A REALTOR® recently relayed the challenges with the hot real estate market, such as multiple offers, escalation clauses, appraisal concerns and cash offers. You know, the basic challenges of a competitive market. Then she mentioned something new she is experiencing: the pop-in buyer.
A pop-in is a person who visits without invitation or notification. For instance, Jerry is not a fan of the pop-in on the show Seinfeld, but Elaine, George and Kramer were huge fans of the pop-in. Since Jerry’s apartment was the main hangout, it’s no surprise that Jerry was not a fan of the pop-in, while the pop-in friends — Elaine, George and Kramer — were huge fans.
In real estate, pop-in buyers are those who see a car in the driveway they believe belongs to someone other than the homeowner or a car with the firm’s decal, and they decide the property is open for showing. Thus, the buyer “pops in” to see the property. Frankly, some of these pop-in individuals may not be legitimate purchasers but rather interested neighbors, aka nosy neighbors. However, other pop-in individuals fall into the category of more aggressive buyers who are trying to literally get their foot in the door before they lose yet another property to the limited inventory. Either way, the typical pop-in buyer is a stranger to the real estate agent, thus creating a complicated situation.
Pop-in scenario
The REALTOR® laid out the following scenario:
As a cooperating agent, she contacted the listing agent, and through the showing line, made an appointment for an individual showing naming the buyers whom she would take through the house. The agent was by the front door when a woman attempted to walk into the house. The agent informed this individual the showing was only for the buyers she was with and not open to the public. This person became more assertive, suggesting the agent should just let her look around. The agent stood her ground and explained she could not, and would not, allow the person in because she only had permission to bring her buyers through the house at that moment. However, the agent strongly encouraged the individual to reach out to the agent on the sign in the yard to schedule a showing.
The agent then asked the classic question — was I right in telling her she couldn’t come into the house?
Yes. For two different reasons: lack of authority and safety.
Pop-in implications
1. Lack of authority
The agent only had authority to show the house to the buyers the agent indicated would be there at the scheduled individual showing. If she let the pop-in buyer into the home, she would be doing so without the knowledge and permission of the seller.
Further, what if, for example, that pop-in buyer was on the seller’s list of persons who should not be allowed to attend showings on lines 156-157 of the WB-1 Residential Listing Contract — Exclusive Right to Sell?
The agent would unknowingly have violated the seller’s direction to the listing agent in the listing contract. Article 3 of the REALTOR® Code of Ethics discusses the fact that cooperation with other brokers is required except when cooperation is not in the client’s best interest. In the listing contract, if the seller directed the agent not to give a buyer access to the property or not to allow a certain buyer to enter, the seller would state on the relevant lines, such as lines 156-157 of the WB-1, so the listing agent has clarity as to whom the seller meant and defensibility as to the seller’s direction if that stated buyer(s) attempted to see the property. As a reminder, the seller cannot discriminate and could not use the refusal of access to discriminate against a protected class. But there are times where the seller may want to refuse access to a property for personal reasons, such as the seller just went through a contentious divorce or has a restraining order against someone.
When a seller wishes to refuse access in those types of situations, in addition to including the limitation in the listing contract, the listing agent would want to ensure the names of buyers are provided prior to their scheduled showing of the property or prior to the individual showing by another agent. Further, the listing agent would likely suggest limiting the ability of the seller’s named buyer to gain access to the property by suggesting to the seller to avoid having open houses. Listing agents would also want to make sure the seller understands that no agent can guard against a buyer who provides an alternative name or offers false identification if that is something required under company office policy.
2. Safety
The agent had no idea who the pop-in buyer was, thus, the agent was correct to be cautious from a personal safety perspective.
Everyone takes risk in their daily lives. However, because REALTORS® most commonly work solo in their career, show properties at various times of the day, and typically don’t have a real relationship or connection to the consumer they are meeting, REALTORS® take on a greater risk.
By allowing a pop-in buyer access to the property during a showing with another buyer places the agent and the agent’s buyers at further risk. A buyer who has not been vetted consistent with company policy — for instance, requiring them to come to the office first, looking at or making a copy of their photo identification, taking down their license plate number — unnecessarily places everyone in that property at greater risk.
As a REALTOR®, you should never feel obligated to feel unsafe and should always go with your instinct. Company policies about safety should be followed, and if there is not currently a company safety policy, then you should encourage your broker to create one.
“Safety is a full-time job — don’t make it a part-time practice.” I don’t know who said it, but it’s great advice. If that pop-in buyer really wants to see the property, that buyer will wait his or her turn. If the buyer becomes upset, then so be it. There are no take-backs when it comes to safety.
Cori Lamont is Director of Corporate and Regulatory Affairs for the WRA.
Article 3
REALTORS® shall cooperate with other brokers except when cooperation is not in the client’s best interest. The obligation to cooperate does not include the obligation to share commissions, fees, or to otherwise compensate another broker. (Amended 1/95)
Standard of Practice 3-9 REALTORS® shall not provide access to listed property on terms other than those established by the owner or the listing broker. (Adopted 1/10)
Safety resources
For reminders about the importance of protecting your safety, see the resources from the WRA: