Another agent gets the commission!

[Silverfall]

Originally Posted by CAugust

Interesting that no one else has mentioned the "other" agent. When someone comes to me, I always ask if they are currently working with anyone - if they are, I tell them, ethically I cannot help you. Actually I do think you have something here, of course on paper would have been better, but just the same, you continued your phone calls and follow ups with all parties involved. Take it to your board, and have a fair hearing done.

Good Luck!!

I always ask also, and often times I hear "we went out with an agent a couple of times, but we don't want to use her."

The public is entitled to shop around. Clearly they found someone else that they thought was more competant.

[OCNYISHOME]

well said silverfall

[dixiegirl7]

Every state has their own guidelines regarding "procuring cause", according to this definition I think you do have procuring cause:

A broker is regarded as the "procuring cause" of a sale, so as to be entitled to
commission if his or her efforts are the foundation on which negotiations resulting in
a sale begin. It is the cause originating a series of events which, without break in
their continuity, result in the accomplishment of the prime objective of the
employment of the broker who produces a ready, willing, and able purchaser to buy
real estate on the owner's terms.

[Rakin]

You might talk to your broker and have them contact the builder. Technically it's the brokers money that was shorted and maybe they have some pull with the builder.

I would be curious the name of the builder if you can PM me. There are several in the area that I absolutely do not trust.

Procuring cause may only apply if it was listed in the MLS. If it was you may be able to file a complaint with the local MLS board.

[OCNYISHOME]

Think this is really another of many thread discussions re buyer agreements. Why do most agents have so much trouble w/ this concept. Know extremely successful agents who never use them and some that always use them?

[sowah]

Yes, this is an expensive lesson. Actually, the buyers and I have some mutural friends. Yes, yes, yes, no matter who they are, I need to have a buyer's rep agreement. I like the idea that giving them a free day of showing and present the form to them.

And yes, I offered that I would submit a contract in writing but the buyers have so many upgrade requests for the spec home including expanding the patio's concrete floor, changing to hard wood floor, etc. I asked them to tell me specifically the size, the type of wood, the blind, etc, but they could not tell me. Now, they are getting the house with no upgrades after all these, at the base price the builders initially offered.

Guess what, the buyers came to me yesterday and asked me to look over the contract because they do not trust the other agent (or discount broker). Why did they go with the other agent? Because he knows somebody inside the company and because he is giving them a rebate; I believe the other agent is a discount broker.

Thank you all for your opinion and suggestion. Yes, I will talk to my broker and definitely move on to another client.

[adlnc07]

Originally Posted by sowah

Guess what, the buyers came to me yesterday and asked me to look over the contract because they do not trust the other agent (or discount broker). Why did they go with the other agent? Because he knows somebody inside the company and because he is giving them a rebate; I believe the other agent is a discount broker.

Wow, what nerve! That's just amazing.

I hope you declined to help!

[OCNYISHOME]

Not really amazing..........folks have zero understanding of a realtor only getting paid when a sale closes. Even if you explain, they continue to reference a salaried template and probably at first thought did not think they were taking advantage of you. The other template is " how could one expect us to walk from a situatio monetarily beneficial to us......she certainly will understand" SURE! A Waitress is usually a better tipper then the average joe.........they understand the situation. My brother still has difficulty w/ my working holidays.....his teaching career offered a different template re days off.

[olecapt]

Originally Posted by dixiegirl7

Every state has their own guidelines regarding "procuring cause", according to this definition I think you do have procuring cause:

A broker is regarded as the "procuring cause" of a sale, so as to be entitled to
commission if his or her efforts are the foundation on which negotiations resulting in
a sale begin. It is the cause originating a series of events which, without break in
their continuity, result in the accomplishment of the prime objective of the
employment of the broker who produces a ready, willing, and able purchaser to buy
real estate on the owner's terms.

Procuring cause is a Realtor issue not a governmental one. Buyer Broker Agreements are localisms. They generally protect the agent not the buyer.

You should absolutely help them with the contract and then take to arbitration at the local board. This presumes of course it was in the MLS. If not you have an expensive lesson. If it was in the MLS you are going to win hands down. MLS arbitration boards just love these kind of cases.

Next time simple send the builder an email that so and so is your client. Works virtually all the time. Send it with a return receipt request. Most will agree. (This little lesson cost me $20,000. And it was my fault...and I had a loyal client who would have blocked the deal if asked. But it really was the house they wanted and it was my fault...Damn it is hard some times to be righteous)

[Roselvr]

Originally Posted by sowah

I have been showing a couple some houses for at least 2 months. They did not find one they like until I introduced them to a new home about 2-3 weeks ago. I started the negotiation with the sales manager at the new house and then over the phone but we did not come into an agreement. At the end, I told him that the couple would like to offer so and so with so and so upgrades. The sales manager never told me what number they wanted with all the upgrades. All he told me was to ask the couples to increase. He did not cooperate at all. We had no idea how high they want with the upgrades. Last week, I left him a v-mail on his cell phone and told him that I wanted the sales and asked how I could make this happen. Well, he never returned my call.

My next plan was to contact the builder's office but the couple told me to hold. Today, I found out the reason. About 3 days ago, they were introduced to another agent who dealt with this builder before so he knows other people in the builder's office. Apparently, the agent was told about the situation and went straight to the builder's office. There is negotiation undergo and they will sign the contract tomorrow. The couple truly felt sorry because I made so much effort showing other houses and doing researches. They really like the house which is the only one left on the market that they like. I understand that they had to find another agent but at the same time I feel unfair.

For whatever reason the builder wouldn't work with you. I've seen builders that use their own people. I had an agent last year try to call another to find out about a new house with 12 acres, she couldn't get a return call. This was a private lot not in a community, pretty much forcing a buyer to work exclusively with the listing agent. After a month I decided to call, the other agent returned all of my phone calls. It ended up being a waste of my time, couldn't get set prices for things.

A few months later, we ended up changing our plan and drove around to new communities when we found the Richmond community we ended up buying at. It appears that the buyer configures the house with the sales agent and I wonder if this is what you are seeing. Without knowing what builder it's hard to say. In this particular community, they have the sales office for new construction, then they use a local realtor to list houses that don't sell, like the ones where someone configures it, it gets built then they have to back out for whatever reason.

Originally Posted by sowah

Yes, this is an expensive lesson. Actually, the buyers and I have some mutural friends. Yes, yes, yes, no matter who they are, I need to have a buyer's rep agreement. I like the idea that giving them a free day of showing and present the form to them.

And yes, I offered that I would submit a contract in writing but the buyers have so many upgrade requests for the spec home including expanding the patio's concrete floor, changing to hard wood floor, etc. I asked them to tell me specifically the size, the type of wood, the blind, etc, but they could not tell me. Now, they are getting the house with no upgrades after all these, at the base price the builders initially offered.

Guess what, the buyers came to me yesterday and asked me to look over the contract because they do not trust the other agent (or discount broker). Why did they go with the other agent? Because he knows somebody inside the company and because he is giving them a rebate; I believe the other agent is a discount broker.

Thank you all for your opinion and suggestion. Yes, I will talk to my broker and definitely move on to another client.

1st talk to the couple, ask them if they signed something with the other agent, if they did, tell them it is unethical of you to step in now. Assuming they did sign something, tell them they need a real estate attorney. You can also ask them what took place since you were helping them already. After dealing with the 2 places I mentioned above, they might have a good reason, like the 12 acres we were interested in, but if they were "forced" into dealing with the sales office it might not be too late for you to step in to represent them. Down here, it doesn't seem like the big builders want customers to deal with agents, and to only have their sales staff to pay a commission to. This is the vibe I got from some of the ones I left my agents card at.

You can also tell them you can't work for free. While I understand it really isn't your fault the builder didn't want you in the picture, if these people want you as an agent, tell them to tell the other agent they already started working with you.

I can tell you that at another board I go to, there are posts from buyers asking what they can do for an agent in your shoes, most will buy them gas cards, or a gift certificate so you never know.