Thursday, May 6, 2010
The Buyer Who Would Not Sign a Buyer Agency Agreement
As I was driving to my appointment with my buyers this evening, I heard a great commercial. It talked about the Buyer Representation Agreement. That was great for me, because it supported what I try to explain to my buyers at the first meeting.
Since I've become a licenced real estate agent, I have known that I should be working only with buyers who sign an agency agreement. Those are the clients that deserve my time and effort. At times, I have become complacent and trusting. I don't want to lose a Buyer by asking them to sign the Agreement. Some Buyers are quite nervous about working with a one Realtor exclusively. There is a feeling that other Realtors will work for them without this Agreement. Also, to get buyers to sign these forms, requires that I make adjustments to my routine.
I have to show my prospective buyers the benefits they will gain by working with only me and the professionalism, honesty and personal touch that I provide. In order to accomplish this, they need to come into my office for a complimentary buyer consultation.
I get excited about being able to help someone find a home. Here is an example of what happened to me and I hope it will help another realtor before this same situation happens to them. Also, it may also show buyers the importance of the Agency Agreement. I started working with a buyer a few months ago. Instead of scheduling the free consultation when the new buyer called me, I just get the property details and schedule a showing. Deep down I knew this was not the way it should be. (My mother told me always to follow my 'gut feeling')
Here's my story: A new buyer came along and asked to see a particular home. The fact that I had to reschedule all my appointments so that I would be able to accommodate buyer's schedule, did not matter to the buyer. The buyer had a need and I was happy to fill it because that is part of what I do - I find homes for buyers. So I made the appointment, printed detailed reports, drove by neighbourhoods to check them out for you and reported back to you diligently prior to your visit to this home.
For one reason or another, after that visit, we were not able to meet face-to-face for a few days. But I continued my diligent work for you. We spoke on the phone, texted and emailed back and forth, and stayed in touch, as per your request about this property. All seemed well.
I arranged a second visit, again as per your request. I arrived at the requested property for a second visit and waited for your arrival. After 10 minutes I decided to call and make sure you were still coming. You answered your telephone and with a very happy tone to your voice, said that you were going to finish the deal with your friend, who happens to be a realtor. He was too busy with his full time job (not real estate) and therefore you needed someone who knew about the home and the neighbourhood. You were so kind, Mr. Buyer. You did thank me for all the information that I provided and would I please continue to send more and give some advice on the Offer that should be presented. I must have paused for a second too long because the next thing that happened...you hung up the phone.
I've dealt with this type of buyer before, and each time I have said, “No More. From now on, if you don’t sign an agency agreement with me, I will not provide you with any further information.”
I have thought about what you did, and chastised myself for not following protocol. What you did was wrong. But that didn't matter to me at the time.
Now, I would like to thank you for your actions. I learned a lesson which will serve me well. Now, I will go on one date with you, at which time I will give you all the forms to read over at your leisure. I will not send you any valuable information unless I get the forms signed. If you do not want to be in an agency agreement with me, you do not deserve my services. No ifs, ands, or buts.
Please continue on your merry way and know that our brief encounter fared me well. I wish you the best of luck in your real estate endeavours. And the next buyer who calls me will know all the wonderful things he or she will be gaining by working with me exclusively. I will make sure I tell him/her.
Recently a listing came out in the neighbourhood where you wanted to live with your family. It was perfect for you. It had the lovely yard, was totally renovated, AND it was well below your budget. As I'm working with 4 or 5 people at any one time, this property was offered to my CLIENTS. My clients, are now under contract for this property. We have negotiated a great price and we are waiting for the closing date.
A Happy Agent
Fine Homes in 905