I'm not sure how I would take this if I were a Realtor. Yesterday was just another day; I had a list of errands and was going to get my hair done. Michelle is my hairdresser; she was referred to me years ago by someone I know whose hair looked terrific. She has a small salon a few towns away and I make it a point to go there because she's the type of hairdresser that just "gets it." You tell her what you want and she does it, beautifully. Michelle doesn't advertise in any way and over the years I've seen her following grow until she's now booked sometimes for weeks in advance. She works solely on referrals, has no internet presence and people come from near and far to go to her.
What does this have to do with Real Estate? Well, last time I saw her was about three months ago, just after she had gotten married. She was ecstatic as all new brides are and when I walked in this time she was thrilled to announce she'd bought a house. I was very happy for her of course. Here's a home buyers story and her realtor's story....I wondered how I would feel if I were her Real Estate Agent.
There were two things both Michelle and her husband were looking for: a ranch style home with a basement. Her business is located in Levittown, New York and for anyone who remembers Mr. Levitt and his mass construction, there are plenty of ranch style homes but they do not contain basements. They were mass produced for returning Veterans at a very affordable price and only came in two styles: Ranch homes (with no basements) and Cape Cod houses. Neither of these fit her criteria.
One of the Original Levitt Homes located in Levittown, New York in the Town of Hempstead; this one has added on additions as so many do. Here an apartment and extension are where the original carport was located.
She went with a realtor to many different homes in many different towns around the Island while trying to stay somewhat in the vicinity of her work. "Carole," she said, "You wouldn't BELIEVE the homes we saw. Some were just dirty, don't people at least CLEAN when they are selling a home? Others needed extensive renovations. We even saw homes that had holes in the wall." It saddened me very much to hear that; I'm sure her real estate agent suggested they clean, repair and replace items but ultimately, it's out of their hands if their clients refuse to listen.
Finally, she wanted to see a home that a friend kept telling her to go look at. It had not yet been put on the market but her friend swore it was in "move in" condition. The house was in Levittown but one of only two homes that were not built by Levitt, instead she said it was built by Terra homes and about 40 years old---a ranch with a basement. Her friend was a neighbor and knew the home would be going up for sale but arranged for Michelle and her husband to see it. They did and yes, they fell in love---she had just closed on the home.
Her sadness was that she had felt her real estate agent had done so much work for them and taken them to so many homes and had lost out on the sale. Michelle realizes the enormous amount of time and work her agent put into helping her and her husband find the perfect home. The only thing she can do, she said, is refer her to her clients who of course talk about everything. I thought to myself on the way home that she's referring to MANY people with her little thriving business, not to mention family and friends as well. And I'm betting on the fact that although her agent lost the sale on her home, Michelle's scope is pretty wide in many different towns on Long Island and her Realtor will get new clients. Possibly MANY new clients.
In these times I wondered if her Realtor was able to look past what she had lost out on to the potential of what she is likely to gain. Would you feel that she lost a sale or gained a host of good referrals? I believe it's the latter and I am hoping she can see the Big Picture. There is no substitution, I believe, then a great referral!
*Carole Provenzale has been a Certified Feng Shui Consultant since 1997 and is the Founder of Feng Shui Long Island. Carole consults on site on Long Island and New York City and by phone for those at a distance.
Carole, the sad and often truth is that the referrals rarely materialize. If I were the agent I would drop off my brochures and business cards aplenty so Michele could post them in her shop. Unfortunately many folks go back to their lives, their work, kids and vacation. They seldom think back about someone else's situation.
Realtors are attuned to this vicious cycle but it doesn't make it easier. It is the nature of the beast.
Carole, I'll be the Devil's Advocate, and play a little role-reversal game.
Suppose a customer walked into the salon and got a shampoo, a trim, a color-job .... then just as the hairdresser is picking up the blow-dryer, the customer gets up out of the chair and says, "Thanks, I'll get this finished somewhere else. And, no, sorry, you don't get paid for your work so far today, but don't worry I'll tell all my friends about you".
It doesn't seem quite so warm and fuzzy when the roles are reversed.
Agents have always been pretty easy-going and accommodating in these situations. But, this is a business, and that's why many agents have started using Buyer-Broker agreements, or are looking into alternative commission/payment models. We have telephone bills, light bills, and gasoline (!) bills due today. A possible referral a few months/years down the road doesn't pay those bills.
Hi Carole,
I have loyal clients who send me referrals regularly .
I also have clients who have found a FSBO home and instead of buying directly through the seller, they asked me to become involved with the transaction and represent them, as well as offered to pay me if the homeowner wouldn't.
It's great that she will be telling everyone about her REALTOR, but perhaps it would have been even greater if she had of included her in the deal.
Jo
Perhaps when these situations occur real estate agents need to bill for services rendered like other professionals. I found a new accountant, but I still had to pay the previous one for services rendered. A possible referral is great, but time is valuable too.
I'm with Cheryl's frame of mind above.
I can't understand why people think Realtors can do what they do for free. You would pay your doctor, dentist, lawyer, hairdresser, bellman, taxi driver, waitress, masseuse, etc. for any service they perform for you right then and there. You KNOW they are to be paid for their time or effort that you have requested.
Sure....I have had to be nice and act like it doesn't bother methat I have spent months of my time, money, gas on people that accidentally found a FSBO or decided to stay in their present house. I could have been painting my toenails, played with my dog, blogging here with my AR friends or taken a much needed nap and had more fun.
To date these people that have used me like that have not referred anyone to me. They aren't the type of clients I want to have. I wish I would have figured them out early on and dropped them. I have bills to pay and DOUBLE board dues. This is a crazy business where we have to put out lots of $$$$ and it's a miracle if we get to a closing without the buyer or seller killing the deal.
Whew, Carole....I rarely get so riled up! Now I feel better, where's my nail polish?
Hi Carole !
I tend to agree woth Cheryl.....She should have finished what she started with the agent. It just doesnt seem right!
Carole, we all love referrals and that is the back bone of my business. But, why didn't your hairdresser call her agent and say "a neighbor in this neighborhood knows of a house coming on the market, we want to see if before it goes on the market". "Can you set it up?"
Then she would have had first of all representation, how does she know she paid the right price ? Who negotiated the inspections ?
All of this is assuming she had a buyer agency contract with her Realtor to see FSBO's etc..
If the Realtor didn't shame on her, but you're hairdresser should have called her. I think unrepresented sellers end up paying more.
Carole.... I didn't read any of the comments....... but yes, I would think that she gained a host of referrals. My question to you is.... how did you feel about her telling you this story? Does she know that you are a realtor? The realtor that she chose to help her.... did she just pick this person out of the blue?
This story you share Carole is age old and has occured time and time again just with different names and faces.. because of a similar situation...we require commitment from Buyers in the form of a written agreement that includes non-listed and fsbo properties so there is no sadness...
FOOD FOR THOUGHT...
if a client of your hairdresser -who may be a prospective future buyer asks this hairdresser - oh did this REALTOR sell YOU a home? how can she respond in all honesty to back up any referral - the Most and best referrals come from clients satisfied with the PROCESS all the way thru closing and after the move!!!
Once we have an agreement... Jeff has actually knocked on strangers doors to ask if they wanted to sell because we had a buyer who was looking for a piece of land to build or liked the location or style of a home...the committment works both ways :)
the key word is WORK
Thanks for sharing this Carole
Sincerely
Grace Safrin
Regardless of the field of sales or business one is in, our work is our lifeblood that is invested. It is hard to blow that off simply. It hurts as Tom points out. Sometimes it pans out, but it is rare for 'promises' to come through.
I agree with many of the above - Jo-Anne's suggestion was my first thought. After all the work, inclusion is only fair. Missie's comment is wise and valid.
I am totally all over Cheryl's & Lizette's comments - I have felt just that way. There are some situations where a great relationship has been built and a great deal of work is invested.
Regardless, it must be let go of - chalk it up... I once received a 'thank you for your help, but we bought elsewhere' sorry-note that made it feel worse.
Putting faith in follow-through has proven unwise. Best to trust in our efforts and shake it off as quickly as possible and carry on....
Carole - I understand your friend wants to and will more than likely send many referrals to the Realtor...I guess I'm wondering why she couldn't do both. Hindsite is always 20-20 though.
Jackie
Keeping the BIG picture in mind is the way to go. Always put the customers needs first and the rest will take care of itself.
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I see both sides Carole. The referral part though is what I've lived on all this year. Those are what have paid my bills. On the other hand at that time I would have been disappointed...but hey, it's been part of the business. I do not do buyer's agreements. I don't want to be stuck with someone who doesn't want to work with me...and not always FSBO's want to pay compensation. On the other hand I too (like Missy) wonder if their interests were taken to heart by "just the seller" and if all the inspections were in order. I really hope they don't have any problems pop up later.
Good "food for thought".
Carole,
This would be a hard one to take initially, but I would look at the big picture. That is the way I am though. I hope the referrals come back to the agent many times over and that she handled the disappointment appropriately.
Apparently there is a lot that I still don't know. I do apologize for upsetting anyone with this post, it was not my intention in the least!
Laurie, I hardly know how to answer; of course I was aware of her realtors feelings as she was but I did not think myself to have her call her realtor in...and they had already closed on the home. I felt she was trying to pay it forward with referrals.
Tom, I have not been in this position, I'm not a realtor. And not sure how I would have reacted myself.
Andrew, From what I know of her and the salon, I do believe she will refer to this agent. Whether her customers take her advice I can't say....I can only hope they do.
Cheryl, I understand your point exactly. I didn't really know how to answer her, she had already purchased the home and did acknowledge that she felt bad and was trying to help her agent. Considering it was after the fact I don't think making her feel worse would have done any good....
Jo, I didn't myself realize she could have called her realtor in at that point (even though I guess I should have) but if I didn't know, I'm sure she didn't either. Perhaps this should be brought up when first working with your realtor. I'm not sure what I could have said to her after this had all transpired.
Norma, Of course I agree that everyone's time is valuable. I felt that she was doing all she could think of to make it up to her Realtor....I only heard about this after the fact and wasn't quite sure what I should say.
Lizette, I'm sorry, I didn't mean to rile ANYONE up. I was recounting the story and wondered how I would feel. I guess I know now. What are you going to do with that nail polish??
Candy, I do believe she will refer and I do know she knows many people.
Fernando, I can't say what I would have done prior to reading these comments as it wouldn't honestly have occured to me to call her realtor in for the house that she found. Now I know better.
Missy, I don't know if she had an agreement with her realtor but I would guess not. I know that she had an inspection because I did ask her that. And she felt the price was right because the homes she had been seeing were that needed much work were priced between $350-$375. She said she paid $400,000 for the house and it was in mint condition.
Julie, Thank you for your comment, we are in the minority. I honestly can't say how I would feel because I'm not a realtor but I'm sure I would be (at the very least) disappointed. Michelle does have a wide scope of clients, however, and good words do get around. I take her at her word that she will refer.
Adam, Good quote and congrats on all your features! I feel badly reading these comments as if I should have done something else---but it was after the fact even if I had known. Thanks for taking the time to comment.
Jeff, I'm not sure Michelle understands Feng Shui very much so she doesn't know exactly what I do or that I work with realtors. I had mixed feelings while she was telling me the story---I, too, felt awful for her agent but I was happy for her that she found her dream home. Anything I could have said to her at this point would have only made her feel worse and that wouldn't have accomplished anything.
Grace, I don't believe she had an agreement with her realtor, she did not mention it. And while she can't vouch for everything about the agent from beginning to end, she CAN certainly refer someone who very much devoted herself to helping her find a home.
Teri, There were cards out but not brochures. I am wondering why if this is happening often there aren't more agreements such as Grace has?
Deborah, I'm sorry this hit such a nerve, it was not my intention in the post to do that. I'm sure it does hurt but I did also think of the potential....
Jackie, I don't believe she thought of calling in her agent when she found the house. A friend of hers set it up and she went back the second night, agreed on a price and it was done. She should have called her realtor before making an agreement I see now.
Dan, Most realtors don't feel that way and I completely understand how they feel. I'm glad you would have taken it well.
Sally, I did ask about the inspection but not if she had an agreement with her realtor which she apparently didn't. So my question still is if this is happening (and I can tell by the comments it is), why aren't there more agreements? That would make things very clear on both sides.
Kim, I do know she will refer and I certainly do believe things will materialize for her realtor. Quite honestly I have to wonder how many people would just be speaking of the home instead of pointing out that she did feel badly about it and hoped to make it up to her.
Laurie, Thank you for coming back, I am sorry that I posted this as it seems to have really hit a nerve which was not my intention. I will be curious when I go back to ask her about her realtor and get more details.
Carole: A tough situation for sure and one that is hard to take. I have to agree with Cheryl playing devil's advocate. I am a strong proponent of loyalty and I would have had to find a way to include my agent so she/he could at least get a referral fee or something. I know referrals may come later on but like Cheryl says, later on doesn't pay the bills now. It happens and it's just one more thing Realtors take on the chin.
Carole...everything's fine. Don't worry about me! It's very rare that I even state how unfair I believe it to be. I'm always so optimistic. Sorry I took a stand on your post. :~(
I hope I haven't upset you! BTW...my hairdresser is one of my best friends and she has displayed my cards & even told clients about me...over 4 years time I still haven't had a referral. It's harder than you think to get a good referral. That Realtor may get plenty of gray hair waiting for it to happen. Good thing she has a hairdresser! LOL Michelle should figure up how many hours her Realtor donated for her and comp her services by that much for her. Thats the best thing she should do since she is in a service industry. Phantom referrals are kinda weak at this point(and may take years.) It would be a good start to mend fences with her Realtor that could happen right now.
The nail polish was to paint my nails with.(Something I could do instead of showing property to clients that wasted my time).
If she goes out of this situation feeling as she does, that is exactly what will happen. I am a strong advovate for
" YOU GET WHAT YOU THINK ABOUT"
Carole- Hindsight is always 20/20 and it can't be changed now. You were right to not rile your friend up - what good would it have done? Here's a lesson I learned in an advanced level psych course: "we will make the best decision available to us, based on the information at hand, at any given time." I know, it has an implied "always" in there, but if you think about this one, it's a truism. We can't help ourselves. Someone else can look at the same situation and say, "how could you?!" or we can look back in hindsight and wonder the question ourselves, but by our very nature, we want to do what's best for us at that moment and in doing what's best for us, we know we impact other's.
Sometimes I think we're just too darned simplistic...by that's just my opinion, which I'm sure, is much better left to myself.
Jackie
Donna, I agree that there was a lot of time and expense involved for her realtor and I feel sorry for her as well. I am really hoping that all the good she does will come back to her.
Lizette, I count on you to tell it like it is, you did not upset me at all...I upset you and certainly didn't mean to! Or anyone else. It's certainly not a bad idea for Michelle to comp her services for a while, either---something else I hadn't thought of. BTW, I thought your nail polish was some kind of dangerous weapon :) Thanks for coming back, I really appreciate it!
Tara, I just saw that you are in Jacksonville, one of my favorite places in Florida. I have close friends in Ponte Vedra Beach that I used to visit often. I absolutely agree with your quote!
Carole -Sad to say this happens far too often. She could have called the agent to explain what was happening and to see if the agent would have represented her in the transaction. This also emphasize the importance of having a buyer's contract and taking the time to discuss situation such as FSBOS. I do hope she will follow through with referral, I sensed some guilt.
I don't normally work with retail buyers because of the obvious showing properties at all hours day and night. I have agents in my office that I refer these buyer leads over to. If it is a buyer that I know well, I will get more involved in the process though.
I encourage all my agents to have buyers sign a buyer brokerage agreement that binds the buyer to that agent for at least 90 days. This prevents buyers from straying and us losing out on a commission after doing so much work. If the buyer is not willing to sign for 90 days, we can always shorten the time period. If the buyer flat out refuses to sign, then it is a great indication that they are a time waster. If we are going to dedicate many of hours of our time to this buyer at no charge, the least they can do is show us some loyalty.
Carole - I hope we didn't upset you. I just get upset, as I have spent weeks, even months working with a client, and they end up buying a FSBO.
Or like last week, worked for two years with a buyer to find him a high end home he loves, to have him buy one from an auction. OUCH! I am always happy for them to find their dream homes, but in the case with FSBO's, many times the seller will pay the agent something to do the paper work. It is nice to be asked, is all.
I have had them sign a buyers' rep form, but, mainly just because I hope it will encourage some form of loyalty. I have never sued them for the commission if they purchased without me. I believe most people that buy the FSBO's are embarrassed and that is why you never hear from them. I am thinking out loud.
Hopefully the Realtor does get some good referrals. The most talked to people are hair dressers/barbers and bar tenders! The Realtor should make sure her hair stylist has a supply of business cards ready for anyone who starts talking about real estate.
Another bad experience is running in to someone you haven't seen in a while and they start telling you about the great new house they bought - and, Oh No - they forgot you were a Realtor!
Make sure EVERYONE you know knows what you do and NEVER take them off you mailing list.
Carole- I let my buyers know that they are going to pay me if they find a home on their own, if I show them a home that is listed with a coop fee less than what I work for I tell my buyers that they are going to pay the difference between the two. I have had buyers pay my commission many times on FSBO's etc.
The point is if she really believed her agent worked so hard then she should have told the seller that she wants her agent to represent her and raise the price to cover her agents fee.
The referrals are great but that it not the point. This is one of my pet peeves. We work hard and deserve our fee. It does not matter who finds the house. Period. Her agent should have been included in the deal and paid! Just because she did not find the house, that is just a small part of her service. She is not a finder, she is a Realtor. She is not working for a finders fee, she is working for a real estate fee. THere is much more work to be done before closing on that house that she needs an agent for! It is not about finding the house! Katerina
The agent herself should have made sure her buyer understood enough to call her into the process. The buyer's interest were not protected and she may not know until years down the road what a disservice she did to herself by not having representation.
Carole, as you very well know, given your proven and testified to belief system, this will just cause your business to multiply in ways that you cannot see. Great Post...
Connor MacIVOR
Agree with the comments that Cheryl made. Buyer Broker agreements are the way to go. And everyone says they will give an agent referrals, but in truth people forget and often times this never happens. Realtors have to pay their bills, just like a hairdresser does. Just my 2 cents.
Carole, we Realtors need to come into this industry with out eyes wide open. It is hard work and sometimes without any monetary return on time. . . It is, however, a wonderfully satisfying industry if entered with the right intentions. Yes, we are feeding our families and paying our mortgages and depend on the completion of transactions to do so, but we are also sometimes just planting seeds for the future.
We are in a service industry and if we keep our focus on serving the community and doing the right thing for the consumer, we will surely be compensated in many more ways...sometimes it comes years later, sometimes it is the satisfaction today of helping someone with their tomorrows.
I once assisted a holocaust survivor couple who could not bear the terror of people walking into their home. They were very elderly and barely had money to live on. They refused to go onto multiple listing and I did not know what I could do to assist.
Miraculously, an attorney who had represented one of mNexy commercial clients came into an open house I did not plan to have with an inspired thought to invest her children's college fund (which was not making much $ in the bank) into real estate...cash deal. I closed the OH and drove her to the couple's house, made an introduction and left.
The house did close and the couple's daughter from Colorado (also not wealthy) called and cried to me on the phone that I was an angel. They wanted to send me $5000 for the transaction and I refused. I said it would be better used for her parents' moving expenses.
Next thing I know, their neighbor calls me to list their house for sale. They have a niece working in my office but heard what I had done and wanted to list with me. On top of that, their neighbor heard the story and also insisted on listing with me.
I have several current listings who found me because they feel I have marketed so many homes in the area, they feel confident I can do the same successful marketing for them.
Call it pay it forward, call it doing the right thing, call it reaping what we sow...if nothing ever financially came of doing this deed, the gratification that I was in a position to be allowed to help someone like this, was payment enough.
Realtors are really good souls and I trust they will do the right thing when the time presents itself.
Gail Gladstone, Long Island Realtor
Jennifer, Thank you for your comment, she did feel badly and I do believe she will refer her realtor. I didn't even realize myself this happened so often to realtors and I'm sorry to hear it.
Cristina, I think not only did I learn some things, perhaps her realtor did as well and will have these contracts drawn up in the future. Thanks for stopping in and commenting.
Rob, I agree with you and since this apparently happens more often then I ever would have thought I don't know why more realtors don't have agreements. I have a lot to learn still. Thank you for your comment.
Candy, You did not upset me, I didn't realize this was happening so frequently and such a sore point or I would not have written it. It's taught me a lot and I would think just signing the agreement would deter a buyer from looking on their own (?)
Where was the Trust: Knowing this person I honestly do not know if she thought about discussing it with her realtor. I am not making excuses for her and can't speak for her but from her eyes, she found a home and went back the second night and bought it. She mentioned to me that she felt badly about her agent who had worked so hard for her so she is obviously thinking about it.
Elizabeth, That was my initial thought in this post. They have coffee klatches in there, they share information and many referrals. Since people come from all over I have no doubt she is telling everyone the same story about her new home and is certainly speaking highly of her realtor---It may well pay off and I hope it does.
Katerina, I agree and believe an agreement or discussion with her realtor would have certainly helped avoid this. Whether or not issues will arise later I don't know, the only thing I asked was if she had a home inspection. They have already closed on the house...
Josette, Thank you for stopping in and commenting. I have to say I'm not a realtor and this post was a definite eye-opener for me.
Connor, Thank you for your comment. I do believe what goes around comes around and this realtor will have good things coming to her but that's just my opinion. I do know Michelle did not at all mean to cause any harm, she is not to my knowledge like that; I don't think she was aware.
Bob & Carolyn, I appreciate you comment. I agree that there should have been an agreement in place and this should have been discussed prior to working with her but apparently it wasn't---Maybe those contracts should be universal (?) to help protect the Realtor?
Teri, I'm not sure why they would be uncomfortable asking someone to sign an agreement. I would sign one. I wouldn't sue over it if they broke it but I think the fact that they signed it would definitely deter them from looking on their own. And I never realized this happened so often!
I on the side of what goes around comes around. There is a better than average chance that the hairdresser refers several people. And say two of those referrals make it to closing in one year. The Realtor is way ahead of the game.
But what if the Realtor had sold the hairdresser a house that she and her husband didn't like and the hairdresser told EVERYBODY how unhappy she was? Where would the Realtor be then?
It's up to you whether you protect yourself - do you have the prospect sign an exclusive buyer's agency agreement?
Another way to insure you get paid is to have a consulting/counseling arrangement where you're paid by the time expended.
If you aren't protected, and that happens, be gracious and friendly and supportive. They didn't do something "against" you, they did something "for" themselves. I've had people over the years who didn't buy through me who did send me lots of referrals. If you make them feel bad, or guilty, for what they did, they'll never refer you.
Carole--When you think that thousands of dollars are involved, there are some who will be talked into writing an offer with another agent if they are convinced they will lose the house if they wait. It happens quite often...especially to new agents and when you are working with friends. No one wants to ask a friend or relative to sign a contract.
Crazy business isn't it when so many will work hard for free!
we must protect our service to buyers before we get involved with them. thanks for the posting. lupe
I would have to agree. It's really hard to stay in contact with every person you see on a regular basis. I know that I personally have dealt with clients who have had a Realtor for years but I was there at the right place at the right time.
On the other hand, it has happened to me before too.
Carole,
I have a hard time reading your post and the comments. I may be doing something wrong, but every line seems like it is too long and I can not read what is written unless I keep changing the size of the screen for each line. Is it my computer or something else?
I think I got the jist of things, though.
Thanks
Congratulations on this featured article which has generated so many comments. Referrals are wonderful and we all love them but I believe the right thing for this lady to have done was get the agent she was working with involved in the sale.
Dena, Thank you, that's an interesting way to look at it! I didn't mean to strike such a nerve and didn't realize this happens so often!
Sharon, Thank you for your comment. I know there seems to be reluctance on the part of some realtors to have clients sign the agreement but if that is the only way to protect yourself I don't see the harm in asking.
Ms.Maven Joan, I have certainly learned a LOT. And will know better for next time if the topic comes up before the closing!
Christi, I am very much hoping that she gets referrals and believe that she will. She worked hard for Michelle and I know that if she was telling ME how good she was, she will be speaking of her to others.
Teri, I understand it would be difficult but I remember many years ago my Aunt was getting divorced and asked the family for a lot of money to buy her ex husband out to keep the house. Everyone turned her down completely except my father. It was my mother who asked her to sign something and she did...even though it was in the family. It took her many years but she paid them back and if she didn't, I think they would have chalked it up. I know they wouldn't have taken her to court.
Jennifer, Thank you for your comment. I think that is the only thing she can do at the moment, she already closed on the house. So I'm hoping she gets some good, solid referrals.
Lisa, From the comments I would agree with you. I don't honestly know as a first time home buyer if she even thought of calling in her realtor but she does acknowledge her hard work. What about all the people this has happened to when they don't even get referrals? Hopefully good things will come to her agent.
Lupe, Thank you for stopping in and your comment. I wrote I wonder how I would feel, know i know! I would put in place an agreement and discuss these possibilities first.
John, Regretfully this seems to have happened to everyone. It seems the only way to protect yourself is with an agreement if the potential buyer will sign it. If not and you decide to help them at least you are aware they may not purchase from you. Thank you for your comment.
Ronnie, It seems some Realtors have the agreement and won't work without it while others don't....I guess it's a difficult call. Thank you for stopping in and commenting.
_____: Thank you for your comment. There seem to be mixed opinions on whether or not to have that agreement in place.
Kim, I SO hope referrals will her her realtor and she will see some big rewards. Thank you for your comment.
Ira, It posted that way and I was not able to correct it, I'm not sure why but the words seem to spill over into the side. This hasn't happened before and hopefully won't happen again, I apologize for the inconvience in reading this post.
so many buyers don't realize that realtors work for "free" untill they actually close on a piece of property. i have had this simular thing happen to me before and almost in the same way. it made me realize 3 very important things:
1. sign buyer client agreements with your buyer customers!
2. knowing that this buyer will refer many good new clients i would be understanding and look to the future. i mean who do you think the hairdresser will call when they outgrow this home? they will call the agent back to list and find them a new home. clients for life. however, if the realtor gets bitter and shuns the hairdresser much more bad press will follow. always look to the future.
3. as a realtor we need to really know our market area and territory.
-that means knowing the community so well that YOU are the first person to hear about anyone even thinking of selling a home. know the expired listings and withdrwan listings in the area in case you have a buyer that fits well with an expired home. call that expired and get them to agree to a showing.
trevor ainsworth
century 21 jack associates
south burlington, vt
I just don't understand why the hair dresser could not have cut her realtor in on the deal. I agree with the person who said that the hairdresser would have felt shorted had she shampooed, cut and colored someone's hair only to have them leave and not pay because they could blow dry it themselves...
Well, I'm curious. Who managed the transaction, disclosures, financing, etc.??
Did the buyer and seller just sit down at a table and pull a contract out of a hat?? Did they have an attorney handle the transaction??
Even if the buyer found the home themselves, there is usually at least one agent involved.
Carole-I saw a few important things in this post....one is the perception of a buyer to the homes being show ie: not up to par with repairs, cleanliness, etc. I also saw about a Buyer going without their Agent to a home that a friend knew about....the one they were looking for.....
She could have called her Agent and said, hey I just heard of a home that sounds perfect.....can you help me with it? That would have been the prudent thing to do. I have had buyers "take me" to see a Home they found :) This was because of the relationship we had formed, both of us on the same page of trying to find the home.
OK, then you asked did the Agent lose a sale, or gain Referrals....I would say time will tell. Part of this story tells me that the Buyer isn't all into the Agent no matter what she says, because she (the Buyer) doesn't advertise, found her own home, etc, and might just continue with the belief that social networking can be more advantageous than using an Agent.
Yep, time will tell...and Lenn's comment is definitely what I would be wondering as well.
Hi Carole,
Just dropped by to say Hi and great post! Hope you are having a good day!!
Trevor, Thank you for stopping by and your comment and thoughts. I belive her realtor did not hold any ill feelings toward her or you're right, I don't think she would be referring if they did (or showed it). I do not know how, however, she would have known a home was coming on the market that fit her specifications and location. If her neighbor hadn't told her about the house, she wouldn't have found it. It seems from the comments many people are reluctant to get a buyer's agreement and I do understand why but in that case they should discuss these situations prior I believe.
_____: I can't speak for her, I can only say I just don't think she thought of it (my opinion). I didn't ask her that question.
Diane, I hope that she gets referrals. That salon has been a place of referrals for ME when I've needed someone because everyone talks so much about their experiences. I found a great painter there a few years ago---who then got referrals from ME.
Diane B.: I actually think she will too. When someone has had a good experience and you're looking for that type of person and come recommended it can be worth a lot of money.
Rob: I can't speak as to why her agent did not have her sign this agreement but it seems some realtors are reluctant. I believe if I were a realtor I would ask...
Lenn, I'm sorry I don't know the answers to your question and they are all good ones. She just said "everything went off very fast and well" and there were no problems. Next time I go back I will ask more.
Kathy, They were things I picked up as well. She extimated she saw about 12 homes with this realtor and not ONE of them was clean or was anywhere near "move in" condition. She was pretty specific on how people are showing their homes and she had a valid point if that's true. And others, she said, were in need of lots of repairing (such as the holes in the wall). I did ask if she had gone onto MLS and she did, she said the homes did not have pictures posted....These things did make me wonder. Yes, time will tell and I'd be interested to hear if the realtor gets serious referrals and ends up with more then she expected.
Trace, HI! :) Thank you so much for stopping in to say hello, it is appreciated :)
Wow Carole - your post is valuable in that it generated alot of response and discusssion which is good !
Just wanted to clarify why I answered how I did....In our personal business practice we see 2 basic types of clients...
Buyers and Sellers
...we would never list a home ( represent a seller ) without a signed listing agreement..I doubt if any other REALTOR here would list a home without a contract ...LOL
We also use the same basic principle of BUSINESS for ouR buyer clients..... if we represent them.... the signed buyer agency agreeement lists all the specific terms and conditions each party is to UPHOLD.
but since it is a BUSINESS- each person/company/office is able to determine policy of how they want Buyers or Sellers handled.
hope that helps explain my earlier answer and perhaps some of the different philosophies of practice I've read here - there is no one answer - just depends on the practitioners etablished policy.
We are VERY happy with ours so far :)
Happy Thanks giving
Sincerely,
Grace
I have been in that boat where I showed a gazillion homes and then the buyers bought something not on the MLS. They swore great loyalty and referrals but I never saw one.
On the other hand, I had a listing that I just about killed myself to sell but it didn't and then the owners ended up selling to someone off the market. They acknowledged that I had worked extremely hard for them and out of the blue, they sent me over an enormous tray at the holidays - full of nice things and, as I recall, tickets for my family and me to see a ballet or show. It was a long time ago so the specifics are missing but I recall how shocked and delighted I was.
To this day, some dozen years later, we remain friends, I have referred them clients over the years for their business and vice versa.
But - really - out of all the times where something like that happened, they are the ONLY ones who thought to say Thank You in a tangible way. The others said, "oh I am sorry, I will tell my friends about you" but truth be told, I never heard from them again. The ratio is about ten to one for me.
Happy Thanksgiving, Carole!
Grace, Thank you so much for your response. I didn't realize myself there are so many ways to handle this and never did I realize how often this happens, I was shocked to read the comments and it's happened to everyone! How sad, I thought this was a "fluke" but apparently not.
Mary, Thank you for your comment. It's nice to hear that they sent you cookies and did acknowledge you but I'm hoping that her good word of mouth will encourage people to use this Realtor...and that it more then makes up for the time she spent with Michelle. It will be interesting to hear when I go back if she did in fact get any valuable referrals. I hope you had a wonderful Thanksgiving.
Gayle, I don't know if that's a possibility but I don't see why it shouldn't be in some cases. I guess it is up to each Realtor and how they choose to handle new clients. Thank you for your comment.