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Real Estate Why Must Some Realtors give all a bad name?

Discussion in 'Real Estate Investing' started by hakrjak, Mar 12, 2008.

  1. hakrjak
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    hakrjak Bronze Contributor Read Millionaire Fastlane

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    So I've been working with this buyer for a month or so now. One of my Realtor friends (Representing the Seller) was trying to get her into a home down the street, but the seller was not very into "creative finance" and not very flexible, so the buyer's poor credit caused them to not be able to get into the house.

    I called the Buyer after getting my realtor friend's OK, and chatted with her about how we might be able to do a private deal with her, and do something creative to allow me to make her down payment, and get her into the home, etc...

    Welp, just as it's looking like we're going to close at the end of the month -- I get a call from the Buyer's slimey former Realtor today (From the failed transaction above), telling me that she needs to be "Protected" and that she needs "Representation" and maybe buying a house right now isn't even the right thing for her, and maybe she should just wait a year or 2.... Basically threatening to blow my deal -- Like she is the F'ing MAFIA or something, wanting to be bought off!

    I couldn't believe what I was hearing, and so I went off on this lady.... Responding that she had her chance to do a deal with this buyer and failed miserably... If I am able to put something together for her privately, with the help of one of my realtor buddies (Who is working for free, with no commission -- just as a pal) -- Then she has absolutely no right to come in and start demanding anything from me. "Yes -- she needs to be protected, from blood suckers like you!"

    Why is it that whenever anybody finds out in this world that you are making a profit, they feel like they have a RIGHT to stick their hand in your pocket?

    I'm liable to report her to the board of Realtors... what do you guys think -- do I have a case here? Does she?

    - Hakrjak
    :smx4:
     
  2. randallg99
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    randallg99 Bronze Contributor

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    did she sign anything with the other agent? if not, the client is open game at least in NJ and PA... once that buyer representation agreement is signed, it is as good as gold for the agent.
     
    Last edited: Mar 12, 2008
  3. AroundTheWorld
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    AroundTheWorld Be in the Moment Speedway Pass

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    It sounds to me like she doesn't understand what you are offering - - - she doesn't see any benefit to the client.

    It really comes down to properly counseling with a client. Does she understand the goals and financial situation of the people involved? Do you?

    She has a 'case' if you are trying to "rip off" the buyers. (I am NOT implying that. Just speaking of the situation in general terms).

    You have a 'case' if she is not informed about the situation and has spoken out of line.

    It sounds to me as if she is 'over reacting' to the sub prime thing.... perhaps she used to be really pushy with people that were not qualified and is not over-compensating???
     
  4. kurtyordy
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    kurtyordy Bronze Contributor

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    having been a realtor, I can tell you 95% are worthless scum, 1% are great, and the other 4% live somewhere in between. The lady has only one concern, getting paid. If the laws are similar to PA, like Randall said, if she has a buyers agency agreement, she can contractually get paid from the buyer.

    Now to get this, she would have to go after the buyer, not you. The buyer could claim ignorance to get out of it. The judge could find that the Realtors contract terms were invalid. All sorts of fun outcomes that do not involve you. However, if scumbag threatens to sue buyer, buyer will likely walk.

    Practical strategy for dealing with this. Call Scumbags broker. Say to broker, my name is hackie, I am a real estate investor very involved in the real estate investing community here in Colorado Springs. Agent scumbag is doing such and such. Now, I do not like to deal with this kind of garbage, and if you could be so kind as to convince her to void her contract with my buyer since she was not procuring cause, I would greatly appreciate it. Otherwise I would be more than happy to spread your firms reputation around to all the other investors I know. I will make it my personal mission to let everyone see the truth about your agency. Now can we come to an amicable conclusion here?

    BTW, if the laws are similar to PA, and there is a buyers agency, the contract in reality would be with the broker and not the agent. The agent was only acting as a representative of the broker.

    Please keep us updated.
     
  5. hakrjak
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    hakrjak Bronze Contributor Read Millionaire Fastlane

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    I put in a call to the Pikes Peak board of Realtors to find out if this is ethical in their eyes, and if the agent needs to be reported. I'll update you guys with what they come back with -- they asked for a day to look into the rules & regs.

    - Hakrjak
     
  6. hakrjak
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    hakrjak Bronze Contributor Read Millionaire Fastlane

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    UPDATE: Never heard back from the board of realtors, but my realtor contacted her and explained that he is just doing this deal for me as a favor, and there truly is no commission in the deal at all for her. As soon as she heard this, she backed down and said she was very happy for her client that I was able to work a deal for her, when nobody else in town could.

    I guess the secret to dealing with bloodsuckers if to have a bigger bloodsucker on your own team ;) haha

    Cheers,

    - Hakrjak
     
  7. tbsells
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    tbsells Contributor

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    From Hak's original post it does sound as if this person is just looking for an unearned paycheck. As a career real estate professional this type of stuff makes my skin crawl. Yes, I did use the term "professional". Perhaps 20% of us are, and I'm hoping this downturn will get rid of many of the rest. Ok, enough of that. Back to the relevant topic. I think the important questions are:

    1) Has the buyer signed an exclusive buyer agent contract with the agent? If so, it should stipulate how Sleazy Suzy is to get paid if the buyer buys a FSBO. Obviously, Hak has not agreed at this point to pay SS anything so he could not be obligated to her. But.....the buyer might be. If she has to pay her realtor 3% out of her pocket to buy your house thats probably a deal killer. What you could do is add the commission onto the agreed price and pay the agent at closing. Explain to the buyer that it is her agent that needs paid, not yours. She should pay it. In this case its in the form of a higher sales price. You get the agreed upon price and the agent gets her piece. The buyer who wants or needs the agent is paying for her services. If the buyer did not sign an exclusive buyer agent contract with the agent she is not required to use her or pay her.

    2) If there is no exclusive buyer agency contract- Does the buyer want to use the agent? Is she uncomfortable or unsure of the deal? Does she feel like she needs to be represented? If so, you should probably honor that and pay for it in the above described way. If not, tell the agent to buzz off. You don't need her and the buyer doesn't want her. In any event you haven't agreed to pay her, so don't be bullied. I guess the problem is that you may be right all the way to a lost deal.

    Maybe we are all wrong and this agent is just doing her best to serve a clients needs. It doesn't sound like it.

    I have sold over 1000 houses in my career, NONE of them by exclusive buyer agent contract. I figure if I do my job and add obvious value to the transaction the buyers, sellers and business will come my way. If not, I don't deserve anything. Its worked well. I don't recommend that anyone sign an exclusive buyer agent contract. Very few good agents use them. Its mostly the hangers on that want them. Work with a pro. He or she will be successful enough to not chase this kind of business.
     
  8. hakrjak
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    hakrjak Bronze Contributor Read Millionaire Fastlane

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    If I were a realtor I'd be too embarrassed to even ask someone that found their own deal to include me in it. Not only does getting paid on a technicality go against everything I'm about, but also I'd feel like it would alienate my client for future deals.

    Then again, most Realtors want to kill the sheep instead of shearing it.

    Anyway, relieved it all worked out... Can't wait to collect my paycheck and move on to the next deal :)

    - Hakrjak
     
  9. tbsells
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    tbsells Contributor

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    You are absolutely right. Its a shame. Many do not have enough sense to feel embarrassed.

    Glad your deal worked out.:cheers:
     
  10. NoMoneyDown
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    NoMoneyDown Contributor Read Millionaire Fastlane

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    It's funny I saw this thread today as I just went through my own fiasco involving a 3rd-party "retired" agent. Basically, I have a property I put up for sale a couple of weeks ago. Within a few days, I get an interested couple. They are young and instantly fall in love with the house (1st red flag). I try to get them to commit right then, but the lady wants her mom to see the place first (2nd red flag). A few days later the lady calls me back and wants me to show her the house again in a couple of days (which was last Friday). So, I go over there and she is with a girlfriend. She says she has the contract ready, but once I start looking it over I notice one mistake and then another and then another. I tell her the contract is not valid since we had to make some corrections and her husband isn't there to initial. She says he has another commitment over the weekend and wouldn't be back until Monday. So, Monday I call the lady and get her VM, so I leave her a message asking if we can all meet at the house to get the ball rolling. An hour or two later, I get a VM from the lady's Dad who wants to know more about the property (another red flag). I can't talk as I'm in a jury pool and can't just call back. On the next break, I call my wife to have her cal l he man back.

    It turns out the lady's mother is a "retired" RE agent from out-of-state. She looked at the property and talked her daughter and son-in-law out of buying it. The excuses she gave my wife were all ridiculous. I told my wife that the lady was just stalling until her mother could come look at the property. She probably wrote the contract wrong on purpose and gave us a line about her husband being away to stall until her mother could get in town. I did manage to keep the $100 option fee and I never technically had it off the market, so it wasn't all for nought.
     
  11. PurEnergy
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    PurEnergy New Contributor

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    It seems like half the population has had a real estate license at some point in their life. Most of the realtors I've met have never even seen nor read a deed or deed of trust.

    Another realtor story...and yes I was one years ago so I can talk all I want.

    When I was inexperienced and actually trusted people back in the day, I cut a deal with a realtor I knew...and it went like this.

    I found a couple having problems making their payments but weren't in foreclosure, yet. I was going to do a sandwich lease option (don't do them anymore). I did the paperwork with them and told them that in order to make sure this got done I had a "friend" who was a realtor and we could get the house llisted at the same time. Whoever moved the property first would be the direction we could go.

    My "friend" did her thing and entered it into the mls. Whew, that must have been hard too. After a few weeks I found a tenant buyer that seemed qualified enough and was ready to get things wrapped up. Well, my "friend" decides she's got so much time invested that she's not going to release the sellers from the listing.

    I'm not the type to get tied up in that crap and I backed out and said take it. The sellers eventually went into foreclosure and LOST the house. I haven't spoke with her since. She now owns her own Century 21 franchise. :eusa_clap:

    If I were ever to go back into selling houses for a commission I would have to interview extensively because I just can't stand the majority of the people in that business.
     

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