By Ronn James
Recently I entered into a debate in which a frustrated Realtor was ranting about the lack of professionalism within our industry, about buyer agents failing to provide feedback on their showings of sellers’ homes.
The agent felt that the sellers were paying good money to Realtors for performance, so the least the buyer’s agent could do was take a minute and respond to a feedback request. Judging by the number of other Realtors who shared his sentiment, it must be a burning issue.
I have a couple of observations and comments of my own and I trust that this article will, if nothing else, cause folks to discuss the age-old practice of sharing feedback. Let me begin by saying that showing feedback is, at best, a practice that we simply adopted, like showings being booked within the hour, and agents providing snacks or lunch at open houses. We were indoctrinated with a “this is way we have always done business” attitude.
Every seller wants a temperature gauge of the buyers’ interest and/or at least buyer feedback as to what they can do to improve their odds of selling their home. Some go to great lengths to gather this intelligence. I have experienced home sellers who have “bugged” their homes with everything from nanny-cams to baby monitors that can be listened to next door. We all want to know what people think.
Prior to buyer agency (circa 1992), Realtors working with buyers were all sub agents working for the seller, who paid commissions to listing brokerages, who in turn paid out the buyer’s agent side through sub-agency agreements. But those rules have been expanded to include buyer’s agency, where the buyer is now offered a choice of having their own representation.
Most Realtors are aware of the responsibilities and documentation required to establish a “Buyer under contract” relationship. In fact, many real estate offices actually ask or qualify listing showings by asking, “Is this a buyer agency showing?” Armed with this knowledge, it surprises me that we use old sub-agency practices like “request for feedback” after buyer agency showings.
As a true buyer’s agent, representing the directives of my buyers, it is my duty of care to protect, educate and ensure that the buyer can buy a home of their choice at the price and time frame that they wish. It also means that our discussions and strategies are ours to keep and protect from sellers or sellers agents. So what’s up with the request for feedback?
As a practicing Realtor I often get calls and emails for feedback. I have used a pre-typed email message to the listing agent thanking them for allowing me to show their listing. Just that, a thanks. However, I stopped because most agents would call up to a week later asking for feedback, not bothering to read the email I sent shortly after showing their listing. Now when I am called, I simply state that I am a buyer’s agent. And the phone goes dead on the other side. No one seems to understand the statement.
So here is the question: is buyer agency (fiduciary) status really understood? They did ask me at the front desk when I booked the appointment, under what status I was booking the appointment. I disclosed, “buyer agent showing” and then I received a call requesting feedback. Under a buyer agency I could ask my clients (and they are clients) what they would like me to say (if anything) because although the property may not be of interest today, it might be tomorrow, and the buyer may not want their intentions, likes and dislikes known, especially if they want to negotiate a price suitable to them.
It seems that there is confusion as to what this simple request for feedback means to all concerned. As it is an industry norm (a historical practice never addressed by by-laws or education), Realtors continue to utilize a practice that seems to no longer fit the contractual agreements between buyers and their agents, and are frustrated by Realtors who are following the letter of their agreements with their buyers.
With a track record that spans 27 years, Realtor Ronn James says his ambition is to educate the public and Realtors alike. He has landed appearances on Breakfast Television, CityLine, Real Life and a host of radio shows. James has also been a regular contributor to New Homes and Condos For Sale Magazine, Toronto Sun and Canadian Homeplanner. Website: www.RealEstateCommissionMatters.ca, phone 289-242-9050.
In most cases I will call for Buyer feedback on showings of my listings. This is because Seller's have been trained into thinking that this is a norm. Most Buyer Rep's do not call back. As I explain to my Seller's, the best feedback is an offer. If we're not getting offers then there is something wrong and we have to address the issues. The advantage of Buyer feedback is that it can serve to back our own opinions or ideas about the listed property with another voice.
When I'm working with buyers, I tell them the listing agent may contact me to ask for feedback, and do I have their permission to share my thoughts about the properties we view. I've never had a buyer say "no"!
So I share feedback when requested.
But if we're going to be writing an offer on the property, I don't share any feedback that might hurt the buyers in their negotiations, so my feedback then is always "I hope we're going to be coming in with an offer."
To me, this provides the courtesy of providing feedback to my fellow Realtors, without jeopardizing my fiduciary duties to my buyer clients.
Great Topic Ronn and one based on our responses below, that needs to be addressed from a legal perspective. Unfortunately our old familial practices may no longer be the legally correct practice to follow, let alone a good long term business strategy. It would be great to hear back from OREA (I am in Ontario) or CREA on this topic and how specifically we can supply feedback and in what form.
1) If I supply information that a seller then relies on to change their listing price have I, by my actions become a sub-agent of the seller.
2) If I supply feedback can it be in writing or should it always be verbal and non-recorded and off the record.
3) If I feel the home is a great buy but my buyer (who is under contract) feels it is overpriced, should I make any comment.
4) When reviewing a home, I notice the home is clearly under priced (ie a ComFree Listing) but my common business practice is to communicate feedback to every Listing REALTOR requesting it, am I required to communicate directly to that seller that their home is under priced in my opinion or would this be seen as anti-competitive by the CB.
5) Finally since I did not complete a full Comparative Analysis on this property (something that takes me 2 hours to do accurately) can I legally even "guess" an opinion of value based on a 5 min viewing of the property and still be seen as following the due diligence this career now demands.
Just a great topic and one that will gain added traction once the DDF launches. For those who do not know, The DDF rules specifically stop any CREA member from soliciting independent reviews of any MLS posted listing. It could be argued by Realty Sellers that since "buyer feedback" has been a common business practice of REALTORS for over 5 decades, why has CREA suddenly stopped Realty Sellers, on their website PropertyGuys.com, from allowing a simple rating system of all MLS properties? Hmmm do we smell another CB complaint headed to CREA?
Ronn another historically co-operative practice effectively eliminated by a single court challenge. Oh…being a REALTOR in 2012.
Hi Wilf Wallace:
The key word within your first statement,"…do I have their permission to share my thoughts…" is "my" , thus, 'your' personal thoughts. Unless this is simply a misappropriation of the word "my' for "your", then you do not need your client's permission. However, if you are about to pass on your client's thoughts, I would be very careful about how to go about that…verbally. Memories can be very selective when accessed by humans under pressure of penalty for untoward statements.
I would not pass on anything to a seller's agent / rep. unless it was provided by my client in writing…his / her writing to be exact… with appropriate signature attached thereto, dated.
Ask any lawyer about the repercussions that could flow from a "he said…she said" scenario.
I always gave 'my' personal opinion when asked by the seller's rep., always designed to discount the property in question, with suitable apology for same, just in case my client decided to put an offer on the table.
One just has to simply decide who one has been entrusted by to advance his / her fiduciary interests, that someone obviously being one's buyer client.
Lawyers beat on one another routinely in their clients' interests in court, then often thereafter join in a beer together at a bar and discuss strategies vis a vis the then wrapped-up case. They understand the rudimentaries of their particular code of ethics, which incidentally, is prescribed by humans at the top of the legal pyramid, in an effort to corral would-be rogue lawyers into behaving in a legally acceptable manner, notwithstanding moral implications, which are separate and apart from prescribed industry-specific ethical expectations. Public understanding of ethical guidelines is not required thus.
Once a Realtor starts to consider a fellow Realtor's concerns / feelings / status etc., etc., when potentially looking at dealing with said realtor in a negotiation scenario, one has already begun to rob one's client's consideration bank in order to deposit something in your fellow Realtor's consideration bank…not good…at least in my book.
This is after all a zero-sum game when it comes right down to who has put his / her trust in you as a Realtor.
I know, I know…old habits die hard vis a vis 'cooperative', back room selling tactics that do work for the good of both cooperating Realtors' back pockets. But old and new attacks of disturbed conscience rooted in bad faith, or ignorance of moral standards, die even harder, provided that one has a functioning conscience that is.
Buyer feedback? It's absurd and bizzare to say that "buyer feedback" is necessary. Is it so difficult for the listing agent to see the ups and downs of the property they listed, that such feedback is necessary to confirm the obvious?
Yes, the landscape of fiduciary has changed since the old days of the early '90's but the co-operative system we have worked so hard to build, our MLS system is just that…co-operative and that said, there is nothing wrong with providing feedback to the listing agent as they one day will be showing your listing. With technological options such as HomeFeedBack.com or Touchbase, the responses can be done quickly and easily. In my 20 years, I have seen an erosion of professionalism from lack of feedback as in this topic to disrespect of properties shown such as doors left unlocked, personal belongings being handled and even damage to drywall and carpeting after a showing. We are well paid for our knowledge and expertise and we provide a valuable service that cannot be obtained by the consumer in the information-laden era we now live in, so why not provide feedback for our colleagues. This will help us remain relevant in the eyes of our fans, the consumers that utilize our service. What hurt can this cause?
Please explain why you the "buyers representative" cannot give your own personal opinion. We are professionals and that opinion would matter. As well who's to say feedback couldn't work in the buyers favour. I've often had sellers come to a realization after some good feedback or repeats of the same feedback. I find this argument just another excuse for the modern day Realtor who is depreciating the professionalism by thinking he or she is above giving requested feedback. These are the same Realtor's with there head bigger than their company logo on their card and showing up for their profession in jeans and a t-shirt.
Some great discussion here. I have to say if I've just shown 5 or 6 properties and I start getting feedback calls I sometimes am useless as I have a hard time remembering what my client liked/disliked about each home.
Unless that is, they have been wowed by one or two and its me making the call to the listing agent with further questions.
That is the positive feedback a listing agent can give their seller. Also if a buyer agent is showing the property for a second time, it is positive feedback.
I always tell my sellers as soon as I take the listing that it is difficult to get feedback today as buyers looking at the property are usually working under a BRA. Alas, there is nothing wrong with asking for feedback but be courteous. Calling within minutes after the showing is pushing it, unless you are calling to say there has been an offer registered.
The article seems like a long-winded way of saying something we should all know and practice : "Always check with your client before you say anything about them, or on their behalf."
UNBELIEVABLE! Unfortunately I have dealt with my fair share of "RONN's" and really, I find this refusal to speak to other agents unprofessional. It is disrespectful to both the industry as a whole, the seller and to the listing agent specifically. Providing feedback and returning calls / emails is a professional courtesy. And guess what..the seller will know there is interest if an offer follows!!! So why holdback feedback! During negotiations all those things come out in the wash anyway. And if there will be no offer coming then what's the harm? In order to reach an agreement there has to be a win – win situation…the buyer has to be willing to pay the price and the seller has to be willing to accept it. I really like to foster a respectful, cooperative & professional environment; I think it works in everyones favor. Who wants to deal with an agent you think is a jack*ss!
Way to go Loraine, I can not believe an agent that has enough time on his hands to write a whole page on why hes too lazy to report on viewings, doesnt have enough time to report .Realtors should definately report, sellers want and requre feedback. It assures them that thier home was viewed and there was real reason for the buyers not to write on it. As far as trying to hide behind fiduciary relationship with buyers , I think thats a huge ball of crap. You better start respecting the sellers out there Ron, or you wont have any houses to show your buyers.
Way to go Kelly:
I can not believe that an appropriately licensed real estate sales person would make a statement to the effect that it is somehow "a huge ball of crap" for a buyer representative to consider his / her fiduciary relatioinship with his / her buyer client as being nothing more than a hiding place.
It is the SELLER's representative who is responsible to his / her seller client "out there", by way of contractual obligations no less.
This is a zero-sum game, wherein every consideration of a positive negotiative nature that is granted overtly in favour of the seller by the buyer representative through the seller representative vis a vis 'buyer' feedback is an equal and opposite negative negotiative non-consideration factor that works directly in opposition to the buyer's fiduciary interests…period.
Ronn has the time, I suspect, to write down what his perspective is on this issue because he is a professional in his sphere of expertise, whose thoughts are well thought out and well presented, both logically and grammatically to boot.
Apparently you were too busy to critically think this issue through, and thereafter to at least once self-edit your musings to the point of at least making yourself 'appear' to be at least a 'quasi-professional' versus your quasi non-command of the English language and your therefore quasi non-correct wannabe grammatical presentation.
Your lack of a somewhat professional demeanor comes across loud and clear here.
"Write a whole Page" you say?
For a professional Realtor, "a whole page" can be correctly written in the time it apparently took you to spew out nine lines of negatively-premeditated, grade six thinking level "balls of crap"!
By the way, that fifth thumbs down was disgustedly punched in by…guess who?
Come on back with some 'real' arguments.
I am quite sure that Ronn respects his 'seller' clients' fiducuciary interests very well, by the way.
Regards in any event,
Brian Martindale
My dear friend Ronn, what a delight to see someone else stir up controversy for a change. Give an opinion, take a stand and people either agree or disagree and some may downright hate you. I am envious though, sure got a lot of responses. BTW, I more slanted to your side of the argument and agree with you with a but – if your buyers have zero interest in the listing viewed what harm does a little feedback do? If it helps a listing get reduced that is a good thing. I think buyers should be asked if they do or do not want to give their reaction after. The other thing – price. If your buyers are hot or cold, I think that if it was overpriced that should be stated. If your buyers go forward, it can work for them and if not, it may help another agent. Good topic, more to come I trust
Oliver B. above has it right, as well as some others. The article is obviously right on the money and should be everyday common sense from any licensed realtor.
Sadly most agents complaining about the lack of feedback seem to be the agents that buy their listings from competent agents with their inflated opinions of value, then use the feedback info to get price adjustments and hang on to a listing that you should never have got in the first place.
DUAL AGENCY SITUATION – What if you are the listing agent in a dual agency situation and your sellers asks you for some feedback. What do you say to your seller? "Sorry, I can't tell you anything since I know longer represent your best interests and the buyer requested I give you no feedback."
I'd say you will be the first ones to know if there is any interest.
Lets not forget that the mls exist as a "spirit of co-operation". Without that co-operation we would be facing many more challenges today.
I do my best to provide personal feedback based on my over 28 years as a member. Being old school however, I do appreciate speaking directly to the realtor or their office.
Well put Danny. I mean … come on man! I find this whole thing really goofy.
The Buyer's rep has likely just finished showing many similar properties (ie. 2 bedroom condo, $300-350K, in such and such an area). So who better to provide a little feedback as to how your listing stacks up against the competition? The feedback I prefer is actually the "professional" realtor (as opposed to the buyer), and hope they can give you a good indication as to whether or not your priced right, too high etc.
If the buyer's rep now plans to give me a speech about the technical nature as to how he's working with the buyer, I say save your breath. All the listing realtor was looking for was some honest feedback as to where the home stands, good or bad.
As a true buyer's agent your contract is with the buyers and not the sellers. You have no contractual obligation if requested to report on your showing to the listing agent. If you do make comments (negative or positive) you may compromise your buyers position if they decide to submit an offer on the property. If you feel obligated to make comments about the showing you should seek your buyer's (clients) permission first. The buyer and buyer's agent together might decide that providing feedback to the seller's agent will work in the buyers best interests and use it as one of their strategies to get them a better deal.
I think that if you are not interested in providing feedback you should declare that when setting up the viewing so I can advise my seller that the age old practice of caring enough to provide them feedback has been dropped by (you ) this particular realtor and they(the seller ) could then choose to permit the showing or NOT. You seem to portray sellers as demonic info vacs that will use any and all statements the buyers say against them in a court of law (jokingly) . SERIOUSLY though Lets keep it simple . Give some feedback I'm quite sure your buyers wouldn't mind. If you don't believe me just ask them (get it in writing if you must —— more work required than giving a little feedback) after all they will be or have been sellers already who I know appreciate feed back. Also how do you actually inform the seller or sellers agent that you have an offer . Do you say your clients actually do not care for the property but will be offering on it —- even though they aren't interested .
Assist the process — Don't exasperate it . Glad your writings get you on T.V. and other exposures however I do not think you should drop basic kindness and respect by NOT reporting on the privilege of full access to someones home .
This is an interesting and confusing topic to many. I am constantly surprised by the limited knowledge of agency many "veterans" display on an ongoing basis. Agency has nothing to do with compensation, that is purely contractual. Showing feedback, done properly, can also be given without jeopardizing agency relationships. I make it a practice to provide feedback to seller agents when asked. I never volunteer the feedback, but if asked I will provide it. This is covered off in the interview that I conduct prior to agreeing to represent a buyer. We talk about providing feedback to sellers about properties and if it is something that the buyer client feels strongly about, I will add it as a term to the buyer brokerage agreement. If they are ambivalent or simply don't care, then I provide feedback that I feel will be helpful to the seller but can in no way damage the position of my client the buyer. For example, "In my opinion, the house smells of smoke and that could cause problems for some buyers." It's kind of a nothing statement to some but I think there is valuable information in that statement. If you ask me directly about my clients intentions I will either tell you politely that it is none of your business or simply that they chose not to buy this house for their own reasons.
Not sure I can be much more courteous than that. Sometimes we just do things because that's the way we've always done it. I tend to agree that if the seller wants my opinion on pricing or showing preparation, they can hire me when your contract expires.
You say agency has nothing to do with compensation!
Every agency agreement discloses responsibilities and spells out compensation – perhaps you should not pick on the " Veterans "
I think the author is 100% correct on this one, if your working under a buyer agency its really important to keep their feedback private.
I have often showed homes that intially the buyer has ruled out only for them to change their mind at a later date. Its important not to give away important negotiation room to the seller.
I agree that professional courtesy is a must at all times but I always remember I work for my client not the sellers agent.
I don't however mind giving my own personal feedback to anyone who asks. I don't stalk other agents for feedback though, if they give me feedback great, if not no problem.
WOW, This article touched a nerve ot two. Negative feedback is sometimes used by listing agents that is not in the best interests of the Buyer or Buyer's Agent.
Ask for it and be appreciative when receiving it but do not criticize those who choose not to respond. More articles like this would be great.
Simple and easy to understand; even for me.
I suggest you keep it in mind that it is a request. Not a demand. If you have nothing to respond too. Don’t respond! Just let them know that. It sounds like you are using this forum as a sounding board to let people know your knowledge of buyer agency. Maybe change the title of your post.. At any rate you stated it yourself. It is a "request". Most likely made buy the listing agent as a courtesy. Maybe try being courteous.
If the feedback is information such as "the kitchen is too small for this buyer" or "too much traffic on the street" I doubt that will affect any agency considerations? Simple feedback like that will be used in any negotiations anyway. Alternatively, if the buyer sentiment was, "Wow, great yard!" or something equally positive, and the buyers were interested in making an offer I'm sure they would be smart enough to keep that close to the vest. Ultimately, I believe you can do both…provide respectable feedback and not breach your fiduciary duty.
Feedback is important as it is one of many service factors on which you are judged by the seller as their listing Realtor. My experience says 70% of Realtors cooperate which is strong. I also let sellers know ahead of time that some Realtors provide it and others don't. I stay away from the superlatives such as lazy, etc. Ultimately if a buyer is interested the buyer agent will call you within a few hours and you know where you stand. No feedback means no interest. However feedback is a necessary evil. The writer's comments are valid in many ways but full of holes in others. Too simplistic of an explanation when dealing with the emotional complexities of people in buying and selling.
Exellent article( a keeper).Certianly the fundamentals of what said in this article should should be at the forefront when formulating a response to a rerquest for feedback.Like I said it's a keeper.
When I was first in the real estate 'sales' business (1980 to 1983) operating as a licensed sales person, I totally disagreed with the whole sub-agency theory when acting as a buyer representative vis a vis showing said clients listings of other salespeople, event those listings within my own brokerage!
I always knew who I was working for…my personal buyer client…period!
My job was to get the best fiduciary deal possible for my buyer client…period!
The seller had his / her representative who was ideally looking out for his / her seller client's best fiduciary interests…period!
This is a moral / ethical dilema for some, it seems, but it never was for me, rules or no rules…ethics or no ethics.
Ethics are simply "prescribed" rules of behaviour to be adopted by adherents of an organization on pain of punishment for non-compliance if one is found to be wanting in that regard.
Prescribed "ethics" can be nonsensibly morally wrong, and can be changed up as the result to more accurately reflect actual common-sensical morality as our culture / legal system defines same.
This has been done in the case / discussion at hand, has it not?
First I was ethically wrong, but morally / legally right.
Lately, prior to retiring from the business, I was all of ethically / morally / legally right, without ever compromising my own standards…ever.
Regards,
Brian
Ronn, Buyers Agents who don't give feedback are arrogant and/or just lazy.
If that's the type of environment you wish to promote within the Real Estate profession – I'm glad I don't work within your Board.
The fact is it takes 2 mins for you to comment that you think the appliances need to be replaced, the flooring is unacceptible, the place smelled funny, the yard wasn't big enough, your client preferred a different home, the seller is asking price is too high, etc…
If you seriously think you are giving up your buyers negotiating position or his/her confidence – well you're just being arrogant and being "difficult to be difficult".
If you need a buyer's representative (or anyone for that matter) to give you feedback that the appliances need to be replaced or the flooring is unacceptable or the place smelled funny, then you have failed your sellers miserably. It's your job as the listing agent to give your sellers constructive advice about marketing their property. I let my sellers know what to expect and I don't ever let them expect to receive feedback. I mean really, what do they hope to learn? If they have done everything possible to present the property in it's best light then what benefit is there to learn that the prospective buyer didn't like the smell of the place, or the color of the carpets? If there are no forthcoming offers then it is ALWAYS about price – end of discussion.
If you do not know how to give professional feedback about a listing without divulging information that could jeopardize your buyer then maybe you shouldn't be in the business.
Speaking of laziness. The height of same is when a seller's rep can't be bothered to pick up the phone and ask for feedback opting instead to having the buyer's rep do the work by filling out a canned automated questionaire DESIGNED to tell the seller rep one thing – will the buyer be placing an offer?
Frankly, that is none of their business and it's stupidity for a buyer's rep to show their hand. Poker anyone?
Nonetheless, I will respond to automated emails only when my firewall does not give me a warning alert and will always respond to a call. The answers are always from my perspective never my client's, and I have far more respect for the seller rep who requests mine because a buyer's thoughts ought to be privileged information. Even so I've had seller reps take umbrage to and even argue when told that in my opinion the price is too high or the house needs too much work – proof the only reason for the request is as per the above.
Extending courtesy is one thing, expecting that a buyer would want what they say passed on to the seller with whom they may be negotiating is suggestive of being a rank amateur at the bargaining table.
But, to those of you who do give your buyer's feedback please continue to do so because I do call and ask for it and will effectively use it against you when your buyer's offer arrives.
PED:
As usual, well stated, with a neat punch to the gut at the end.
This whole disagreement vis a vis a simple moral / legal issue is just another reason why Ms Aitken loathes the so-called 'organized' real estate industry, wherein so many therein are seen, obviously justifyably so, as being simple agents of a goofy, behind-the-scenes let's-make-a-deal mentality that defies good common sense vis a vis "who-the-hell-is-whom-working-for anyway?
If one is going to 'spin', let him / her 'spin' against his / her opposing representative, and not against one's very own personal client!
Of course, one must be very careful to not be seen or thought of as doing any such thing, at least by the opposing representative.
This is where the true political / negotiative / psychological masters shine, all for the betterment of 'their' clients' fiduciary interests.
Brian
I agree with not disclosing my Buyer's views and opinions on any home that they see as it is my professional duty to them.
As for disclosing my personal opinion on a home….If a Seller or their agent would like the benefits of my knowledge and experience as a Realtor then they would have to hire me to receive this.
If the home smells like animal urine, needs a new roof, pricing questions etc. You as their listing agent should know this and have been hired to inform them of such, therefore it is your responsibility to your clients, not the showing agents.
Those agents who do not embrace the overall principles of what the writer is saying are fools and I believe are a detriment to our industry.
Dear fellow Realtors.
I want to have a professional relationship with you but I am not here to be your friend. I represent my client and am to act in their best interest at all times.
So then you say, not your Buyer's opinion, I want your opinion. If you want my opinion about pricing, location, how it shows, you can pay me. I wasn't hired to do your job and you know as well as I do that you are just going to use the negatives to hammer your poor seller for a reduction. It's a crutch. You are supposed to know what your client needs to do, to sell their house.
I have been bullied for feed back, when I said it breeched my fiduciary duties. I have been misquoted on Realtor tours when I gave my feed back and unless it is in my clients best interest, I will not provide it.
Please do not call me for feedback. It's a terrible disruption to what we are really supposed to be doing. It is you being rude and failing to do your job, not me.
If you're buyer isn't interested in the property there's no way to harm them by providing feedback. If the buyer is interested, it's a perfect opportunity for you to begin the process of setting up the best possible arrangement for your buyer. The "buyer agency" argument is lame-o!
We all need to remember – as Realtors, just as we share competition we also share co-operation. Observing your fiduciary duties as a Buyer Representative is a given and should be commended. I don't agree, however, with using those fiduciary duties as an excuse to be arrogant. Unless your buyers are negotiating and paying your commission, you should have the courtesy to share your PERSONAL & PROFESSIONAL feedback on a property. It is part of what the sellers are compensating Realtors for and what they expect as a consumer. The fewer services we offer as a profession, the less value the consumer sees in us.
I've always taken the stance that the Buyer always pays for everything. After all, the first step in closing the transaction is for the Buyer to sign the paperwork authorizing his/her lawyer to pay the money to the seller's lawyer, including that portion that goes to the listing and selling brokerages. The Seller merely negotiates the fees that each will get from those proceeds, but it is the Buyer who pays. Agree fully with your last statement; amazing how many people measure success by how fast their listings sell.
What nonsense. Are you really protecting your Buyer or just plain inconsiderate? If I receive feedback (proper feedback) from a Buyer's agent stating that the Buyer will be looking for a more-updated home, is the Buyer's agent really hurting the Buyer's position? Realtors that do not provide feedback are more interested in serving their warped egos, not the buyer's position. Grow up.
I agree with Ronn. lf we have separate representation, then we should treat them accordingly. If a Buyer was not represented by an agent, and, was buying directly from the Seller, I'm sure that it would not be in his best interest to tell the Seller what he thought of the house, thereby disclosing his negotiating position.
I also agree that the Buyer should pay his agent directly. The mere fact that we are, in most cases, still compensated by the Seller almost suggests a sub-agency relationship and/or potential for conflict. We need more concise change and transparency to clearly identify who is acting for whom and how they can be compensated.
Unfortunately, our industry has one foot in 2012 and one in the 1960's, when it comes to how we do business!
Larry, your last sentence really says so much about our practices. The very fact that we call ourselves, and are licensed as, "Sales Representatives" indicates that the industry just doesn't "get it" on certain aspects of agency. When buyer agency was adopted circa 1993, it was time to stop selling and start representing.
In any situation (buyer agency or not) you can make it clear that this YOUR feedback and not the Buyer's feedback. It's not that difficult people.
We are all trying to sell houses here & feedback is important for the seller. I feel it does not have anything to do with the buyer/agent situation. Simply said….lack of professionalism & lazy agents are the ones don't want to give feedback.
I simply ask the agent for their personal comments about the property; as how it compares to other ones they have recently seen – the buyer's comments really don't matter. If they give me comments fine; if not so what. We did have a buyer to look and to me that is a very important step in helping the seller move. The whole process will become clear once the seller's agent stops offering compensation to the buyer brokerage. That day is on the horizon! Lenders will eventually "finance" the buyer's obligation under a brokerage agreement, as they currently do for the seller. It is not just our industry that is confused.
Hi Ronn. Great article! I agree with all of your comments as they relate to your client and their position. If you really look at it, most feedback we offer is fairly useless and very general. It is usually only given, to be polite in response to a request. You are right… that is a whole lot of useless info exchanged. That said, I would add one element whereby feedback can be useful for all parties.
When feedback is the opinion of the Realtor rather than their client it can be helpful info for another professional colleague. No one knows everything. Thanks for the interesting and thought provoking comments!
I love this article! I intend to save the URL address for my feedback response.
I believe that not providing feedback because you are a Buyer’s Agent is simply unprofessional and just plain Lazy. Most Listing Agents / Sellers simply wants to know what is wrong with the home so that the Sellers can fix it, so how would that affect the Buyer?. Feedback such as “too small” , “too small”, “layout issue” “not up to date enough” , “kitchen too small”, “they may consider it” is all we are asking for. ALL SELLERS WANT FEEDBACK and they are the ones who pay you in the end. I personally will call Listing Agents with feedback before they call me and I never not return a call with feedback. Agents who practice not returning calls (you know who you are) is a shame on the Industry, you are just simply Lazy and uncooperative. I hope the day will come when feedback is mandatory because it will be stated in the listing that. If you show you are agreeing to feedback. Get with the program Buyer’s Agent and drop this legal BS excuse.
Good point Doug. Don't forget that relationships in this business are key. Professional courtesy among Realtors is at an all time low. You can give buyer feedback without jeopardizing your buyers position. If you had a listing wouldn't you want feedback from your colleagues? Or if your client doesn't want the house why wouldn't you give feedback? Your clients aren't buying it anyway. Things go all the way around, it never hurts to help a Fellow Realtor. You may need help one day…
Its a bunch of bull. Giving feedback is a professional courtesy. Telling a seller agent that the house was to small or it smelt like smoke, or the basement smells musty, or the finishing were dated is NOT going to jeopardize the price if the buyer comes back to write an offer. In my opinion its cockiness and laziness. Agents just cant be bothered and i'll say it again, its a bunch of bull.
Realtors can face various obvious obsticles in selling most properties however too often REALTORS are too timid to point those out to their Sellers upfront and are relying on or hiding behind that REALTOR "Feedback" from showings
A good listing REALTOR will have delt with all of the above mentioned negatives or issues of a property in a tactful way when they were listing it. I believe that too many REALTORS are just not doing the work when they list property or perhaps they lack the skills and experience to tackle those difficult conversations with Sellers and that includes the pricing of the property! I don't mind giving my feed back on a property and I certainly will not jepordize my Buyer's Agent duties with anything I may say. However, when I get a feedback call from the Sellers Agent 5mins after the showing and property has been listed for more than 30 days… come on, REALLY? Do the work people and stop relying on the busy REALTORS to call you back to tell you what you should already know. If you need feed back, do an Agents open or Public open house. Get the feed back from those people that come to view the property and pass that on to your Sellers. Its time to change the expectation of REALTOR feedback from the years of past. As our industry has changed, so must this.
Interesting take on the feedback situation. Valid point by Ronn. If I'm a seller perhaps I would be better off not to pay a buyer's rep commission as they have such a close agency relationship and let the buyer pay his own agent. Then there would be no expectation or confusion as to who is truly your client
Right on Ronn. Time someone spoke up about this. I have refused for years to give feedback, although I ask for it after my listing has been shown, to see what I can get from a sellers agent to help my buyer. Amazing what feed back you can get. Then the question is do you believe it and tell the seller. If the salesperson says the price is too high is this a game to get the price lower for the buyer, or just a salesperson who has not figured it out yet. And you are going to use this information to get the seller to reduce – really!!!!
Since I am in a position of training new salespeople I also teach them to keep the Buyers information private and not share their likes and dislikes with the Sellers Agent. If you were put in a court of law over this practise I am sure a good lawyer would rip you apart on the stand. It's like your lawyer asking the other lawyer what tactics he will use to beat you in court.
I have never understood, once agency came into practice, how salespeople give lip service to who they represent then verbalize to the opposite salesperson , not only feedback, but other information such as the seller/buyer is flexible, they want an offer etc. Seems to me this has more to do with the desparate salesperson pushing hard than the seller requesting this.
Time we rethink, or should I say, retrain salespeople on agency.
OOPS, should have read in my last post,
"although I ask for it after my listing has been shown, to see what I can get from a buyers agent to help my seller"
I am sure you all read this properly.
This is another unfortunate example of the lack of courtesy between Realtors of today. Sharing ideas to help the seller make their property more marketable does not necessarily have to impact Agency issues, it's all in the content of the feedback. Our industry has historically had a challenge gaining the respect of the public, and this may never change, so why would we seek to seem confrontational when feedback is requested, by refusing to offer helpful hints. If the Buyer's Agent is unaware enough of their position-and the requirements of that position-when it comes to representing their client and the kind of feedback comments they can share without detriment to their client, then that Buyer's Agent has a problem anyway and should be trained better. My goal is to always ensure that we are seen by the public as professionals-as an industry, as well as individuals-and that we are prepared to work together to help the sellers and buyers move ahead with their intended plans, not to pull back into rival camps unnecessarily. It also strikes me that the issue is usually more of a laziness on the part of the showing Agent, and the fact that they'd rather move on to the next home showing, which is understandable, but still unfortunate. Another pet peeve within this issue is the Seller's Agent who aggressively chases feedback from Buyer's Agents but ignores requests for feedback when they are the showing Agent themselves. Let's see if we can find ways to work together to improve our dealings with each other, as well as showing the public how professional our industry can be, while still protecting the interests or our clients, whether sellers or buyers. I truly believe this is possible, even if improbable.
So has professional courtesy has gone out the window? Really people! Is this such a big deal? In "the day" most of us got along. If you can't be bothered giving feedback, then just don't bother. You don't have to go all "lawyer" on the agent. This sounds pretty goofy to me.
I could not agree more. By NOT providing a listing agent with the common professional courtesy of showing feedback it has has taken our industry backwards. It's called respect for the Seller and listing agent.
Please,please do not hid behind the "agency" crap as an excuse why you would not give a fellow Realtor some simple showing feedback. Give me a break!!!!!
I have been selling real estate for 35 years and shake my head everytime I read an artical like this.
I have been in the business for over 36 years. From day one it has always been a problem in the industry for some to figure out who they work for.
With all the changes you would think it would finally be clearer. Work and protect your client at all costs. I can sight many examples of buyers who have paid more money just because of prior feedback to the listing salesperson. I agree with the writer 100%
Quoting from above: "Prior to buyer agency (circa 1992), Realtors working with buyers were all sub agents working for the seller, who paid commissions to listing brokerages, who in turn paid out the buyer’s agent side through sub-agency agreements. But those rules have been expanded to include buyer’s agency, where the buyer is now offered a choice of having their own representation."
It is important and in fact, vital, to understand: Part of the problem is what the public and even agents have, trying to co-relate commission to representation (who pays what to whom and how and by using exactly what vehicle to do so). Pay (commission or otherwise) has NOTHING to do with representation.
Check it out with your broker, your Board, OREA, CREA, and all the people involved in the industry. This topic is addressed in multiple course materials and articles (see "Representation – Do You Have It? article on my site)
A Buyer can be "represented" totally, yet the person representing him or her "can be" paid by the "Seller." Yes, it is confusing. But in fact, it is true.
With respect,
Carolyne L http://www.Carolyne.com
I have adopted the policy of informing the Listing Agent that my Buyer Representation Agreement does not permit me to give feedback as any feedback could jeopardize my buyer in the event they should decide to place an offer on the property. I really get agents upset with that however …. it's my client (buyer) that I am looking after not the seller.
Perhaps I should ask prior to the showing if the buyer's rep will provide feedback so that I can let my sellers decide if they want the showing or not before they pack the kids and dog in the car to drive around aimlessly for an hour just so the buyers feel "comfortable" in their home. I would just like the professionals feedback who's job was just made easier by my clients vacating.