SURE BUYER

Once upon a time, a broker (let's call him MB) was handling the sale of a condo unit.

Like many listings in the PH, the listing was non-exclusive, so several brokers were marketing the unit. The keys remained with MB and he simply lent the keys to other brokers.

MB handled the listing professionally. He advised the owner that the asking price was too high based on market feedback. He marketed the property in all platforms using gross pricing terms instead of “net to seller” pricing to avoid confusing buyers. The feedback was consistent: “The price is too high.”

But there was another broker involved. Let’s call her DB.

DB constantly assured the owner that she had a “sure buyer.” According to her, her buyer was offering a million more than the owner’s already ambitious asking price (even before seeing the property).

But, MB was skeptical. If buyers were truly willing to pay above asking, why hadn’t any serious offers materialized? And a million above the asking price..? Come on...

A month passed and DB's "sure buyer" seemed like they didn't pursue the deal. So the owner agreed to lower the price. Almost immediately, inquiries started coming in. Not long after, MB secured an offer at the newly advertised asking price.

But the owner rejected it outright because DB once again claimed she had another buyer who was offering the OLD asking price.

At that point, MB decided to drop the listing. It was becoming difficult to manage serious buyers while competing against imaginary offers.

Months passed and the unit remained unsold.

One day, the owner came back to MB and offered him an exclusive listing agreement. The owner also instructed that DB surrender the keys to MB. The exclusive Authority to Sell was signed. So MB contacted DB to retrieve the keys. But DB refused.

Again, she claimed she had a “sure buyer.” She said she would be showing the property “that weekend.” Out of professional courtesy, MB waited. The weekend passed. Still no turnover of keys.

MB reported the matter to the owner. But strangely, the owner stayed quiet. It seemed he still believed DB’s promises about the “sure buyer.”

End of story.

Lessons tomorrow.

*****

Following up on yesterday’s post…

There are a lot of “DB-type” brokers in the market. Like..A LOT.

Are they necessarily lying about having a “sure buyer”? Maybe not entirely. Some of them probably do. But whether that buyer is actually “sure” is a completely different story.

People who have been in RE long enough know this: verbal/written offers mean almost nothing.

What makes an offer serious is when money is already on the table.

Interestingly, I’ve noticed that these “sure buyer” brokers are especially common in the provinces. Sometimes it’s the barangay captain, random acquaintances, or self-proclaimed brokers approaching owners claiming they already have a buyer lined up.

That’s the reality of this business: talk is cheap. Even other industries understand this.

Try calling an auto shop to ask about an item, then immediately negotiate over the phone. Most of the time they’ll simply say: “Sir, punta nalang po kayo dito.” Because they know there’s a huge difference between talking and actually showing up ready to transact.

Unfortunately, some DB-type brokers go even further.

Some falsely claim they’re the exclusive broker to prevent buyers from speaking with other agents. Others ignore possible tax implications, or structure transactions without properly explaining the tax consequences. Then once the commission is collected, the seller and buyer are left to deal with the aftermath themselves.

And that’s the dangerous part.

The damage only appears years later — estate settlements, BIR audits, or future sales. Like they find out the BIR eCAR that was issued is fake. By then, penalties and tax exposure may already be in the millions.

So what can we do about them?

Honestly? Probably not much. They’ll continue doing what they do. But what we can do is educate sellers and buyers. A “sure buyer” is not a sure buyer until there is actual commitment, proper documentation, and ideally money already on the table.

And sometimes, if a client refuses to listen to professional advice, the best decision is simply to walk away.

Eventually, the market teaches lessons that brokers cannot.