There's been a lot of conversation in REALTOR(R) circles about how to explain to the general public how we work.

"Uh....how about we tell people?"

So I’m going about my business last week and my phone rang. A very nice man said, “Carol Anne, my name is Joe Public and I would very much like to see your listing at 12345 Main Street.” I said, “Joe, I would very much like to show it to you.” We made an appointment and met at the house and spent, oh, 2 or 3 hours looking at the house, asking and answering questions, qualifying, looking at the house some more – a typical wonderful showing.
Joe was ready to buy it – this is not my first rodeo and I know when somebody gets engaged to a house. I asked Joe if he wanted to go write the contract right then, or did he want to sleep on it? Joe answered that he would go call his agent, who would get back to me tomorrow.

“Your agent? You have an agent, Joe?” “Yes, I have an agent. He told me to go find houses that I want to see, make appointments, go look, and it would all be fine as long as I make sure to tell the list agents that I’m working with him.”

Wrong.

I take a deep breath and remind myself that I like Joe and this isn’t his fault. He’s trying to do the right thing as explained to him by his agent. I also remind myself that my job is to sell the property without ripping poor Joe’s face off. I kindly ask Joe who is his agent? He tells me the name of someone licensed to sell real etate, but not a member of the National Association of REALTORS(R), not a person who is subject to our Code of Ethics.

We’ll call Joe’s agent Dick.

So I sleep on it and have about 40 conversations in my mind and then give Dick a call. Here’s how it went:

“Hi, Dick. I showed a listing yesterday to Joe Public, who told me that you told him to go look at properties with the list agents, and if he finds one that he wants to write on he should say that he works with you. Is that correct? Dick, are you making even the slightest effort to protect Joe's interests, or are you just throwing him to the wolves? Are you actually telling to go out and have another agent show him properties and then have you write the offer? Are you actually thinking that Joe saying, “I work with Dick” will avoid a procuring cause issue? Are you planning to write an offer on a home that you haven’t even bothered to go see with him? Are you thinking that you’re representing Joe even the slightest little bit when you’re sending him out alone? Do you think it’s right that the other agents are doing all of the work and you’re expecting to collect a commission?”

Isn’t it 5:00 somewhere?

How about a little real estate 101? When an owner hires me to list and sell his property, we agree on what he will pay me to do so. My commission is usually a percentage of the total sales price of the property. When I put that property into our MLS, I promise to pay the agent who brings a buyer half of my commission.


What is procuring cause? It means that the agent who caused a buyer to decide to buy that particular property is the one who earned the commission. There are caveats, but that's basically it. We don't dictate who a buyer can work with or have represent them, but there have to be guidelines as to who gets paid.

So what's wrong with what happened?

First of all, Joe wasn't being being properly represented. Dick should have been there to listen to the answers to the questions and see the house and lend his expertise and experience - Joe should not have been out there all alone.

Second, Joe could get stuck in the middle of 2 agents arguing about who sold him the house. That's not fair when all that Dick had to do was show up.

That's the problem here. Dick didn't bring Joe and Dick didn't help Joe but Dick wants me to pay him even though he didn't earn it.

So what would I have had Joe do? Make an appointment with Dick to go out looking. If Dick doesn't want to go then Joe needs to go find himself a REALTOR(R).