I am so upset! I have been working w/a friend on finding him a house, sending emails, directing him to get pre-approve etc. Today he calls me that he got a townhouse, I asked what do you mean "you got", he went on to tell me he signed a contract & I asked with whom, an agent, he said yes. His excuse is that he did not know that the listing agent would get double the commission. Even though this might be true, which I know it happens, I don't quite understand why you would not even ask your realtor friend for advise on the purchase! I wonder if the listing agent asked if he had a realtor, I always do. Yeeh, I just lost out on a good commission $260k selling price. Oh, one more thing, it seems that the listing agent referred him to a lender so all my wasted breath and advise did not count for anything. Well, I will just brush it off & move on. I am still going to work with him on selling his other house, if it happens.

When I started my broker told me horror stories about such as this. To myself I thought this would never happen to an agent like myself. Then a close friend at church listed his home with another agent!

On the other hand, I am sure some of my deals came at the expense of other local agents. Just part of the gig I guess.

Yes that hurts. It's hard to get over even especialy if he is your friend. It's more then just the loss of commission. It's like betrayal. Some people don't listen even if you explain how you work. As all they care about is them and you are just a tool. I had one aquaintance list with someone else at my company and then tell me they thought it was alright since it was the same company. Right after I had asked them if they knew anyone looking to buy or sell real estate. They took my card and then called the office and just asked for an agent.

Ouch, that hurts. Good attidute, bursh it off and move on.

Barbara

The fact is many of our friends and family do not relize how we are paid. I had a friend use an agent from my company and the deal went sour and he called me. Others know how we are paid but thing they know more that us and tackle it on their own.

I work friends and family SOI wise. If I had to count on them to survive I'd be dead. I use them to get the info from their SOI to add to mine.

I had one friend that bought a house make a comment about how much I made from the sale (on the surface it was alot). I had to break it down to him that the check belong to my broker, he gets a cut. From that which I get, the Government gets a cut. From that I have to maintain an office, market, drive around all day. maintain board fees. From that I get paid. In reality I needed to submit him a bill.

To sum up what ColoBroker said - ""The majority of people do not give a flying cow chip about you or your bank account"" Friend or not. They live in 'Me World'. You will do very well in this business if you can competely disconnect your emotions and work it as a numbers game. BigC

WELL SAID BIGC!!!!!

"His excuse is that he did not know that the listing agent would get double the commission."

I really hate to say this but it sounds like you dropped the ball. What do I mean by this? I mean agents seem to give buyers "just enough" information where the agent feels OK about the situation.

What you need is a process EVERY TIME with all buyers that you go through. Systems help you to not forget a step and ge tpredictable results because you do things the same way over and over. It also helps if you bring in team members because you know the process works and you just need them to implement it from now on.

I hear the same questions from buyers and sellers over and over again. It might be the thousandth time you have answered it but the first time a buyer or seller has asked it.

Many buyers do not know about double commission,procuring cause,agency client or customer relationships etc.

You need to make up a buyer orientation folder and go over this with a buyer at your initial meeting and then give them a copy. Also need to put a copy on your website for buyers so they know what to expect in the process.

I also hate to see thie "Listing agent gets double the commission" or "double dipping."

No. Listing agent doing both sides gets 100% of the commission - full commission for doing both sides of the transaction.

The seller agrees to pay N% for the house getting sold.

The listing agent only gets a percentage, sometimes half, sometimes more, sometimes less... of the commission when someone else sells it.

One of my clients has asked us to cut the commission by 2% if I sell it myself. Therefore, you do not know that the other agent is even getting the full commission...you do not know the agreement the agent has with the seller. It could very well be that he is only getting a tiny bit more than if it were co-broked.

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That said, I'm sorry your friend cut you out - that sucks, big time.

Ouch....this is the emotional stress part of the business that really sucks.

It is our job to educate our clients - and I say that because you need to make them clients with a Buyers Rep Agreement, otherwise they are nothing but a customer/acquaintance - about how we are compensated. They need to know that you are a business owner and that you have expenses related to that.

Make your business a more formal arrangement and people will respect your time and effort more. Even if they are your friend, you need to formalize your professional relationship with them. You wouldn't list a friends house without a contract. Don't help them look for one without one, either!

Live and learn!

Thanks guys, yes from now own I will better educate my buyers and when this occurs I know that they were aware of it, no excuses.

My daughter was looking for an apartment a couple of years ago and said "so I called the name on the Coldwell Banker sign"...........!!!

What! She admittedley didn't grow up around the real estate talk that my 2 younger ones did but still!

People just don't get it until you explain, in detail, again and again. Believe me....She understands now! LOL

Wow! I know the feeling. Just happened to me. I helped a customer get qualified by suggesting what she could do to clear up her credit for 1.5 yrs, showing her property, etc.. Then she says she will ride past my lot gain and if she likes it she will put in an offer. Get this, she did put in the offer......through another agent! She had also been working for him 1.5 yrs. I couldn't believe it. Yes, I get half because it's my listing, but I could have gotten it all.

All I can say is, IT happens! You can replace the IT in the sentence with anything you like....lol

Had similar one a few years ago.

Buyer was referred to my by a referral agent, a retired broker who kept his license active for referrals only. Was a cousin or 2nd cousin, also over 70.

Goes to see daughter, sees FSBO up the street, knocks on door, makes offer. FSBO brings out a blank xerox copy of a board contract, fills it out, checks no on all contingencies (including inspection and mortgage), gets buyer to write $10,000 check to seller.

Next morning I get a frantic call "Get me out of this".

Buyer didn't listen to his cousin with 40 years in the biz, didn't listen to me.

My advice - Go See a Lawyer Today