When the Other Party is Unrepresented – A Script
| April 09, 2014
There are three messages you must get through to an unrepresented party when you represent a client in a trade in real estate with that unrepresented party.
- I represent my client and their interests
- I do not represent you or your interests
- If you wish to be represented, you need to find another agent
It’s that simple. Real estate industry professionals help consumers understand many complex things in various situations. This isn’t one of those.
Let’s say you represent a buyer. The buyer is interested in a For Sale By Owner (FSBO) property. You call the seller to arrange a viewing of the property. You meet the seller and explain customer status using the Consumer Relationships Guide. You ask the seller to sign a Customer Acknowledgment that says these three things. If the seller doesn’t understand, repeat it until they do.
Let’s say you represent a new home builder with whom you’ve worked as an agent for many years. You and the builder have closed many transactions together. A buyer calls you and is interested in one of the builder’s new homes. You set up a viewing. You meet the buyer and explain customer status using the Consumer Relationships Guide. You ask the buyer to sign a Customer Acknowledgment that says these three things. If the buyer doesn’t understand, repeat it until they do.
So, what do you if the FSBO seller asks if the asking price is appropriate? Remind them that they are a customer and you can’t offer advice or opinions. What about the unrepresented buyer asking what price to offer? Remind them that they are a customer and you can’t provide advice. Saying or doing any more than that places you at risk of creating an implied representation relationship, which conflicts with the Customer Acknowledgement that they signed.
What do YOU say and do when dealing with unrepresented sellers and buyers?