Buyers purchased a house with another agent behind my back
Member since 2020 · 12 posts · 21 votes
Buyers purchased a house with another agent behind my back
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Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
5yI 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".
53 Replies
- Commercial Real Estate Broker · Alamo, CA · Member since 2011 · 6 posts · 5 votes5y
I can say that in CA, if you're the "procuring cause", meaning they wouldn't have known about the property outside of your assistance, you showed them the property and can document that showing, you could still be awarded a commission from the other broker. Depending on the size of the deal it could be worth the hassle but usually it's not. If you've been an agent for any time, this will happen to you - part of the job unfortunately.
- China, ME · Member since 2014 · 3k+ posts · 4k+ votes5y
@John Apple If the other agent found that property, it doesn't sound like you have a good case for "procuring cause", which is defined as an unbroken string of events that leads to the purchase. It sounds like (as you've admitted) that you let them "pause" while rebuilding credit.
To be brutally honest, this is partially your fault for that reason. The one avenue you might think about (depending on the actual numbers) is to take them to small claims court. My bet is that you won't win though - and if the house was $500,000, the commission is probably above the small claims limit. Your case is built on your buyer's contract. Maybe it would work (and by all rights, it should) but I wouldn't hold my breath.
This kind of garbage is one of the reasons that I turned in my real estate licensees. Buyers, both retail and investors, have absolutely ZERO respect for the work that an agent does.
Contract or no, they're like a cheap hooker who flashes a smile at the next person with a $5.00 bill hanging out of their pocket. They seem to think that your only value is identifying properties on MLS.
Before I moved to Maine, I had an investor (now a personal friend) who I ran around for hundreds of accumulated miles, showing many disgusting, abandoned foreclosures - while wearing a respirator because of all the mold - until some inexperienced knucklehead agent brought him a wreck that he could rehab. Of course, she said nothing as deadlines passed and he lost a $5,000 deposit. Of course, I got jack s**t.
So my advice is to take your lumps and move on.
A smart person learns from his mistakes. A WISE person learns from the mistakes of others.
- Rental Property Investor · Bridgeport, CT · Member since 2021 · 8 posts · 8 votes5y
@John Apple burn the house down that way he has to buy a new one. Leave your business card in the rubble. When he call say something to the effect of “ if you kept me as your realtor I would have warned you arsons a real problem in this neighborhood”.
- Member since 2020 · 12 posts · 21 votes5y
Originally posted by @Sept Jones:
@John Apple burn the house down that way he has to buy a new one. Leave your business card in the rubble. When he call say something to the effect of “ if you kept me as your realtor I would have warned you arsons a real problem in this neighborhood”.
Comedy 😂
- Flipper/Rehabber · NJ · Member since 2020 · 2 posts · 1 vote5y
@James Hamling
Although I am not an agent but i totally agree with you.
Sometimes it’s best to take the high road and not treat people based on our momentary emotions.
There’s always something to learn from each disappointment. Learn and grow. Who knows? this might just be a door to more businesses from the buyers.
Best of luck.
- Austin, TX · Member since 2020 · 1 post · 2 votes5y
@John Apple
I agree with everyone saying this is a people’s business. My short story of my experience with two different agents.
I was looking at my first home couple of months ago and called an agent highly endorsed here and other reviews.
This agent from the first call scared me on how everything is moving quickly and that he will not take me to showings, if I like a picture then we put an offer. He was talking me into putting high offer for a house with foundation issue.
I did most of the search and he would rarely send me any house to check. I just felt awful and told him I will “Pause” but I didn’t, I looked for another agent.
From my first call with thebnew agent, she did tell me the market is crazy but we will find you a home you like and calmed me down. She was relentless and she took us to many houses, we put an offer on few. In our 2nd week she found us a new construction home by driving there because no one was picking the phone.
Being a good agent she completely transformed our experience and I am so glad we’re closing with her, she deserves every penny and our previous agent was of no value to us except stressing us out while not doing his job.
I am not saying your customers felt the same, but would be nice to hear from them. I would’ve told my previous agent if he cared to ask.
- Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes5y
The first rule of making any real estate endeavor work, even something like my little portfolio of C-class properties, is making sure everybody you work with GETS PAID. They clearly haven't figured this out. Sooner or later it's gonna bite them back, hard. I have story after story about how breaking the first rule breaks investors.
- 5yMatthew Irish-JonesBusiness MemberReal Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
@Jay Hinrichs same. It’s part of our policy. We don’t require any buyers agreements and we allow listing clients to back out anytime prior to a signed contract from a buyer.
Life is short. If someone doesn’t like me, my services, or an agent on my team, I would rather set them free on good terms than enforce a contract and have an unhappy client. Best to let some clients go. For whatever reason not all personalities mesh.
We do the same thing in the Property management side. If it’s not a good fit for both sides and they don’t like the way we run our business we politely part ways. It’s better to cut ties than have an unhealthy relationship with a client.
Irish Jones Realty4.947 Reviews - Real Estate Agent · Wellington, FL · Member since 2018 · 36 posts · 17 votes5y
maybe someone said this already but I didnt read all the replies - If they bought a property you showed them you may have a procuring cause situation
i.e. you showed them property A, then then went back a week later / submitted an offer with Agent 2 and bought property A.
Anything other than that you are out of luck, buyers agreements are complete waste of time and merely a show to make a buyer think they are signing something which on a subconscious level makes them think they are locked in.
It sucks, I had several people do this to me in my first year of real estate and there is no way I was not on the ball when it came to communication etc
Guy 1 was just a POS and kept telling me he was waiting for a new preapproval but would never give me the lender contact details - he strung me along for over 4 weeks (he had closed on a property and was still to chicken sh1t to tell me) I eventually found it on social media, called him out for being a pu55y and left it at that
Guy 2 went back a week later to a property we submitted a contract on (massively low balled and didnt get it, which was not my idea) with his friend who listed his home in the other part of town and who I had spoken to so to make sure he was ok with me being the buying agent and resubmitted an offer (the lender told me). That deal eventually fell apart and the friend dodged my calls until I called him from an office number.
Guy 3 - was a previous room mate, showed him several properties. Then I got injured and had to have surgery, had my business partner show him homes. Went under contract on home A - inspection came back with a lot of little things. He cancelled, a week later he told me he was moving out and had bought a home we showed him with another agent. I called the buying agent up and we got 25% referral fee. I kicked him out of the house after that.
the average real estate agent is a POS making zero money and will throw you under the bus for a dime, the average buyer is no different.
People Suck
- 5yNoah P BondsPro MemberBoise, ID · Member since 2019 · 59 posts · 36 votes
@John Apple
Read Jocco Willinks “ultimate responsibility” and you will have your answer.
- Contractor · Tacoma, WA · Member since 2018 · 23 posts · 7 votes5y
You will not like my response...
Were you listening to what exactly your buyer wanted? or just driving around killing your and buyers time showing wrong houses?
I signed agreement with an agent told him Im looking for house to flip. He kept sending me regular nice houses and even new construction so I had to move on and asked another agent to send me fixer houses, he wasn't great but found me a house. Maybe you were not listening to what exactly your client wanted and kept driving around county showing wrong houses, so they had no choice but to switch to another agent.
- Real Estate Agent · Winston Salem, NC · Member since 2014 · 486 posts · 303 votes5y
@John Apple you could try and fight it but people will spread bad news much faster than good news. Therefore you may have to end up with the backlash from the buyers bad mouthing you to everyone they know. Use it as motivation to work with sellers for listings.
- Investor · Milwaukee, WI · Member since 2016 · 20 posts · 15 votes5y
Sorry to hear this but it happens a lot more often than you would think. I always say if you want to close 20 transactions you need 80 leads. Keep moving forward and eventually it will pay off
- Specialist · Bozeman, MT · Member since 2016 · 237 posts · 153 votes5y
I'm going to agree with Jay, Nathan, Brian, and others here. Your broker needs to step it up for you. This is a legally enforceable contract. You spent your time and money helping these people. It should also be the first question that the agent asks their buyer, "Have you been working with another agent? Or have you signed with another agent?" This is a business like any other, and a signed contract doesn't absolve the buyer of their duties and responsibilities in the contract. Just my 2 cents. But I would definitely go with another broker, sounds like yours is a pushover, and those brokers aren't worth working with.
- Investor · Los Angeles, CA · Member since 2017 · 523 posts · 476 votes5y
Originally posted by @John Apple:
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.
It sucks when this happens. I'd be curious as to whether the other agent found something which you didn't. That would be great learning. I'll also share a story. I was an agent many years ago. I knew another agent, who showed a bunch of rentals to these two young women, who were moving into New York City. They liked working with him.
He failed, however, to show them 2 that might have been of interest, and the rented one of those. He felt really bad. The thing was, these two really liked him. He congratulated them, and suggested that they let him know when they had friends who needed help. He got 4 deals that summer out of friends of theirs, whom they referred. Some of those friends sent friends, and you get where this is going. learn what you can, and remember you'll have other clients who will rave about how great you are. Go find those people.
- Rental Property Investor · Sacramento, CA · Member since 2020 · 52 posts · 6 votes5y
@Peter M. Or he could just be wanting to get another opinion so he can then bring that option to his broker and talk about it how is that even remotely any kind of wrong to ask??
- Rental Property Investor · Sacramento, CA · Member since 2020 · 52 posts · 6 votes5y
@John Apple so sorry this happened to you John! Understand energy sees everything! There has to be something you can do, I would think they at least have to pay you for all of your previous time spent??
- Investor · San Francisco, CA · Member since 2020 · 31 posts · 22 votes5y
@John Apple this is part of being in the industry. You learn and move on. On the positive note, this helped you discover that you are working with the wrong broker. You want to work for someone who’s on your side and values your time and efforts in this case all the driving around you did for those “clients”.
- Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes5y
Originally posted by @James Hamling:
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".
This is great advice, but VERY hard to follow. While I recognize that what you said would be the RIGHT thing to do, there is no way I could do it.
There is a saying "It's better to be rich then right". And I try to remind myself of that. It's hard advice to follow when ego gets in the way.
- Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes5y
Originally posted by @John Apple:
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.
It sounds like when you started working with them they were not ready. They needed a break to get their financial house in order. So your mistake was putting in that effort before they were in a position to be able to buy a house. But I'm not faulting you. You're new/hungry. Someone calls saying they want a house and you're all over it. Next time pre-screen them. If they're not ready, tell them what they need to do before you start showing them places and spinning your wheels.
- Investor · Millburn, NJ · Member since 2018 · 141 posts · 100 votes5y
- Real Estate Agent · Austin, TX · Member since 2019 · 64 posts · 31 votes5y
If you have a buyer rep agreement, it is enforceable. You should at least get part of the commission!
- Real Estate Agent & Investor · Raleigh Durham Chapel Hill, NC · Member since 2020 · 44 posts · 30 votes5y
@John Apple As a fellow realtor and someone that has had buyers treat agency agreements like they are meaningless, I believe those agreements - while enforceable - will only keep honest people honest. The damage to reputation is simply not worth the fight. That is likely where your broker is coming from.
As an industry we are partly to blame. To avoid the bad press we routinely let buyers out of their agreements or look the other way when they break them. Changing that is simply not a battle you are likely to win. While follow-up is very important, I think it is the connection you establish with those buyers that keep them with you. After all, it is not one sale you are ultimately after but the ongoing referrals that sale can provide that are the goal.
- Real Estate Agent · Gaithersburg, MD · Member since 2020 · 19 posts · 3 votes5y
@John Apple Hi John. That is certainly disappointing, but it is part of reality in an agent's life. It is not worth doing anything. The laws in your State regarding the agreement would be the best place to start. Also, did you thoroughly cover their responsibilities and yours when you went over the buyer's agreement? Being upfront with clients at the initial meeting(s), helps avoid issues like these from happening. In my state of Maryland, the only possible way we may have recourse is if you showed them the property they bought with the other agent, and can prove it. Your Broker would have to be interested in pursuing that fight. It sounds like your Broker wouldn't bother with it. Perhaps it would be good to revise the way you work with buyers. Are you new in the business? It's always good to ask buyers questions regarding the property after each showing. For example, I ask after the 1st house I show: "what did you think about the property?", "what features did you like and dislike about this home?", take notes, then compare each property showing with the previous one. This will help you narrow down the features the buyer really wants. After doing this a few times, yiu can begin to show the right properties and try to close after each showing. Meaning, ask them if they want to move forward with an offer on that property. Buyers don't always know exactly what they want. Paying attention to reactions and comments at each showing helps us find out more about buyers' preferences. We learn from experiences.
- Member since 2023 · 1 post · 0 votes3y
I live in Alabama, and it’s my understanding that If a a client can buy with another agent if they choose to, but if it’s a home they viewed with you, they owe you a commission on that home, as the procuring cause of that sale.
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