Holding the Listing Hostage

I met a buyer at one of our team properties yesterday. I showed them the property, and presented the MA Mandatory Agency Disclosure for signature. This describes the different relationships that a real estate agent can have with a buyer or a seller, and is supposed to be presented, explained, and signed by the consumer (or not) at the first face-to-face meeting. It is not an option for real estate agents- they are supposed to tell the consumer which side of the fence that they are sitting on.

So, good enough. We were at that point, and these buyers had seen enough property prior to this so that they were familiar with the document. The person signing even mentioned the terms “buyer’s agent,” “seller’s agent,” and “facilitator.” Sometimes I think that real estate consumers come to the table with more information and understanding than the agents.

Then she said to me something chilling, and I am going to relate the story here. She told me that she had called and made arrangements to see a property with the listing agent. She has three friends who are agents, and has chosen to go through this process without a buyer’s agent; were she to choose representation, she would have picked a friend. She got to the door, and the listing agent had been too busy to come out, so she sent her brother. Her brother said to this potential buyer that she would have to sign an Exclusive Buyer’s Agency contract before he would allow them to view the home.

I am not sure whether this was meant for this particular property or not, but it doesn’t matter. The agent told this buyer, “I don’t work for free.” The buyer turned around and left without signing the contract.

On how many levels is this wrong? The seller is not getting the representation promised in his contract if buyers in this market are being turned away at the door, so that is one frightening thing. But to stand at the door, contract in hand, and try to strong-arm a signature- let alone disclosing your motives and and relationship to the listing agent- this agent may have had brass balls, but no real intelligence to back it up. If I were that buyer, I would have turned around and walked out too- if it was the last house for sale in the region. If I liked the home, I would have called one of those friends and tried to arrange a showing, but I would never- NEVER- have signed a contract with that agent.

Real estate agents have a more close relationship with the consumer than, say, a car salesperson. This is certainly not meant to disparage car salespeople, but the relationship for agent-consumer is actual agency- the consumer is a client. Real estate agents are privy to sensitive information about financial conditions and motives, both of which come into play in the negotiating process. I would want to be absolutely certain that my agent was capable of handling those confidences, and knew how to use this information.

To the real estate agents out there: We are not the gatekeepers of information. We have no right to stand at a door and disallow entry, literally or figuratively- these doors are wide open. As this buyer told me, she has all the information that she wants at her fingertips. She wants help with the actual sales process. I think this is pretty typical of many buyers today, and this is really the area that an agent can be of help- with the process, and in the interpretation of that information.

No, no one wants to work for free. But how long do you think you will be in the business of helping people if you are not helping them?

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