Firing Broker - Ethics?
Started by Bernie123
over 16 years ago
Posts: 281
Member since: Apr 2009
Discussion about
My current broker isn't cutting it. He is inexperienced but initially I felt his positive attitude made up for it. But after he showed me a lot of places (as I figured out what I wanted) I realized he was sloppy and then out the blue he more or less fired me (which I can understand - I looked at places in many neighborhoods). I only "returned" since I was close to making an offer on a place he showed me, that was in July. Now I want to start anew. From what I have written am I justified in firing him and from a ethical perspective should I compensate him for his time? If so how much?
If you don't have a written agreement with him, there's no need to "fire" him. And if there is no need, why burn that bridge? Just work with another broker without the drama of a "firing".
I have no contract. But I've certainly given him the impression (which is true) that I am not working with anyone else so wouldn't that be a bit shady? Or are you saying just sort of let him go by way of attrition and he'll figure it out? Am I being too nice here? thanks 30yrs
First off, you don't owe a dime, ethically or otherwise. Brokers work on commission -- which means they get paid for getting the job done. When they get the job done, it can be a windfall. When they don't get the job done...hopefully next time they will. The amount they earn from the successful deals is intended to be large enough to cover the unsuccessful ones. So you'd just be paying him twice by compensating him for an unsuccessful deal.
Even if you did think it unfair in some sense, remember that it's not a system that you designed -- and it's not one with which he's unfamiliar. It's the bargain he made, and one that can be lucrative for people who do a good job. So don't lose any sleep over it. You weren't wasting his time -- you were working with him in good faith, intending to buy an apartment. It didn't work out, in part because he seems to be inexperienced and...perhaps a little dramatic. (He fired you? Really?) Hopefully the next time will work out for him.
In terms of terminating the relationship -- it depends. You're under no ethical obligation to do anything other than walk away. But if you think feedback would be helpful to him, it could be a nice thing to do to tell him why you're going with someone else. And if you think he's otherwise going to be spending a significant amount of time trying to find you a place, it would certainly be nice to give him a heads-up that you're not using him anymore. (You don't necessarily have to say that you're using someone else.)
Don't call him back anymore. Don't put an offer down on a place he showed you.
You'll be all set.
You ARE a nice cat, Bernie. But no worries. The broker knows the game, fear not.
The only thing is, I wouldn't even bother to give him feedback, it will just be a downer for him and he isn't going to change his way of working because of it, because what he did is actually recommended procedure. He pulled away from you because he began to think you were not ready to buy yet. He was right. As for "sloppy," he is probably just doing the best he can without an assistant to help him, so he can't fix that, either.
I do think, however, that if you want to make an offer on something he showed you, you should work with him on that offer if you can do so comfortably, because your personality is such you will feel better about the deal, and your new home, if you do. But 30yrs is [always] right--no one owns a buyer!--you don't have to do even that.
If you were my client I would not hold any hard feelings against you at all, and he is more experienced than me, so it's likely this would be even more true for him.
{Manhattan real estate agent.}
thanks all - helpful insights