When you're a Real Estate Agent, you dream of having a Pre-Approved Borrower with a Buyer's Brokerage Agreement every time someone hops into that SUV. It'd be the perfect client every time!
But alas, you live in the "real world" where no one is approved for fear of running & ruining their credit 
report and no one wants to sign a Buyer's Brokerage Agreement; they're just not ready for that type of commitment. You know, they wanna test the water (so-to-speak) to see if there's anything out there to buy to begin with (something that's within their budget and appealing enough to call "home").
If you're a Real Estate Agent, where do you draw the line? When do you say, "no mas! I won't show you a home without a Buyer's Brokerage Agreement.
If you're the consumer, why won't you ante up? You can be honest...this blog has an "open door" policy.
I point this out because a fellow Agent and friend of mine [let's call him Agent Chuck] was working with some very close clients of his [let's say Mr. & Mrs. Smith]. Well, Agent Chuck went on vacation over the weekend; a much needed vacation. I can't blame him, he works very hard. He should get a few days off to spend with his family.
Anyway, whilst he was on vacation Mr. and Mrs. Smith found a home that they really liked. Being loyal to Agent Chuck they told the Showing Agent that they were already working with Agent Chuck.
That's when Mr. Showing Agent asked Mr. and Mrs. Smith if they'd signed a Buyer's Brokerage Agreement to which they responded "No." He proceeded to say "if you use me, I'll cut my commission in half." How's that for a discount huh? Well, not really...
See, what really happened was this... The showing agent wrote up an offer for Mr. and Mrs. Smith on 
the property and on a 6% commission. There was no price reduction on the sale of the home and no seller concessions to cover closing costs. Good ol' Mr. Showing Agent just doubled his commission by working the buying and selling side on this transaction. Meanwhile Agent Chuck is telling his ex-clients "the seller pays the commission. I'm not charging you a dime!" (Too little, too late).
The Big Question:
When do you make it a rule for yourself to not represent buyers without a Buyer's Brokerage Agreement?
Comments