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A colleague of mine and her husband saw a house on Realtor.com and wanted to view it over the weekend. They called the listing agent who did not answer their phone - and they left two messages. After not receiving a response after a few hours, they decided to call the listing firm to view the house.
An agent from the firm showed them the house and they were asked during the showing if they had a buyers agent - to which they said "no". The agent offered to act as their buyers agent but the customers declined saying that they wanted to find their own agent - someone not from the listing firm - to represent them.
Is there going to be any problem with a new buyers agent coming in and getting paid for representing these buyers?
My understanding is that whichever agent shows the buyer the home then represents the buyer for that home and gets the buyer's agent commission for that home.
I lived in an area years ago where GotHere's thought was true. Didn't seem fair even then.
Don't know if it goes by area or that things have changed all over. But in the areas I know of and live in currently, this is not the case. If you don't sign a contract...you don't have a deal with the agent. There are actually places where the buyer - agent contract states other options. And even where it doesn't, you can be smart enough to write in your preferences...those being you'll stick with the agent only on that one house, or only on that one day and what is shown to you, or only that one weekend, that one week buying trip; or no...not at all.
You need to check your area. And not the realtors at that firm. See if you can get at least the local Board of Realtors. Don't tell the whole story just ask if a buyer is expected to write the contract through the agent who showed a house after being told the buyer did not want to contract with them.
I don't know that your friends interacted well enough with the agent to have her draw the conclusion that they are "hers". I think they stated quite clearly they are not.
I took a look at a copy I have of the National Assoc. of Exclusive Buyer Agents and found the following as one possible guide.
Standard A(4): A Buyer Agent will enter into a written Agency Agreement with his/her Buyer-Client. The agreement will include beginning and ending dates, the service fee structure and payment method, and the responsibilities of both parties.
I wonder if the agent provided into to your friends on the comparables in the area? On the negative aspects of the property as well as positive: Did she convey a sense of undivided loyalty? Did she ask their financing information and get into financing options?
Last edited by cully; 12-03-2014 at 01:07 PM..
Reason: had to get the spacing just right
I wonder if the agent provided into to your friends on the comparables in the area? On the negative aspects of the property as well as positive: Did she convey a sense of undivided loyalty? Did she ask their financing information and get into financing options?
They just wanted to look at the house. They told the agent showing it that they didn't have a buyers agent and want someone from another firm. I understand that some agents might have an issue with "procuring cause" - but this is a situation where they tried to call the listing agent but they did not respond. Since the listing firm owns the listing (think that's right), then anyone showing it from their firm should be representing the seller unless agreed to by the buyer - which it wasn't.
It depends on where you're located; as MikeJaquish correctly stated, local rules apply.
In my neck of the woods, dual agency can only be allowed if the buyer or seller agrees to it. In this instance, your friends expressly said that they didn't want to be placed in a situation of dual agency and wanted their own representation, so they would have the right to find their own agent, and that agent would be entitled to their share of the commission offered by the listing.
They just wanted to look at the house. They told the agent showing it that they didn't have a buyers agent and want someone from another firm. I understand that some agents might have an issue with "procuring cause" - but this is a situation where they tried to call the listing agent but they did not respond. Since the listing firm owns the listing (think that's right), then anyone showing it from their firm should be representing the seller unless agreed to by the buyer - which it wasn't.
It doesn't sound like she acted in the buyer's interest at all I mean as a buyer broker/buyer agent. I think your friends are fine.
HOWever, there could be a different opinion in your area so check that. I remember the days of "procuring cause" in another market area.....and that followed comments that is an agent couldn't get a buyer smoothly, unquestionably to contract they should be fined, not awarded any of the fee.
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