Relocate to Wisconsin : I don't want to WORK with the listing agent, I just SAW the house with Her

I don't want to WORK with the listing agent, I just SAW the house with Her

  We were introduced to a couple from one of our referral sources...who were at the end of a very peaceful divorce...yes, the do happen !

      One was electing to buy the other out of what had been the family home and the other was buying a new home.  That sounds simple. The person staying in the former family residence wanted advice on updates and maintenancc and the other on hoped we could help with the putchase of another home.

divorce house puzzle 'Sounds simple...BUT....the home purchase got complicated. The about to be different home owner, before meeting us, had called the listing agent and seen the property with her. She called him four times in less than 24 hours pressing him to write an offer.  Since there had been no "ink on paper" for closing the present residence, the offer would have had to be written with a home sale contingency. Neither the about to be former spouse nor the listing agent understood Mr. About to be New Home Owner could not afford to be on two mortgages at once.(His preapproval did say exactly that.)

     Eager to take the next step in his new life, he wanted us to write the offer on the new house he had seen with the listing agent. We explained the home sale contingency which means he could get bumped if his offer was accepted by someone who did not have a home sale. house key

    We explained to him, that because he saw the house with the listing agent, who is working for the Seller...She is now his agent, though not representing him, she would write the offer contingent upon the sale of his present home to his former spouse or on the open market. He asked that we call her and explain he didn't understand "the rules". We agreed with an offer of a part of the commission.  No No and No....she showed him the house and "Knew" he would buy it.  She had not seen the pre approval though knew the divorce was not final but did not find out the details.  

      No happily ever after with this house for either the Seller or the would be buyer....Procuring Cause....not understanding that owning two houses at once by either the buyer or listing agent....no house for now.

      The Soon to Be New Buyer now understands the merits of looking for a home with a Buyer's agent.  Had the house been sold....the Listing agent had procuring cause and would "have to write the offer."  

      Real estate is not always "consumer friendly" in the eyes of the public. Amen and Women.

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


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Comment balloon 26 commentsSally K. & David L. Hanson • September 17 2016 04:19AM

Comments

Happy Saturday Sally and David- sellers and buyers need to understand that having the best representative they can will save them time, money, and often heartache. 

Posted by Kathy Streib, Home Stager - Palm Beach County,FL -561-914-6224 (Room Service Home Staging) over 1 year ago

Good morning, Sally K. & David L. Hanson why is it so difficult for buyers to understand that they NEED to be represented properly and that's only by a buyer's agent.... 

and on another note, I hope your Packers win this weekend....I have then in my knockout pool and the regular season pool!!!! 

Posted by Barbara Todaro, "Franklin MA Homes" (RE/MAX Executive Realty ) over 1 year ago

Good morning Sally and David. This is a sad story but not uncommon. It falls to us to explain and then reinforce over and over again.

 

Posted by Sheila Anderson, The Real Estate Whisperer Who Listens 732-715-1133 (Referral Group Incorporated) over 1 year ago

Good Morning Sally and David - that is for sure.  The trusted advisor in the form of buyer's agent can help if people don't try to jump ahead.

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) over 1 year ago

Good morning Sally and David. The public has little undesanding of how it all works and never ask! Enjoy your day!

Posted by Wayne Martin, Real Estate Broker (Wayne M Martin) over 1 year ago

Good morning Sally K. & David L. Hanson ,

This is a scenario we see over and over again! It sounds like your buyer gets it now and understands how agency works. For some it's all about commission. If I had been the listing agent and no buyer agency agreement and hadn't shown him any other home I would have told the buyer to work with his agent..it would have been my listing that would have possibly  gotten an offer (the goal). I rarely operate in Intermediary (our term for an agent handling both the buyer and seller) and only do so with the right clients.

Posted by Dorie Dillard, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker United Realtors® ~ 512.346.1799) over 1 year ago

Good post, and good information we need to make sure our clients know who can work for them. 

Posted by Joe Jackson, Clintonville and Central Ohio Real Estate Expert (Keller Williams Capital Partners Realty) over 1 year ago

It is best that you explained the rules of engagement upfront and avoid that whole situation.

Posted by Harry F. D'Elia, Investor , Mentor, GRI, Radio, CIPS, REOs, ABR (Real Estate and Beyond, LLC) over 1 year ago

It always amazes me when I hear buyers say they want to contact the listing agent directly - they just don't realize they are throwing their negotiating power out the window.

Posted by Jennifer Mackay, Your Bay County Florida Realtor 850.774.6582 (Counts Real Estate Group, Inc.) over 1 year ago

Hi Sally K. & David L. Hanson - to this day, Everything I do I have my clients sign a Buyer-Broker agreement (AZ) .  I have had agents with 30+ years ask me why I do that!  I bought my first home at 19. I have sold many of my own homes in the litigious state of California. BUT, I never realized how little I actually knew until I became a REALTOR®!  

If there is any inkling of a procurement issue, I get it resolved immediately before moving forward. It is just the right thing to do!

 

Posted by Sheri Sperry - MCNE®, (928) 274-7355 ~ YOUR Solutions REALTOR® (Coldwell Banker Residential Brokerage) over 1 year ago

Knowing they should work with the same agent is often a difficult decision to get across to customers - thanks for sharing

Posted by Jessie Cochran, Panama City Realty Group (Counts Real Estate Group, Inc.) over 1 year ago

What the consumer does not know in real estate can adversely effect them in any offer, Sally...well put!

Posted by Ginny Gorman, Homes for Sale in North Kingstown RI and beyond (RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate) over 1 year ago

Sigh...dont you just love it when that happens? NOT!

Posted by Kristin Johnston - REALTOR®, Giving Back With Each Home Sold! (RE/MAX Realty Center ) over 1 year ago

Thank you very much for sharing this story. Just calling the listing agent is not always the best solution for home buyers.

Posted by Roy Kelley, Roy and Dolores Kelley Photographs (Realty Group Referrals) over 1 year ago

Hi Sally and David --- it's all about knowing the correct protocol.  Some clients understand, others learn eventually and then there are those who never get wit the program.   

Posted by Michael Jacobs, Los Angeles Pasadena Area Real Estate 818.516.4393 (Coldwell Banker Residential Brokerage) over 1 year ago

The problem with people is they just don't know what they don't know.  We've said that, read that a lot here on AR and this post is a good case in point!  Well done Sally K. & David L. Hanson 

Posted by Carla Muss-Jacobs, Principal Broker (503) 810-7192, Buyer Focused ~ Buyer Results (BuyersAgentPortland.com | Portland Metro Exclusive Buyers Agent | 100% Buyer Representation ~ 100% of the Time) over 1 year ago

Sally K. & David L. Hanson many consumers do not know how it works and can make a mess by doing instead of asking

Posted by Scott Godzyk, One of Manchester NH's Leading Agents (Godzyk Real Estate Services) over 1 year ago

Hi Sally and David... that procuring cause issue is a minefield to say the least. Another reason I hate it when someone calls me to say they'd like to show them my listing, but they already have an agent. That's when I politely suggest they have their agent show them the home.

Posted by Nina Hollander, Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor (RE/MAX Executive | Charlotte, NC) over 1 year ago

Sally and David

The relationship between the buyers and the listing agent was moving in the wrong direction . . . . fast which could easily become a big mess.

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) over 1 year ago

Sally and David sounds like the listing agent was sloppy and more concerned with getting a commission check than taking the time to make sure the Buyer was qualified to purchase the house.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) over 1 year ago

Sally K. & David L. Hanson I would be writing the same comment that Dorie Dillard already provided!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) over 1 year ago

Some lessons are learned the hard way, Sally and David.  We need to try and educate all of our clients better even when they just don't want to pay attention.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) over 1 year ago

Which just proves that so many don't understand this business. Too bad for everyone...

Posted by Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400, Long Island Condo & Home Sale Specialists (The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803) over 1 year ago

FAR too many don't understand how we work - it's good that he won't be buying this one and hopefully he's 'got it' now that he needs to work with YOU...when the time is right, of course!

Posted by Debe Maxwell, CRS, Charlotte Homes for Sale - Charlotte Neighborhoods (www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310) over 1 year ago

Procuring cause is still very much a part of our code and buyers don't understand it. Agency doesn't mean you get the commission.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) over 1 year ago

It is an excellent example about representation Often the buyer will go direct or even bypass listing agent go to seller strike a deal after listing expires. 

Posted by Sam Shueh, mba, cdpe, reopro, pe ( (408) 425-1601) over 1 year ago

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