask at first contact "are you working with an agent". The best answer I have received was "yes, 6 other agents".  Oh my, I would say in this case Maggie, that you "got while the getting was good".  And since you are nice and busy you can just smile and say "Next"

Great Post Maggie - too bad you couldn't send that letter to that Buyer!!!   We recently started using BBAs - it's required in our company.  I've been working with mainly buyers for the last 6 years without one so I am just as uncomfortable with it as the Buyer!  So we just have them sign the form for just the day and just the properties we scheduled and that usually works! In this area, if they go out with you more than once, they are going to stay with you!   I think we need to educate the buyers on who we are - Professionals! Most if not all EXPECT you to just run out and meet them at the house! If every office in every MLS conducted business the same way we would have a good platform to work from. Our Standards are too low and inconsistent.  Like JoAnn said, doctors ask for copay, lawyers retainer fees...we all have to ask for the same thing or the buyer will go to the agent/agency who isn't!!!

I am so glad someone else posted about this  problem.  It is really frustrating.  It has happend to me more than once. 

Well said Maggie. Just what I needed to hear! After being "kicked to the curb" by a California couple recently I have taken the same approach. I had worked this couple for 3 years...........yes I said three years! When they finally sold their home in California and made their way to Nashville, Tn. they were in town for 3 days and decided to work with another agent because I had appointments on the morning that they wanted to start looking. I have learned the definition of forgiveness time and time again in my career. Thankfully your client was only purchasing a smaller property. Mine bought a $200,000 home at the end of July. Money that I thought I could count on after working for it for three years. Meeting buyers in my office before putting them in my car is my new mantra.

If you have referrals coming this way I will happily take good care of them once they sign the buyer/agency agreement. A 25% referral fee is yours for the asking.

Blessings in your business,

Ann Buchanan/Keller Williams Realty/615.822.8585

I can't help but wonder Maggie if you asked the customer if they were working with anyone else?  If they were honest and told you that they were at least you would have known that you were proceeding at your own peril.  Does the phrase "buyers are liars" sound familiar?  I hate it when things that we have heard over and over can be plugged into the current situation as a matter of convenience.  How about we back up a step and say that you had a signed BBA in your possession.... now what?  Often times we presume to think that the safety net of our brokerage will stand in our defense with our signed documents clenched in their fists held high and fight for our commissions.  Most of us would be wrong..... 

Ask the hard questions.  Are you working with another agent?  If they lie to you, shame on them. 

I agree 100% that a BBA should be signed.  Here we have to have it signed at the first substantial discussion regarding a property...but that doesn't always happen!  Question....has anyone enforced a BBA on a wayward buyer?  Honestly...what good are they if they aren't going to be enforced?!!!

Thank you for reminding me to have all potenial Buyers sign the Brokerage Agreement. That means not showing a property until I have it signed and in my hands. 

Good post!  I use these agreements much of the time, but they are not 100% fool-proof.  I worked with one gentleman (and I use the term loosely) for almost six months, negotiated two contracts (both of which he withdrew), looked at countless houses, and then about ten days before the expiration of the agreement, he advised me that he would let it expire and no longer use my services.  I knew something was up.  I registered him with three builders.  Exactly 45 days after the agreement expired, I saw in the legal records that he purchased a home.  I went back to the MLS to see if it was listed, and it was not.  He found his own FSBO, waited until the agreement expired thinking he could get a better price without a commission involved, and then closed with the lender I had told him about in the first place!

Came to this realization myself about 9 months ago and thusfar it has served me well. It weeds out the lookey lou's and starts the commitment mindset in the clients mind. I have only had very few people not agree to the BBA after talking with them, and I think all of them have yet to purchase anything.

Hi Maggie, What an awesome blog.  I sooo know what you went through as I been there myself, probably too many times than necessary!

Maggie:

It happens to the best of us.  It always seems that the first time you don't follow your own procedures, you get caught by a disloyal buyer.  Don't beat yourself up about it.  I  loved your attitude.  Congratulations on the feature you got us all talking.

Maggie, first congrats on your feature!  Second, I believe most of us have had the two-timing types, but I don't know many that would have found out the way that you did.  Kudos to you in the way you handled it.

Thank you, Maggie, for putting into print what is a common occurance in real estate.  I will only work with buyer clients who have signed a BBA.  I charge a $500 non-refundable fee upon signing.  This fee separates the serious buyers from the tire kickers and allows me to recapture expenses from travel, advertising (I will advertise and seek out a property for a buyer), and various miscellaneous costs.  I also charge a termination fee (1.5% of target purchase price) in the event the buyer "disappears" or defaults on a purchase contract.  These monies are separate from brokerage commissions.  Do I lose buyer's through these policies?  Sure.  Do some buyer's refuse to sign a buyer's agreement?  Yes.  My time and talent are best spent on those who validate my worth and limit my (and their) liability... and to do so, I require a signed buyer's agreement.

Linda Harrington, GRI

REALM Properties, LLC

Houston, TX

I don't use BBAs and don't plan to in the future, but that was a good story. I shown a house to a buyer that was on their way to or from an appointment with another agent, but I have never had one schedule an appointment with me and another agent at the same time at the same house. How odd!

Let's not forget the BBA is not etched in stone. When a potential buyer requests to get out of the BBA you have to let them out so what good is it anyways but a threat to alot of buyers. I brought a BBA from another agent to our RE Attorney and you can't hold them to it especially when you haven't shown the property to them, she thought she had them locked in for 6 months no matter where they bought in the state. They had a huge disagreement and I didn't know this at the time that they had signed  a BBA and neither did they.   Then the threats started coming in from the other agent to the buyers. Where are the Ethics with so many Realtor's. Some are just looking for a free lunch by slipping this BBA into the contract and not explaining it.

Bonnie

I did enforce a BBA once. A couple who had put me thru the ringer for months with drama and changing minds with contract terminations twice even past option period, one weekend went and bought a forclosure and informed me on monday, got a lawyer and got my comission.

Another time however, a semi-friend/buyer after working for maybe 2 or 3 weeks decided out "business styles didn't match" and asked for a termination of the BBA. altho i still felt burned personally, i had to respect that honesty and the fact that not every one gets along.  She did end up buying something completely different and luckily not something i had shown her, not sure what i would have thought/done about that.

Nanette, Austin, TX

Well Maggie !

Nice to see you back, and you are clearly back with a bang !

I think I would have started laughing once I busted her reaching for her phone !!!!! LOL

Sorry you lost a potential buyer, but if she was that insincere now, there's probably a good chance there were more shenanigans to come !

Welcome back :o)
Cheers !

Sheldon

Maggie,

Way too funny and very unfortunate. Buyers believe realtors will drop everything to show them a property. They will see 5 different properties with 5 different realtors. We need to be stronger with the BBA but it is not easy. I feel you have to develop a rapport and trust with the buyers before they will sign a BBA. You MUST show them the benefits of working with you! I don't know of a realtor who hasn't gone through the same situation you did. Learn from it and move on.

Great post.

Rick

AMEN Sister! I was just burned last week on a 1 million buyer! Drove him his wife all over creation for days on end! Showed them the entire town - being new to town they needed to know the ends and outs! Bought expensive meals and lots of overpriced coffee... and then BURN. They called a friend of a friend to buy the home b/c they felt sorry for her...because she has not sold any homes after being a REALTOR for over a year. WOW... I am sure there is a reason for that!

So... I hear ya! BUYERS AGREEMENT!

In Colorado, without a signed buyer agency contract, we can only act as a transaction broker.

Perform agent duties without it and we get into trouble with our real estate commission. Are we the only state where this is the case?

Margaret, et al, The agreements are necessary, but not binding unless you want to test them in court.  Realisticall, who has time.  Soemtimes I have been able to get some a partial commision, other times not when thing fall apart.  At the point where they want to move on, let them move on.  It is probably better for us anyways.

I am still quite new to the business, having been at this for less than two years now, and was taught from the beginning to get the exclusive buyers agency agreement with every buyer; I have done this religiously, and find very little resistance to it. It is simply how I do things, and people are ok with it. I see some people who are not comfortable bringing it up, and they have difficulty getting it sgined. I will not work without one now. Only one has refused to sign, and I let them go. They have since got back in touch with me, though, asking me to sell the place they bought, since they are not at all happy with it, or the agent they later chose. They actually apologized to me.

It is only useful if  you are willing to enforce it, though. Most people will respect it, but I am currently faced with someone circumventing me. I see someone above questioning if anyone has ever enforced it, and well, I think I will in this case. These were difficult clients from the beginning, and now they are lying to me. Last week I recieved a call from their mortgage broker and she said she is cancelling their mortgage application, since they bought a place the day before, and had decided to pay cash. On that day before, my clients had called me to say they are postponing their search, as they need to leave the country on business... I am not certain if they are lying to, me or to the mortgage broker, but I will find out. If they are lying to me, I will go after my commission.

I always tell people that if they are not happy with my service, I would gladly release them from our agreement. Lying to me does not accomplish that; it only makes them liars. I am not impressed, whichever story is the truth... I worked quite hard for these people.

Thank you Maggie,

I found out yesterday that a buyer with whom I had spent a huge amount of time and written numerous offers has decided he has a better chance of getting a home in this compettive, multiple offer market by working with the listing agent. Who of course is delighted to double end any deal!

You have inspired me and encourage my agents to use the BBA.

David

Napa, CA

Hello All....Oh yes I have been there too!!!!

http://activerain.com/blogsview/1123305/realtors-are-under-valued-and-it-is-our-fault

Applause, Maggie!!  And, if you haven't already, consider partnering with a strong loan officer who'll watch your back.  It truly is amazing how buyers don't seem to realize (we'd like to think they care) that sales professionals work on commission and not philanthropic energy. We all need to remind our clients of this, too.  And incorporating this with asking for referrals is a perfect way to accomplish two great business-building steps in one.  Thanks for sharing such a dispicable act in such a positive light...Applause!

Nicely said! And it's a message I need to hear. I had a situation where I took my time, and my gas, to show this wonderful family homes in my area. Only to be told that their realtor, in another part of the state, could help them to purchase in my backyard. Ouch! It's going to be tough for that other realtor. I wish her the best. But, the lesson I learned was the same as yours. Oh, I've had problems like this before, but that one broke the "camel's back." I'm so over the meet-me-at-the-listing plan. From now on, it's "Meet me at my office." (And that's exactly what I did with my last buyers. We closed on Friday.) Whoo-hoo!

Hey Maggie,
Great post. My wife is considering joining me in RE and while she was on vacation this week, I took her to work with me. I began working with an out of town buyer and began by getting the BAA signed. It was a great lesson for my wife as she potentially begins her career in real estate. I hope she will be our buyer's agent so you blog was exactly what she needed to hear.

After being in business for over 7 years, I still have a hard time setting down with the buyers and selling the benefits, but I do it because we've all lost moeny and learned our lesson at one time or another. As you noted, it is a page turner for us if we want to improve and learn our craft. I know that Kim will understand the importance and use this great tool as a result of our instruction to her. Thanks for helping.

By the way, I wanted to comend you for great writing style, and using yourself as the example. It was a great blog!

--Bud

This is very interesting to me as a new Realtor. I have not given this much thought, but will now. Thanks.

Enjoyed the humor.  And the reality of the post.  I enjoy having a buyer loyalty agreement, and if you need one please let me know.  Happy to share----

Hi Maggie Great Post and food for thought!  I actually do not think a Buyers Rep Agreement (or BBA) will stop a buyers cheating heart.   The BBA is just a piece of paper, if the buyers is uncomfortable with you and wants out, they can get out, trust me it happens all the time.  Furthermore, I would not even dream of fighting another agent in my community over a two timing buyer, BBA or not.  The other agent has no idea that the buyers are running around with any Realtor that picks up the phone. Honestly, would you have taken that other Realtor to the mattresses and fought for their commission check?  Most importantly, Realtors twisting the arm of the public into signing a Buyers Rep Agreement before any service has been performed, reinforces the negative stereotypes aimed at our profession. Was Tina wrong for waisting your time (and money)? YES ma'am!!! But why didn't she want to meet with you for two weeks? How is it that someone else got to see Tina Face to Face without having to pull teeth?  From the beginning of your post it sounded to me like Tina did not want to work with you for some reason.  Not your fault, but you have to read the signs and remember Real Estate 101, "Buyers are Liars and Sellers are Worse"!  You are better off without Tina and the only piece of paper any of us need to see up front is a PRE APPROVAL LETTER, without that, the Buyers Rep Agreement is a moot point! :)Cheers!

Maggie,

I think you handled the situation with class! We're always here for you to vent. A similar situation happened to an agent in my office. She went to a showing appointment to meet a buyer and he had made an appointment with the listing agent at the same time. My co-worker just ushered the buyer in the house while the other agent followed him going "Here's my card, here's my card. Call me." while trying to shove her card in his hand.

Not sure what happened. I don't think he bought anything.

Wow!  What an eye opener.  I'm working with buyers tomorrow. I do a great deal of business with this buyer and I naturally assumed I'm their gal.  WRONG!  The first thing we're doing before we get in the car is reviewing and signing the BBA.  Thanks so much for a great post, Maggie.

Barb Mihalik  Coldwell Banker Sea Coast Realty, Wilmington, NC

So true.  It is interesting I was reading your blog... we were just talking about this same topic a fe minutes ago. 

I do believe some buyers may know they are taking advantage of our services without any intention on being loyal in exchange for our professional time.

The majority I think just don't understand how we work.  Possible we should get back in the groove of education and not work so hard at trying to please their personal desire.

Oh my! What nerve she had. I may not have been as nice as you were. Way to take the high road. I do use buyer's agency agreements and sometimes wait to get them signed, but they have been great!

Oh my! What nerve she had. I may not have been as nice as you were. Way to take the high road. I do use buyer's agency agreements and sometimes wait to get them signed, but they have been great!

LOVE THIS BLOG. You are so right on about the time consuming efforts it takes, and easy to avoid responsibilities, we have to our self in this business of Real Estate. Keep On Trucking and all we can do is not make the same mistake twice. I think they say that is a measure of insanity to repeat the bad behavior...Cheers to you and much success in the future!!!

Awesome blog!  Although I agree that as agents we should ALWAYS get either a buyer's or listing agreement signed, sealed and delivered BEFORE we take on any action, we should keep in mind that even though we do get these documents signed there's still no guarantees that the client will continue to retain our services for whatever reason they should choose not to as they can simply state they no longer require our assistance and submit to us a simple letter telling us so.

There's always two sides of the story and though the reality in this particular scenario is you got burned, I'm sure most of us had it go the other way where a client approached us asking to represent them after finding out their previous agent had not serviced them well enough.  In which case after we've conducted our confirmation that the client in fact did disassociate themselves from their former agent, we openly accepted this new client and helped them either to sell or buy a home. 

I would go on to say that despite this unfortunate incident you had to muster through which left a fairly bad taste in your mouth, I don't think this has happened to you frequently enough for you to completely change your entire approach to acquiring and servicing prospective clients.  Unless it has happened far too often to which I would then say perhaps you are correct to alter your style of servicing potential clients so as to not get burned again. 

However, if you've been finding success and prosperity in your career doing business the way you've been doing it up until just recently, then I would say forget this incident and move on to the next client.  I've used this phrase in my everyday thinking which helps to remind me that not every client is the same.  "SOME WILL, SOME WON'T, SO WHAT....? NEXT"!  Some clients (and agents too) will buy, sell or call me to see my listing.  Some won't buy, sell or call me to see my listing.  So what?  Who's NEXT? 

I'm sure agents find a way to focus on a particular way and style of conducting business in order to garnish the best overall results from those efforts.  Some only work with buyers.  Others love listings.  Others would rather manage properties than do any selling at all.  If we were back in the year 2000 then I would say, sure...go ahead and choose which you'd like to work with exclusively and go from there.  But this year, 2009, when the economy is low, housing market is S-L-O-W-L-Y picking up pace and there's talks that things are strarting to look up, we should feel blessed to have any activity at all whether it be only buyer's or seller's or both. 

What happend to you is unfortunate.  But, consider that as a lesson learned for the next time something like this comes around and just be prepared to act accordingly and take action.  Remember, not every client or agent conducts themselves in that manner.  You just need to learn how to indentify which one is which and then work accordingly.  And in doing so will help to strengthen your reputation towards being an exceptional real estate agent who despite most odds, can still do her best to try and get things done.   

Wow I have had some clients with cheek before but never one like her!   Good luck in your future endeavors which will all have buyer rep agreements! 

Interesting post and discussion. Customs vary from one location to another. In my market there are not too many brokers who ise BBA's.

Buyers are liars.  Even the signed one's unfortunately.  That story is amazing and still does not surprise me in the least.  Glad you're moving forward with your business.  We're not taxi cab drivers with a Commerce Dept license.

Have a great year.

What an ackward position to be in!

I just worked with a buyer who had me prepare an offer and we scheduled to meet at the house to sign the papers.  He then told me that his loan agent was also coming...so we waited and the loan agent showed up...with an offer!

I was speechless!  just kind of maintained my cool and got the heck out of there as fast as I can!!  Definitely do not want to be involved!

Hi  Maggie

Great Post....and a great reminder of the entire "buyer qualification" process (meet n greet; buyer broker agreement; pre-approval; benefits of working with you,etc).

Who knows; after a face to face meeting maybe you would not want to work with a particular buyer...and this one would have been a doozie!!

Like everyone has said....better off without them!!!! Spend your time and energy with people who really want to work with you!!!

Best Wishes,

Pat McGuire

Wow, what a story. At least you figured it out at the first appointment ... I've been lax with my BBA as well, that will need to change again.

Great post and oh so true.  We all are guilty of working with clients without having them sign the Exclusive Buyer/Broker Agreement and we have all paid the price.  Do we continue to work without having them sign?  YES.  Old habits die hard.  One way to make it easier to is to introduce the BBA as a company policy.  That way, it's not YOU asking them to sign it, it's the company you work for demanding it.  It's the company's way of making sure their agents time is productive.

Maggie - I use a BBA and that never let me down. I'm also thinking about charging a retainer, just in case.

We work it this way - set up to 4 homes to view and try to spend no more than 3 hours with them on the first meeting. Thats the freebie. During that time we asses the buyer's sincerity and ability to buy, we build a relationship. After which we attempt to either sell one of the homes we just viewed (it happens more often then you think) or schedule another round of viewings. If they want to go out again, we inform them that we will be asking them to sign the BBA that we have left them with (we give it to them to review and they bring it with them the next time signed).

If we hear from them again - we got the business - if not, oh well - no more time wasted!

Cheers!

HI Maggie,

I did that last year and had two clients who looked at 20 properties all over the place and some a couple of times.  It was a hard lesson with gas at $4.35 per gallon but one I learned well. 

At the beginning of the year I made a decision to change my policy.  I got a referral and when I met him at the office to talk over Laws of Real Estate and other pertinent disclosures that I include in my presentation, he couldn't believe that I would take his time with all this paperwork when he only wanted to see two homes.  I explained to him that if I was going to help him find a home, it was in his best interest to get to know me and to sign a buyers agency agreement if he agreed that I was a good fit for him. He ended up signing and bought a house.

I feel that getting a signed commitment from a buyer is part of a partnership we are forming with my loyalty for them and their loyalty for me.  I do explain that if they decide they don't like me or want to work with me for any reason, all they have to do is give me the boot in writing.  To this date, that has not happened and I have had the best year yet. 

Thank You,  Joyce

That was a fascinating story!  two appointments with 2 agents at the same time.  I wonder - did she even look embarrased?? BBA's a a good thing!  Best in the future with your resolve, and you loyal clients.

Maggie - you do what makes you feel good and in control. You can't control a buyer, you can control your actions to that buyer. Better luck next time, because it will be a next time and you'll be able to stop it in their tracks.

I say Congratulations to you because you learnt your lesson well. So did I. Mine was a $700K buyer as a result of my blog. I caught her in action with another realtor when I was doing my due diligence previewing for her. I had to quietly sneak out of the house to not create an embarrasment for her. That was then and like you, I learnt to never not sign a BBA.

Congratulations on your new lesson. You will be a better realtor for your future clients.

I say Congratulations to you because you learnt your lesson well. So did I. Mine was a $700K buyer as a result of my blog. I caught her in action with another realtor when I was doing my due diligence previewing for her. I had to quietly sneak out of the house to not create an embarrasment for her. That was then and like you, I learnt to never not sign a BBA.

Congratulations on your new lesson. You will be a better realtor for your future clients.

I have two buyers that I have put off getting BBAs from.  I'm going to get them first thing tomorrow.  What a wake up call.   I always ask a potential client if they are working with someone and I hope they are honest with me.  

Maggie,

I think that your "buyer" must be the evil sister to an "unbuyer" who has contacted at least 5 agents in our office and one in another office asking about property here.  Sh says that she is going to buy two houses, one for her and another for her daughter but it might be a while.  She just pumps for information, but never follows through.  One agent even made an appointment to meet with her and had showings lined up, but was stood up by the "unbuyer"

Hi!

Without reading all the way to the end through 140 comments, forgive me if I am asking a question already answered.  Why did the guy make an appointment with both of you at the same time for the same property?  Did he doubt one of you would show up? As we know, most, but not all agents deliver.  That is a strange situation for sure.  I am always willing to meet a prospect and show a few houses so both of us can assess if we are a fit to work together. 

For those of you who consistenly use a BBA, please share with us what you say and do to convince the buyer to sign it. I have gotten them signed in the past but usually when writing a purchase offer! With so many multiple offer situations there's a good chance the buyer's first offer won't get accepted. I've also had a buyer who DID sign a BBA buy with another agent and I didn't think it was worth the grief to pursue it.   http://activerain.com/blogsview/862843/but-i-have-a-signed-buyer-broker-agreement-now-what-

I had a similar situation while I was showing new condos to a client. We were in the elevator when another agent entered. He held the door for his clients and when they entered the elevator- well, they just happened to be buyers that I had been working with. That was a LONG ride up in the elevator to be sure!!

Way to go, Maggie!   We talk about using an agreement all the time, but like you we find ways not to.  What an eye opener. 

Thanks for the wake up call!

Hi Maggie,

Great post. We don't use BBA's in Manhattan. Perhaps small buyers only firms use them but definately not the norm. A broker once told me several years ago "You want loyalty? Get a dog! You won't get it in this business"

I agree with Laurie and go with my instincts. It's a numbers game with buyers. I like to strike while the fire is hot. NEXT! 

"Buyer's are Liars"

That's is so TWENTY years ago.  I can't even believe people say that anymore.  That is HORRIBLE and so unprofessional.

I'm sorry, but my buyers are fine, ethical people that I enjoy.  I work hard for them and they treat me with respect because I've EARNED it by knowing my business and DOING a good job.

RESPECT and LOYALTY, IS, AND SHOULD BE, EARNED--NOT DEMANDED.

I'm still in shock.  Buyers are Liars????  That comment is why our profession is not highly-regarded because "we" don't appreciate our potential clients.

I do appreciate my clients. And I, like Laurie Manny, am having the best year of my career.

Buyers are not liars.  In an economy like this, they should be heralded and cherished as saviors for having the guts to buy right now.

When Lenn Harley reads these comments there will be "hell to pay!"

Sorry this happened to you, but that is too funny, You are nicer than I.

That buyer will probably get it in the end, maybe Termites, or a roof leak, or better yet rotten neighbors:)

Maggie: I had a simular situation several months ago except I had met this buyer at a open house ( my listing ) and she really liked the home. She called me the next date to have a second look and write and offer. I sheduled the showing and when I arrived, there was another Realtor there to show the property to the same buyer. She did write an offer, but with the other Realtor. 

Wow, that is horrible and what a nerve scheduling two showings at the same time with two agents.

Frank

We're not taxi cab drivers with a Commerce Dept license

So you believe you are above a Taxi cab driver?

Amazing.

Hi Maggie...

Thank you so much.  It hurts to be treated disloyally when you have been loyal, taken your precious time, and money and given your all. 

Just a few months ago I had this happen to me from a 17 year friend in a different "service area" of the Real Estate business.  I won't say what part, but it is someone I dealt with in a normal Real Estate transaction on a regular basis.  She knows the business and how it works.

I had been showing and sending and updating her over a long period of time.  I showed after hours most of the time because she did not get home till after 6:00.  I even showed on weekends, and Sundays when I don't usually work.

One evening I received a call from a colleague from another office who asked me if I could use my electronic key to let her and her client in to see a residence since her office was a hundred mile round trip away and her key had expired.  I dropped what I was doing and went right down, only to see my loyal friend/client standing there with her.  The look on my "friends" face was priceless...the feeling in my stomach and heart was not. 

I calmly and quietly unlocked the door and let them in.  I hoped my expression didn't show my shock.  I then left quietly.  Later when I called her to ask what was going on, she kept saying she wanted me to write the offer, but meanwhile would I please keep looking. 

I did not look any further because I knew.  I had been the one who told her this home was coming available soon.  This went on for several weeks until I saw the pending and then sold notice in the MLS.  In checking, I found she was the new owner...OUCH! 

I no longer do business with the company she works with....but it still smarts! 

Thank you for the article!  Bless your day Maggie. 

Brenda Witt Susan River Realty

In Michigan it's required by law to have a buyer / seller sign an angency disclosure.. You either work for the buyer or you are a subagent for the seller.. If the buyer does not want to be represented then, that is thier choice and they just sign the agency acknowledging where my duties are... If they don't want to commit to me then I don't go out of my way for them.. Not even in this downward market. I have been burned too many times being a nice guy. I would rather spend my time working with my buyers and get paid when they buy, then to never get paid and to have wasted my time.

Hey Maggie,

So darn good to see you here and by the many comments you've received, obviouly I'm not alone. I've missed seeing your smiling face in the Rain, and I was just thinking about you yesterday.

Sorry to hear about your situation, but like (only a few) others, I've never used a baa either, and probably wouldn't. Have I ever been jilted? Yep, but I can probably count them on one hand as a full-timer over 35 years.

ok, so great piece from Maggie!!! But my questions is....

EVEN IF WE SIGN A BUYER AGENCY AGREEMENT, WHAT DOES IT REALLY MEAN?!!!

So many great opinions, this is a "WAKE-UP" call, yes, but are agency agreements really worth the paper they are written on?    Buyer behavior is getting so predictable....you  don't hear from them, they are working with at least one other agent! COUNT ON IT! They suddenly materialize, at their convenience - not yours of course - with excuse after excuse!  Ugggg....but we still smile, say "sure" and oh by the way, let's sign a buyer agency!! HMMMMMMMMMMMMMMM.....

Buyers agreements - nothing more than a contract between you and the buyer?  Actually, much more than that.  In the State of Illinois, real estate professionals are REQUIRED to notify the new customer (who might become a client) to be notifed IN WRITING as to the relationship between them as a consumer of real estate, and the real estate person: are we performing ministerial duties only, are we performing in a dual agency role, or are we operating in an exclusive buyer representation situation?  Beyond the legal requirement to notify, my point is that the agreement is between the would-be client and my brokerage company (not me specifically).  The contract that my company asks clients to sign lists my responsibilities to the client, as well as the CLIENT's responsibilities in our business relationship (imagine that, a client with responsibilities!).

And then the REAL fun begins when a client who has actually signed the BBA defaults, violates the terms of the agreement.  Remedy?  Pay my brokerage company a commission based on the property that the client ultimately purchased (or rented) without my assistance.  I have been involved in such a situation on two occasions.  The first time it happened, my brokerage company made only a faint attempt to collect a commission from the client.  I ultimately left that brokerage.  The second time has just been resolved within the past month.  A negotiated settlement with the ex-client is finalized, and we are waiting for the check to come in the mail.  The message here is this; keep all your business records relating to the time you provided service to this client: phone conversation notes, appointment notes, emails, schedules of the property visits you arranged, everything.  These records that I kept did allow my brokerage to stand firm and insist on a commission payment.

Slightly interesting is the fact that that second client bought a property from a private buyers, in a neighborhood he told me that he specifically did NOT want to live in, and apparently overpaid by 13%.  I found the transaction in our local county recorder of deeds website.  I had a hunch that he would buy something, and checked the records periodically.  And one day, there it was.

My managing broker tells me that I am one of 2 or 3 agents in an office of nearly 40 agents, who bothers to pursue and collect a buyers agreement.  I was stunned; who wouldn't pursue the agreement, I asked myself.  What I hear my colleagues saying is that it is unseemly, unsophisticated to demand a buyers agreement from a client (our market is a higher end market).  I disagree with that notion, and contrary to that logic I know that  a buyers agreement sets the tone for a highly professional approach to the search for a home.

Have I had a client refuse to sign an agreement?  Yes.  I had to decide whether I would "trust" this person to be "loyal" to me.  I decided to be trusting, and found that buyer comfortable with signing an agreement for the one property he wanted to buy, as we sat and wrote up the purchase agreement to present to the seller.  How can the client refuse THAT request to sign a document that pledges allegiance to me and my company, after I brought him to that point of writing an offer?

If I ever had a client refuse to sign an agreement, and my instinct warned me not to proceed in business with that client, I would politely excuse myself from any further activity with that client.  I refuse to waste my valuable time with someone who I strongly suspect will sacrifice me when push comes to shove.  I don't have the time to waste on someone else's real estate follies.

Patty

They are the client, they should, without question, be allowed to "suddenly material, at their convenience..."

I'm reading all of these comments and wondering if anyone her understands:

1. the biz

2. that the client is the custome and WE work FOR THEM.

Hello.

Wow Great Blog!! Im in the process of moving into an office as opposed to working from home and Im looking forward to asking clients to meet me at my office.  I generally do not ask buyers to sign a buyers rep but I clearly see the benefit of doing so at this point!

Your post hit the nail on the head of what we've been struggling with.  Sometimes we insist on the buyer brokerage agreement - but honestly we're still not 100% with the concept.  We know our value, know we're worth it - but your point about investing the time to actually sit down with a potential buyer and have the consulation is a huge part of it.  Parcticularly when we are run so ragged with the offers on multiple offers it takes these days to get one to stick. 

Your post was a great slap in the face.  Thanks, needed that!

~ Julia & Matt

I could argue both sides of the converstaion but I wont. However I just wanted to say I love the way you wrote this! And well done for holding your tongue.

Susan -

You DEMAND a BBA?

You don't ask them, or show them why this might be GOOD FOR THEM?

Do you care about your clients, at all?

DEMAND?

I work in a very, very, very high end market--and let me tell you there is NO WAY a CEO of a Fortune 100 corp is going to sign that. PERIOD.

I don't demand a thing from my clients

Would you be shocked if your car salesman asked you for a BBA?

It would be ludicrous.  

Maggie, I admire your positive attitude!  In the face of betrayal and rejection, you chose to view the unfortunate situation as an epiphany. Bravo!  Yes, I, too, have been burned in situations where I did not have the buyers sign a formal agency agreement with me.  In fact, it happened last weekend with out-of-town buyers whom I had carted off to seven showings! (not to mention e-mails,  free brochures and maps, telephone calls, letters, notes, and two prior excursions.  Although devastated at first, I came to the conclusion that without a written commitment, there is no incentive for loyalty among some folks. Soooo. congratulations on your epiphany!  Your courage in sharing this event is highly commendable. 

Maggie, I admire your positive attitude!  In the face of betrayal and rejection, you chose to view the unfortunate situation as an epiphany. Bravo!  Yes, I, too, have been burned in situations where I did not have the buyers sign a formal agency agreement with me.  In fact, it happened last weekend with out-of-town buyers whom I had carted off to seven showings! (not to mention e-mails,  free brochures and maps, telephone calls, letters, notes, and two prior excursions.  Although devastated at first, I came to the conclusion that without a written commitment, there is no incentive for loyalty among some folks. Soooo. congratulations on your epiphany!  Your courage in sharing this event is highly commendable. 

Maggie -- even thought you wasted valuable time, you are better off without that probably deadbeat client.  Also, if she does it to one agent, she'll probably do it to another. Good riddance.

Nice...  I might have carried on the conversation with them over the phone for a minute...  Of course, I might have also said a few choice things. 

Way to go Maggie........could not have put it better myself.  Thanks for sharing your post. 

Way to go Mag! :)

I had someone who wanted to look at a home for lease.  She said the agent she HAD been working with was always a day late in submitting her paperwork. They had missed out on 3 lease opportunities.  I had her sign a buyer/tenant rep. agmt with me at our first meeting.  We saw the property she wanted and scheduled some time to look at more.  Well, she cancelled the 2nd meeting we had saying "a family emergency had come up".  Never heard from her again...though I tried to contact her. SO...there are no guarantees even with the signed paperwork.

I am SO sorry you had to go through that experience though!!  You have a GREAT + attitude!! Loved your post!

Reading these comments is why real estate agents scare the shoot out of me.

Roseann's comment is particularly puzzling:  "positive attitude"

Roseann, Maggie wrote a post about how horrible this person is.

I think you should re-read the post.

Hi Maggie -- I've been there, done that, on a few occasions.  I still don't believe in BBAs as procuring cause can still trump it, and then one has to go after the buyer for a check, which I'm not willing to do, but perhaps the bba itself is motivation enough for some buyers.

Jazzy said it best:

It seems there are a lot of "chatters" in here blowing sunshine up other's arses.

My words for this woman are not appropriate and my get me band for here. 

NAR has to levels of service:  Customer and Client.  No one is a "client" until, and unless they enter into a contractual agreement.  Either a listing agreement, or a buyers rep agreement.  You were perfoming client level service . . . for a CUSTOMER!  That person had not retained you, or formed a contractual agreement.  You were performing FIDUCIARY DUTIES to a CUSTOMER! 

Kevin nails it.

BBA is all well and good--and local, really. But it's better to not need one because loyalty is earned and developed when the service provided is stellar. Trust cannot be contracted. It's either in the perception of the consumer or it is not. ***

What an embarrassing situation, Maggie.

But these things happen. There's NO FOOLPROOF WAY TO ENSURE LOYALTY! Even a BBA won't do that.

NEXT NEXT NEXT  :)

***Now please click the Members Only button on this post.

Because we all LOVE our clients, we LOVE people and we LOVE real estate!!!

Carla just nailed it too!

[You were perfoming client level service . . . for a CUSTOMER!  That person had not retained you, or formed a contractual agreement.  You were performing FIDUCIARY DUTIES to a CUSTOMER!]

God I love this job. :)

Blame the customer for pitting one against the other!  Shameful, isn't it?

Good article.  In Central Illinois, most of us agents do not do a BBA.  I went to a realtor association meeting about a year ago and suggested that a law be put into place that all agents must have buyers sign one of these before they show anyone a house on the MLS.  Of course, all other agents said "NO" to it!  After having lost about 6 deals to buyers who "bought behind my back" with another realtor, I have been fed up.  I have tried to enforce BBA's on buyers after that, but they refuse and usually after that, decide not to call me back, so I haven't tried it since....We really need a law to enforce all buyers sign a BBA.

David Castle, Coldwell Banker Devonshire Realty

97 Eastgate Dr, Washington, IL  61571

309-645-0537 (direct)

309-694-1423 (office)

www.DavidCastle.biz

Hi Maggie.

I do use a BBA. I always ask a caller - after initial exchanges of some basic info. Oh, who is your agent? I have said this in blogs before, 90% of the time I get a truthful answer - it is a much different question than, are you working with an agent? If someone wants to see my listing, and they say they do not have an agent, I do meet to show them the house - after all, the seller hired me to sell it.

It occurred to me, is it possible the buyer thought you (or even maybe the other agent) was the listing agent? With access to listings on so many sites that wipe out the listing agent info, I think internet buyers don't always realize YOU are not the listing agent of that property. To us they are a lead from someone else' listing. So they make the appt - and then bring their agent with them.

Also, I am curious to ask Noel Padilla, the agent wanted to pay you only a referral fee after you arranged the appointment with her? That is unbelievable!

Although it would be wonderful and I would prefer to work with buyers only on a handshake and earned loyalty, the fact is I have 27 sales this year for a total sales volume of just under 4 million. I cannot afford to spend my time working with buyers that may buy a house with someone else impulsively. I explain a lot (and I do point out the part that says they are obligated to pay my commission if the seller does not, as in the case of an unrepresented seller) and give a lot of service, but basically most people understand completely when I explain, that if they were selling their house, they would have a contract with me, and it's just the same, but now they are purchasing. I have explained it when I have been with 1st time buyers and their parents - and the parents do understand, usually because they have sold a home. Have I lost some people? Yes. Some great buyers? Yes. But some not so great ones too. And if after signing, we do find out that we're not a great match, I don't have a problem voiding it - not everyone is going to like me, and I'm not going to like everone either. But at least I don't spend any more time with them - and they may be happier with someone else.

Maggie,  Great story.

  I have not had that happen but have been burnt by Prospects before. 

 In relation to other responses, I have this question.  If you do not have a signed BBA, whom do you represent?

  In Missouri our R E Commission rules establish agency.  We fall into one of several categories automatically based on our actions and the documents we have signed with the Seller or Buyer to establish the relationship.  If I do not have a BBA signed I automatically fall under the sub-agent status.  Does your Prospect understand that now you do not represent him, but the Seller?  Under state guidelines there is a restriction on what information may be presented to the Prospect if you do not legally represent them.  You can be held liable for presenting information that may sway the Buyer or Seller if it is information that you did not have the right to divulge.  The BBA is not a contract to guarantee your commission.  It is a legal contract that states the relationship and rights of the two parties in the transaction they are going to embark on.  If other states do not have these requirements then this may be superfluous to other people in the Rain.  When I have a BBA signed I do it to protect me, legally,  not to hang a Buyer/Prospect to my hip for a specific time frame.  I am never worried about someone else's two-timing #^$, I am making sure that I protect mine.

Ed

I guess I should add that this was after I made contact with the buyer, asked them if they were working with another agent, and started showing them houses.  Fidicuary duties to a customer was not the case in any of the lost sales I incurred from these buyers.  Illinois is a "love the one your with" state.  Part of it lies in unscrupulous realtors who do not ask the buyer (going to an open house, for example) if they are working with another agent and they sign the buyer up then and there.  Not worth fighting because I really think fighting is petty in this game, but heartbreaking for sure.  The only good thing is that there are very few buyers I have encountered like this compared to the whole that I have serviced.  I am grateful that most buyers are not like that, but they are out there.  I think that now that I have been a realtor for at least the past 3 years, I have started to get a feel for buyers and get that "sense" if I think they might "wander".  If a BBA law was enforced, this would at least cut down the realtors who are unscrupulous out there quite a bit, I think!

This post needs some "ARDELL."

Excellent post Maggie.

This is for Jazzie

Amazing.  I had something similar happen once....I had worked with a guy and even negotiated through an offer (while I was on vacation) which he let slip through his fingers because he couldn't be bothered to get paperwork back to me. So after he lost his first deal, we made an appointment to see things when I came back to town. I sent out a mass email asking realtor friends if they knew of a house that would fit a certain buyer when a colleague contacted me and said it sounded like her "new" buyer.  Sure enough, we compared notes and she had appointments to show him homes that day.  And then he screwed her over after a few showings as well, probably working a side deal with an owner...live and learn!

This one is to Kevin:

1.  Buyers ARE liars.  Yes, they are.  If you haven't had that experience, I'm happy for you.  Getting a Buyers' Rep Agreement helps keep everyone honest.  When I explain that this agreement binds ME to THEM as THEIR representative (and point out that just as they wouldn't go to court and expect the other guy's lawyer to represent them; so they shouldn't plan to buy a house and have the other agent, working for the SELLER, be their representative), I usually have NO problem.

2.  The only thing we have to sell for the commissions we make is our time and expertise.  Just as lawyers, doctors, and other professionals inherantly demand respect, so should we.  We are NOT above taxi drivers, but we don't have meters on our dashboards either.  We get paid WHEN and IF a transaction closes.  I make this clear to my clients:  I am working for THEM, but getting paid by splitting the seller's agent commission.  I up-front state this.

3.  Sometimes CEOs and investors don't sign BBAs.  But if you know up front that you are skating on thin ice, and they'll go with the next person, you can act accordingly.  If you can show them you are the best agent for them, they will be as loyal as if they HAD signed the BBA.  Usually good business people are more respectful of us commissioned salespeople than the low-end purchasers, since they are more savvy about the business world.  And good business people are ethical business people.  If they aren't, eventually they will catch their come-uppance, e.g. Bernie Madoff, ENRON, etc.

Lastly, putting down BBAs because you don't get people to sign them, and putting down agents who DO, is unprofessional on your part.  In my state (Texas) the Texas Real Estate Commission has a very good, and easy to explain promulgated Buyers Rep Agreement.  Yes, it takes educating the buyer on the first substantive meeting, but that's part of the bonding process. 

Thanks, Maggie, for a useful and entertaining blog.

I understand your disappointment. I have something similar happen to me. We were in a buyer brokerage agreement.

One thing I would like to say, is agents that don't use a BBA know that they aren't liable to be representing the buyer as a client. They like to represent them as a customer instead. There are different responsiblities. The agent at that point doesn't want to be tied down.

However, anyone that signs a BBA (agent or buyer) has EVERY right to cancel that agreement early-either party. Consequently, any homes that you showed them during the time prior the to early temination is still covered by your PROTECTION PERIOD if you wrote a time frame in there. So there is NO excuse for a REALTOR to feel they are locked in. These are most often times the agents these buyers run to-the ones that say "Oh, no. I don't make you sign a BBA." They use that as a form of marketing.

You (agent) would just cancel the agreement yourself if it wasn't working out. What's the big deal. But at least you knew who your client was during that time and they knew who their agent was LEGALLY. It says it across the top of our BBA that you are not legally represented UNLESS you have the BBA signed. Period.

I agree with #9. We are professionals. If you are a professional, you would start doing what a professional does and protect your money legally.  A doctor has you sign papers before they do work on you. You sign papers when a shop does work on you car. Most companies charge a retainer. I am starting to incorporate that for my buyers and sellers. GA changed our contracts in mid year to reflect these changes. Changes that make our business sound and professional.  No longer will seller use me to list there home and I pay money on marketing and don't get paid when it doesn't sell. Our agreement that was revised tells THEM they are responsible for the marketing of there home and that the agent has the RIGHT to sue if they don't pay.  If you decided not to take it that far, thats you. But we sign contracts to buy these houses and they are enforcable in the court of LAW-so are these agreements these buyers and sellers are signing.

Would you be scared to sue someone to vacate your rental property for none payment. And then move forward for a judgement of that which wasn't paid. No you wouldn't be. Its business. They had a contract with you to pay. Agents are scared to sue because of what people may say about them. If it is proven that they were wrong, I don't think these people would be saying anything at all. They would be ashamed. Wow. It must be great to be a buyer with such spineless agents out there ( I have been guilty of this myself). We need to stand behind each other and our 100 year old profession and treat it like one.

I get most of my buyers from my AR blog - by the time they get here, we have already developed a relationship and narrowed down their property search to a few neighborhoods - I meet them at my office, and we go from there - I always start with a tour of our small town and neighborhoods.

I no longer have buyers sign BBAs.  I explain how we get paid and tell them how much work is involved in representing a buyer and tell them that if they ever feel that I am not doing my job, let me know and they can find another agent.  I don't want to be committed to someone for a specific time that I may not want to work with, for whatever reason - and I give them that same privilege.

I haven't had my license long but quickly learned (in the first month) that most people do not take us seriously.  Not because of anything we have done just because I think people just don't understand.  I took a sign call looked for properties for this guy for weeks, finally drove 30 minutes to show property when he told me he had the codes to the lockboxes because his friend 2 hours away (you guessed it a real estate agent) was sending them to him.  Why did he even call me?  He could see the houses himself and he knew darn well that he wasn't going to let me write the offer.

I guess people just think we get paid no matter what?  I don't understand why anyone who knew what it's like to be an agent working only on commission would treat people that way.

That must have been awkward. If an agent asked me to sign a BBA, I would gladly, so I see no issues with using them. I like how you told the story in a letter. Very creative!

Maggie,

I enjoyed your post about the "two-timing buyer."  What concerned me, however; were some of the comments in response to your post by licensees who stated they "don't" use buyer agency agreements and the one person who stated he didn't plan on using one!  (If a licensee is working with a buyer and does not have that buyer under an agency agreement, they are really tredding on thin ice!)  I personally don't believe that under this circumstance a licensee can avoid creating an "implied" agency situation.  For those who may not know what this means, it's simply saying or "doing" anything that gives the buyer the impression you are "working for them."  Think about it.  The rule of thumb to avoid creating an "implied" agency relationship is you can only repeat to the buyer the information on a property that is considered "public" (the property info contained on the MLS print out is an example).  When a buyer enters a property they really like - the questions follow.  And it's always questions where the licensee has to give a professional or personal opion.  These questions should ONLY be answered to a buyer under an agency agreement.

As everyone knows, buyers are becoming more informed every day and, unfortunately, some buyers that have done their agency homework may take advantage of a licensee who crosses the implied agency line.  If you do cross the line and have one of these buyers, and they decide to take you to task on implied agency - you will lose. 

I have been practicing buyer agency for over 17 years - long before it was the norm.  For 10 of those years I owned and brokered an "exclusive" buyer's agency office (we took NO listings in order to eliminate any conflict of interest).  My buyer agency training goes far beyond having an ABR.

The buyer orientation is so very important.  My buyer orientations take approximately 1.5 hours.  But, if circumstances are such that you can't work in the time it takes for the orientation, there's still an easy way to handle the issue of getting a buyer under an agency agreement.

In Alabama licensees are mandated to provide all real estate consumers (buyers and sellers) a one-page agency disclosure form describing the types of licensee relationships available through our particular real estate firm.  Since this is the first step, I simply include in my brief explanation of this disclosure statement several scenarios of the difference in having the services of a buyer's agent and the services of a non-buyer agency relationship with me (i.e., "...now remember, Mr. Buyer, if you're not one of my buyer "clients" I will not be able to provide you with any information other than what's printed out on the MLS info sheet.  For instance, Mr. Buyer, I cannot respond to questions you may ask regarding what type of neighborhood this is...do I think the house is priced fairly (or overpriced), discuss any buyer protection clauses that should be inserted within the offer to purchase, etc.  You must realize Mr. Buyer, Alabama is still a caveat emptor (buyer beware) state....

I give buyer prospects one freebee - I take them out to view homes only once without them being under a buyer agency agreement!  After that first trip, I do not waste my time again unless they have become buyer clients.   The buyers I work with end up practically begging to sign a buyer agency agreement after I've explained what I'm NOT able to do when they work with me under a non-agency relationship!

Now, there is one more thing I provide to my potential buyer clients when I'm discussing the types of relationships available to them through my firm:  I provide them with a 100% satisfaction guarantee on my services.  This satisfaction guarantee works both ways...if at any time the buyers are not completely satisfied with my services, they can terminate the buyer agency agreement - no strings attached (obviously I have a form for this); however, if at any time during the time frame of the agreement I feel they are not being realistic or just plain impossible to please, I can terminate them!!!  (The "satisfaction guarantee" makes it much easier for a hesitant buyer prospect to sign an agency agreement.)

One other thing - don't ever sign a buyer agency agreement for a period of more than 30 days.  I've seen licensees in my local market sign a buyer up for 6 months!!!  If a licensee truly understands and practices buyer agency appropriately and checks and completes the tasks of an experienced buyer's agent, there is no way they would commit themselves for that length of time!  

Buyer Agents should ONLY sign up motivated buyers.  Remember, it's your responsibility to determine whether or not this buyer is a motivated buyer!  Simple, up front questions include....how soon do you need to be in a home? ....have you been pre-approved?...what is your price range and how much house are you wanting to buy using this price range?  Just these few questions will let you know right off the bat whether this buyer is serious about buying a home and whether or not they need a "reality check" about the local market.  Ultimately, it lets you know whether or not you should be devoting your time (and gas) to this buyer - you're not obligated to sign up just any old buyer that you come in contact with either in your office or over the Internet.

You might be interested to know that my buyer agency agreement has a statement in it that says "no offers will be presented until buyer has provided Buyer Agent with a lender commitment letter as well as proof of funds for any down payment or cash transactions.  The buyer has 5 business days from the execution of the buyer agency agreement to provide said documents."  Never in 17 years have I had a deal fall through due to financial problems.  Also, if you properly explain buyer agency to a potential client, they don't have any problem at all providing you these documents.

I didn't mean to go on and on and on.  I'm just so passionate about buyer agency and have found that my years of buyer agency experience has afforded me the opportunity to pass this knowledge on to not only other licensees but has made the practice of having all my buyers under agency agreement so easy.

Pat Whitman, Associate Broker
ABR, CRS, e-PRO, GRI, RFS

Former National Director, NAEBA (National Association of Exclusive Buyer Agents) 

Kevin

I have heard you on a webinar and really enjoyed your comments - but there are a couple of things here that you have said that I would like to comment on;

1) usually a car salesman is working at one dealership and although he may spend time with me - I am going to see him - and only going to look at his cars, he isn't driving me around and calling other dealers and scheduling appointments for me to go and see those cars.

2) A client is someone who has hired you, and you are absolutely right - then you work for them! But they are not the customer then, they are the client. And that is something I explain to buyers - the BBA means they are hiring me to work for them. And there are many benefits to a buyer, not the least of which is slowing them down from acting impulsively at an open house and writing the offer with the listing agent on the spot because if they want it, they'd better write the offer immediately, because there are other offers, because they can get a better deal, etc. etc. then their interests are not being protected.

3) I bet the very, very, very high end market is crazy, scary competitive, but, I bet CEO's don't have the time (or choose) to go out and look at houses 3 times a week for a month or two or more. But, I would love to find out!

And I do get that with sales, it's the nature of the business that you are going to win some and lose some, sometimes because of our own fault, poor follow up, unprofessional actions, lack of communication. I try to keep an open mind - and think of corporate sales, or huge contractors bidding on jobs. They can spend months and months working up pricing, proposals, estimates and the like, only to lose the project to another company.

I think we all have to examine oursleves, our own ethics, expectations and work the way that is best for oursleves, our customers and our clients - and then give them the best we have.

Dear No, If, And or But's,

Why do people try to steal their blessings? Because they are people with little respect and character!

Never feel like you have been robbed, belittled or defeated by FOOL'S!

A fool will never prosper! Never lose sight of the goal even if it means losing a client.

Keep Moving On,

Joy Pleasant

www.joypleasant.com

Hi

Our new puppy Sammy

Maggie...

Looks like BBA's will be in high demand now thanks to you!

I recenrly used my first one in 15 years and Im so glad I did.

I think if we are too afraid to ask for a committment then

we show our insecurities and lack of professionalism. People sign similar

docs for attorneys because its expected and they want their help.

So I say ;ets make this as normal as a listing contract then it too will be expected!

You deserve to get paid and remember that if we want to volunteer our time

that's off the clock.

Brenda Swigert e-PRO

RE/MAX Unlimited  West Chester, OH

www.BrendaSwigert.com

What a good reminder for all of us to get the Buyer's Rep Agreement signed before investing our time and energy.   

Great Blog!!! It is so darn tough for us to get these buyers to sign these Buyer Agency Agreements!!! I strongly believe that there should be a Real Estate Law passed that no Buyer can ever buy any Real Estate without a Real Estate Agent. Just like no surgery is possible without a surgeon!! This is  probably the only way to stop these 2-timing buyers from taking advantage of us. I don't think they have any idea how many hours of sweat we put in finding them their dream homes!!! 

ALL AGENTS SHOULD GET A BBA. THEN WE WOULDNT HAVE ISSUES REGARDING THIS. We cant always blame the buyer if their not educated on the process. And besides its law to have agency. I always tell my clients I need to have agency with you to show you homes.

Let's play this out for a second.

You meet this buyer at your office. You explain/sell/convince the client of the beauty and benefits of working with you as opposed to working with another agent and force/convince them to sign your BBA.Which try as you may there really is no GREAT reason for me as a buyer to lock in with any one agent if you think about it.

I know for me what I try to offer my clients is hard work and great service but I also understand there are many other great agents out in my market that offer pretty much the same thing as I do.

I ask you this question as a buyer. Why should I / do I have to sign anything for you to open up a property for me. Will you not just meet me at the home and show it to me? I am pretty sure if you don't want to I can find someone that will.

We continue...

New client signs the BBA to get you to open a door for them.

New client buys with another agent. Then what?

You end up in court fighting another agent who knew nothing of this BBA with you for a commission on an $80k sale?

Me, I think I will actually find me another buyer who understands the value of the service I provide, commit them to me with my salesmanship and work ethic, write a few offers and close a few deals.

And in this market if 1 buyer on an $80k home gets you to the point where you even worry about it, maybe you are not prospecting enough?

Unrelated question:

Does posting replies on this active rain boost your ranking on Google or something? I actually cannot believe this many great realtors were so surprised by this topic and needed to respond. HUM......

Ps... Nice touch with the copyscape protection at the base of the post Mag's. God knows you wouldn't want any plagiarism of this little nugget. Please...

Broker Buyer Agreements make a lot of sense to me, and I've learned they can avoid a lot of aggravation.

Christine,

I'd love to be the fly on the wall when you are explaining and demanding to the buyer that they must sign this.

That would be a great tutorial.

Gareth

My response to you is this:  (maggie please forgive the link)

http://activerain.com/blogsview/1216598/are-buyers-really-liars-what-saying-this-really-says-about-you-

I don't know what it is like in other states, but in NY, we must provide a disclosure to the buyer describing the relationship from the outset. Pat Whitman describes it perfectly. Only a client gets client-level services and in order to be a client, there must be a buyer brokerage agreement in place. If that agreement is not in place, then the agent should not be advising or in any way acting as a consultant to the buyer. Not only is it risky as the buyer is not tied to you by a contract, but in NY it is a breach of our fiduciary duty to the seller. In fact, when you call an agent to show their listing, you should be disclosing to them whether the buyer is your client or a customer. If you are a buyer's agent, then the listing agent can give the seller a heads up to be careful what they say.

That's not to say that a buyer can't walk away from a contract; they do it all the time. But if I am acting like a buyer's agent when I really work for the seller, then I am living dangerously. Very few agents seem to understand this concept in NY, but hopefully buyer agency will become more the norm. I will sometimes show properties to a buyer without having them as my clients, but there is a limit to what I can do for them and if they decide to work with another agent, then I haven't spent too much time and effort on them. My pet peeve is agents who call buyers their "clients" when they have no contract. In the case of agent/buyer relationships, loyalty is not earned, it is a matter of law - at least in my state.

Hello Maggie,

This is a great blog.  I have decided to make the BBA, just part of the paperwork required to show houses.  That way I am not waisting my time, energy and resources on an NON-Buyer.  When I got into this business 4 years ago, I was not busy and had a lot to learn, so I figured taking clients out and showing house was a win/win.  After a large write off of gas, not counting my time and resources, I decided to wise up. I am revamping my business to require a client to meet me at the office, prior to going a looking at property.  I require pre-qualification and/or pre-approval, I explain with property turning over in as short as 1-30 days, it is in their best interest to have this paperwork ready as many properties are requiring it along with the offer, as well as  presenting our Movewest Realty, Inc. Addendum and a Buyer Broker Agreement. 

My Husband has been a Woodfinisher for 25 years, He has alway required half up front to cover his expenses.  Wouldn't it be nice if we could do that?

Then we go and find their Dream home.  

Darla Dennis- Movewest Realty, Camarillo, Ca

Coast to Coast Relocation specialist - Keep in touch, We may need each other in the future.

I have a friend that had a similar situation...the buyer called her at the last minute and cancelled.  Since my friend (the agent) was already there, at the condo, she figure she should check out the unit...the lock box was empty, so she went to the unit, knowing another showing was going in...when she walked in and announce dherslef, someone ran and hid in a closet!!!!!!!!!!!!  It was that buyer!  what a chicken and what nerve! 

For a mortgage standpoint, I just dealt with a borrower that I had helped to get their credit score up enough to qualify. I had spent a lot of time with them getting them ready to buy. They then had a family friend that was going to be the real estate agent. I met with them sent over 3 different pre-approval letters after they found different homes. Then after a wekk of no return calls, I hear from them. They were unable to look at homes they have been busy. Let's talk again next week. The following Monday, "Mr. X, our realtor, said he had someone that he knew that did mortgages. He would be able to get them a better price on the home if they worked with him. Come to find out, they paid more in closing costs and ahigher rate than I was giving them. But at least, their freind got a kickback of sorts from his partner. 

For a mortgage standpoint, I just dealt with a borrower that I had helped to get their credit score up enough to qualify. I had spent a lot of time with them getting them ready to buy. They then had a family friend that was going to be the real estate agent. I met with them sent over 3 different pre-approval letters after they found different homes. Then after a wekk of no return calls, I hear from them. They were unable to look at homes they have been busy. Let's talk again next week. The following Monday, "Mr. X, our realtor, said he had someone that he knew that did mortgages. He would be able to get them a better price on the home if they worked with him. Come to find out, they paid more in closing costs and ahigher rate than I was giving them. But at least, their freind got a kickback of sorts from his partner. 

Gotta always get a buyer broker signed before showing ---- heck we recently showed homes to someone we have known for more than 30 years and had them sign one also. People who do not want to sign likely won't ever buy anything from you anyway.

Kevin, working on Miami Beach and dealing with executives and higher end homes, should be a breeze to get a Buyer Broker Agreement signed. Executives understand contracts and commitments for work being performed. I find people at that level are easier to deal with, when it comes down to contracts. Also on a BBA you can represent a client as a single agent or a transaction broker to limit any liability that some people feel a BBA brings. I do not find that to be true myself and if a client wants to sue you they will, with or without an agreement.

You're blog really caught my eye Maggie.  My compliments on speaking frankly to your former prospect and to yourself!

Good luck with your New Attitude!

Kevin, what would a fly on the wall see that would be so interesting?  A REALTOR acting like a professional?  My DR and my Attorney make me sign a document stating what services they will provide and what they will cost me before they do anything for me.....I make more than either of them.....and I make sure that if they or anyone else is a buyer...they sign an Exclusive Right to Represent Buyer.  I have NEVER had anyone refuse to sign one.  IF they refuse than obviously they do not intend to work with me.

The lack of confidence on the part of agents who do not require one should not be a reflection on the need for one.

Maggie, Like you I haven't always gotten the buyers agency signed right away, I don't like people "pushing" forms in my face and too often we pick up people over the phone and getting them in the office first is really difficult esp if the property they want to see is 20 miles in the other direction, but I've never had them schedule 2 agents at the same time.  I have had them start out the conversation though by asking what it would take to break the buyers agency!! And I've had ones who have signed it who have disappeared on me and I know have ended up buying with someone else, but it's just too much trouble to try to find them and do anything about it.  The brokerage doesn't want to be seen as the "BAD GUY" who goes after the poor little consumer, so there's no backup there.  But you are right, we need to start out with it if we are to be respected professionals

I have a BBA signed after a 1/2 day of showings as it has led to selling the home to someone else.

Deborah Stone~ If you have them sign off on the MLS shheets with dates previewed and put into the BBA that if they buy any property that you have showed them that they can't buy that property for at least 6 months with another Realtor.

You have a better chance at winning!

Maggie,  Exceptional Posts! I truly enjoyed reading it as well as everyone elses comments.

Maggie,  Exceptional Posts! I truly enjoyed reading it as well as everyone elses comments.

Great post and interesting comments. Both states I work in (North & South Carolina) require a form signed stating agency was explained to them at the 1st meeting. As a new agent BBAs were always signed. Some time later a friend told me someone in his office had a BBA with my 1st client. After the sale the agent called my BIC wanting paid but it did not happen. I asked the BIC what happened and he said when he received the call the agent was asked if they had shown the house to the buyer. The answer was 'no'. He told the agent to call the RE Commission, a lawyer, or his mother if they wanted to but they did not procure the sale so "no even a lollipop". After that- I stopped asking for a BBA until an offer is written as I checked and my BIC was 100% correct.

Wowzer, this may just have set some kind of commenting record, if not for the number in such a short time, but certainly for the number of LENGTHY comments.  Loved your letter.

I'm guilty of not using an agreement, too. I do speak to them on the phone, or mention in an e-mail, that I'm their buyer's agent and any homes they want to see, no matter who's on the sign, etc....they should contact me about them. I also mention that if they stop at an Open House, they should let the agent know they're already working with someone. And, I educate them on how I cost them nothing but I get paid later, by the listing agent, for all my work when they purchase their property. So far, I've just assumed that if I educate them on what a buyer's agent does and how they get paid, and then they like me, they'll stay as my client. If they don't like me, we probably shouldn't be working together anyway. This has worked well for me so far, but someday.....I may also feel the need to get the agreement signed first.

I have one word for people like this,  NEXT!  However, I have to say it's up to us as Realtors to educated buyers on the agency disclosures and the principles we follow as agent. There are many buyers out there that see nothing wrong with working with several agents at once.  They don't know any better. It's up to us to educated them.

Great post.  Well put.  My wife, the broker, claims to be hard core BBA, but even she doesn't always follow her own rules.  I personally find it awkward as there is no rapport until you've had at least a few hours with someone.

No doubt there are some markets where you can get buyers to sign BBA's. Best of luck getting a 3Mil plus buyer to sign one. They'd be too busy laughing at you to even hold a pen.

I'm not so sure that watching a multi million dollar buyer walk away is smart business. I'm willing to roll the dice instead of watching a real buyer with a real check book respond like you've tried to hand them a Rattle Snake.

Great idea in concept but I'd never sign one and would suggest to any family member to never ever sign one. How can i expect a client or perspective client to do something I'd NEVER do?

I have one word for people like this,  NEXT!  However, I have to say it's up to us as Realtors to educated buyers on the agency disclosures and the principles we follow as agents. There are many buyers out there that see nothing wrong with working with several agents at once.  They don't know any better. It's up to us to educated them.

I have one word for people like this,  NEXT!  However, I have to say it's up to us as Realtors to educated buyers on the agency disclosures and the principles we follow as agents. There are many buyers out there that see nothing wrong with working with several agents at once.  They don't know any better. It's up to us to educate them.

WOW!!!!!!!!!!!!!! 

I cannot imagine you RESPONDING to ALL these comments... let alone READING them all.  It's SO EASY to SEE WHY this post was featured, for you stepped on many toes, and shared so openly when you did.... Thank you for not being ashamed to admit to doing what a lot of us would have kept a secret!

Have a wonderful weekend and new week!  I wish you 2 more to replace the one who cheated!

Diane

Here in NC we must explain to buyers (and sellers) agency relationships --buyer's agent, seller's agent and dual agent -- at first substantial contact, and have them sign an acknowledgement that we had the conversation. I then tell them, "being your agent is a big commitment from me: time, resources, the benefit of my knowledge. Today, we'll work under an oral, non-exclusive buyer agency contract, to see if we like each other. If at the end of the day we do, and you want me to be your agent, and I want you to be my client, we'll sign this, the exclusive right to represent buyer...I'll be committing to you, and you'll be committing to me...."

And Peter Buckley... why would you not sign a buyer agency agreement? I don't get it...are you personally not worthy of that trust and commitment? I am.

Maggie,

What a great blog. I am going to share this with my group, what a great story to remind them of the importance on a BBA.

Before I became an agent, when my wife and I would go house shopping I would ask the REALTOR of ra buyers agency agreement. I thought that it made perfect sence to have someone working for me, especially if I wasn't going to be the one paying them.  :)

This is a soap opera. . 

"Are you my client?'

"Maggie, what are you doing here?"

[cheezy song]

I thought you and I has an understanding. . .apparently not!"

"We are not married. I can go with anyone!" 

"Do I have to be married to fool around? " 

Yes we do Maggie. . you must have a signed buyers agency agreement

Why do you think they have marriages licenses? 

Oh how awful!  Unfortunately, we've all been through similiar situations but yours is a classic case of a 2 timing buyer!

I love it!  So true!

As Realtors we should ask the buyer "Are you working with another Realtor or have you seen other homes with a Realtor?" before showing a buyer a house.  If their reply is they have seen homes with a Realtor but, have not signed anything.  The Realtor's reply should be that's fine but, you need to sign an Exclusive Buyer's Agency Contract with me and we will exclude the homes you saw with the other Realtor.  Then add " You see, the house you saw with the other Realtor has procuring cause and that Realtor is entitled to the commission on that house according to the law".  I'm sure you can appreciate the fact that I don't want to work for free.  Realtors need to to do the right thing too!

Great post. Great wake up call for all of us.

First of all, thanks to AR for the featured post.

Second, thanks to all of you for your comments.  It seems a spark set off some lively conversation and exchanging of ideas.  I like it when that happens.

Third, I have only been able to read through comment 149 and have a bit more to finish but will have to return to read the rest.

To respond just in a general manner, I'd like to say that yes, I asked the buyer if she was working with another agent.  I was told no.  This lesson was learned years ago and I always ask this.  She may not have even been lying to me.  Maybe she called this other agent after I asked.  Why did she do it?  It can be argued that I was not providing her with proper service, but I know I was responding to all her requests in a timely manner and looking on her behalf.

I also asked for a pre-qualification and was provided one.  Another lesson learned early in my career.

And I admitted my flaw in doing business this way.  Even if a BBA is not used, a visit to the office, or even at the first home you meet at (providing it's vacant and you can take the time), is the perfect time to set expectations for both parties.

The decision to start using a BBA is one that I feel comfortable with.  At no point in the post did I state if you don't do it that way, you're doing it wrong.  We have to go with what works for each of us.  This feels right to me.  Not because I know it will stop this from happening in the future, but because it will be a pretty darn good filter for getting rid of some major time-wasters.

And for comment #143, Jazzie Luna, here's what I have to say to you:  Yes, AR is a pretty funny place.  I've had many a laugh here.  I've also made friends (yes, real ones), kept up with changing real estate technology, learned from others and commiserated. But I can honestly say I've never bent over and had sunshine blown into my anal opening.  Hmmm.   Maybe I'm missing out? (btw, if you can point out the "Woe is me," in my post, I'd like to see it.  I never made myself a victim).

You're right on the money about my needing to EDUCATE the buyer.  That's what's going to be done at that office consultation.  Right before the BBA gets signed.  Or not.  That will determine if we continue working together.

Another thing you'd be hard pressed to find is where I said an $80,000 purchase was "beneath me."  I said it was well below what I usually sell.  There's a difference.  And even so, I still wanted to help her, but you chose to not see that.  We all set boundaries for ourselves in the markets we service.  For instance, I don't sell commercial.  I know agents who don't list/sell below $1m.  I have never set a "range" I adhere to, but have ended up where all my transactions are at least double what this person was looking for.  That's just fact, not cherry picking.  If I were cherry picking, I'd be doing the luxury transactions Kevin Tomlinson is known for =)

As for the public post, thanks for pointing it out, but I know how to use Active Rain and am well aware of where the drop down menu is giving me the choices: PUBLIC, MEMBERS ONLY, DRAFT & ASSOCIATES ONLY.  You see, one of the things I came to admire on AR was how a favorite blogger (Triple B!) makes all of his posts public.  He has nothing to hide and neither do I.  The reason you berate me anonymously is not because my post is public; but rather, because you are a coward and find courage only in anonymity. (if my teenage kids were listening in, right about now they'd interject "do you want some ice for that burn?")

I am proud to say that I have NEVER posted an anonymous comment on AR or anywhere in the blogosphere.

And your final comment put a smile on my face.  I deserve it?  You have no idea what I deserve.  Perhaps if you were to get to know me better you would have an inkling.  But that's all.

End of comment to Jazzie Luna.

I have to return later to read the rest of the comments.  Thanks again everyone and have a fabulous Sunday!

There are many out there that do this. I have a signed buyers agency at all showings even if its exclusive to properties we are looking at that day. No exceptions.

Great post Maggie.  Before moving to Florida a few years ago I practiced exclusive buyer agency with my clients in another state for many years.  No signed agreement, no showing.  It worked well for me and for them.  It was very simple. We signed an agreement for one house or one day, whatever worked for them.  At the end of that period, we decided whether we wanted to continue working with each other. Usually by the first or second house showing, the buyer was ready to commit.  They realized that the service they were getting was well worth it and they no longer wanted to jump around.

As real estate professionals, it's up to us to set the rules. I was disappointed when I arrived in FL to see that transaction brokerage was the norm in my area. I went along with it and I too, was burned.  You are giving me the motivation I needed to go back to more professional behavior. We are not "pop tarts"...  we are real estate professionals and we need to act that way.  Thanks again.

I'm cracking up here guys.  Cracking up because as I posted my response up there I noticed that Kevin's handsome face kept popping up.  I had to take a closer look.

Kevin, you have highjacked my post!  But that is OK.  You have my blessing.  I have not read what transpired below comment 149 except I snuck a peek at a couple of Kevin's comments.

Folks, most of you may not know this, but Kevin is a top notch producer who outproduces not just most of the agents in Miami, but in the country.  He's like E.F. Hutton.  Y'all should perk up an ear and listen when he's talking.

Now, I really have to go now, but promise me, kiddies, that you'll play nice in the sandbox while I'm gone.  OK?

Hi Maggie ~ I thinking that this buyer wasn't very smart.... I have a feeling the buyer was actually working with more than two agents. Great post and on the hte next.

Great post.  I need to get back in the habit of using this agreement too.  It's uncomfortable to me to get buyers to sign it, but it needs to be done.

Wow this is a first! It's good you found out early though. This make me rethink my buyers consultation, I don't do them much anymore, but I have never had this problem. I think I will start doing them again so maybe I won't have this problem in the future. Thanks for the post!

Same here Maggie, as a home inspector, i'll get phone calls with many questions and I'll explain all the reasons why I should do their inspection, but alas the only thing  they want is a low price.  There is no way to get them to sign on with me before I bear y soul, if there was I wouldn't waste so much of my time with shoppers!

I think you've touched on a subject we have all been a part of at one point or another.  How surprised would she have been if you sent her a bill for your time?  That is exactly what an attorney would have done.  In fact, I think I will try that the next time that happens to me and I will let everyone know how it went!

I too had a simular situation.  Only for me it was in my own office.  Another agent was on floor time when my renter came in.  Unfortunately I'd only worked with this person by e mail and phone because there was issues.  This renter went in and asked if she could view the office next to ours which I'd listed to rent.  The renter never said that she was working with me and that I was setting up showings.  She told me by phone that the space I'd listed would not do because it was too small and she only wanted a month to month.  My commission was 5% of the total lease which with one month would be about a few dollars at most in the end.  Anyway, this new agent showed her, signed her, called my listing client and they together agreed to the lease and voila, it was done without me.  The new agent said she didn't realize she should not talk to my client.  I am now unable to find a 3 year tenant and receive a large commission.  The owner took the deal because he has to pay about 100 dollars for the commission which is now split between me and this agent.  While I could pursue because she was not to call another agents client, I like her and didn't want an issue.  My upset is that all this renter had to do was say, "Is Katie available?"  and they would have know I was working with her.  I learned the following:

1.  Detail the commission down to one day if necessary.  I now put one months commission each year for anything below 2 years. 
2.  Tell every new agent that enters the office not to call the listing agent's client
3.  Tell every single clients at least three times to call my cell only at all times no matter what or ask for me when going into the office.  This is embarrassing.  The agent should have asked if she was working with another agent.
4.  Sign up every single person even if it si only an unrepresented buyer for each address.  This would give evidence that I was there with them on that day.  If they buyer tries to get another agent for the same property without telling them I would then have an arguement. 

In the end it is up to us to ask, rinse, repeat  ask, rinse, repeat.  We need to drill it into the head of those we are working with that they must call us if they sign an agreement.  I explain that I need to have at least an unrepresented agreement for each address before they walk through the door.

I have even had another agent that was working with a tenant showing a commercial rental ask my client the owner if he could ask a personl question privately.  He took my client outside and asked if he had anyother property not listed with me that he would agree to list with him?  BALLSY!!!!
Fortunately my client said, "get away from me!"  LOL.  I would have said something but didn't find out until later.  I was too shocked at the time to say, "No, you cannot talk to my client."

Take Care

Katie

Maggie,

Agreement or not, we have either developped rapport with a clients or we have not. I believe we should have a specific focus or target market and not try to be all things to all people. Get out of react mode and create your market.

Oh Maggie I forgot to add this...I never use them either...I don't need to pressure anyone who doesn't want to work with me....I'll take them out a few times and try to establish a relationship...that's the best agreement I can have but if they decide otherwise..i just move on...i really don't have time to pursue a buyer who went with another agent. Generally they'll either buy or not buy so I just don't care...its also just another piece of paper I need to carry so I don't bother with it...just my 2 cents.

While I certainly understand how frustrating all of this can be,  I will never use a buyers agreement.  They just do no sit right with me.  Trust and loyalty needs to be earned not forced with an initial meeting contract.. 

Where's Jazzie when you need him/her?

I think that Buyer's Agreement's are great because there are Buyer's out there that don't understand the buying process (and how we get paid). I use it as a format for describing the process.  

Yay, Maggie! What a story, and what a comeback to your anonymous and critical comments.

Cheers,

Robin

Hi Maggie - what a shame this happened to you, and as you said, this was one of those life lessons we all encounter from time to time on all kinds of things. 

Buyer agency consultations and buyer agency agreements are part and parcel of representing buyers here in NH and Maine where I practice.  I saw many comments that said they were uncomfortable getting agency agreements signed.  It all starts with your initial buyer consultation - in person or on the phone, preferably in person.  Just as with all things in life, it's all in how it's presented. 

Kevin - you do make me laugh - loved that picture you posted way up above!

Ann

Maggie

Very well done!  Obviously your post hit a chord with many Realtors.  I always recommend a 1 hour consultation and at that time I present the buyer agreement.  If they don't sign it, then I pull out an "informal" buyer agreement and ask them to sign that.  It works like a charm.  It basically tells the buyer all that I'll do for them and requests them to return their loyalty to me.  I'm going to send your post to all of my agents.  It was spot on!

This recently happened to me. Live and learn I say! Next time you will know and so will I. Get those Buyers Brokers agreements signed!

I love this story though. You call the buyer and she is right there with another agent. What was she thinking making an appointment with you as well, that you just would not show up?

Wow, you certainly hit a sore spot with a lot of us! Don't feel too badly, I recently fired a buyer withwhom I had a Buyer Agency Agreement because he called another agent who showed him a home which I then showed him.  I didn't know until the listing agent was nice enough to call me and give me the heads up!

Maggie,

Loyalty is nice, but unfortunately in business it is not a given. We are not agents and, we believe we are the BEST however, I believe some of the time we are "competing" as you were and not realizing. We have had great customers who love our product, but may find someone else who is cheaper or have a different style of video or business. So they leave, fortunately for us they usually come back but sometimes they don't. Isn't that just ALL business?

Wow. That could have been a very uncomfortable situation for the three of you, but you handled it superberbly, like the true professinal you are. You did receive a lesson from it, and I am sure by you sharing your story, many others have as well. I know I have. I will be more diligent in having the BAA signed up front. Thanks again for sharing.

Maggie - Yes its unfortunate this happens but so does life. I agree with Ann above it all starts with your first consultation with a buyer. I personally don't ask for a BBA nor probably ever will. I ask right off the bat if they are working with anyone else. If they are I graciously tell them I do not compete for my business like that and I wish them well. I also explain to them that it is not a good thing to do, using more than one agent as it puts them at a disadvantage in the long run. Agency dictates here. Even though the BBA is not foolproof either... depending upon how it's written of course.  Sorry to hear about this but you just got to move on when this happens. It's happened to me many times as well.. So has life... Just my two cents.. Great post as well!

I had to comment just becasue I scrolled through 260 comments. I think you touched a nerve maybe!

Hi Maggie, Yes, you are definately better off without this client. At least you learned early on, of her deceit. Sorry you had to waste that precious time. We have all had a client or 2 like Two timing Tina. thanks for sharing!

Good Post! I was searching for similar post the other day. I had a client, showed him properties for over one year, fewo got accepted but buyers (my clients) backed out because house had bad direction, one room is small or kitchen has no granite.

All of sudden he stopped calling me, when I called he said he already bought a home from another agent....go figure.

No more buyers for me without BBA

Oh my gosh Maggie - now way - I am sorry that happened but it had to be kinda funny to catch them like that - you rock - and I hope they find the agent they had with them is not nearly as careful of protecting them as you are.... miss you tons

Don't beat yourself up Yours Truly   This was an opportunity - you learnt a valuable lesson and now you know.

My philosphy is to let Buyers know up front that I work for money but without actually stating such.

What I tell potential clients is how I can save them time searching for their new home, what services I offer, how I can negotiate on their behalf etc.  I then mention the Buyer Agreement.  If they are reluctant to meet me in person I offer them 2 options:-  pay per hour (which sets the stage so they know I have value)            OR    mention how they can "employ me by signed the Buyer Agreement nd they don't pay me anything until Close.  I do explain how I am paid by the Seller's agent.  

I have had good luck with this method.  One clients was willing to try me out one weekend "to try me out and see how things go......"      I actually showed them the home they finally purchased 2 months later.  It made it very difficult for anyone else to show procuring cause because it was recorded that I had shown them this home. 

Sometimes Buyers are just unsure, and want to be reassured you are a competent and caring agent.

Sarah Mendel, Keller Williams Realty - NC   

Maggie - a valuable lesson, and one htat many of us have experienced, at least in some way, shape or form. I'd day you were spared the misery of working with a buyer who, having done this, will likely do it again or some other eaully offensive behavior. Good riddance. I hope you wished the other agent best of luck.

Jeff

I feel your pain-

Just got a letter from a buyer I have been working with for about 3 months.I have driven them around to about 50+ REO's.We had written about 12 offers.Got a few counter offers, but no accepted offers.

Well then they decided that since they couldn't get an offer accepted with ME as their agent(yes we do have a BBA) that they no longer were going to use me.

The email I received said: "thanks for all your hard work these last few months, but unfortunately, we have decided to go with another agent"

So I told them we had an agreement and they would have to cancel in writing, according to the terms of the agreement.They did.

Then I cancelled the auto-emails that the MLS sends them daily, for properties that meet their criteria.

Got a phone call-"why don't I get your e-mails anymore?

Reply-BECAUSE I AM NO LONGER YOUR AGENT!

What they fail to see, is the fact that every agent here in the INLAND EMPIRE with buyers in the 180-200K price range, are in the same boat.

Every offer you submit,is up against 20 or more others, alot of which are cash buyers.

They think it is me, but it is just the way the market is, here in our area.

So I wished them well.When they asked for all their pre-approval letters , DU approvals etc,etc, I told them to have their NEW agent contact their lender and get the info.

Am I bitter-NO, Am I hurt-YES.

But the way I see it, it just frees my time for the other 5 buyers I am working with.

A BBA really doesn't mean much, when either party can cancel it at any time.

I am in agreement with Robert.  "It is what it is."  Embrace Life however it shows up.  I, too have been taken for a ride by a few buyers.  I decided to say, "so what."  I believe that we will always get the good of this life.  Take the lesson and move on.  I have a saying "I Let Go and I Grow!

If using a BBA works for you, then do it.  It is called "choice."

Strength, Courage and Confidence to all of you!

Rosa Addison

Maggie - I have a completely separate question: did you promote this post elsewhere?  I don't remember ever seeing this many "non-member" comments on one post.  Just curious -

We all have to come to this realization at some point in our careers.  The buyer's agent agreement is one of the best tools in the industry, hands down.  Congrats, on the new you!

We all have to come to this realization at some point in our careers.  The buyer's agent agreement is one of the best tools in the industry, hands down.  Congrats, on the new you!

I wonder if there were even more than 2 realtors involved. . . hmmm. Glad you are back in the signed representation game, let potential buyers know that you only work using a buyers rep agreement and how it benefits both of you.

My first and only two-timer had a buyers agency agreement with me.  Parents were giving their daughter and future son-in-law $10,000 for a downpayment so I had everyone sign a buyers agency agreement.  We wrote four low ball offers on houses in a three week period.  I kept advising them that they were not going to be accepted.  Everytime I tried to talk to the young couple about making sensible offers the parents told them no to back it down $10,000.  Not in our market would that work back then.  Finally, I told the daughter on the last contract that if she did not listen to me she would not get her offer accepted.  I told the mother that we could not keep going in with senseless offers that her daughter would become distraught.  Mother replied she was tough she could handle it.  Last offer was multiple offer and daughter started crying when I told her that their offer was too low and the sellers took the other offer.  She asked me why I couldn't get her offers accepted because her parents said their offers should be getting accepted!! That's when I realized she was spoiled and expected to get what she wanted just because her Mother said they would take less.  Parents took couple to an on site agent the next weekend and they wrote an offer.  I called the mother to tell her another house in their price range had come on the market.  She said oh, we found a house  yesterday and are already under contract.  I told her that she had breached our written and agreed contract.  I asked her how she thinks I get paid for all the work that I did for them?  She said that because I couldn't get any of their offers accepted they decided to just go with a new house.  They refused to tell me where they had put an offer in.  I did call the other agent after the closing and told her.  She said she could not give me a referral now because it was too late.  She did say that they were the hardest people to work with and she deserved all her commission.  My KW broker in charge at that time refused to go to bat for me because it was not worth upsetting that agent and agency.  BIC said consider it a lesson learned.  So lesson learned... with some buyers a written Buyers Agency Agreement contract isn't worth the paper it is written on. 

BBA? Good idea, but you have to be willing to lose a client or two.

Are we willing to do that?

Good post Maggie!  The more posts like this that buyers can read on the internet the more likely buyer's will feel more comfortable hiring a Realtor who is  a professional  to work for them.  The million dollar question is: Does the buyer want to hire a Realtor or find a Realtor to play show host?  Realtors have to ask themselves do they want to be show hostesses or do they want to run a business and make sure they have a roof over their head and food on their table for their families. 

In my neck of the woods we have several retirees who are thinking of living in the Ocala Florida area and looking at other areas of Florida.  I am in favor of a retainer fee with it being credited to the purchase of a home during the contract period.  If the buyer does not buy a home during the contract period I have no problem being paid the retainer fee for my expertise and  re-cop the cost that it took to get the buyer lead.

 How can any buyer or other business professional think that someone is going to drive them to several communities, educate them on the communities and the area for nothing? 

 Realtors who run a business value the amount of money and time they invest in education, marketing, and gaining valuable market knowledge to help clients make the right real estate decision.  It's not just a Realtor's time and gas for the day, but the whole package that is very valuable to a buyer.   I know my market knowledge can't swing a buyer's decision in an instant depending on what that buyer is looking for.  That knowledge is very valuable.   Work with clients who have the same values as you. 

Dawn Rupersburg

Coral Shores Realty Inc.

Representing buyers Ocala Real Estate

Retirement Communities Ocala Florida

Maggie,

Sorry to hear that you had to go through that - but hats off to you for standing your ground from now on! I live in a rural town of only about 5000 people in the entire county. This means that a lot of them are from here and have lived here most of their lives and they have family here blah blah blah. Well that means that "Oh my cousin is a Realtor, My Husbands 3rd cousin is a Realtor, I'm really good friends with so and so whose cousin is a Realtor". They never want to sign a BBA, nor do they want to list their home with you because they don't want to offend anyone. Well, I'm offended. So, this is what I tell them "If you want to work with me one on one and know that I am not here because you are a family member or friend, then call me and I will help you, if not - then best of luck to you". Not meant to be harsh, just can't waste my time on every joe blow that says hi anymore.

Good luck to you!

MAGGIE GIRL  First off      <<< here is your hug>>>

The quality of ones character is judged by their actions.  All this talk of relationships- truth is while there is a percentage of our customers with whom we wil develop a relationship; there are a high percertage of those out there who treat us more like one mindless night stands.  I loved your letter. 

These days buyers will randomly call one agent after another- to them we ALL are interchangable.

In part because the Internet gives them anonymity they don't feel they need a relationship to buy a house- just someone with the keys or code to let them into see it.

Treat your business like a BUSINESS..not a dating service.  If the Buyer Brokerage Agreement works for you- than keep doing it.   If it doesn't don't.  More importantly, screen who you want to work with.

Here is a different twist on situation.

We have several brokers in our area advertising to "contribute $500-1000 to closing cost if they use their firm to buy a house. After some challenges with real estate commission, they apparently could do it legally if phrased properly. North Carolina.

Some smart buyers are using top agents to learn the market and than ask you to contribute to closing cost after weeks of working together. I tell them that I am not a discount broker and provide them with exceptional service to justify my work plus finding a house is only the beginning of transaction.

Regardless, they want extra $1000 to add to their $8,000 goverment fund.

They would sacrifice on good negotiation skills just to get extra money.

Question - how do you handle those clients?

Maggie, congrats on the feature! Just when I thought I'd heard everything, along comes your post!

You certainly handled yourself professionally. Good for you.

The buyer's character true colors shone through. Ultimately, you saved yourself time. People like that are never loyal to anyone.

I do agree with Laurie - listen to your inner voice. Our business is not a one size fits all business. Every situation is different.

Sharon

Bravo, bravo!!  Very well put!! Thank you for the courage to share!!

Maggie,

Glad that you caught her red handed. Buyers just don't seem to understand that we don't get paid until we go to the closing. I am so tired of using my time, gas, knowledge and expertise to be the door opener. Not all buyers are like that !!! But some are. I had a gal that I spent a week with, had buyer agency with and then caught her out at the model home of an area builder. When I tried to push the agency agreement, the builder said that she had been out there and in contact with them months before she had ever contacted me. Even the commission said that my beef was with her and not the builder. Buyer agency is a good thing to have but won't always stand up in your favor.

Sounds like you handled yourself professionally. If she was going to act that way right now, imagine what the transaction would have been like. She probably would have wanted part of your professional fee.

You probably don't have a hard time sleeping at night because you have a clear conscience.

Renee

Maggie:

Great post--I know too often I jump at the first request to meet a potential buyer's "need" rather than taking the time necessary to establish a relationship and position my services and what I need to have in place in order to have a productive working relationship.  Your post hit home with me, and has given me the impetus to do what I know I need to do at the outset with a potential buyer.  This experience definitely would fall under my classification of "That does not kill us makes us stronger".

Have a great day, and thanks again for sharing your experience and lesson learned.

Best,

Great Post! Thank you! I have had these situations come up as well and I just don't understand how people can conduct buisness this way. I think about having my clients sign a BBA, but I just don't seem to get it on the table. Trust, loyalty and ethics are hard to find. This is a tough buisness!

Derenda

Kirkland, WA

Let's not leave out unethical agents either...I have been working with a couple to purchase their first home (not savvy to RE) they were driving by a house in the neighborhood they want to be in & saw a realtor putting up a for sale sign, buyers stopped & asked how much & if they could have their realtor show it to them...at that point he said "NO, only I can show the house" which was a bold face lie! Fortunately for me the buyers contacted me and asked if this was true.

From your description clearly this buyer was not interested in developing a professional relationship with any Realtor and therefore would most likely not have consented to the BBA. All of the signs were there: evasivness, unavailability etc. 

Sorry Maggie but it seems to me where it went wrong was by not sticking to your own policy of the way in which you meet and begin a relationship with a new client. With a buyer in-take interview you may have discovered that this person was only interested in having someone open doors for them. I feel certain in the mind of the buyer, they had not made a committment to any Realtor, they were only requesting showings, not a professional relationship.

If you play the odds, sometimes you win and sometimes you lose.

Thanks!!  I will certainly keep this in mind.  It's happened to me, but not quite as bad as your story!!

1. What an idiot! To ahve scheduled 2 appointments with the same house/different agents.

2. I too get lax iwth the BA, and will meet someone ONE TIME without it. At the 2nd appointment, I want it signed or no more work.

I have a question for all : Why is there no confusion as to whether a broker would list and sell a home WITHOUT a contract? And brokers allow their agents to  work with buyers without a contract, and for the most part buyers don't think they dont need to or should sign a BBA of some sort. I know this because I ask them.Thank you for any comments. 

Maggi,

Congratulations!!!  For the past 9 out of 11 years in real estate I've only worked with Buyers who were willing to do a thorough up front consulation - resulting in a signed Buyer Brokerage Agreement!  Doing business this way has sustained me through the good and bad markets and it's made my career SOOO much more enjoyable.

Best Wishes with your new career path  :-)

Wow, by the number of comments you received you have definitely hit a nerve.  I think that we've all been there but better to learn the lesson sooner than later.  Great post and congrats on being featured.

That has sure happen to me and it stings, I just had a buyer call me last Sunday evening to show them a foreclosure that they desperatley wanted to view and the contract had to be in by midnight so they asked that I please meet them over there to view it (I asked them are they working with an agent and they said no), it was late but I did it.  They gave me one name over the phone and when I got there she gave me a different name.  The person that I had with me over heard her husband call their agent letting them know that they did want the property.

The property was listed by my broker, I let her know and gave her both names the buyer gave me.

As agents we must have buyers sign the buyer brokerage agreement, we protect the buyers but if this is not signed who will protect us.

Great post.

In 10 years, I've never had a Buyer sign a Buyer's Broker Agreement.  In recent months, I've had two Buyers treat me the same way as yours did.  Needless to say, I'm going to start making them sign it.  In today's world, loyalty rarely exists.  Unfortunate, but true.

Maggie,

So sorry you had this experience.

But what are you doing having your first face-to-face in a vacant home???

That just is not safe, no matter how many emails and phone calls you had... (You indicated it was a HUD in the post and your comment mentioned vacant.)

Maggie, this is just heart breaking and I know how you must feel.  You should have laid her out verbally when you had the chance.  You post maybe made up for it but her behavior was inexcuseable.  But now you will have a better buyer system in place for the future.

My first year in real estate I made the mistake of not getting exclusive agreements because I didn't know how to approach them. I worked with 10 buyers and didn't close a single one. I even refused one after his deal with the other agent fell through and then he wanted my help again but still without an agreement. Since then I may show them a house they sign called on but after that I do the consultation and get the agreement. I now have about a 90% success rate closing my buyers.

I have a power point buyers presentation that is similar to a listing presentation only it is geared to the buyer.  It explains why they need a buyer rep, why it is important to have a buyer rep and how it benefits them.  I find that it makes them more likely to sign an agreement and if they don't want to I have to seriously consider how much time I want to invest in them.

You are right on!  After a few of these situations in real estate, you realize how easily buyers can sneak away from you.  But let me warn you, because it's happened to me.  Sometimes a Buyer's Rep isn't enough.  I had a couple of buyers, showed them 131 houses in a 4 month period and business relationship secured by a Buyer's Rep. with a 6 month expiration date.  The husband got tired of looked and the wife kept trying to find the perfect house. Neither were listening to me nor taking my advice in their decisions.  The Buyer's Rep. expired because after showing those houses, and on top of that, passing a interview with their parents, the buyers just 'disappeared'.

Come to find out, they bought with a listing agent after my Buyer's Rep expired and bought in a completely different area that we had been looking. 

Maybe I could have done some things differently, I admit that, but what they did taught me a very hard lesson.

I had this happen with a new, young attorney recently.  I did a lot of calling and research for her up front and she kept delaying our initial consultation due to her 90 hour work weeks.  After not returning my calls or emails, I finally got a response to a final email I sent.  I got the old "I've been meaning to contact you..."  She had attended an open house an called some other agent to write up the offer.  Everything happend "so fast" she said.  Here was my response:

Wow....

Maggie,

Lucky it was a small sale.  This year it seems I have had my but kicked a few times.  It does come with the turf, but never feels good. Some people don't mind wasting your time and using people.  Good luck in the future.

Maggie, Maggie

What a wake up call and it had an ouch to it. All the comments that have been posted all give great advice. The only thing that I would recommend is go out and do something nice for your self. Remember --there are more fish in the sea.

Holy Crap Maggie...

I just came back to see how things were going over here. Ain't no way I'm reading 300 comments. At least not on a Sunday :)

TLW...ROAR!

Maggie,

This happens to everybody.

I don't get the buyers signed up as early as most people, because,f I don't like them, then  I don't want to work with them.

Brian

Cool under pressure.  If you handled yourself that well given the situation, rest assured the buyer was the loser.  Your blog has prompted me to insist on Buyer Agreements.  You know I'm still not working with one in place with my current buyers -- knowing full well that they can bolt at any time. Duuuhhhhh!

Ok. This was an epiphany for you. Great that you learned the lesson. But a few things:

1. You were not that buyer's agent unless you had a signed buyer brokerage agreement to begin with. That person was a customer to whom you owed nothing except to be nice. If and when you had signed BBA, then and only then would you have been her agent.

2. I don't know what the legal status is for agents showing listings to unrepresented persons in other states, but in CT, agents are not supposed to show listings outside of our brokerages without a BBA, which would make the buyer our client.

So, while I understand your outrage, and the fact that you spent time, effort and energy on this person unrequited by even a minimum of loyalty, technically speaking, they couldn't have "two-timed" you at all, because by all the facts that you presented, you were not even in a relationship....

Now, if one of my buyer clients had done this, it would be a whole different ballgame...that's when going ballistic would definitely be in order...

Buyer-Broker agreement + $150.00 at least something to get... I am sure, "buyer" will sing agreement when you wave $150.00.

Well, in my "case" was $900,000 sale! Contract was singed, rejected, all  buyer's info in contract, few month later "My " buyers went again to the same unit with the developer... their price was way better then I got for buyers from the developer. Lovely... Commissions will be paid but much less...

FROM NOW ON- REGISTER YOUR BUYER! That lesson I learned.

I don't sell REO houses- for buyers they are an easy access from the street, they don't need me- listing agent's sign there.

Maggie, you are right, the buyer has to meet us first time at the office. Mandatory. Not just buyers, tenants as well. It is why we do have an office!

A different twist-

I wish I had the ability to have a client sign an agreement to work exclusively with me.  Seems we in the mortgage business end up getting burned by borrwers at least as often as agents do, if not more often!  If I had a commission check for each time I have spoken with prospects to issue a preapproval, taken their calls at all hours & stayed in contact for months at a time, only to have them disappear soon after having their offer accepted!  Often, it takes a lot of creativity to repair credit scores, & structure a loan so it will work at all, & we end up making it easy for the next guy...

Some lenders require an up-front application fee, something I hate to hear, but I guess it makes folks less likely to walk away. 

No one likes being an unpaid consultant!!

Interesting comments!

Would any of us ever consider taking a listing on a property to sell without an employment agreement between us and the seller?  I would hope the answer would be a resounding "NO!" 

Then why do we want to work any differently with buyers? 

Re-read our NAR Code of Ethics -- it stresses client relationships.

I have only had 2 buyers to refuse to sign a Buyer's Representation Agreement in my career of 13 1/2 years and hundreds of buyers.  I referred them to agents and neither one of them ever bought anything.  It is like everything else in this business -- the consumers have to see our value.  The problem is, we are not even convinced of our value; therefore, we cannot communicate it effectively to the consumers!

Hey Maggie -

What a great blog!  You've really gotten me thinking about that BBA, that pesky paper I'm hesitant to ask anyone to sign.  Personally, if someone asked me to sign one, I'd turn and run - simply because it eliminates my choice of who I would like to work with.

However, I have lost a couple of "clients" to other Realtors.  Thank goodness I didn't spend too much time with them.  Interestingly enough, my last 2 clients have said, "Thank you for not asking us to sign any agreement."  So, I'm still on the fence about it.  On the one hand, I think the service I give my clients would prevent them from going elsewhere but, on the other hand, we do have the human element to deal with & more often than not, people are totally unpredictable.

Maggie I met with a first time home buyer the other day. She found me through a post here about Buyer's Semniars. I met with her personally and brought with me a Folder of info that I gave out that day.

In it was the BBA in there. She asked me what it was, I flat out told her, its an agreement that from here on out, were are exclusive, I work for you and in return you respect that I am the only agent that you would work with.

Her responsive "That's not asking for much, sure here you go and right there she signed it... All you have to do is ask, even if it means them giving you this look like you are crazy!

I find it hard to believe that this would actually happen.  Pretty crazy and irritating.

I find it hard to believe that this would actually happen.  Pretty crazy and irritating.

I find it hard to believe that this would actually happen.  Pretty crazy and irritating.

I find it hard to believe that this would actually happen.  Pretty crazy and irritating.

I find it hard to believe that this would actually happen.  Pretty crazy and irritating.

I find it hard to believe that this would actually happen.  Pretty crazy and irritating.

Great post, Maggie. Two-Timing Tinas are a dime a dozen in these parts. Lesson learned.

MAGGIE THIS IS LIFE IN THE REAL WORD FACE TO FACE WAS A REAL BUSINESS. THIS E MAIL & COMPUTERHAVE MADE BUYERS MORE UNFAITHFULL AND TOOOOOO INDEPENDANT.i MISS THE DAYS OF OLD WHEN I STILL TRY TO GT THem  IN NOT E MAIL THEM AND TAKE THEM OUT N.Y. REAL ESTATE IS SO GREAT FOR THAT , THIS MLS ONLYshould  eXIST IF IT IS OUT OF ARE OR SO HORRFIC,I TOO AM NOT THRILLED WELCOME TO REALITY, I WILL NOT SPIN MY WHEELS IF SOME ONE TELLS ME i m working with other realtors that says it all If i cannot show you it all ,then be gone , I will not work for 0 n hour i think all realtors understand that one be very selective and if you must hold back a while do so ! until you KNOW YOU WILL GT PAID MONEY REAL DOLLARS!

Donna DaMario face to face is where it is at if they wont meet you you wont close any thing!

CLOSE FOR THE APPOINTMENT IT WAS, AND WILL ALWAYS BE THE FIRST STEP!TO LISTING, !OR SELLING ANY THING ! TIS TRUE TIS TRUE!

Maggie, really enjoyed your post!  I am sure that we all have succumbed to showing property to a buyer that we had not cultivated a relationship with, let alone, had a broker's agreement signed.  It is these lessons that help us to grow and take the next step towards a higher quality of life. 

One of my favorite sayings is "Hurt me once...shame on you.   Hurt me twice....shame on me"

You made a big mistake by taking 10 days to show her this home.  Too much happens in ten days especially when you haven't met face to face yet.  You were just a voice on the phone and some words on an email. 

So when you went to check out the neighborhoods for her, what did you report back?  You haven't me her yet and you think you'll be able to know if she'll like a neighborhood?  Giving opinions on neighborhoods being good or bad is pretty risky business.  I tell people to do their own drive bys because a lot of that is very subjective.

I have actually seen borrowers take two lenders all of the way to closing..... they wanted a backup.

crazy

Of course, their credit sucked, so they NEEDED a backup.

I think credit score is a great judge of character.

Wow, that is unbelievable. It amazes me that some people either don't realize or don't care about basic professional courtesy.

Hi Maggie, Congrats on the featured post.  Apparently you've hit a nerve!  In Massachusetts, we have a Mandatory Disclosure Statement that must be signed on a first personal meeting.  I have never had anyone refuse to sign.  I use this as a jumping off point to discuss facilitator vs. buyer agent, etc..  I usually accept facilitator relationship at first, but tell them up front if we seem to have an amiable relationship and they feel I could be a valuable asset in their search, I would require a buyer agency contract for future tours.  I don't usually have a problem getting this signed either because I explain exactly what I will do for them.  Most people agree that I should be compensated for my time and effort on their behalf.  I choose to be positive and continue to trust that my clients will act appropriately.  Haven't been burned yet, but if I do, I'll consider it their loss ;)

I am ashamed to say, I know nobody who uses this.  I am going to push my broker on this and investigate with my associates on their use of  BBA's

Everybody lies.  If you don't think you do, too, then you're just lying to yourself (again): 

http://health.usnews.com/articles/health/brain-and-behavior/2009/05/18/were-all-lying-liars-why-people-tell-lies-and-why-white-lies-can-be-ok.html 

Simply make a conscious effort not to and you will improve your credibility and your relationships.

WOW!  We all know of stories where a buyer was utilizing several agents to find a home but this story is the first I heard of where both of you were there.... I cannot even begin to imagine the feeling of seeing the buyer reach for the phone as you were calling. 

Great post Maggie.

I really enjoyed reading that one. You  told a story I think we have a experienced in some form or another.

Really good reminder too.

We have strangest encounters and meet all kinds of peopel in our line of work everyday.  Why some people can do certain things, I will never know but we just have to be able to be able to learn and go forward from there!

We have strangest encounters and meet all kinds of peopel in our line of work everyday.  Why some people can do certain things, I will never know but we just have to be able to be able to learn and go forward from there!

There are only 2 Buyer's this year that I did not get the BBA signed with. Buyer's 1 were a referral to me from their sister. She interviewed me over the phone and sent the referral agreement right away. Why I thought I didn't need a BBA, I'll never know, mistake #1. I showed them over 30 homes, mistake #2. They decided I had upset them somehow and 'fired' me, then bought with the listing agent.

Buyer's 2 contacted me from Germany (military) prior to their scheduled arrival. I love my military family! I gave them the BBA, but never asked for it back, we hit if off so well, mistake #1. They then inform me after 2 days of showing that they were referred to another agent, 'family friend'. WHAT? Where was this family friend while they were in Germany and I was sending them additional photos of homes? Mistake #2.

Ok, so I must be a slow learner. It took 2, but I am certain that there willl only be 2 this year and 0 next year.

We are professionals! I tell them that when we both sign the BBA we go from agent/customer to agent/client. It is my commitment to them and their commitment to me.

Thanks for sharing. I would have had probably not so nice things to say had I been you and the Buyer's phone rang. Or like someone else said, I would have probably laughed till I cried! Priceless!

Jodi Knapp

I think today you helped me realize how important this is....like you I think it's time to stop waisting our time with buyers that are not committed!

I think today you helped me realize how important this is....like you I think it's time to stop waisting our time with buyers that are not committed!

Maggie, This is one of those stories that makes me glad I'm not a real estate agent!  What an awful thing to do to someone and I'm sorry it happened to you.  On the other hand, I have always believed what goes around, comes around..........

Just a thought....but...you wouldn't work with a Seller unless you had a contract, would you?  Why would you treat the Buyer defferently?

From the perspective of a buyer, your rant only serves to reinforce the negative image that Realtors have in the minds of many people.

Was this client a first time buyer? Perhaps she didn't know the "protocol", Lord knows the whole real estate process can be very complex. In my own experience, I just wish the first two Realtors I dealt with had the decency to sit down and explain how the whole process works and why it's not a good idea to have multiple buyers agents.

It does not sound like you tried to educate the buyer, but you did rant a lot about how the buyer had no idea how hard you work behind the scenes.

Personally, I would refuse to work with a buyers agent who forced me to sign a BBA, at least until I saw them in action and saw how hard they were willing to work for me. Lord knows, with the amount of MLS access that regular people have these days, many "buyer agents" seem to want full commission for not doing a whole lot - the buyers are doing most of the legwork. Most people try to do the right thing. Incidentally, the first two Realtors I worked with were flakey, taking days to return calls and emails. The third was great. Had I signed a BBA with either of the first two it would not have been to my advantage. Good faith goes a long way to building business relationships, and sometimes you'll just need to meet face to face to find out if the buyer/agent relationship is going to work.

Maggie: This post has many different views.. Now all the tall about the BBA - Broker Buyers Agreement or as we call them in Tennessee Exclusive Buyers Reprenstation Agreement.  Now here is the key.... Are they a Client or a Customer ? Without the Rep agreement they are only a Customer, not a Client.  I noticed that one had stated he never has his clients sign a rep agreement. If they do not sign the rep agreement, then they are only a customer.

Just my 2 cents.

Nice to see you back in the Rain, Maggie! And a timely reminder about how important it is to clarify our working relationships in writing.

Wow Maggie. I feel your pain. It has not happened to me. Thank God!

Maggie

I'm not sure who hates the other more - realtors hating their "customers", or "customers" hating all realtors.

Since the hate and disrespect runs both ways, there is one sure thing that will result.

Your profession is dead.

Thank you for sharing that suggestion and story. I didnt realize howeasy it is to fix it.

I am going to use the BBA from now on

Kieran

Thank you for sharing that suggestion and story. I didnt realize howeasy it is to fix it.

I am going to use the BBA from now on

Kieran

Thank you for sharing that suggestion and story. I didnt realize howeasy it is to fix it.

I am going to use the BBA from now on

Kieran

In eight years of Real Estate I have only had this occur one time, and the buyer called and told me that they were switching agents because they were switching towns and wanted a 'specialist' in the area even after I had been working with them for over a month.  I might eat crow someday (like I did when I said I would NVER work in the short-sale market!), but I still don't use the employement agreement.

Same story but with a twist....I was given a listing from clients I had worked with for the past three years.  I had sold them the home that I was about to list, they had also purchased a building lot to build the home of their dreams on. I was thrilled for them when they called to say they wanted to sell the home they had bought in order to start the process of building their dream home.  They gave me only three months to sell the home.  In that time I brought two offers in, the first was a subject to sale...and we negotiated it through with a 72 hour time clause.  The first offer got bumped and they collapsed.  The second offer went firm and completed. The second offer was a teeny bit short of the first and my Sellers asked me to give up a percentage of my commision....in order for them to make the numbers work for their buildl.  I did not want to do this but being that we had done a few deals together and I really did want to see them build "The House", I relented. The day of final subject removal I took my clients wife a copy of the fully signed off contract. While there...the wife (who suddenly couldn't look me in the eyes ?) tells me.......Oh by the way,, we bought a house 3 days ago !????? Boy, I didn't see that coming....Then she asked if I would like some tea?  I thought to myself....I have spent enough time here...not to mention money...I politely declined with the excuse of another appointment. Wished her well and left...I continued to give them my "moving extras" which I will provide to anyone in need...enough professional moving boxes to pack a 3 bedroom home into...and well I think they already got the moving bonus....I felt totally blindsided and chalk it up to .....experience......hmmm...I am not sure what you would call it..
Julie Hegyi, Sunshine Coast, BC

Good morning everyone.  Thank you again for all the comments.  I had no idea my post would generate this many and spologize for not being able to address them individually.

When I wrote the post, I did so as a way to show that

1. Something happened.
2. That particular "something" showed me I needed to change the way I was doing something else.

That was all. 

• It was not a rant.
• It was not an insult at buyers. (this particular buyer was inconsiderate, yes, but I wasn't even angry with her.  I laughed on the way back to the office)
• It was not written in sarcasm.  When I stated, "I am thrilled," I meant it.
  

In the last 12 months I have closed as many listings as I have buyers.  I have enjoyed every one of my buyer transactions.  We had a relationship.  We still do.  We connected.  I treated them with respect.  They did the same for me.  I brought value to the table and they knew it and were appreciative.

This post wasn't about my buyers or anyone else's buyers.  This post was about people who have wasted countless hours of my day, because I allowed it.

Because of my realization that it was due to the way I was handling things, I chose to adapt, move on and hopefully fare better in the future.

I need to state this again.  I WAS NOT RANTING ABOUT BUYERS.  As a matter of fact, I wasn't ranting at all. if you think I was, you need to go back up there and re-read.  No rant.

I thank those of you who shared stories, many of them eye openers in their own right. 

I thank those of you who shared the way you handle things.  Your way may resonate with someone else and help them in some way.

And I thank those of you who gave me an "atta girl."  Hmmm, I'm feeling a breeze.

By far, the majority of you either use, or admit to the need for BBA's in your business.  Some of you, and I find it important to point out that quite a few are very successful agents, do not use them and don't plan on ever using them.  Good for you!

An adage I believe in is, "if it ain't broke, don't fix it!"  So those of you who are using your BBA's and loving it, keep doing it.  Those of you who are not using them and loving it.  Keep doing it.  Both ways obviously work.

But those of you who are doing one thing, and wishing things were different, reevaluate what you're doing.  I know I have.  I found mine to be broken and I'm fixing it. 

I also need to state that it isn't the BBA that is my goal.  My goal is to educate the consumer as to what I do and how I can help him; to weed out prospective time-wasters and end up working with people who really want to work with me.

One of the beautiful things about this business we're in is that we get to choose who we work with.  I am choosing to choose more carefully.  That is all.

Make a difference to someone today.  Peace out.

It seems to me that in spite of the message being either a play on the "truth and consequences" of losing a buyer," or an expose of how losing a buyer does something for us (in the industry).  However, I don'g buy either views.  For starters, although we all know that real estate IS a relationship business, we all take this business as it has developed -- we tend to be either gluttons for punishment (e.g., we show people who are not committed to anything other than to be toured around towns viewing numerous houses, "choffered" at that, even fed in some cases, with the hope that when they like what we've done for them they'll buy from us.  Is it any wonder many real estate licensees are leaving the business?  Who wants to sign up for something where you work and then don't get paid due to "disloyal" buyers?

This is an industry-wide problem, one that could be fixable if new procedures were adopted.  For instance, I'm sure some of you have had the opportunity to deal with an attorney (or two).  They don't particularly want to take all the people who call them to do anything other than determine if they can be of service -- in the quickes, (free consultation), time possible.  Only after that do they "agree" to represent you, oh, and by the way, "...please write me a check for $4,500 as the initial payment to our retainer..."

What loyalty?  What wasted time?  What inconsideration?  Pay as you go and don't go unless you've paid.  This was made abundantly clear to me twice recently.  I had an FHA buyer that needed to move quickly on a purchase -- it was a great opporunity to get something good after missing out on numerous offers due to competitive bids.  Well, the appraisal was needed and there was no wiggle room.  However, there was a chance that the deal would not work for a variaty of reasons, one of which was a concern about the property's value (according to the lender it might be inflated, according to me, it probably was because the seller had bought it about 3 months prior and was flipping it).  They went ahead and paid the $400 fully aware that THEY WERE PAYING FOR SERVICE and a report -- regardless of whether the deal went through or not.

They didn't balk, and yes, the deal didn't go through.  That was that!  What happened to payment for services rendered when it came to the agent?  Looking at this from the perspective the the other professional I mentioned before, the attorney, here's how that might have looked...

TC - 2.0

TR - 2.0

MT - 2.0

RV - 1.0

PR - 3.0

ML -

There would be, in this short summary, at least 10 hours of "billable time" at about $250 per hour, then this short event would have garnered about $2,500.  NOT BAD!!!

How's that for loyalty?  How many buyers would think about wasting their money going on a lark to see all the houses you can show them???  Interesting, no?

We Also need to remember that some buyers just don't get it. They think it is like going to wal-mart and we all get paid the same. I and my wife work together, Her sister was all excited on day when she walked into our office to tell us the good news that she had just gone to an open house. And That she made an offer.

Hey Maggie...

  Please tell all those self righteous realtors who proclaim platitudes about "buyer liars" if they have not run across one or never wanted to use the term...they haven't sold very much real estate.

I think most buyers know right from wrong.  I was once asked if I got paid per hour from my company for showing houses.  I think some just really don't know how it all works.  It is up to us to educate.

As for the BBA, I also got a little relaxed about it and have gotten burned more recently.  Thanks Maggie, for the reminder.   Anyone have any good ways to deal with the clients that do not want to sign? 

Fred, i just sent you a request for your 10's sheet..  This is a good reminder to stay on your toes, play good defense with a good offense, and always ask the tough questions now.. Better to find out you have nothing now, than weeks later.

I realize that this was an unfortunate situation but I'm glad that you had the opportunity to run into her with another agent. You now know the lack of character that you would have been working with. Now  you are better off for it.

Maggie - Congrats on being featured on Think Big Work Small for your great post here.  Check it out Maggie; it's really good. 

I agree with the BBA. In addition, I must admit that I have not integrated it into my process. Yes, I have been burned. Why have I been so lazy???  In Arizona, only one BBA is valid at any point of time. For example, if Tina signed one with you and signed one with the other agent the following day, yours automatically becomes null and void. This can happen without notice to the agent who signed the initial BBA. Therefore, I am trying to really understand the benefit. If someone wants to use and abuse you, they will...regardless. Is this BBA process pitombatrue in other states??? I am curious.

AWESOME POST!

I assist the agents with buyer leads and marketing her in our office. We have noticed a lot of this going on lately. For some reason the buyer's do not seem to care, they make an agent do the legwork and then have another agent write the contracts.

Iam going to forward your post to all our agents. They will all agree!

Hopefully, since you won't be wasting time with that buyer you will have more time to help your "good" clients find their dream homes!

Fred, thanks for the offer.  I have a feeling you're going to get a few requests for that 10's sheet of yours. =)

Rick, I agree.  What good is a document if it can so easily be null & void?  Ours can be replaced by one with another agent, but only after termination.  And early termination is possible, but the fee is still due the broker.  Will it be enforced?  That's another matter but it IS enforce-able.

Thanks to all again for your comments.

Wow....I guess this is the kick in the pants we need to get the BBa's signed early on isn't it?

Its so easy to forget this one simple steo and yet it is so important. I have had this epiphany a few times and though youd think I would have learned my lessoin by now, I havent. But upon reading this story it reminded me of the frustration I have felt when ive been two times and I will commit to never going out without a signed BB form.

Maggie,

Bet this type of thing doesn't happen all too often, but you had been well within reason to give this "prospect" a real piece of your mind right in front of the other agent.

I just had something similiar happen. I was called by a girlfriend of a guy who was buying a home. They didn't like the agents that they were working with and some clients of mine had referred me to them. I showed them property 2 days. They really liked a house that their previous agent had shown them. I made a call and asked the agent who had it listed(it was in escrow) to let me know how the escrow was going. She thought it was shaky after 60 days. I asked her to call me if anything changed. She called me 2 days later, and I called these folks and I sent them over the contracts and a BBA. The guy called me and said he had signed one with his previous agents, and didn't know what it stated. He said he'd call them and have it cancelled if I could send him a termination agreement.

Well, he didn't. He felt bad, even though he felt that those agents never did a thing for him, and wrote the offer with them.

Whatever...

Loved Laurie Mannie's comment and I second her opinion. 

 Maggie, sometimes the smart thing to do is wish them well and walk away.  Sounds like that is just what you did!

Maggie,

Good afternoon. Wow, what a well presented subject, with so many responses. My real concerns- other than the loss of some background work/ time is so much pissing and moaning. 

I think Kevin # 58 covered it best. Move on with your life, there are too many Nice Buyers out there ! In Florida the 1st item should be the Brokerage Disclosure, but not a Brokers Buyers Agreement; is this anyway to greet a new friend/ Client?

Steven Zimmerman RealtorABRGRI / Prudential Best Realty, Inc. / GULF HARBORSNew Port Richey, FL 34652 http://retaggr.com/page/StevenZimmerman

Maggie:  Thank you for the inspiration.  We too sometimes neglect getting that agency agreement signed right away and then . . . well, you know what happens.

WAY TO GO MAGGIE.        NEXT!!!!!!!!!!!      

I feel your pain Maggie same thing happened here after showing this couple 20 properties over a weekend.  And on top of that I got a parking ticket.  Some people don't understand we work for free sometimes but one has to look at it as a learning experience.  But a costly one!!!

Fred, I'm interested in a copy of the 10's sheet as well. Just sent you an email.

This post came at a time when I really needed it. When they say there's comfort in numbers, they aren't kidding. Had this happen to me for the first time with Buyer's just last week when I had to re-schedule showing them homes due to the passing of my Aunt. We were schedule to see homes the day of her service, so I called to re-schedule the showings over 30 hrs in advance, the best I could do in the situation, waiting to hear when the services would take place. The next day I got a phone call that they were already working with another REALTOR, even though I had showed them homes on two separate occasions, and that they thought that I should appreciate the fact that they were letting me know.

Although I appreciated the fact that I wasn't being strung along anymore, I don't know that I necessarily would say I felt grateful to them for this revelation. They had been referred to me through a family member and I had even recieved feedback from this relative that they had "raved" about me at a party over the weekend after our second showing.

I will not work with another Buyer without implenting the agreement. If they walk, they aren't worth the time and effort. If it scares people off, either I'm not doing my job in explaining the reasoning for it, or they aren't going to commit to just one agent anyway. Congrats on the feature!

I come from a family that has been in RE for over 50 years and I have been practicing RE myself for 21 of my 39 years on earth. I have to say that almost everyone here, with the exception of Kevin Tomlinson and one anonymous poster, is an embarrassment to the business. You all act like being a real estate agent puts you above everyone, and that buyers would be "lucky" to even have the chance to speak with you. Those very buyers are the only reason you are able to practice in this profession.

 Maggie, you know that deep down, $80,000 is not "below your range", it just makes you feel superior to say that. If you really said what you felt, you would be blogging about how rejection hurts, and how upset you are that another agent took away your "cookie". Quit treating buyers like petty problems and you will start seeing less problems in your career.

If this were a perfect world, there would be no BBA's, just buyers working with the agents that they feel comfortable with, the agents that treat them like their $80,000 decision is not below them.

As a Mortgage Banker we have no BBA to contract a client with, I wish we did. I have spent months getting a clients credit up to where they can actually qualify for a loan, Refered them to my Realtor partner to show them houses (they did get a BBA) they wrote three contracts on houses which one was lost due to inspection, one was lost becuase they "low balled" the offer and the thrid and FINAL one was on a house they drove by and "Had to have" even though the Realtor and I told them it was over their price range, they still wrote a contract. I worked up a third GFE and sent it to them.

To both the Agents and Mine shock, they yelled at us for the payment being above their target payment. Keep in mind we told them the range house that fit their budget yet, they did qualify for the third one it was a $100.00 over target. We just thought it MUST be their dream home and were willing to shell out $100.00 more a month.

Now, to top it off they wrote me an e-mail stating that we shamed them into a BBA and were going to call TREC and report us if we didn't cancel the BBA and we should have know not to allow them to go over the budget. I expected a hex be placed on my family after the rest of the e-mail.

WOW, I respectifully told him that as a Loan Officer I do not nor will I write a Texas Real Estate contract, Nor, did he and I have a "Contract" to be broken since there is no such contract between Bankers and Idiots.

I appoligized to my Realtor for referring such a slug and promised the next referral would come with a house picked out and total underwriting in hand before the contract is written, no gas expenses or showings needed. (well ok, maybe not that packaged up but close)

All this makes me want a retainer fee like the ones the Lawyers are getting to make our lives more difficult with things like HVCC, TILA Reg Z, MDIA, and the list goes on. But wait, they made a law that we can not charge more than the cost of a credit report and then wait three days for them to shop around and if rates improve go somewhere else before we can even collect for an appraisal that their new law says we cannot even order directly because they want to pay more companies to do NOTHING exept order appraisals and cost the borrowers more money and time to buy a home.

God Bless America

Jerry, As a loan originator and a real estate agent, I have seen it so many times.  Sometimes they just do not want to listen to what you tell them, and yet it is your fault!

Jerry, As a loan originator and a real estate agent, I have seen it so many times.  Sometimes they just do not want to listen to what you tell them, and yet it is your fault!

And the comments continue.....  Thank you.

To KITOSO - so now you know how I am feeling too?  Interesting.  I guess you must really "know me" but I can't tell from your anonymous post. 

I beg to differ on Kevin's sanity being the only prevalent one here.  There are many, many agents commenting on here who deserve better than what you just said.  But in your defense, I doubt you read all the comments.

OMG, Maggie! I laughed over this post - EXCELLENT and extremely well written!!! This has happened one too many times to us all, I'm afraid. I am glad you kicked her to the curb! I kinda go with my gut to determine if I need a BBA. I have one client that I did not use one and got a contract on a place with no problem, then again, I have another where a BBA is going to come in handy.

Fantastic post!!

Gia, thanks for the comment.  But I really didn't "kick her to the curb."  =)  I simply told her she should be working with only one agent and left. 

I'm happy with my new-found resolution. 

See you soon!

Maggie - your post is churning a few opinions I see read here (I believe I'm #366!!)...  and also some good comments.  My .02 cents - even a BA Agreement isn't going to keep a buyer tethered to us if they don't want to be.  I will say you showed professionalism by not loosing it when her phone rang.  I'm not sure I would have had that much cool.  And I too agree - better to find out up front rather than into the transaction.

What a great post.  I have tried to implement the BBA in our area.  Most here work without it, but I decided the same thing last year.  You have to be willing to commit to me or I cannot afford to commit to you.  One door closed and another will open for you.  Thanks again for the great post.

Maggie, I'm the webmaster for a website that addresses a missing link here, i.e. shopping WITH the clients online first? When they ask for help, even if they don't use two agents, don't they still shop online? You did all this work, converting links to paper, faxes, texts, etc. vs. sending her a link of properties she might want to see, and inviting her to share her favorites with you? That's the premise for 4114Homes.com. (See our Demo) What do you think?

If 90% of buyers shop online, what percent STOP shopping when they start using an agent (or 2 agents)? Very few, and in my opinion, the ones that do stop their own shopping are probably either not really interested or the type that will NOT be willing to work with you in greater depth and then exclusively? If you can't beat 'em, join 'em and shop online with them? 

I didn't get through all the comments, but if no one has mentioned this before. HELLO? Do you realize that there are potential clients who are reading this? Do you really want them to hear you call another customer "two-timing" and speak so disparaginly about customers?

LOOK, if you are going to talk like that in public about one person, what makes me, or your potential clients, think you won't speak like that about everyone?

Seriously. You all can do better.

Dear ActiveRain, reason #142 why I pulled my account: Posts like this. Don't want my name to be associated with it.

"durian" a perfect graphic for this post.  http://en.wikipedia.org/wiki/Durian#Flavour_and_odour

Teri, I'm aware that the post can be read by anyone.  I took it one step farther and included it in my outside blog.  I could have chosen to omit it.  I had nothing to hide. 

I did not appreciate having my time wasted by this person and knew that it was due to my handling things the way I was.  So I chose to change that.  But I have explained that ad nauseam so I won't delve any further into it.

Whether you cancel your account with Active Rain or not, is of course, your decision.  I usually pull out of something I don't like long before reason 142.  A handful would have sufficed.  Depending on the offense, sometimes one is enough.

Stephen, I don't mind your advertising on my post.  Really.  I'll have to check out what you offer and give you some feedback.  You make a very valid point.  We all know the playing field has changed and we need to change along with it.

Brenda, Lee & Pamela, thanks for stopping by and commenting.

Maggie

WOW! Wonderful responses. After reading many, I see there is a split of opinions.  I just hope that those who aren't representing their buyers remember that in most states, you must be careful NOT to offer representation without a signed contract.  Are you offering more than ministerial services?  Many states require that you only offer those ministerial/clerical services so the buyer does not assume he/she is being represented by you.  I personally prefer to have all buyers represented but admit that I don't force the issue as much as I wish I would.  I promised myself many years ago, long before Buyer Agency was understood and widely used, that I would NEVER take another buyer shopping without one as I was burned severely by some buyers. Briefly, couple wanted farmhouse in certain area. I showed them anything and everything, they were my first thoughts of the day and last at night. I ran constantly for them, missed family events, church, went out in horrid weather, listened to their woes, and basically jumped for them for over a year (nothing suited them). Then one day when I came into office and checked computer for new listings (came in late that day for some reason), the perfect listing came on the market the day before.  I called them immediately knowing they's love it - the response was, "oh, we were out driving and saw the sign and called the listing agent and have made an offer that was accepted by the seller"  I was crushed and vowed - - anyway, vows get broken and we tend to slack off - I think I need to renew my vows again - Thanks Maggie!

This is a classic "Your Mileage May Vary" issue.

The real issue here is LOYALTY, and whether a BBA is either (a) the best way to obtain it, or (b) an instrument to actually force it.

To me, the answer is "No."

The only compelling arguments in favor of BBAs on this post are the ones bringing up LEGAL definitions between "customers" vs "clients".   But I do not think even those arguments hold much water legally once issues of implied agency are brought up.

Educate clients as to what we do and how we get paid-- and let the chips fall where they may.  Play the percentages-- they will be mosly in your favor.

Maggie,

Great story and way to take a positive approach to the outcome.  Hopefully the fact that the buyer got caught in the act will way on her conscience for awhile.  You can never be too careful in real estate.  Money drives people to do crazy things.  This experience what you have known all along make sure you have the documentation needed to help your clients.  Hope business is well.

Next time ask for a "retainer" !! In your BBA state that a retainer is to be paid. Collect it at time of making the written purchase offer. Explain that retainers are refunded at settlement and that "all money is considered earned when paid", therefore if no house settlement with you, then no refund. Of course all checks are made payable to the broker, and you normal agency split is made.

I have done this for years and its great to have gas money to drive around and money to pay for paper and printing reports for buyers.

Again, I thank you all for your comments.  It has been interesting to read the many different experiences as well as how BBA's are handled around the country.

Clearly there is no one-size-fits-all approach to this.  If you're looking to change the way you do business, a little soul searching and investigative work is in order.  Best of luck.

Great post! That was an unfortunate situation and one that all agents could certainly learn from. Thanks for sharing your experience. And, shame on that Two Timing Tina!!!

Congratulations.  The next step is charging a retainer to buyers that may or may nor be refunded as a discount at closing.

R

Miranda, thanks for stopping by and commenting. =)

Rich, my broker is very supportive of that if we wish to charge a retainer.  I'd refund at closing if I were to ever do that.  No harm, no foul.

I have been after my agents on this but they are afraid the client will run but hell if they back stab then what clients now a days just do not appreciate the work we do during these tough times unlike them we are working for free until we find them a house. 

There are so many things as agents we need to stay on top of. We must constantly strive to stay on top of our game. Thanks for posting Maggie.

What a story! Complacency doesn't help us finish first.

I will be requiring this as well, this has happened to me too many times now......!!!! (-_-)

I thought Tina was my client... that was reality! Thanks for the call to action!

I thought Tina was my client... that was reality! Thanks for the call to action!

Hi Tina,

It has happened to me a few times and this is confirmation for me to make sure from this day forward to get the agreement signed at the first meeting.  Thanks for sharing your story.  I think you handled the  situation with dignity and class.  You respected yourself and the buyer. 

Tina,

I can't believe that. Buyers can be so terrible sometime. I am sorry.

That's funny.  Tina, was the "name" I gave the buyer.  My name is Maggie. 

My post wasn't so much about "Tina" but about how her actions caused me to see that I was lacking something in my protocol.  The buyer consultation is standard for me now.  It really wasn't her fault, but mine for not taking the time to explain to her how I, along with other agents, earn my keep.

Challenges help us grow.  This cloud also had its silver lining.

Back in the day, there were NO LISTING AGREEMENTS! And there would be multiple agency signs in the yards, and agents were hesitant to insist on a listing agreement, which was a brand new concept! So, why is a buyer agent agreement such a difficult thing to ask for or expect?

If all agents insisted on one, this problem would simply go away, as the open-agency listing agreement has almost disappeared!

Roxanne, ABR

Roxanne & Team, Keller Williams Realty Boston NW

Roxanne, I never knew that!  That is very interesting indeed.  I'm sure you're a source of great information with all that experience behind you.

I agree that if everyone used the BA, the issue would disappear.  I hear all the time about the brand new agents who are trained that way and just do it because they think that's the only way.  I wish I had been one of them.