Worked with Client 5 years- he signed to buy house then...

You have got to believe in yourself and the value you bring to your client. After five years of working with some one and coming away with nothing can be frustrateing. All too often, real estate agents are concerned they may burn a bridge and do not stand up for what they believe is right, go get your money.

I think you should definately hold his feet to the fire. I am there with you and sick and tired of the way we are treated as Realtors. I for one am sick and tired of people treating us like we are "public servants". However, I believe that we (Realtors) are our own worst enemy. I believe we have created this monster we are now so tired of dealing with and it's high time we turn it around as an industry.

I am in the state of North Carolina and our agreements have changed so that we are now able to charge a "Retainer Fee". There were alot of Realtors happy about that, but I have seen very few (including myself) taking advantage of it. For those Realtors I've spoken to about it, they say they won't be charging the retainer fee because it's too easy for the client to just go to another agent who "does not" charge anything. True to say the least!

My answer to that would be, you win some and you loose some. I believe that it's all in the delivery of how you explain to the person(s) sitting across the desk from you. The retainer is something you are collecting up front, just as you do when you hire an Attorney and just as you do when you are expected to pay your co-pay at the Dr. office before leaving. The incentive to the Buyer (so-to-speak) is that you will credit their retainer at the time of closing on the HUD, and I wouldn't offer that back to them in the way that they can use it as part of their EMD either.

It's change and most people in my opinion have a hard time adjusting to change. But I am looking at it this way, I can either set myself up for a possible failure (and there will be those that are beyond our control as it is part of the nature of the beast we call Real Estate) or I can walk away at the end of the day with some type of compensation for my time and the knowledge/information I've shared. Real Estate school wasn't Free, my MLS fees are not Free, my Membership fees are not Free, my advertising is not Free, my E&O Insurance is not Free.....get the picture! These people certainly wouldn't roll out of bed each morning to punch a clock and "hope" that at the end of the week they will get paid. Not everyone gets up and works for FREE each day like a Realtor does and hopes that within 30 days we will be able to claim a paycheck. I'm also wondering if they tell their employer at the end of the work week, "hey, when I'm done this week, how about you throw in a gift card for me to Lowe's? or pay a portion of my bills for the month because I chose to come work with you and by the way, I need a tank of gas for my car"

We are our own entity in every form of the business owner, but we are at the mercy of the BIC to be able to collect the money that we have so rightfully and diligently earned! Ohhh.... don't get me started! Go GET what you have rightfully earned!

We can sit in these forums complaining about the same thing over and over again, but it's like the kid in school who keeps getting beat up by the bully - one day you'll get beat up one too many times and that is when you have to make the decision to stand up for yourself and do something about it.....because no one else will!

A few thoughts:

1. A few people have suggested that the seller may pursue the legal remedy of specific performance. Most states view properties unique... no two properties are alike so buyers can sue for specific performance. But the law views buyers as not unique... you can always find another someone willing to spend money (I guess they haven't seen my local real estate market lately!!!). Because of this, most sellers wouldn't have much of a chance for success based on specific performance.

In addition, the buyer probably gave you an EMD. The purpose of an EMD is to make the seller whole in the event of a breach. The EMD is for practical purposes the liquidated damages. When you have predetermined liquidated damages, there is usually no reason for specific performance.

There is a remote chance of making a detrimental reliance claim... but again, that would be a long shot, and only relevant if sellers did something significant... yada yada.

2. In my marketplace (Detroit, Michigan) most of the default clauses in our Purch Agmts call for the EMD to be split... 50% to the Seller and the other 50% to be split between the brokers. What do the default clauses in your PA call for? Look to your contracts to see what they say about this.

3. How does your Buyer Agency Agreement deal with this? Again, we need to know what our paperwork says about this stuff and it's up to us to sit down with our brokers and make sure our contracts say what they should say.

Getting emotional is the last thing we should do when we get in a situation like this... easy for me to say. Sit back and see if you can think of a way to turn this nasty situation around.

If we are in an emotional state, we'll be mentally locked up and we won't be able to come up with a creative solution. If you attack, buyer's defenses go up and you lose. If you have been working with this guy for 5 years, I am hoping you have established enough rapport and trust with him that you can talk to him about the situation. You need to understand him and understand what bug crawled up.. and you need to be able to do it in a conversational and interested way.

Once you understand where he is, you might be able to think of a way to help him get what he wants in a way that helps you and the seller get what you want. Or you are at least in a better position to (in a non threatening way) help him see how his position affects the others involved. In doing this, you need to be able to do it without putting him on the defensive. This also will only work if he is a good person. (Most people are).

One last thought that will help prevent this from happening to you or others... We need to understand and communicate with our clients. I often see agents too quick to run out and show houses without first sitting down and talking in detail about what the client is looking for and why. This goes deeper than knowing how many beds/baths etc. We really need to be consultants that understand what the underlying motives are. The more time we spend getting that foundation up front, the less time we'll waste running around with someone that is not committed. A few people talked about how we don't treat ourselves fairly and professionally with our compensation schemes. We also need to take ourselves up a notch with our professional consultative selling skills. Most of us don't understand and communicate with our clients to the degree we should. Kicking that up a little will also help minimize the frequency with which we invest too much in someone who gives no commitment in return.

Good luck... go read the PA and your buyer agency agreement. Think of a way to reach the good man inside that buyer. Find out the real reason he is walking... see if you can help solve that problem. If you can't help him to see the problem he has created for the others involved and see if you can at least get him to release (in writing) the EMD.

I had this happen to me also but I had 75 houses I had showed them each one documented in their folder, I even keep a map on google maps of every buyer-( its free and can really help determine if you have showed a property to them already or not). My mistake was that I did have a exclusive right to represent but had $0 for commission paid by buyer to broker if they didnt buy after finding them a home. I actually had a motorcycle wreck and missed one showing with them and the next thing I knew a remax agent was calling me wanting to get a release form from me... After many words were yelled at him I did look up my contract with them to see what I had typed.. It all depends on what your contract says if its out of date or has no figures dont waste your time, but if you have a up to date right to represent contract and you placed a figure in their contract make sure you let the buyer know what you have he may have to add a 0 to that 500 !!!

Nathan Hepler BIC/owner of Hepler Realty Thomasville NC 27360