Buyers purchased a house with another agent behind my back

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Buyers purchased a house with another agent behind my back

John Apple
Member since 2020 · 12 posts · 21 votes

I have buyers who I spent the last 3 months driving all over the county showing properties to. We recently took a ‘pause’ as they paid off debt to get a higher preaproval. Then, yesterday I came across a Facebook photo of them with another agent and a ‘sold’ sign. Is there anything I can do? We signed a buyer agency agreement but my broker told me those are barely enforceable and not worth the time to pursue legal action.

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James Hamling
Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
5y

I am surprised I am the first one to say this but, @John Apple was the property they bought one you had presented them, did a showing of, ran analysis on, or anything in any manner? Or is this just a complaint that another agent got done what you couldn't? 

I know, that last sentence probably stings a bit, and that's good, it should. Don't be a coward, lean into it, you whiffed for 3 months and they jumped in bed with another who hit a home run in an instance, feel the pain, don't shy away, because when you can accept this the next thing is moving from anger to "WTF did that agent do that I didn't" and NOW your onto whats going to make the most value out of all this. 

If you want to make it in business, especially real estate, you gotta wear Rhino skin! Take nothing personal and everything seriously, fail-UP, regularly and repeatedly. 

The #1 BEST thing you could do is call those clients, and CONGRATULATE them! And own it, tell them you really felt horrible that despite all the hours and effort you put into it for so long that then they bought with this other agent, but really happy they found there home and in the end that's what matters and was the point in the first place. Than when your back friends, and they feel a sense of guilt, which they will ESPECIALLY with you being so nice and happy for them, then say "hey, just curious because I'd love to best understand, what is it we could have done better?" And guess what, they may say you did great, and that they feel so bad about it, but they know ___ who's thinking of selling, and their one friend at work looking to buy, and, and, and.... Next thing you know you walk out with 4 clients and transactions for sacrificing 1, because you swallowed your ego, focused on learning and growing, results vs being "right". 

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  • Peter M.
    Rental Property Investor · DFW, TX · Member since 2013 · 953 posts · 910 votes
    5y

    @John Apple Listen to your broker. After what those people did to you, you would go behind his back and ask people you don't know, on the internet, for an answer you want to hear? Then what? Go against his advice, waste time and money and cause a rift with your broker?

    27Reply
  • Lien VuongBusiness Member
    Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
    5y

    I'm so sorry, you did the right things by securing it but ultimately they were still dishonest. Ultimately it's important to move forward and if you want want closure I'd opt to speak to them to see what went wrong and where you felt like there's a disconnect and move on. 

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  • Olivia Radziszewski
    Realtor · Chicago, IL · Member since 2019 · 274 posts · 191 votes
    5y

    @John Apple- Oh man... sorry to hear that! Unfortunately, your broker seems to be right. 

    1Reply
  • John Apple
    OP
    Member since 2020 · 12 posts · 21 votes
    5y

    @Peter M. 

    I Certainly won’t go against my broker. However, I do want to make sure he isn’t wrong considering it was a $500,000 property. from everything I read online, they are enforceable. Thanks for the input!

    2Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y

    I disagree with the others. Your Broker should be protecting you. If you had a written agreement, they are obligated to compensate you. At a minimum, your Broker should contact the other Broker and demand compensation based on hours spent, a percentage split, or a referral fee of XX% (whatever your office policy is).

    If the buyers had fired you or at least requested termination, I would recommend walking away.

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    27Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    Originally posted by @Nathan Gesner:

    I disagree with the others. Your Broker should be protecting you. If you had a written agreement, they are obligated to compensate you. At a minimum, your Broker should contact the other Broker and demand compensation based on hours spent, a percentage split, or a referral fee of XX% (whatever your office policy is).

    If the buyers had fired you or at least requested termination, I would recommend walking away.

    Nathan while I totally agree with you if they have a very good binding buyer broker contract.. One can enforce those for sure. however I think if the Broker does not want to do it  It may be his/her choice and the agent cant do it on their own.. 

    This scenario has happened to anyone and everyone who ever worked for any length of time in real estate sales.  It comes down to not letting this ruin your moving forward as an agent.  

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  • Michael Plante
    Deland, FL · Member since 2017 · 2k+ posts · 1k+ votes
    5y

    This will continue to happen to you 
    or their nephew got his license yesterday and they buy through him 

    Accept it and move on. 

    4Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y
    Originally posted by @Jay Hinrichs:

    Nathan while I totally agree with you if they have a very good binding buyer broker contract.. One can enforce those for sure. however I think if the Broker does not want to do it  It may be his/her choice and the agent cant do it on their own.. 

    This scenario has happened to anyone and everyone who ever worked for any length of time in real estate sales.  It comes down to not letting this ruin your moving forward as an agent.  

    If the Broker won't act, then there's not much he can do. I would be looking for a new Broker.

    As a Broker, I wouldn't take the case to court, but I also wouldn't let my agent be walked all over like that. I would contact the other Broker and kindly demand compensation. If they refused, I would drop it.

    In my small town, nobody would work with a Broker that allowed that to happen.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    Originally posted by @Nathan Gesner:
    Originally posted by @Jay Hinrichs:

    Nathan while I totally agree with you if they have a very good binding buyer broker contract.. One can enforce those for sure. however I think if the Broker does not want to do it  It may be his/her choice and the agent cant do it on their own.. 

    This scenario has happened to anyone and everyone who ever worked for any length of time in real estate sales.  It comes down to not letting this ruin your moving forward as an agent.  

    If the Broker won't act, then there's not much he can do. I would be looking for a new Broker.

    As a Broker, I wouldn't take the case to court, but I also wouldn't let my agent be walked all over like that. I would contact the other Broker and kindly demand compensation. If they refused, I would drop it.

    In my small town, nobody would work with a Broker that allowed that to happen.

    For me I would take it in front of judge Judy.  These are easy to win at small claims  

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  • Sean O'Dowd
    Specialist · Chicago · Member since 2021 · 45 posts · 22 votes
    5y

    Wow-this is absolutely horrible. So sorry to hear that this happened, and even more sorry to hear that your broker doesn't have your back on this.

    The key question is: What is your objective?

    If your objective is to get the commission, check to make sure the representation agreement you signed has not expired. Then, give them a call. It almost doesn't matter if it's enforceable. In my experience (I own a transaction coordination busisness so I've seen this before), the threat of legal action is more than enough to get everyone to work together.

    If your objective is to learn what went wrong, I'd echo what Lien said. Reach out to your ex-clients and asks for feedback. What went wrong? 

    My two cents: the feedback you'd gain is going to be 1000X more valuable than the commisssion. I'd index on the objective of learning what went wrong.


    Again, sorry this happened but I hope it's the start of better things

    5Reply
  • Brian Garlington
    Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes
    5y

    I'm with Nathan and Jay on this one. If that was the attitude of my broker then I would be finding another Broker, ASAP.  

    1Reply
  • James Hamling
    Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
    5y

    I am surprised I am the first one to say this but, @John Apple was the property they bought one you had presented them, did a showing of, ran analysis on, or anything in any manner? Or is this just a complaint that another agent got done what you couldn't? 

    I know, that last sentence probably stings a bit, and that's good, it should. Don't be a coward, lean into it, you whiffed for 3 months and they jumped in bed with another who hit a home run in an instance, feel the pain, don't shy away, because when you can accept this the next thing is moving from anger to "WTF did that agent do that I didn't" and NOW your onto whats going to make the most value out of all this. 

    If you want to make it in business, especially real estate, you gotta wear Rhino skin! Take nothing personal and everything seriously, fail-UP, regularly and repeatedly. 

    The #1 BEST thing you could do is call those clients, and CONGRATULATE them! And own it, tell them you really felt horrible that despite all the hours and effort you put into it for so long that then they bought with this other agent, but really happy they found there home and in the end that's what matters and was the point in the first place. Than when your back friends, and they feel a sense of guilt, which they will ESPECIALLY with you being so nice and happy for them, then say "hey, just curious because I'd love to best understand, what is it we could have done better?" And guess what, they may say you did great, and that they feel so bad about it, but they know ___ who's thinking of selling, and their one friend at work looking to buy, and, and, and.... Next thing you know you walk out with 4 clients and transactions for sacrificing 1, because you swallowed your ego, focused on learning and growing, results vs being "right". 

    34Reply
  • Uchenna A.
    Real Estate Agent · Bowie, MD · Member since 2014 · 53 posts · 32 votes
    5y

    @John Apple

    In Maryland, you can file a complaint with the Maryland Real Estate Commission and they will investigate and get you paid IF you have a contract to that effect.

    2Reply
  • Shanna Vataj
    Real Estate Agent · Westchester, NY · Member since 2021 · 77 posts · 35 votes
    5y

    @John Apple

    I'm sorry but you may have to cut your losses.

    Did you communicate with them consistently and often during their break?

    Did all adult buyers sign, date and initial (on each page)?

    If not, the rep agreement is voided and you should just move on and use it as a learning experience. This is why property address specific representation is better than multi property or “type” (single family/multi etc) representation.

    0Reply
  • Saurin PandyaPro Member
    Investor · Holly Springs, NC · Member since 2015 · 47 posts · 12 votes
    5y

    @John Apple: I can’t comment on what you can do legally in this situation but I’d at least try to understand buyers motive behind their action. This way you have more clarity and possibly prevent this scenario in future (assuming it was under your control). Good luck!

    1Reply
  • David NiuPro Member
    Accountant · Ann Arbor, MI · Member since 2019 · 20 posts · 6 votes
    5y

    @James Hamling

    @John Apple

    Take the advice from James.. Real estate is a people business. What James said is extremely valuable and I couldn’t put it in better words myself.

    Sorry for the “loss”, but as long as you can learn from it, it’s a win!

    1Reply
  • Bruce Lynn
    Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    5y

    It happens.....sometimes the opposite is true too....they've called and seen 100 homes with 100 different agents, and then call you to write the offer....or you spend a lot of time with them at some point, they don't buy, and then a year or two later you get a call, they're in a builder's office writing a contract and it gets to the place where the builder asks if they have a realtor, they call you and ask if it is ok if they put your name on the contract.   I know it hurts.  I was there this week, but there are great clients too....so some you win some you loose.   Sometimes it is an education process too.  It could still happen, but we need to educate the customers about visiting open houses without us, visiting builders without us, etc.

    2Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    5y

    @James Hamling is always on the spot. My favorite answer. As a buyer, many of the realtors I found are not even helpful hence I switch to a different realtor or I do it myself without a realtor. Especially during these covid time where the showing is just too difficult. 

    The concept of having a contract between buyer and agent is also doesn't make sense in Zillow era, it's like a cartel monopoly.  

    1Reply
  • Marian Huish
    Real Estate Broker · DC MD, VA & NV · Member since 2014 · 512 posts · 292 votes
    5y

    Good advice here @John Apple.  Unfortunately this does happen often and most Brokers won't pursue legal action as it sends the wrong message to the public.  If, however, you were the procuring cause (you showed them the house they bought) it would be worth a call to the new agent's Broker for at least a share of the commission but tough to do once it's already closed.  Buyers unfortunately have no loyalty to Agents...  I would reach out to them, as suggested above, congratulate them, and ask if there was a reason they opted to move forward with a different agent?  Perhaps there is something here that you can learn to do differently going forward?   At best they'll be a little uncomfortable with the conversation and perhaps send you some referrals-  As we've all been there, we feel your pain... you just need to move forward!

    2Reply
  • Mallikarjun Reddy Pateel
    Investor · NJ · Member since 2021 · 126 posts · 33 votes
    5y

    @John Apple

    make sure to double read Buyer’s agreement they Signed. If it’s a Property that you showed to the Buyer you might be entitled to your Commission.

    If they signed Exclusive right to represent with you, they owe you Commission no matter what.

    Re asses yourself, if they Purchased with another Agent either you didn’t do your Job right or you didn’t had that Rapport with client. there is bad Clients too, or another Agent showed them a Value you lacked.

    I know how frustrating it can be pouring your time & emotions in to the deal.learn from it. Keep moving

    0Reply
  • Rachel Grunn
    Investor · Dallas, TX · Member since 2020 · 14 posts · 6 votes
    5y

    @John Apple maybe an unpopular opinion, but I would cut your losses and move on. I had this happen to me too and I talked with my broker and they said “yes it is enforceable and you can sue for compensation” but ultimately, I didn’t want to be known as the agent who sues people, so I just dusted myself off and got back on the horse. I think reaching out to see where it went wrong could be good, though.

    1Reply
  • Joanne Tsai
    Investor · Millburn, NJ · Member since 2018 · 141 posts · 100 votes
    5y

    @John Apple, this is based on our personal experience when we were a newbie in investing. We saw a property we liked on Zillow, and he showed us two houses and then asked us to sign an exclusive representation with him. Given we were newbies, we did and we didn't even like him. We even purchased a house through him because of the agreement. Didn't we learn our lesson? He just pushed his agenda, and in my hindsight 20/20, didn't really look out for his clients. 

    I wouldn't be surprised if a lot of people feel stuck with their realtors and wish they could be working with someone else. I agree with others, this is a people business, congratulate them and ask them if there was anything you could have done differently. it could be something completely different from what you think.  

    On the other hand, I have purchased several houses through one realtor who never bothers to ask me for an agreement. When I know someone is pleasant and valuable to me, I always return and not bc of obligation.  

    5Reply
  • John Apple
    OP
    Member since 2020 · 12 posts · 21 votes
    5y

    Thanks everyone for the support and advice! I am just finishing up my first year in the business, so I still have a lot to learn. I think where I went wrong was allowing them a ‘break’ and not reaching out as much as I should’ve as they paid off debts. I figured we put in multiple offers and were declined every time, so I thought they were frustrated with all things real estate and needed time off. I’m in the Philadelphia area where the market is just bonkers. I did send them a text this morning and found out the agent is related to the wife, so I guess it doesn’t hurt as bad. Although, they’re restaurant owners and I work for them a few nights per week. Needless to say the work environment will now be pretty awkward lol.

    2Reply
  • George Munoz
    Real Estate Agent · Fort Lauderdale, FL · Member since 2018 · 360 posts · 213 votes
    5y
    Originally posted by @Lien Vuong:

    I'm so sorry, you did the right things by securing it but ultimately they were still dishonest. Ultimately it's important to move forward and if you want want closure I'd opt to speak to them to see what went wrong and where you felt like there's a disconnect and move on. 

     Even though this is not a typical reaction that we instinctively as human will think, This is such a great advice..   I was going to say  " send them a demand letter with the agreement they signed with you" ( just for the sake of it, or  although I will also not advise to pursue a law suit for that... or just write a sarcastic congratulation under comments on the FB pic.. ""saying after all this month, looking for your dream home , finally"  haha.. 

    What I like I about @lienvough  post is that it encourage you and us to hold ourselves accountable and dig deeper and understand what went wrong (if is did) and if it didn't, cool at least you know it wasn't your fault but next time you will know what to do,... 

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    Originally posted by @Joanne Tsai:

    @John Apple, this is based on our personal experience when we were a newbie in investing. We saw a property we liked on Zillow, and he showed us two houses and then asked us to sign an exclusive representation with him. Given we were newbies, we did and we didn't even like him. We even purchased a house through him because of the agreement. Didn't we learn our lesson? He just pushed his agenda, and in my hindsight 20/20, didn't really look out for his clients. 

    I wouldn't be surprised if a lot of people feel stuck with their realtors and wish they could be working with someone else. I agree with others, this is a people business, congratulate them and ask them if there was anything you could have done differently. it could be something completely different from what you think.  

    On the other hand, I have purchased several houses through one realtor who never bothers to ask me for an agreement. When I know someone is pleasant and valuable to me, I always return and not bc of obligation.  

    47 years of selling real estate myself  I have NEVER asked for a buyers broker agreement..  And my wife who has 30 plus years always tells her clients that she can be fired at anytime  be it a listing or a buying client.. If they dont like us or want to work with us then the feeling become mutual  LOL..  If we do our job it all works out.

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