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Thread summary:

Upset realtor wronged by clients and builder, buyers introduced to different agent and ended up buying home, seeking advice on how to deal with situation

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Old 05-23-2008, 04:35 AM
 
5 posts, read 23,301 times
Reputation: 11

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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.

I worked in Texas and I did not ask them sign the Buyer's Rep Agreement so technically, I work for the seller/builder. Does anyone has any suggestion what I can do now? Should I contact the builder directly that I was the one who introduced the house to the couple? I am going to send a complaint email to the builder about their sales manager and made them aware that I was the one who introduced the couple to the house thay are purchasing. Don't know what else I can do now!
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Old 05-23-2008, 05:44 AM
Status: "Made the Retirement Run in under 12 parsecs!!!" (set 22 days ago)
 
Location: Cary, NC
43,176 posts, read 76,826,386 times
Reputation: 45533
Quote:
Originally Posted by sowah View Post
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.

I worked in Texas and I did not ask them sign the Buyer's Rep Agreement so technically, I work for the seller/builder. Does anyone has any suggestion what I can do now? Should I contact the builder directly that I was the one who introduced the house to the couple? I am going to send a complaint email to the builder about their sales manager and made them aware that I was the one who introduced the couple to the house thay are purchasing. Don't know what else I can do now!
Coming from North Carolina perspective, and recognizing that you folks may do business differently in Texas:

Now? I suggest you do some marketing and find clients to work with.
Since you were not their Buyers' Agent, these folks were never your clients.

It is best to work with clients, rather than casual relationships. I work with both clients and casual relationships, and I know I run a higher risk of wasting time with folks who haven't signed an agency agreement.
If it goes sour, I move on.
That is what I suggest you do now.
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Old 05-23-2008, 05:54 AM
 
Location: Orange County
200 posts, read 560,653 times
Reputation: 75
Quote:
Originally Posted by sowah View Post
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.

I worked in Texas and I did not ask them sign the Buyer's Rep Agreement so technically, I work for the seller/builder. Does anyone has any suggestion what I can do now? Should I contact the builder directly that I was the one who introduced the house to the couple? I am going to send a complaint email to the builder about their sales manager and made them aware that I was the one who introduced the couple to the house thay are purchasing. Don't know what else I can do now!
THEY ARE ALWAYS "VERY SORRY" AND "VERY APPRECIATIVE" OF ALL YOUR HARD WORK. and always very nice people....... Most of us have been in this place/space. You do not have a leg to stand on. If you had registered the couple [this may not have been an option] w/ the site folks, the absence of a buyers agreement would not have been so important. Would you list a home w/o an exclusive right to sell agreement guaranteeing your commission at closing?
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Old 05-23-2008, 06:00 AM
 
4,145 posts, read 10,410,074 times
Reputation: 3339
If you were the procuring agent for the sale, you should be paid. That builder knows that you brought them in. I would have your sales manager or broker write a letter to the builder detailing that you're going to be paid for that transaction, as you were the procuring agent. Make it very clear that you were wronged, because I'm sure there are a hundred other Realtors in your office, and if you're being treated like that, I'm sure that no others will have interest in doing business with them.

Also, in my experience with builders, if they treat Realtors like that, they're not treating clients ethically either.
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Old 05-23-2008, 06:58 AM
 
Location: Orange County
200 posts, read 560,653 times
Reputation: 75
Honestly think you will need more then what you have done to establish procuring cause......
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Old 05-23-2008, 07:03 AM
 
Location: Columbia, SC
10,940 posts, read 21,916,982 times
Reputation: 10571
I agree with Mike. Use this as an expensive learning experience. Get a buyer agency in place. What have you learned to take away from this to do it better next time?
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Old 05-23-2008, 09:09 AM
 
Location: Salem, OR
15,539 posts, read 40,313,582 times
Reputation: 17422
I also agree that you haven't done enough to be the procuring cause here. The other agent successfully negotiated the contract not you. It has to be an unbroken chain of events and I'm not sure that this would qualify. I could send all sorts of prospects houses via email and "introduced" them to the property. That is not procuring cause.

This is why I don't work with buyers that won't sign a buyer agency agreement. I give buyers 1 day of free home shopping time with me before they are required to sign one. I have never had a buyer who has gone out with me NOT sign one.

After spending one day with me they understand why I want one, and that I am a GOOD agent. You need to decide if you want to be a for profit business or a non-for-profit charity.
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Old 05-23-2008, 11:34 AM
 
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,957 posts, read 22,267,944 times
Reputation: 6469
My take on this is that you failed to "close" the deal. rather than verbal back and forth, you should have produced a written offer which the builder could counter. I had a hard time when I started, asking for money and getting offers on paper. I learned the hard way and I'm sorry you have just had the lesson taught to you.

I've seen this far too many times in my office and I usually go ballistic when my agents fail to obtain an offer and/or let the person go when they have a real need to purchase a property.

When that situation happens, I make a copy of the MLS listing, circle the selling agents name and leave it on their desk with a dollar amount about how much money the other agent earned.

Good luck to you in the future
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Old 05-23-2008, 11:44 AM
 
Location: WNY
1,049 posts, read 3,850,388 times
Reputation: 274
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!!
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Old 05-23-2008, 01:21 PM
Status: "Made the Retirement Run in under 12 parsecs!!!" (set 22 days ago)
 
Location: Cary, NC
43,176 posts, read 76,826,386 times
Reputation: 45533
Quote:
Originally Posted by CAugust View Post
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 to, and sometimes hear, "We were talking to a guy, but we didn't sign anything." At that point, it is not unethical to go to work for that person.

Unless real estate is practiced differently in the Lone Star State, I'm standing pat on my advice to shake the mud off the old Hush Puppies and shuffle onto a documented client.

I would not expect to have any standing whatsoever to complain, again speaking from North Carolina, if I did not have an exclusive agency agreement.
I wouldn't waste another minute on it, other than cleaning up the file and boxing it away.
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