We’ve been hearing that a few buyer agents have called listing agents and said that is a ‘waste of their time’ to show a property if the offering of buyer agent commission doesn’t meet their expectations. Stop! The first and foremost obligation to a client, whether seller or buyer, is to put their best interest forward. While you can always speak with the listing agent/broker about chances of increasing a blanket offer of compensation made in the MLS prior to making an offer, this should not be YOUR deciding factor on showing a property. Imagine if that property that you won’t even consider is your buyer’s dream home? Your due diligence to your client is always primary!
If you are using an Exclusive Right to Buy, the buyer has already made an agreement with you regarding the amount of commission you will receive. If the offering from the listing broker does not satisfy that amount you should:
- Contact the listing agent and determine if the seller will come up on their BAC offering for your buyer,
- Contact your buyer and advise them that commission offering in the MLS is short and discuss whether they want to see the property and pay the difference or IF THEY prefer not to see the property – that decision must be theirs, not yours!
- Follow up in writing for your own protection
Remember that client obligation also falls under your duties as a REALTOR through the Code of Ethics:
Article 1 – When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS pledge themselves to protect and promote the interests of their client. This obligation to the client is primary …
Standard of Practice 1-13 – When entering into buyer/tenant agreements, REALTORS must advise potential clients of:
- The REALTOR company policies regarding cooperation;
- the amount of compensation to be paid by the client;
- the potential for additional or offsetting compensation from other brokers, from the seller or landlord, or from other parties;
- any potential for the buyer/tenant representative to act as a disclosed dual agent, e.g., listing broker, subagent, landlord’s agent, etc.; and
- the possibility that sellers or sellers’ representatives may not treat the existence, terms, or conditions of offers as confidential unless confidentiality is required by law, regulation, or by any confidentiality agreement between parties. (Adopted 1/93, Renumbered 1/98, Amended 1/06)
We do not want to see you before a hearing panel, and equally important, we do not want to see your buyers missing out on an opportunity to purchase their dream home. Please be sure to contact the office if you have any questions!