Dear Vinny,
I am a buyer, and I have been working with a Real Estate agent in my local state – let’s call him Steve. My agent, Steve, called me, asked a lot of great questions, listened to what I am looking for, searched across the state looking for something to fit my needs, and found a property in record time!
Here is the issue, I am an ethical guy, and I have enjoyed working with Steve. He has gone above and beyond for me and has shown that he is a knowledgeable professional. The listing he found for me was an exclusive listing with another Real Estate Brokerage – Steve was able to procure all the details and passed them on to me despite the fact it was a competitor’s exclusive listing. Steve is telling me that if I want to purchase this property, I need to work with this other brokerage. The other brokerage is refusing to pay Steve a commission and release any further detail on the property, which is tying his hands as my agent. The other brokerage claims I am in their database, even though they never sent me this property. I was very happy with the service and guidance that Steve gave me, and I feel bad that Steve isn’t going to make a commission after all the work he has put in on my behalf. Is there a way that I can make sure that Steve is compensated? I like this property and am ready to make an offer on it; what should I do?
Dear Bewildered Buyer,
Unfortunately, certain brokerages place financial gain over personal relationships. Because you, as a Buyer, are in their database, too, they refuse to pay Steve, even if Steve brought the property to your attention. I have been in Steve's shoes before and have seen clients walk away from the deal out of principle. Other clients have chosen to work with the listing brokerage because it was the right property for them, but they decided to pay me a “consulting fee” on top of the purchase price. It is a moral dilemma, but any successful broker will be able to feel happy they found you a property that fits your needs, even if they do not get compensated in the end. At the very least, make sure Steve is your first call when you decide to sell the property someday.
