Real Estate Agents - Realtor Relationship?

Author

Realtor Relationship?

cbrhea@gmail.com

2006-08-28, 1:25 pm

I've been searching for house for a few weeks now, without the aid of
an agent or broker. I sent an email to an agent asking for a viewing of
a house they represented. They asked if I'd like to see a few others in
the area while we were there, so I said "okay".

We ended up seeing five houses, but not all of them were with their
company. If I end up purchasing a house that they showed me, but they
do not represent, what do I owe them? Do I have a business relationship
at this point?

Phonedude

2006-08-28, 1:25 pm

<cbrhea@gmail.com> wrote in message
news:1156772284.666878.134760@m79g2000cwm.googlegroups.com...
> I've been searching for house for a few weeks now, without the aid of
> an agent or broker. I sent an email to an agent asking for a viewing of
> a house they represented. They asked if I'd like to see a few others in
> the area while we were there, so I said "okay".
>
> We ended up seeing five houses, but not all of them were with their
> company. If I end up purchasing a house that they showed me, but they
> do not represent, what do I owe them? Do I have a business relationship
> at this point?
>

What state are you in? If you're in Florida your agent did a pretty poor
job of explaining agency and how real estate agents get paid. As a buyer,
you owe nothing to anyone. If you're in Florida your relationship with that
agent is presumed to be one of "transaction brokerage," in which there are
certain duties (which should have been disclosed to you), but if you're in
another state I don't know. In any case, commissions are paid by the
seller, not the buyer. I am shocked that your agent did not explain this to
you. In fact, it shocks me so much that I am tempted to suggest you find
another agent, assuming you don't buy one of the home you looked at with him
or her.

cbrhea@gmail.com

2006-08-28, 1:25 pm

Phonedude wrote:
> <cbrhea@gmail.com> wrote in message
> news:1156772284.666878.134760@m79g2000cwm.googlegroups.com...
>
> What state are you in?

Thanks for the info, Phonedude.

I'm in Oklahoma, if that helps any.

If I purchase a home that the realtor showed me, but they don't
represent, what is my obligation to them? Do I notify the seller? If
there is no obligation, what is the common practice?

Phonedude

2006-08-28, 5:25 pm

<cbrhea@gmail.com> wrote in message
news:1156781079.292995.133830@74g2000cwt.googlegroups.com...
>
> Phonedude wrote:
>
> Thanks for the info, Phonedude.
>
> I'm in Oklahoma, if that helps any.
>
> If I purchase a home that the realtor showed me, but they don't
> represent, what is my obligation to them? Do I notify the seller? If
> there is no obligation, what is the common practice?

I can't speak to the specifics of Oklahoma, but the common practice is that
if the home is in MLS and an agent shows it to you and then you buy it, that
agent is due a commission from the listing agent's brokerage. It's not your
obligation, it's an agreement between realtors who subscribe to the MLS.
Why would you buy the house and not let the agent represent you? Did you
have a bad experience with the agent? You will not save any money by being
unrepresented -- just the opposite is more likely. If you show up with no
representation, the listing agent is duty bound to his or her customer to
get every last cent possible out of you. Believe me, you won't get a break.

Show some loyalty to the agent who showed you the house and let him
represent you. It will cost you nothing and will most likely save you some
money and aggravation.

PD
>

cbrhea@gmail.com

2006-08-28, 5:25 pm

Phonedude wrote:
> <cbrhea@gmail.com> wrote in message
> news:1156781079.292995.133830@74g2000cwt.googlegroups.com...
>
> Show some loyalty to the agent who showed you the house and let him
> represent you. It will cost you nothing and will most likely save you some
> money and aggravation.
>
> PD

I'm not attempting to be greedy in this situation, just figure out the
norms of agency. A mortgage company recommended a different agent to
me, and he has been emailing me properties. I have not been in
communication with him, and have not used him to view any houses.

If I decide to buy this particular home, I assume the correct
procedures are as follows:

1. Notify contacted listing agent that I want to use them as my buyer's
broker for the property they are not representing.
2. Notify mortgage-recommended agent that I am already represented.
3. Sign an agreement with selected agent and bring them to the
bargaining table.

Phonedude

2006-08-29, 9:25 am

<cbrhea@gmail.com> wrote in message
news:1156803804.001378.190250@75g2000cwc.googlegroups.com...
>
> Phonedude wrote:
>
> I'm not attempting to be greedy in this situation, just figure out the
> norms of agency. A mortgage company recommended a different agent to
> me, and he has been emailing me properties. I have not been in
> communication with him, and have not used him to view any houses.
>
> If I decide to buy this particular home, I assume the correct
> procedures are as follows:
>
> 1. Notify contacted listing agent that I want to use them as my buyer's
> broker for the property they are not representing.
> 2. Notify mortgage-recommended agent that I am already represented.
> 3. Sign an agreement with selected agent and bring them to the
> bargaining table.

My answer is short and simple. *Pick an agent and let him handle the
details.* If you try to manage this yourself you will wander off into
quicksand and cause problems no one needs. There are rules that agents,
through the National Association of Realtors, the state association, and the
local association, have worked out over years of helping people buy and sell
real estate. You don't know these rules, so if you try to run the process
you are almost certain to run afoul of them. Whether you use the agent that
showed you the home, or the one your mortgage agent recommended, let him
handle the details. My only comment or my opinion in this matter is that if
the first agent took the time to find and show you a home that you like
enough to buy then that agent deserves to be paid for the effort. To give
the paycheck to someone else strikes me as bad form. How would you like it
if you worked all week and on Friday your employer said, thanks for the
work, but I've decided to send your check to Fred because my banker
recommended him to me.

One thing in particular. Do not contact the listing agent. There is no
reason for you to do so and it will serve no purpose. If you decide to go
with the first agent, you do not need to notify the mortgage broker's
friend -- as you have not been in communication with him. By the way, how
did he get your email ID and know what you're looking for? Did your
mortgage broker give out this personal information? You do not need to
sign an agreement with the selected agent. It can be and is done from time
to time, but there is no reason for it other than in special circumstances.
Again, pick an agent and let him handle the details. The Buyer pays nothing
in the way of commission. There are some closing costs, but you have to pay
them whether you use an agent or not. If someone asks you, as a buyer, to
pay commission, you have run into either a greedy seller, or a shoddy
seller's agent. One unfortunately common (not too much though, thank
goodness) is for a listing agent to take a listing at a very low commission
and tell the seller, "we'll make the buyer pay some commission too." This
is putting the agent's interest in front of the seller's and is really bad
form.

PD

darrenli516@yahoo.com

2006-08-29, 9:25 am

PD's comments were quite "on the money".
You, the buyer, shouldn't be overly concerned with who gets paid a
commission if you yourself haven't signed a contract with an agent for
buyer representation.
The usual practice is that agents represent the sellers, but take
buyers to see the houses and work with them as "customers", not
clients. In this case, the sellers pay the agent's commission. And, the
agents represent the sellers, and act on their behalf.
If you, the buyer, liked one of the houses that the first agent showed
you and you want to make an offer, then do it through that agent. That
is the most common practice.
Do NOT contact the listing agent. Explain your concerns to the first
agent.
Also, you are not obligated to use the mortgage company's recommened
agent.
Good luck, and keep us posted.

Darren

cbrhea@gmail.com

2006-08-29, 9:25 am

Phonedude wrote:
> <cbrhea@gmail.com> wrote in message
> news:1156803804.001378.190250@75g2000cwc.googlegroups.com...
>
> My answer is short and simple. *Pick an agent and let him handle the
> details.* If you try to manage this yourself you will wander off into
> quicksand and cause problems no one needs. There are rules that agents,
> through the National Association of Realtors, the state association, and the
> local association, have worked out over years of helping people buy and sell
> real estate. You don't know these rules, so if you try to run the process
> you are almost certain to run afoul of them. Whether you use the agent that
> showed you the home, or the one your mortgage agent recommended, let him
> handle the details. My only comment or my opinion in this matter is that if
> the first agent took the time to find and show you a home that you like
> enough to buy then that agent deserves to be paid for the effort. To give
> the paycheck to someone else strikes me as bad form. How would you like it
> if you worked all week and on Friday your employer said, thanks for the
> work, but I've decided to send your check to Fred because my banker
> recommended him to me.
>
> One thing in particular. Do not contact the listing agent. There is no
> reason for you to do so and it will serve no purpose. If you decide to go
> with the first agent, you do not need to notify the mortgage broker's
> friend -- as you have not been in communication with him. By the way, how
> did he get your email ID and know what you're looking for? Did your
> mortgage broker give out this personal information? You do not need to
> sign an agreement with the selected agent. It can be and is done from time
> to time, but there is no reason for it other than in special circumstances.
> Again, pick an agent and let him handle the details. The Buyer pays nothing
> in the way of commission. There are some closing costs, but you have to pay
> them whether you use an agent or not. If someone asks you, as a buyer, to
> pay commission, you have run into either a greedy seller, or a shoddy
> seller's agent. One unfortunately common (not too much though, thank
> goodness) is for a listing agent to take a listing at a very low commission
> and tell the seller, "we'll make the buyer pay some commission too." This
> is putting the agent's interest in front of the seller's and is really bad
> form.
>
> PD

When I referred to contacting the listing agent in my post, I actually
meant the one that I used to view the home, as he was a listing agent
for a different property I looked at. Sorry for the confusion.

I did contact this agent last night and asked him the nature of our
relationship and what I needed to do to secure his agency if I do
pursue this property. He told me that in our area, if an agent shows a
home from MLS, they will get the commission. He did not need anything
in writing, but said he can do that if I wanted. Seeing as I was
interested in a contract only for his benefit, I declined.

darrenli516@yahoo.com

2006-08-29, 1:25 pm

OK, I understand now.
In any event, be perfectly clear about agency. You can, in fact, hire
an agent to represent you. In that case, YOU are responsible for paying
the commission, and the agent works for you, and represents your best
interests. However, since you already saw properties with the first
agent, you couldn't have hired him/her as you agent after the fact
anyway.It's ethically a very sticky situation for an agent to switch in
mid-transaction. Hiring an agent to represent you is actually a great
idea, but the the concept of "buyer agency" hasn't really caught on in
most parts of the country.
If in your state attorneys are used for real estate sales, then hiring
an agent is a bit redundant anyway.

Darren

cbrhea@gmail.com wrote:
> Phonedude wrote:
>
> When I referred to contacting the listing agent in my post, I actually
> meant the one that I used to view the home, as he was a listing agent
> for a different property I looked at. Sorry for the confusion.
>
> I did contact this agent last night and asked him the nature of our
> relationship and what I needed to do to secure his agency if I do
> pursue this property. He told me that in our area, if an agent shows a
> home from MLS, they will get the commission. He did not need anything
> in writing, but said he can do that if I wanted. Seeing as I was
> interested in a contract only for his benefit, I declined.

Steve Foley

2006-08-29, 1:25 pm

<darrenli516@yahoo.com> wrote in message
news:1156866042.733312.25360@74g2000cwt.googlegroups.com...

> If in your state attorneys are used for real estate sales, then hiring
> an agent is a bit redundant anyway.
>
>
> Darren
>
One main difference between an agent and an attorney is method of payment.
The real estate agent only gets paid if the deal closes. The attorney will
send a bill if it closes or not.

This can work both for and against the buyer (or seller). I've seen agents
go to extreme lengths to keep a deal together. In most cases, this benefits
the buyer and seller. I've also seen agents go to the same extremes, when it
was not (IMHO) in the best interest of the buyer to keep the deal together.

cbrhea@gmail.com

2006-09-17, 9:25 pm

darrenli516@yahoo.com wrote:
> OK, I understand now.
> In any event, be perfectly clear about agency. You can, in fact, hire
> an agent to represent you. In that case, YOU are responsible for paying
> the commission, and the agent works for you, and represents your best
> interests. However, since you already saw properties with the first
> agent, you couldn't have hired him/her as you agent after the fact
> anyway.It's ethically a very sticky situation for an agent to switch in
> mid-transaction. Hiring an agent to represent you is actually a great
> idea, but the the concept of "buyer agency" hasn't really caught on in
> most parts of the country.
> If in your state attorneys are used for real estate sales, then hiring
> an agent is a bit redundant anyway.

Just to follow up:

We ended up purchasing a house that our agent's broker had listed. This
made me a little uncomfortable, but I decided I would just play it
savvy and be a skeptic.

I don't think this worked out well.

Our agent turned out to be somewhat incompetent, incorrectly filling
out paperwork and contracts. We had to make several visits to his
office to correct things. Also, he turned over information to his boss
(the seller's agent) several times that I was not comfortable with.

I think the deal ended up being mostly fair, but I'll certainly avoid
dual-agency in the future.

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