Realtors that are dishonest.!!!! ( Has this happen to you)

General Real Estate Investing
1

Hello
I had a contract with a new listing agent and went to her office to basically to show her how to fill out a contract. (She did not have a clue.) ???
I then recieved a call from the listing agent of this building to tell me about my asking price and he would present this offer to the seller.
I recieve an additional call three hours later that there was an additonal contract in attorney review. I was furious that these realtors play these games and keep these deals for there own well being, and I wish there was help for investors and laws against these so called realtors looking to help us. ((B.S))
I THINK REALTORS ARE JUST FULL OF IT!!! >:(

SAVANNAH

2

Savannah, with all due respect, just because you had a problem with one realtor doesn’t justify you labelling all of them bad. You will find bad people in any profession, but one rotten apple doesn’t mean the whole tree is bad. Get rid of the rotten apple and pick another one.

I have been seeing the posts about investors having problems working with agents. I am sure there are some legit problems people have with CERTAIN agents. Also, some of the problems are caused by some investors having preconceived negative attitudes about agents. It goes both ways. Yes, maybe a majority of agents won’t be investor friendly, and a lot of investors will dislike agents right off the bat, or have bad experiences with them. But there are agents who will work with investors. You just have to find them.

3

Savannah,

I second what Bobo said. There are wonderful agents out there and the more exposure you get to your market, the easier it will be for you to find them. Once you do find someone you are comfortable working with, use them as your Buyer’s Agent. As you know, listing agents are working for the seller. A buyer’s agent would have been in contact with the listing agent on your behalf and would have been able to tell you if there were any offers on the table, etc. “I don’t know,” is an unacceptable answer when one agent is asking another if there is an offer on the property. Your agent would have pushed the envelope to get the information.

Another clarification I need – are you saying that you received a call that there was another offer on the property and the attorney had it? Or that the property was already under contract?

More than one offer at the same time is not unusual, my next question to the listing agent would have been, “When will they be reviewing my offer?” My last three offers included an addendum (from the listing agents) which stated, I fully understand there is more than one offer on the table and this is my best and final offer. This is why I LOVE working with my agents – they get all the information before I move forward. I’ve found that the listing agents who deal with a high volume of bankowned properties are so busy they will only return calls to other agents.

One last bit of information, I have blank RE contracts that I complete myself and fax to my realtor, if I’m using one – this may help you in the future as well.

Good luck to you!

4

Savannah,

       I honestly say Go strait to the builder and ask for inventory homes I know here where I am they always have some! tell them you do not have a realtor and see if they will sell it to you direct for a lower cost! I never bring a realtor to a new build here its like bringng sand to the beach!
5

Savannah, with all due respect, just because you had a problem with one realtor doesn’t justify you labelling all of them bad. You will find bad people in any profession, but one rotten apple doesn’t mean the whole tree is bad. Get rid of the rotten apple and pick another one.

Moreover, the post is rambling and some things just don’t make sense;

The Listing Agent for a new home builder is new & doesn’t know how to fill out a contract??? Why would a builder list with a green agent??? They typically list with the Agent who found them the land, and they’re ALWAYS experienced.

Your furious that Realtors play what games? Sounds like there’s multiple offers to me and you’re lit because, your offer wasn’t immediately accepted? If there are multiple offers then the Agents JOB is to get the best possible offer for their client. The SELLER (Builder) can decide on any offer & it doesn’t necessarily mean the highest offer (could be more earnest money on a lesser offer).

Finally…you can’t go straight to the Builder. That’s why they hire Listing Agents…they’re busy with the business of building. Some Listing Agents won’t accept a Duel Agency relationship because, they don’t want the liability.

These are the kind of posts that are typical of people bashing on Real Estate Agents. They don’t understand the process, jump to conclusions, and they’re irked THEIR offer wasn’t THE ONE accepted. They immediately look for someone to blame (The Agent) and don’t understand hot markets typically result in multiple offers.

-Infowell

6

Infowell,

    If you were not a realtor would you hire one to go to a new build with you if you were well rounded and understood investing? 

       I didin't think so! 

    You know as well as I do that you get a better deal when a realtor is not involved! 

    I use realtors and pay them well I might add everyday. Just not at new builds!
7

REO-

Thanks for asking.

First: If one is going to make an offer on a new home without representation of their own…“they better be well rounded.”

Second: People rarely get a chance to make offers directly to new home builders. The offers are typically presented via the Listing Agent (that’s why Builders pay them…so they can concentrate on the business of building). That Listing Agent will be representing the Builder only in most cases…not the Investor.

Third: When I make offers…I deduct what would typically be the selling office commission by lowering the asking price by the selling commission amount. There’s NO WAY around the listing commission. Commissions were prearranged long ago between the Builder (or Seller) & their Listing Agent. Moreover, IT’s the seller paying Agent commission’s…NOT the buyer…so it’s not automatic.

-Infowell

8

So your telling me as a seller if you wanted to net $200,000 in a house you would or would not bring up the price of the house to say $212,000 to cover the realtor’s cost’s?

9

also I wanted to agree with you that its not fair to clump all realtors as being bad there just like investors there are good and bad!

10

Builder’s Listing Agent’s keep an eye on the marketplace. It’s their job to know the competitive product. That’s where they start–what’s the market got to say.

Agents commissions are taken into consideration when valuing a property (most any property) because, that’s the way most properties are sold…via an Agent.

The Builder usually signs a binding Listing Agreement with an Agent before any homes are offered for sale or even come to market.

That means…you could probably negotiate the selling commission, but you haven’t got much of a shot at the listing commission–which has already been agreed to in contract long ago.

-Infowell

11

So it looks like once again we agree if It was not a new build and I bought it before it was listed I could save 5.8% and pay 200k for that property that would have been listed for 212k! SO THEN AS THE BUYER I WOULD HAVE PAID THE REALTOR SO AS THE BUYER I SAVED 12K BY NOT HAVING A REALTOR INVOLVED! So when you look at it like that as the buyer If I would have bought the same house from a realtor I would have paid 212k so as the buyer I paid the realtor not directly but yes I paid the realtor!

So if I was to go to a new build and say well deduct 3% because I do not have a realtor to pay they would say great deal when can you close!!!

Or better yet I could go to realtor school for $800.00 write my own contract and get the 3% back! Then from that day foward I could disclose that I am a realtor and loose out on deals because of it!

12

reoconsultants,

To answer your question always deduct 6% from the price of a property as the seller is going to pay it so you do not have to. Remember the seller pays the commission at least this is what some licensees are saying, darn nice of them if you think about it.

I noticed that no one told this person who to file a complaint with if they feel they have been taken advantage of, don’t they have a R E Commisssion that regulates licensees in most states to help a consumer who has or may have been taken advantage of by a licensee. Sure seems like it to me.

John $Cash$ Locke

13

ALWAYS GLAD TO SEE YOU $CASH$!

So you agree the buyer does pay the commissions! Kinda of funny how after how long we have been doing this and have done 1000+ deals between us we both see it the same!

Either direct or indirect the buyer always pays!

14

reoconsultants,

Never used a realtor or agent on any of my deals, now I have sold to agents since I sell my properties No Qualifying, someone might have to think about that one for a moment.

The reason I haven’t is someone explained to me what back pocket listings were and I figured didn’t want to spend the time trying to be someone who got first shot at the really good deals and it did not set right with me.

John $Cash$ Locke

15

REO/$CASH$-

You’re looking at this all wrong. I think you lack a basic understanding of a couple issues here (no offense).

First REO: Please try to understand…IT’S THE SELLER that pays the commission…NOT THE BUYER.

Your example is incorrect REO. Here’s why…the seller (assuming they’re well informed) isn’t going to sell to you for $200k. They’re going to say, “wait a minute…if similar homes are selling for $212k…then I could sell it myself for $210k.” THEY’RE NOT just going to give away $12k because they not using an Agent (not if they’re well informed).

As far as filing a complaint. I think the guy’s complaining that there were multiple offers & his hasn’t been THE ONE accepted yet. You’ll parden me, but where’s the complaint? The Agent has done nothing illegal or unethical insofar as I can tell (again the post was rambling & I might not be understanding everything here).

-Infowell

16

Infowell,

I am not dis-agreeing with you just showing everyone that you can deduct 6%, because the seller is going to pay this commission. This is what you are saying and I am agreeing as I think it is great. The reason being is because if I cannot deduct the 6% then this would be paid out of funds I used to purchase the property.

This person who has had the problem should take their issue to the R E Commission for final judgement not on a board where it could be mis-understood what really happened. This is the fair way to resolve their problem.

If you check this link out you will notice who is involved in most scams and fraud, not casting any stones but it won’t take long to figure out.

http://www.mortgagefraudblog.com/

John $Cash$ Locke

17

“I am not dis-agreeing with you just showing everyone that you can deduct 6%, because the seller is going to pay this commission. This is what you are saying and I am agreeing as I think it is great. The reason being is because if I cannot deduct the 6% then this would be paid out of funds I used to purchase the property.”

John-

I realize you DON’T THINK you’re disagreeing with me, but I think you’ve missed my point:

If the Seller is well informed…you WILL NOT save 6% on the commission. A smart seller is going to discount their asking price by an amount far less than 6%…because fair market value (FMV) tells them they could get more for their property (AM I THE ONE not understanding something here? AM I missing something?).

“This person who has had the problem should take their issue to the R E Commission for final judgement not on a board where it could be mis-understood what really happened. This is the fair way to resolve their problem.”

That’s always their perogative…but, the way they’ve laid it out sounds like a multiple offer situation to me. I’m not advising them…just commenting.

“If you check this link out you will notice who is involved in most scams and fraud, not casting any stones but it won’t take long to figure out.”

I’m sorry…there’s many stories there & I wasn’t able to determine what you’re referring to. I’ll withhold comment…you’ll have to spell it out for me.

-Infowell

18

Infowell,

OK let’s put it this way and you tell me if my statement is inacurate in any way.

All commissions are paid out of the buyers funds from the purchase of the property at the closing. The seller uses part of these funds to pay the commission.

So when you use this age old adage that licensess have used for low these many years “the seller pays the commission” to try and let’s say make it sound like this money is coming out of the sellers pocket and the buyer had nothing to do with it, I find it a mis-leading statement.

If you say to me that the seller pays the commission then I am going to deduct 6% from the property immediately, because in my mind the seller is going to pay this, common sense.

Now I know this is taught to just about every licensee who feels the need to explain to a buyer about the commission, I would rather just say “I am the best there is at getting you a great price on your new home and damn well worth the commission because I earned it.”

*No need to spell it out to you, I would just as soon you keep on believing that the seller pays the commission and always remember to defend your postion if you feel you are right.

John $Cash$ Locke

19

Have you ever called at a FSBO and the owner asks do you have a realtor!

If you say yes its 206k

If you say no its 200k

SO WHERE DID THE 6K GO? WHERE DID IT GO? HUMMMMM!!!

SO AS THE BUYER I WOULD HAVE PAID 6K MORE TO THE SELLER BECAUSE HE DOES NOT LIKE REALTORS??

Now I understand you are correct my fault!!! :banghead:

20

[i][b]All commissions are paid out of the buyers funds from the purchase of the property at the closing. The seller uses part of these funds to pay the commission.

So when you use this age old adage that licensess have used for low these many years “the seller pays the commission” to try and let’s say make it sound like this money is coming out of the sellers pocket and the buyer had nothing to do with it, I find it a mis-leading statement.[/b][/i]

John-

With all due respect…you’re incorrect.

On the one hand you’d have us believe that you could just magically deduct 6% off the sales price if an Agent weren’t involved in the transaction.

NOT SO! The definition of market value quite clearly states (synopsis): (2) both parties are well informed or well advised, and each acting in what HE considers HIS own best interest.

Now that may not be politically correct, (HE/HIS) but it is the definition of FMV from both Fannie & Freddie, and in every Appraiser’s software package.

SO! (taking REO’s example): If a home is worth $212k on the open market…a well informed FSBO isn’t going to sell HIS property for $200k because, HE doesn’t have to pay real estate commissions. HE’d list for $210k (still under market for a quick sale & $10k above REO’s price).

“Now I know this is taught to just about every licensee who feels the need to explain to a buyer about the commission”

Actually, it’s not as if a licensee FEELS the need to explain the seller pays commissions…it’s fact. It’s on the HUD Statement. Whatever the Sales Price…it’s the seller’s profit. If they sell FSBO…they keep the profit…they don’t give it to the buyer unless they want to pay down prepaids. If they hire an Agent they pay commissions.

If you think I’m incorrect…call an Escrow Office & ask them. You’ve bought & sold enough homes apparently…you should know this.

And finally…I do need a clarification since you brought it up: “If you check this link out you will notice who is involved in most scams and fraud, not casting any stones but it won’t take long to figure out.”

I can’t address it if you’ll only hint at what it is you’re getting at.

-Infowell