Buyers: Listing Agent is Not Your Agent
Originally appeared in Bay Area News Group publications on December 7, 2012
There are ethical restrictions and legal considerations for Realtors in dealing with another agent's client. This is related to making sure the agent acts in the best interests of his/her buyer or seller. These are generally unknown to the public.
Buyers are often not clear about what real estate licensees do and the differences between the role of the buyer’s agent (selling agent) and the seller’s (listing agent). This can lead to misunderstandings and upsets on all sides. Two recent situations illustrate this point.
Listing agent shows property
A local agent received a call from a buyer about one of his listings. She was interested and asked if he could show it to her.
The agent asked, “Who is your agent?” The buyer gave her agent’s name. Following correct protocol, the listing agent told the buyer the property was easy to show, on lockbox, and her agent could show it to her any time.
She then proceeded to lecture the listing agent on how it was his job to get the home sold and he should be glad to show it to any buyer who asks. The conversation ended when the buyer said she would call her agent about showing it to her.
The next day, the listing agent got a call from the selling agent who said she was away for 10 days. Otherwise, she would have shown the house. She asked the listing agent to do her a big favor and show it to her client. He agreed to do so.
After viewing the home, the buyer told the listing agent she thought the price was high and asked what flexibility there was. The agent answered he did not know how much the seller would accept.
The buyer then asked about comparable sales, to which the agent replied this was something she should discuss with her agent. This lead to a tirade about how the agent had been unwilling to show her the listing and now was being uncooperative about discussing price and comparables. The showing ended on this unpleasant note.
If this selling agent had known her buyer wanted to see the property, she would have preferred the call come to her, not the listing agent. With some advance notice, she might have been able to have another agent in her office show the house.
When the listing agent called the selling agent and described his experience, she thanked him profusely for showing the property because this was her responsibility. She also apologized for her client’s behavior.
What buyer didn’t know
Selling agents represent buyers; listing agents represent sellers.
Most importantly, it can be a violation of the Realtor Code of Ethics for an agent to interfere with the agency relationship of another agent. In the situation above, the buyer was asking questions and making comments regarding price and comparable sales that should have been handled only with her agent.
Selling agents should explain the above to their buyers. Not all do.
Agent at open house
An agent I know and respect was surprised to find an online negative review about himself from an individual who was not his client. The poster wrote that, after he was asked if he had an agent and answered in the affirmative, the open house agent went on to talk to other buyers. He accused this agent of not being interested in “selling” the house once he declared he had his own agent.
There was no claim by the buyer that he asked questions and the listing agent ignored him or refused to answer. His grievance was that he was interested in buying the house and the listing agent didn’t make more of an effort to talk to him. He felt that the agent was at the open house solely to get new clients.
At times, the difference between honoring a buyer’s relationship with his agent and being “unfriendly” can be a matter of interpretation.
Interestingly, the buyer’s agent never contacted the listing agent to say his buyer wanted to make an offer, which would have been proper procedure if the buyer was serious about the property.
What buyer didn’t know
The purpose of an open house is to market and expose the property. It is no secret that agents meet new buyers and sellers at open houses. That is part of our business.
What is not acceptable, however, is that some salespeople fail to respect the relationship of a buyer and his agent. Even when told the buyer is working with an agent, he asks many personal questions and attempts to get the buyer to work with him. This is a likely violation of the Code of Ethics.
Agents should make their buyers aware of what to expect at open houses. I suggest that my buyers tell the open house agent they are working with me and then they are free to look over the property without unwanted interference.
The buyer above complained about something the agent did correctly. Once he heard the buyer had an agent, he left him alone. If he had asked questions about the property, the agent would have answered them or, if necessary, asked to have his agent contact him for further information.
In addition, agents at open houses usually greet visitors and give a brief summary, such as, “This is three bedrooms, two baths with a family room. If you have any questions, feel free to ask.”
It is the selling agent’s job to review all visits the buyer had to open houses, give input and answer questions. The best agents routinely do this.
Final Thoughts
Buyers’ agents and sellers’ agents each have a function. Most of us in the business work with both buyers and sellers, so we know the differences. We try to be helpful even when we are doing part of the other agent’s job. This is not always understood or appreciated.
Related Articles:
Code of Ethics Distinguishes Realtors
Understanding Agency