Are Buyers Really Liars?

Moni your main point is about us asking the correct questions and I agree wholeheartedly. Even if they are trying to ignore their agreement with someone else, the right questions will ferret this out. I think Agency tells us that the burden of proof is on us, yes? You rock.

I agree wholeheartedly.  I think a buyers rep agreement should be explained as carefully as a contract.  I will say, however, that I am a non-believer in these agreements myself.  From what I've heard, at least in Texas, they are worth just about what the paper that they're printed on is worth.  I treat my buyers right and expect them to do the same to me.

Carole..Thanks, Yes the burden of proof is ours to bear! So many of our problems- REALTOR to REALTOR and with the public stem from a breakdown in Communications...the right questions  go along way to helping to avoid some of these problem.

Thanks for your comments Carole.  

Chris...Thanks for reading and commenting.  Sadly in many places they're really not worth it because if the consumer can prove they didn't understand or get it ....it won't hold up. So it is up to us to ask the questions and educate...unfortunately for all us good agents who do our jobs the right way there are just as many who don't!

Thanks Chris. 

Good info Monika, I'm so happy I don't work with buyers. You are right though it's all about proper communication. It only takes a few minutes to properly explain a BBA and what signing it means. An informed customer/client is so much easier to work with. Take the time upfront and you will save a lot of valuable time in the future.

Thanks Bryant...Sometimes I wish I didn't work with buyers either..LOL but that wouldn't work for us here!  You're right a Informed consumer is the name of the game!  Thanks for reading.

Monika - beautifully written - I too agree that buyers are not liars - talk about a generalization and stereotype!  We need to communicate correctly and we need to ask the right questions.  As you said, there are different interpretations to different questions and it doesn't hurt to ask in different wasy.  Asking if a buyer is contractually obligated to a Realtor is definitely a good way to clear things up.  I wrote a blog for buyers a while back to try to educate them on working with ONE agent (called "Buying Real Estate- basic guidelines for success")- it was prompted by the same couple seeing one of our listings with different agents.

When I began in this business, I was told to always ask, "Are you working with a Realtor?" The buyers always said "No", only to be found out later, that they had viewed homes with others. So like you, I decided to change my question so I would get the answer I was looking for. I ask, "Have you had any other Realtors show you homes?" I've found this gets an entirely different response, since IMO, buyers haven't always commited to one agent yet, and in their minds 'aren't WORKING with an agent. Once I find out that they HAVE viewed homes with other agents, then I can probe as to whether they've signed a BBA, and know how to appropriately and legally handle it from that point. 

You know the statement should read that buyers do not have a clue. I have worked with some buyers that to tell you the truth they really did not know what they wanted. So any amount of questions would not tell you what to show them. You see as I educated them what they wanted and could afford changed. So buers are not necessarily liars just confused and it is our job to guide them.

Definatley get a buyers broker agreement signed in the beginning before the education can start.

Monika,

I also, don't believe "Buyers are Liars."  It's not a great way to think about a client relationship.

I like your question, "Are you contaractually obligated..."  That is an excellent way to get to the real answer. 

Monika, I do think that some times the problem is caused by the right questions not being asked, but I have had Borrowers not be completely honest with me, and then when the truth comes out they try to back peddle. But I have also seen cases where no one bothered to ask the questions either, and then try to blame the Borrower. 

I do believe that if we have any doubts as to what the client is telling us, that it is our job to ask enough questions until we get a clear answer, that would solve a majority of the problems. 

Ines...Thank you so much. I'll need to go read that blog you mentioned. Buyers do need our guidance in many ways...effective counseling before you enter in a buyer agency contract should be required! Communication is key. Thanks a bunch.

Elaine...I agree asking in a different way helps start a good conversation...contractually obligated...makes them realize it could be serious and they usually sit up and take notice. Have any other REALTORS shown you homes...would do the same....as long as they get what your asking and answer it truthfully. Thanks for commenting.

Doug...I've had my share of Clueless buyers...education is the key and sometimes even then it doesn't help.

Steve..Thanks so much for your comments...sometime just asking the question in a different way helps a lot. 

George...I know a few originators who tell me the same thing...people lie on applications all the time. Like they think they won't be found out!!!  Thanks for reading George.

Monika ~ good thoughts, I like the term "poaching buyers."  It's an excellent analogy to what is happening when we don't ask the right questions.  Your teminology is good too with regard to "are you contractually obligated" to another agent.  Asking questions that effect the pocket book does bring out the truth that is sometimes conveniently forgotten.  :)

You should teach... :)

kk

Monika, I agree that we need to ask the right questions, Elaine's question  " Have you looked at houses with a realtor? is effective, and could be followed by: did you sign any agreement?  In my case when working as a buyers broker in addition to the contract, I also give them a copy of the "Home Buyer's Passport" with my picture inserted, this is a good reminder that a contract was signed.

Jennifer, that is exactly how I handle it. I've found that asking the "really simple, non-threatening" question first, will cause them to answer more correctly. Very often they'll say, "yeah, we looked at one in ....". Then I ask if they signed any paperwork with that agent. Again, I don't think they take the BBA seriously. They've just signed it to appease the agent, and don't really consider it a commitment. I base this on their response when I tell them they should contact that agent and only work with one agent. Very often, they'll indicate that they're really not commited to that agent. I'll bet the agent doesn't know that.

Monika,

Good blog.

I believe the complete quote is "buyers are liars, and sellers are worst."

You're in the people business, enjoy it. Keep in mind what Reagan said "trust but verify!"

Happy New Year!

Bill

William J Archambault Jr

The Real Estate Investment Institute

http://www.reii.org

I loved the buyer who said he had great credit.  The loan officer called me and let me know that the buyer failed to mention his bankruptcy.

Monika - another great post of yours!  I, too, believe our questions need to be as clear as water in order to make sure we get the responses back that we need in order to do our job.  I don't believe buyers are necessarily liars. I think that we need to ask the proper questions in clear concise language, and then proceed from there.  If we don't, we have no one to blame but ourselves at the end of the day.

Ann

KK...Thanks so much for stopping by and reading my blog. Maybe I'll go into teaching <gg>.

Jennifer..I used to use that passport...forgot all about it!  I betcha I still some... somewhere.

Hi Bill... Thanks and Happy New Year to you as well.  I like that... trust but verify...how true!

Randy...Had a few of those.."great credit...sure do..Oh I had a few collection accounts"...

Ann...Thanks for your comments. Questions clear as water...I need to remember that!!!

Are you home yet? 

Good blog Monika.  It is a shame when someone doesn't know what they signed.  Why in the world would you sign something if you didn't understand it?

I wrote another blog that discusses the importance of making sure they do understand. 

Hi Brett,

Thanks so much for the commenting. I'll go check out your blog.

Thanks 

Monika,

I try to always work as a Buyers Agent whenever possible with a signed contract, just to avoid all those things. What I find is that "friends" are the biggest problem. I have had 3 separate incidents where friends were already working with a Realtor and asked me to "check around" for them! I like to keep my friends, however, I am tired of going into the whole summation of the whys and why nots of why I cannot "also" represent them. (and don't want to, if truth be known)

Karen...I hate when that happens...Friends and relatives.  They buy and then ask your opinion after the fact..

I also try and do Buyer Agency and I make sure my buyers understand what they are signing and what it means.

Thanks for stopping by Karen.

Monika:

I think asking the right questions is true for every profession.  I agree with you, taking on responsibility and not pointing to the otherguy (client) is too easy.  I think it's called accountability?

Ken

Ken...Thanks so much for commenting and yes accountability is right on. Now if only all REALTORS would take accountability seriously!

OK I know why you are a REALTOR® but why are you an ostrich?

Maureen...Because I was called an ostrich here so I figured I'd become one for a little while... had get over the ugly image of it so I found a sort of cute photo of one..

i know silly of me. 

Monika ... thank you.. I think I meant to leave this comment on that post.... because of the title.    Funny, that is exactly what I expected.  I don't know why I did not see it there. I don't know how I ended up on this post..  The photo is cute... both are,  the ostrich and you with big hair.  

LOL...Did you see Marcus's comment that lead to my Ostrich photo? Maybe next time I'll use the big hair photo.

I've been getting both posts mixed up for two days lol.  Of course I have no idea why she didn't use MY ostrich rofl 

In fact if you want to laugh out loud (put your coffee down everyone), go the profile pic here, roll your mouse over it; I dare you not to laugh out loud while you do that and it says 'Monika McGillicuddy'  :-)

Proud to be an Ostrich - THAT'S WHAT I'M TALKING ABOUT! - I lost Carloe - I spilled the  coffee!

Missed this wen it came out- glad I went back to read some today- it is a good post with much truth in it! Ive been in this 10+ yrs and know the saying "buyers are liars" too well...yes-ask ask ask!

Let me tell you that many times they look at me, eyes wide open and say..."well I did sign something...Ummm I'm not sure what, let me go out to the car and get it so you can see what it is"...Usually they come back in with a buyers agency agreement in hand. 

I then have to educate them on just what that piece of paper means...sometimes the buyers are pretty devastated when they realize the implications of what they've signed. Shame on some REALTORS®!

Moni K,

I came across another of your Blogs and I have a question for you, Do Realtor's use those Buyer's Agency agreements often? I knew about them but I have never seen a Realtor in my Office use them. Is it better to use them or not to use them? Also, what if you ask your Buyer if they are contractually obligated and they say No they have not signed anything but they have worked with another Realtor, what then? How do you handle that? Sorry, that was more then one question. :)

Moni C

Michele..Thanks so much for stopping by and reading my post! I agree Ask-Ask and Ask some more!!

Moni C..When we represent a buyer we have to use a contract/buyers agreement...just like when we list a seller ...we use a contact/listing agreement.  If the buyer is a customer and not a client then a simple agency disclosure must be used. That is NH law....the beauty of it is as you walk out the door with a buyer You (the agent) and the buyer knows who you represent...nothing implied up here.

Moni K,

Thank you so much, I think I may need to look the Regs up for Florida, I am wondering if it is required here as well....I feel like I still have so much to learn. :(

Moni C

 Moni C  Your question "what if you ask your Buyer if they are contractually obligated and they say No they have not signed anything but they have worked with another Realtor, what then? How do you handle that? Sorry, that was more then one question."

If they have not signed anything then up here in NH they are free game. If they have looked at a home that I want to show them then I would need to tread carefully 1. how long ago did they see it 2. why are they not still working with that agent??? 

Hope that heps but remember laws differ..so you need to check yours out. 

Moni K 

It's all about asking enough questions -- the right type or in the right way... Questions that really matter.  I ask over 200 questions during my initial interview with clients.... not only about their housing needs, but their life goals, hobbies & interests, what amenities they'd like to be near, the size of their furnishings, preferred style of decorating... & much more.   I've never run into a buyer that was a liar because of this...

Rick Hauser, ABR GRI - Broker/Owner Relocation Advisors Group Inc.  - An Exclusive Buyer Brokerage covering the Chicago area.