Agents Online Real Estate Forums, Discussion, Realtors Marketing Tips

Follow AgentsOnline on Twitter

Click Here to display our logo on your site and link to us!
AgentsOnline Real Estate Discussion Forums Logo

Realtor CommunityA popular online real estate community since 1998!


Advertisements


Sponsored Links
Good Idea!
The ultimate marketing tool

Advertisements
How To Advertise Here
How To Advertise Here

Sponsored Links
(Views)Popular Topics
I MAKE 100 COLD CALLS EVERY DAY & LOVE IT! 28269339
No new orders today 13101742
Stupid MLS comments. 3276643
What do you know about Froy Candelario, top agent in USA 1189415
Stupid QC comments and BPO requirements. 1061105
New HUD Listing Brokers---Any Update? 1028116
Is there religious content in Buffini class? 822581
Let's talk about our cars 670945
Name that Flick. Great movie Lines. 602695
Pay it Forward - BPO/REO Tips & Tricks I & II 592369
Most common items found at an REO 575889
EML 459232
REOTRANS 440725
Main Street 419405
asset val seminar in colorado 407144
assist 2 sell or 1 percent realty? 340432
HOMONYMS - There, Their, and They're 306760
Evalonline 300191
Land America 285052
Mainstreet 261859
Matched Content
Page 1 of 2 1 2 >
Topic Options
Rate This Topic
#182271 - 11/19/07 09:59 AM Buyer agent wants a referral fee
thatoneguyrealtor Offline
Member

Registered: 03/09/06
Posts: 22
Loc: MICHIGAN
I have a house that I bought to fix up & resell. I showed the house about 1 1/2 months ago to a couple. Several weeks later I talked to them and they got their ducks in a row and wanted to make an offer. We met at the house which is located right around the corner from their friends house where these buyers were staying for some time. They drove by my house and have seen it for sale for a while. I wrote up the purchase agreement, etc obviously as a seller's agent which I disclosed to them. We have the appraisal done and everything is almost ready to close and their buyer's agent (which I was unaware of) calls me and wants to know if she can get a referral fee because of all of the work she had done with them previously. I told her I accepted the buyers offer based that I am getting all of the commission. I am struggling to decide whether she should get it because the exclusive buyer agency contract she sent me (which has not yet expired) says that she is paid based on her success in locating, negotiating the sale of the property. She did not do any of this. I told her that the issue of compensation is an issue between her and her buyers. I welcome your insights and any points anyone makes regarding this. I can see the situation from both sides.

Top
Advertisements
#182279 - 11/19/07 10:59 AM Re: Buyer agent wants a referral fee [Re: thatoneguyrealtor]
Pikes Peak Offline
Major Contributor

Registered: 12/15/04
Posts: 2799
Loc: FL
Did you ask the buyer if they were working with another agent? That should be the #1 question on every agents list and documented when going over the mandatory agency disclosure definitions upon the first meaningful contact.
With that form in your pocket, saying they are not working with another agent, you are not obligated to pay the other agent.
Since she had no knowledge of "her" buyers working with you, one could make the assumption that she abandoned her buyers.
Ask the buyers about their reasoning and get some input.

Top
#182444 - 11/20/07 07:48 AM Re: Buyer agent wants a referral fee [Re: Pikes Peak]
thatoneguyrealtor Offline
Member

Registered: 03/09/06
Posts: 22
Loc: MICHIGAN
Pikes Peak,
Thanks for your insight. Very helpful. I think I should be all set!

Top
#188326 - 12/19/07 08:27 PM Re: Buyer agent wants a referral fee [Re: thatoneguyrealtor]
Forsalebyweb Offline
Member

Registered: 11/28/07
Posts: 92
Loc: Minneapolis, St. Paul, Minneso...
Since there is the existence of representation, it comes down to what the buyer says. Realtor arbitration typically favors what the client says. However, if you failed to ask question #1 you may have made a costly mistake by interfering with an existing agency unless the client has violated or cancelled their representation.

As the other poster said, ask the buyers for input.

 Quote:
their buyer's agent (which I was unaware of) calls me and wants to know if she can get a referral fee because of all of the work she had done with them previously.


What referral fee? Did the buyer's agent refer you the client? It does not appear so.
_________________________
We are different mostly through personal experience!


- Sol Sek
Founder of http://www.forsalebyweb.com
The Automatic Way to Buy and Sell Real Estate!

Top
#188411 - 12/20/07 09:59 AM Re: Buyer agent wants a referral fee [Re: Forsalebyweb]
Bigtoe Offline
Major Contributor

Registered: 10/14/07
Posts: 2238
Loc: Outer Banks
Do buyers actually say they have an exclusive buyer agency agreement with another agent? If they looked at your house over the course of 2 months I would bet they did not even know they had signed such an agreement.

Many agents make their buyers sign these things before they will show the buyers some houses and the buyers have no idea what they are getting themselves into. I have heard agents say they make everyone sign just to tie them up and get a piece of something.

If this agent thought she had a chance at getting the commission she would not be asking for just a piece of it.

Excuse me now, I have to go put on my anti-flame suit.
_________________________
Your Outer Banks real estate agent. Helping people buy and sell OBX real estate since 1989.

Top
#189553 - 12/28/07 07:50 AM Re: Buyer agent wants a referral fee [Re: Pikes Peak]
The Beeson Group Offline
Member

Registered: 12/26/07
Posts: 261
Loc: Riverside & San Bernardino Cou...
 Originally Posted By: pikes peak
Did you ask the buyer if they were working with another agent?


I can't tell you how many times that my wife would come home from showing one of our listings and say " They really like it, they're going to call me back and let me know if they plan on writing an offer" blah, blah, blah. Within 24 hours an agent calls to say that they are sending an offer over on our property. Then we realize that this particular agent is representing the buyers that the little woman met at the property earlier.

The nerve that some agents have. Let another agent rush out and leave the house while she is ready to sit down to dinner with her family, to do your job and show your clients a property. Than send us over the offer without ever seeing the property and act like your doing us a favor. At least have the courtesy to say "Thank you for showing my clients the property" instead of acting like you don't know that we did, or that we probably won't ever figure it out even though we'll see the buyers name on the contract.

After a few times of playing this game, she now ask every buyer ahead of time... "Are you currently working with an agent". I guess if you get burned a few times you eventually learn. \:\)
_________________________
Cory Beeson
The Beeson Group Inc.
Southern California
www.TheBeesonGroup.com

Top
#189559 - 12/28/07 08:23 AM Re: Buyer agent wants a referral fee [Re: The Beeson Group]
neudot Offline
Major Contributor

Registered: 11/02/07
Posts: 1960
Loc: Central New York
This conversation reminds me of the time I showed a house to a woman who said "fax the contract to me and I will sign it." I faxed the contract for the signatures...a while later it came back rewritten, with another agent's name on it as the selling agent. When the heck did this other agent get into the picture? Near as I can tell, the purchaser had met with a particular mortgage broker, whose wife was the other agent. I think it was this mortgage broker's procedure to say something like, "If you're not working with a particular broker, why not work with my wife?" and thus get his wife some business. Needless to say, we didn't refer any business to this particular mortgage broker. I was SO MAD! Both at the mortgage broker and his wife, but also with my broker, who refused to stand up for me in this whole procedure.

My revenge, if you can call it that, is that the deal fell apart when the seller moved out of the house and allowed the utilities to be shut off, the water pipes froze and burst, and the buyer cancelled the purchase.

Top
#192344 - 01/10/08 01:19 PM Re: Buyer agent wants a referral fee [Re: neudot]
surfer00 Offline
Member

Registered: 12/11/07
Posts: 57
Loc: Ca
I would ask the buyers if they mind adding a little $ money to the deal so the other agent that they didnt tell you about could get a referral fee.

Top
#194675 - 01/17/08 09:44 PM Re: Buyer agent wants a referral fee [Re: surfer00]
ColoBroker Offline
Major Contributor

Registered: 11/03/07
Posts: 2346
Loc: Northern Colorado
Sounds like you had procuring cause of the sale of your listing/house to those buyers. You shouldn't owe that agent a dime. Now depending on how that buyer agency agreement reads those buyers might owe that agent some money. But you didn't sign that buyer agreement. Or agree to anything. Also the above is right. Why would she be just asking for a referrel. I think she is just fishing. Hoping you'll just hand it over.
_________________________


Top
#194763 - 01/18/08 10:04 AM Re: Buyer agent wants a referral fee [Re: thatoneguyrealtor]
gail32002 Offline
Junior Member

Registered: 01/08/08
Posts: 1
Loc: Nova Scotia
if it was me I would go to my broker, show her the paper work and go from there. that is what our brokers are for, to lead and guide us. My broker is a godsent for me

Top
#204667 - 02/20/08 06:09 PM Re: Buyer agent wants a referral fee [Re: gail32002]
nick_cfl_realtor Offline
Junior Member

Registered: 02/20/08
Posts: 6
Loc: Florida, Central
I have to say this is a sad situation, and unfortunatly it is the actions of a few bad agents which give the rest of us a bad name. To be honest, i dont like having customers sign a contract, that may be good or bad but i leave that to after i have shown some homes to show good will and some good faith. to date i havent been burned (touch wood, although the potential is there).

It sounds to me like the typical agent who wants to get paid for doing nothing. I would talk to your broker and if they are the type to not do anything i would also contact your loacal board to get their input.

Best regards

Nick
_________________________
Realtor
Sun Homes and Investments
info@floridahomeswithnick.com

Top
#317299 - 12/11/09 01:11 PM Re: Buyer agent wants a referral fee [Re: nick_cfl_realtor]
m.s.Woods Offline
Member

Registered: 12/11/09
Posts: 92
Loc: Indianapolis, IN
Happens way too often, Buyers are uneducated as to how agency works. Their main concern is that they get the house they want at they price they want. I know it can be sooooo frustrating.
_________________________
Michael Woods, owns m.s.Woods Real Estate, LLC located in Indianapolis, Indiana. We help people buy and sell homes throughout central Indiana.

Top
#340218 - 06/05/10 03:39 PM Re: Buyer agent wants a referral fee [Re: ColoBroker]
LizL Offline
Major Contributor

Registered: 08/27/05
Posts: 1793
Loc: Missouri
Originally Posted By: ColoBroker
Sounds like you had procuring cause of the sale of your listing/house to those buyers. You shouldn't owe that agent a dime. Now depending on how that buyer agency agreement reads those buyers might owe that agent some money. But you didn't sign that buyer agreement. Or agree to anything. Also the above is right. Why would she be just asking for a referrel. I think she is just fishing. Hoping you'll just hand it over.
Absolutely! Buyers' Agency Agreements obligate the buyer and the buyer's agent, not every other agent in town. Other agents are, however, obligated to honor agency agreements, when they are disclosed. If OP asked the "are you working with" question and got a negative response, he/she is under no obligation to pay a referral fee. The buyer is the one who owes a commission to the other agent.
_________________________
Broker/Owner, REALTORŪ,GRI, ABR
REO listing/selling since 2004; BPOs only for current clients

Top
#372850 - 04/15/11 09:13 PM Re: Buyer agent wants a referral fee [Re: thatoneguyrealtor]
Zach Sikes Offline
Member

Registered: 04/11/11
Posts: 40
Loc: Edmond, OK
@LizL

I agree with you. It sounds like the buyer's agent is just fishing. I know how it feels to be left out of transaction, and that's why I now have all my buyers sign an exclusive agreement. I also make sure they understand what they are signing, and know that I will look out for their best interests in any transaction.
_________________________
Check out Homes for Sale in Edmond and OKC

Top
#373523 - 04/22/11 04:04 PM Re: Buyer agent wants a referral fee [Re: thatoneguyrealtor]
reosf Offline
Member

Registered: 10/28/10
Posts: 89
Loc: nor cal
Buyer's may have gone behind her back and decided to go straight to the listing agent to get a "deal". Was the buyer's agreement signed more that 2 months ago? She didn't negotiate the deal, so she's probably not entitled to commission referal fee. Her buyers should give her something for her time. They may have gained some real estate knowledge from working with her that may have helped them through the home finding process. I've had a buyer go behind my back on a property I did show to them (new construction sale), but I just wrote it off. She'll probably have to do the same.

Top
Page 1 of 2 1 2 >






Google Custom Forum Search

This Google Custom search may do a better job of searching the forums for some keywords than the old forum search does. The results do not include threads from the Asset Managers Forum however. To search that forum you will need to be actually in the Asset Managers Forum and you will need to use the old forum search below.
Search

Newest Members
Reguru1, Shaun225, Dr.Brim, james luis, Snapple
29795 Registered Users
Who's Online
1 registered (Venturepacific), 46 Guests and 4 Spiders online.
Key: Admin, Global Mod, Mod
Shout Box

Top Posters (30 Days)
Long Walk 75
Vermont 39
estatereal 18
Flare616 16
Trouble 13
Snapple 12
RonnieEmz 12
Logan Five 11
Lucky Leonardo 11
Analog Man 10
waka 9
gitmonee 8
Mr. Clean 8
Flammable 8
TheTexasGal 8
Featured Member
Registered: 03/26/08
Posts: 54
Facebook

How To Advertise Here


This site presented by RNC Internet Services