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#116287 - 12/19/05 12:52 PM What's Wrong With This Picture?
missbea Offline
Member

Registered: 12/19/05
Posts: 120
Loc: Cleveland, Ohio
Hello Group--

I am a new member, and I'm glad that I found this forum of agents to confide to.

A little History: I have been a licensed realtor for about seven years now. In the beginning, I only worked at RE part-time as I needed the stability of a pay check. I was laid of from work in September, and have no prospects of a new job. I had been an admin assist for the past 30 years. Now, I'm a full time real estate agent and I have mixed feelings about it. I love the excitement, and challenge of this business, however, I'm finding it a little "scary" not having a steady pay. I'm finding that my "desparation" is making me more serious about my business.

I'm posting here today, because I would like your imput on what happened today at a showing appointment.

I met my customer at a building that I was showing him. The owner/agent was there. He took us on a tour of building, and while he did this, he "talked over me" and wouldn't let me in the conversation. He was building a rapport with my customer. I thought at first, well if it get's him to make an offer sobeit! Anyway, he takes us on a tour of the area (that was nice) and at the end of the appointment. My customer asks him (remember he's the seller and the agent) if he has any more buildings. I retored over him, since he had been deliberately leaving me out, "you can let me know, and I will get in touch with my customer." My customer asked the selling agent, "I have your number on this." The agent replies, "yeah, it's on the listing sheet." I thought "wait a minute." What just happened here? He's going to get intouch with my customer, and cut me out of the deal! When I came home I called my customer, and explained to him that I am "his" realtor, and that I am representing him in this transaction, and he is to not contact the seller/agent under any circumstances, as he is the selling realtor. He said, that he understood, and apologized.

I would like you input on the loyalty, and ethic conduct of this guy, and what do you think I did wrong here. How should I have handled this situation?

Thanks for your support!
_________________________
Smyrna Real Estate

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#116288 - 12/19/05 01:51 PM Re: What's Wrong With This Picture?
Realty Freak Offline
Moderator

Registered: 10/11/05
Posts: 157
Loc: Chicago, IL
To answer your first question the other agent was acting very unprofessionally.

I suspect your mistake was not getting your client to buy your service before you started showing him properties. If your buyer understood your role and the role of the listing agent/seller, and knew the value of the service you provide chances are your client would not have done what he did.

We train our agents that a buyer has to first buy your service. Our agents are supposed to meet with all potential buyers before showing them a single property so the buyer and agent can make a decision on whether they are a good fit for each other. At this meeting the agent will also educate the buyer on the buying process.

Some would call this qualifying your buyer, but I don't. Qualifying buyers is about the agent. This meeting is about finding out if you can help this person, making them feel comfortable, laying the groundwork for a relationship and then asking that person if they would like to use your services.
_________________________
San Jose Real Estate

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#116289 - 12/19/05 02:28 PM Re: What's Wrong With This Picture?
KT Offline
Veteran Member

Registered: 01/18/05
Posts: 1495
Loc: Ohio
Good to have you here missbea!

Without knowing what type of building you were showing, and totally not defending this guy, because that behavior was totally inappropriate, but maybe the agent felt that he had more experience with this type of transaction?

Not sure if you had your buyer sign an EBA, or not. If you did, wonderful! If not, he can contact anyone he wants about purchasing a property.

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#116290 - 12/19/05 05:34 PM Re: What's Wrong With This Picture?
missbea Offline
Member

Registered: 12/19/05
Posts: 120
Loc: Cleveland, Ohio
Thank you both for your replies. I'm not ashamed to say that I am still learning this business! I learned RE "theory" in class, but the "mechanics" I am learning as I go along. Now, I know that I need to look into a buyer's agreement, and always meet my potenial customers FIRST --and not at the showing appointment. (My broker doesn't have an office, we work out of our homes, and that makes it a little awkard meeting clients.)

Thanks again for your help!
_________________________
Smyrna Real Estate

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#116291 - 12/22/05 07:04 PM Re: What's Wrong With This Picture?
zephyr Offline
Major Contributor

Registered: 08/10/05
Posts: 1662
Loc: Missouri
If your customer buys the property from the selling agent, you may still be able to argue "procuring cause." In Missouri, anyway, there are 3 "tests" to determine who earned the commission. Is it the same in all states?
1) Did you give him the Brokers disclosure form(explain who you were working for and ideally have him sign something to that effect)?
2) Did you take him across the threshold first, or show him the property first?
3) did you write the offer?
Buyer's agency is the best scenario, but not all buyers will sign a contract.
As far as ethics and loyalty of the customer, don't expect any. Most people don't know enough about real estate to know that actions like that are muddying the waters. The other agent should have shown the property, but not tried to monopolize your buyer. I try to be very outgoing around other agents, and be the one asking questions and pointing things out so they don't get the chance to "bond" with my buyers. Of course, I try to do it subtly so I don't appear rude, but I don't let them take the control away, or the focus off of the property. I had one agent actually start going on (to my buyer, after I informed her I was his agent)about how HER buyers are always so pleased they NEVER work with any other agent again... I was just about speechless when my buyer popped off " Yeah, I can see how you'd scare people away from Realtors." I had to buy him lunch after that!
Good luck, Missbea! It takes awhile to learn all you have to know, and about the time you think you have it, something changes. Don't get nervous- have that rapport established way before you meet with other agents, and try to anticipate questions the buyers will ask and ask them first, forcing the other agent to respond to YOU!
_________________________
REO Broker since 2004

"And think not you can guide the course of Love, for Love, if it finds you worthy, will guide your course" K.Gibran

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#116292 - 12/23/05 06:10 AM Re: What's Wrong With This Picture?
missbea Offline
Member

Registered: 12/19/05
Posts: 120
Loc: Cleveland, Ohio
Thank you for your very insightful reply zephyr. As I stated, I am learning something new about this business everyday. I am detrmined to make it work! Here's an update--

I had another customer who was interested in this property.

The property is a storefront/apartment, mixed use building. The building is located in Cleveland Ohio, in a historical, Slavic,Polish neighborhood. A lot of the old buildings have signed up for the City's Storefront Program, and are being restored to there original appearance--Quite beautiful, very ethnic and interesting to see.

Anyway, I took my second customer to see this building. The owner, (who by the way, says he is the listing agent, but his name is not on the listing sheet) was there to greet me. When my buyer arrived. He said "hello" gruffly, and hurridley, no eye contact with me, and he immediately proceeded to talk to the owner about the building. I "tagged" along, and let this guy show and talk. After, the showing, and this guy was finished with his tour of the building, I asked the buyer, if he was interested. He made eye contact with the owner, and said that he was thinking about it.

Let me explain, the owner, and my buyer are from the same area, and ethnicticy. This area in the past, was known for its extreme exclusion of certain groups of people. However, times have changed, and many of these ethnic areas in Cleveland, and around, are, or have transitioned to multi-race and origin neighborhoods, happly and successfully. For example, Cleveland Heights, Shaker Heights, etc. Although, sadly, right now in Garfield Heights, there are over 200 homes for sale, as families are rushing to move out, because the area is transitioning. I think it's sad when people don't want to live next door to someone, merly because of their heritage.

My customer, had contacted me through an ad I placed online. I had the service, and information that he was interested in, so he contacted me via email. I responded to his email and later called him. He was "guick" and borderline rude, when I asked him to meet with me first at the restaurant across from the building so that I could introduce myself, explain my services and have him sign the Agency Discl, etc. He wasn't interested in that, just wanted to go to the building. "Okay," I thought. "I'll take him to the building, and let the owner-guy show, and monopolize the appointment, because, this customer is clearly not going to come back to me for service," I thought. However, he is MY CUSTOMER for this showing. I have him registered at the LISTING OFFICE for MY CUSTOMER, and I have kept ALL CORRESPONDENCE FROM and TO HIM regarding this property. I informed my broker about this situation, and she advised, that we will sue this company for our commission, if my customer purchases this property.

When I contacted the owner-guy,after this appointment, and told him that I was aware of what was going on, and I hope that he wasn't planning on cutting me out of the deal. He said "oh, I'll give you a little something." I replied, "Look, I am a realtor, and this property is listed on the MLS. If I bring a READY, WILLING and ABLE buyer to the table,I am expecting my "FULL COMMISSION." He said, ok, I'm not strapped for cash." What an as.. ....!! I sent an email to the listing agent, (since you can't speak to anyone in this office) verifying my appointments, names, dates and times, and CC'd my broker.

Since then, this second customer has contacted me for more information on this building, I can tell he really doesn't want to deal with me, but he is. A deal is a deal. When this is over, I can say, that I'm getting a firsthand knowledge of the hard, and sad reality of Cleveland, real estate.

Thanks Again!
missbea
Happy Holidays-God Bless!!
_________________________
Smyrna Real Estate

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#116293 - 12/23/05 02:56 PM Re: What's Wrong With This Picture?
B4U Close Offline
Member

Registered: 01/08/05
Posts: 44
Loc: Georgetown, KY
I'll bet its not just a reality of Cleveland real estate.
_________________________
Redding Real Estate

www.b4uclose.com

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#116294 - 12/28/05 08:23 AM Re: What's Wrong With This Picture?
zephyr Offline
Major Contributor

Registered: 08/10/05
Posts: 1662
Loc: Missouri
Hard, sad fact of lfe. Period. Gonna get worse, too, as our gov't puts the "terrorism" focus on certain groups of people, I'm afraid.
Just be yourself and accepting of all ethnicities, and the right ones will find you and cintinue to do business with you because you treat them right!
_________________________
REO Broker since 2004

"And think not you can guide the course of Love, for Love, if it finds you worthy, will guide your course" K.Gibran

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#116295 - 12/28/05 09:53 AM Re: What's Wrong With This Picture?
missbea Offline
Member

Registered: 12/19/05
Posts: 120
Loc: Cleveland, Ohio
I will, and thanks for the good advise.
_________________________
Smyrna Real Estate

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#116296 - 01/10/06 05:04 PM Re: What's Wrong With This Picture?
Paceryder Offline
Veteran Member

Registered: 05/14/05
Posts: 935
Loc: The Milky Way
Anyway, I took my second customer to see this building. The owner, (who by the way, says he is the listing agent, but his name is not on the listing sheet) was there to greet me. When my buyer arrived. He said "hello" gruffly, and hurridley, no eye contact with me, and he immediately proceeded to talk to the owner about the building. I "tagged" along, and let this guy show and talk. After, the showing, and this guy was finished with his tour of the building, I asked the buyer, if he was interested. He made eye contact with the owner, and said that he was thinking about it.

~~~~~

I definitely would have spoken to the "agent/owner" before I brought my second buyer there. I had a similar situation with a manager in a modular home park. The first buyer conveniently ended up buying a home from the manager. I made sure I spoke to the manager and the management company before I brought another customer back and made sure we were all clear that this was not going to happen again.

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#116297 - 01/14/06 07:44 AM Re: What's Wrong With This Picture?
missbea Offline
Member

Registered: 12/19/05
Posts: 120
Loc: Cleveland, Ohio
This has truly been a learning experience for me. I appreciate the input and advise from all of you.

I have learned through this, that in my area, it is common to have your customer "stolen" from you. What happens is,(can you believe this?) on the MLS listing sheet, in the "broker remarks" it will read: "Contact Listing Agent Only". So, you, following the directions, call the listing agent and set-up your showing appointment. My broker explained to me, that what happens here is, "your customer is "not registered" at the seller's broker's office, there is no paper trail, and if your buyer goes off with the selling agent, you really don't have a leg to stand on!
I am posting this here to help others. Always register your customer at the seller's agent office. Save your email correspondence with prospective buyer's as well. If the seller's office directs you back to the agent, insist on registering your customer, get names, and numbers-and remember to protect yourself, from these unscrupulous agencies!

Thanks again!!
_________________________
Smyrna Real Estate

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#116298 - 01/14/06 10:30 AM Re: What's Wrong With This Picture?
Paul Oaks Offline
Major Contributor

Registered: 06/23/04
Posts: 3370
Loc: Central Illinois
missbea,
You need to begin using an EBA or Exclusive Buyers Agreement with all your buyer clients, That way when the selling agent starts in you just mention that you have an EBA with your client and they need to back off or you will file an Ethics complaint against them. Make sure you keep a detailed log sheet on each buyer with all relevant information information should you need to prove procuring cause.
_________________________
Paul Oaks
Oaks Real Estate Group

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#116299 - 01/14/06 10:37 AM Re: What's Wrong With This Picture?
missbea Offline
Member

Registered: 12/19/05
Posts: 120
Loc: Cleveland, Ohio
Paul Oaks-- Good advise..will do!!! I have just modified a 3page EBA contract. If anyone needs a contract I'll send it---Thanks again!
_________________________
Smyrna Real Estate

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#116300 - 01/14/06 10:48 AM Re: What's Wrong With This Picture?
KT Offline
Veteran Member

Registered: 01/18/05
Posts: 1495
Loc: Ohio
I really don't like the idea of registering my clients w/another broker. Unless there's an offer, there's no reason what so ever that the other brokerage should have info pertaining to my clients. I've heard some say it's a security thing, where they're verifying that it's an actual agent setting up the showing. This can be easily solved, and there's several area brokers that do this, they ask for the agent's license number and verify.

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#116301 - 01/14/06 11:04 AM Re: What's Wrong With This Picture?
missbea Offline
Member

Registered: 12/19/05
Posts: 120
Loc: Cleveland, Ohio
I can understand that too. Most of the time when I register my client, I'm asked the clients last name only, I never give the, or am never asked for their full name. This information is registered in the showing book, for documentation for a number of reasons--to protect both sides.
_________________________
Smyrna Real Estate

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