Someone to Blame - DPChallenge Forums

Canon EF 17-40mm f/4.0L USM

09/23/2006 09:41:09 PM · #1

Just a need to vent.

I'm a Realtor. I have a client who purchased a home (using my services) in January. She ended up needing to sell the home due to loss of her job. She did not make any improvements on the property. We put it on the market at the beginning of August.

We got an offer, and based on what she told me her payoff would be for her mortgage, she would come out about $200 ahead. Now, for an area that has a very low appreciation rate right now (maybe 2-3% annually) I thought we were doing quite well just to get her out from under and with commission and other selling costs - not having to bring money to the table. I had told her that she was getting a pretty decent deal with the offer we worked out when she bought the house. Being able to resell within months (having done nothing to the house) & coming close to breaking even proved my point, I thought.

Well, it turns out that her payoff is several hundred more than she thought - and therefore she will need to bring a couple hundred to the closing table. Now she is yelling at me because of this. I know it's stressful for her and for the first time in almost 10 years in this career, I'm talking to my manager about taking a slight commission cut to even things out for the seller. Because of privacy issues, it is not my standard operating proceedure to know from the lender exactly how much is owed on a property. I need to get written authorization along with all social security numbers and account numbers to get that information from lenders, and we don't normally do so until closer to the closing. I go by what the client tells me, unless they really don't know.

Anyway, I generally run things very very smoothly for my clients and work hard to prevent any sort of crisis management (which seems to be the way many of my fellow agents seem to operate.) I have several service awards and many repeat clients (obviously, this client is one of them.) To get yelled at bugs me! :)

It will work out, but I just needed to vent.

robshookphoto

Canon EOS-5D Mark III

Canon EF 28mm f/1.8 USM

09/23/2006 09:42:35 PM · #2

that stinks

Jaded_Housewife

Canon EOS-5D

09/23/2006 09:49:37 PM · #3

Originally posted by jpochard:

Now she is yelling at me because of this. I know it's stressful for her and for the first time in almost 10 years in this career, I'm talking to my manager about taking a slight commission cut to even things out for the seller.

Well that seems to be the silver lining here. you should be proud of that achievment. you must be spectacular at what you do to have not had an issue like this before in 10 years! that's awesome.

and sorry you're dealing with it now. :(

09/23/2006 10:11:16 PM · #4

JUDY,
Well sounds like she has a personal problem she wants to blame everyone else for. I'm also working on my real estate license and should have it by Thanksgiving time. It happens so often when people have a personal problem and they expect everyone else to compensate for their issues. Unfortunately it happens a lot in real estate where agents or brokers end up paying for final costs just to close the deal. Hope all works out ok and you can still get a fair share or your commission. Good luck.

09/23/2006 10:51:42 PM · #5

Crystal,

Thanks for the encouragement! I really love my career, and I take a lot of pride in working hard to ensure no surprises for my clients. I think I'm probably a little mad at myself for not checking this out sooner, but I generally don't.

Don,

Good luck with your license testing and career! This is one of those jobs that require a certain mindset, I think. I work so hard and do everything I can for my clients because then if something DOES go wrong (and in this business it often does), I know I've done my best and can let it go. We deal with sellers, buyers, coop agents, brokers, inspectors, lenders, & appraisers all in one transaction. It's my job to make sure they're all doing THEIR jobs...but sometimes stuff just happens (see shutterpug's thread!)

Before I became a Realtor, I was in school to become a marriage and family counselor. Boy...do I ever use that training in this career! Lots of divorces, job changes, estate sales for deceased family members, growing families.....all sorts of relationship dynamics. I do love it.

I have actually "fired" two clients in my career for being real jerks and rather abusive. One was really awful to his wife. Called her names and totally ignored her comments on any property. Funny thing was, he was very polite and professional with me. I finally told him that I felt we had a conflict of goals and he needed to locate another Realtor.

The other was abusive verbally to me. It was early in my career and I took an overpriced listing (never again!) When he finally called me a "Realtor b*tch" for not getting any showings, I yanked my sign out of the yard as I left and sweetly told him that my manager would be calling him with the release of the contract. He went through 6 different companies in a little over a year. The bank finally foreclosed.

It's a very interesting career. I hope it works out for my client, but I appreciate the chance to just yak a bit. Thanks!

Canon EF 24-105mm f/4.0L IS

09/23/2006 11:36:39 PM · #6

I'm just bored at not doing much the last few years. I'm the Chief Photographer for the only newpaper print color real estate newspaper / magazine here in San Antonio. I get out to half a dozen real estate events and open houses everyweek. I think I know every new home builder, broker and most of the title co and mortgage companies in town. I figure with that kinds of exposure it will be easy to be at least a listing agent. It's not like I need to spend too many hours, I hope to keep doing the photography work and maybe list and sell a few homes too. Everything just fell into place, getting my license was just a natural thing to do. In fact last week I went to the 2006 Texas State Real Estate COnvention in Arlington. I even had a press pass for the Texas Rangers playing the Angels. I'm having too much fun, don't need to take on clients who don't care or who are not nice. Hope all works out for ya.
Don

Art Roflmao

Canon EOS-6D Mark II

09/23/2006 11:41:36 PM · #7

Let's hope nothing flammable happens to her house before closing.

pssst- PM me the address... ;-)

09/23/2006 11:47:14 PM · #8

Heck .. I was just thinking ... yup it hurt a little .... more drugs .. ahhhh much better ... anyway..

You have a sellers listing contract, if she's being a sh$t stick it in MLS and let it set. Your contract doesn't have to be compromises just becasue she's nuts. I'de be more inclined to help if she was being nice. If ya sit on it she'll lose it and it'll cost her even more. Well at least ya should have got a good fee from the first sale. ;)

09/24/2006 01:05:02 AM · #9

Originally posted by PhantomEWO:

ha...couldn't do that now, and wouldn't if I could :)

We have an accepted contract, so it's not active on the market at the moment. Actually, she's generally one of my nicest clients - just ticked off tonight hearing the numbers.

This woman has also, in the last 3 months - lost her job, is getting a divorce, and her daughter who lives with her had twin baby girls 10 days ago. Plus, she's 2 weeks into a new job and selling her house. Just a little stress. Not an excuse to yell (she wasn't nasty, just unhappy), but certainly understandable.

Now...if she continues to be a pain, that's another thing entirely. I suspect tomorrow she will not like the way she acted tonight.

Best-Buy Easy Point & Click

09/24/2006 01:07:33 AM · #10

That's what it sounded like. You are also feeling sorry for her and want to do what you can to help. You're doing the right thing!

heathen

Canon EF 17-40mm f/4.0L USM

09/24/2006 02:56:40 AM · #11

you sound like a wonderful realtor with strong ethical standards, and you're client really should show more appreciation for that. having bought two homes and sold one, I certainly know the value of having a realtor you can trust.

briantammy

Olympus PEN E-P3

Konica Minolta MF 85mm f/1.7

09/24/2006 03:18:33 AM · #12

I don't want to sound harsh but I have a hard time being simpathetic for realtors. Here (up until just recently) it has been so easy to sell your house. And especially last year(it wouldn't be on the market more than a few days to a week. And then the offers were above the asking price). And when the average home sells for around 400,000 that give the realtors a nice piece, what, at 6% thats' about $24,000 for almost no work!!!

Realtors and mortgage brokers, arrrrrggg!!

sorry, just needed to vent. nothing personal, it might be totally different where you live.

BeeCee

Nikon D40

Nikon AF-S DX Zoom-Nikkor 18-55mm f/3.5-5.6 ED

09/24/2006 05:22:20 AM · #13

Originally posted by briantammy:

So if it's that easy, why do people use realtors? Because, behind the scenes, it's NOT that easy!

RayEthier

Canon EF-S 18-55mm f/3.5-5.6 USM

09/24/2006 08:45:04 AM · #14

Originally posted by BeeCee:

So if it's that easy, why do people use realtors? Because, behind the scenes, it's NOT that easy!

...All factors considered, it isn't rocket science either.

One could argue that most people use realtors because they are, unfamiliar with the process, or simply cannot be bothered with the aggravation sometimes associated with the process of selling a home.

Similarly, a great number of individuals prefer the simple, cut and dry approach in dealing with most matters involving anything that has any legal parameters.

Have I sold my own home, yes I have...twice. Would I recommend it to others... not really, unless you are prepared to work at it. Best for most to be removed from a potential buyers... you might not like some of the comments they make about your home.

To the original OP Ms. Pochard, trust me I have a full appreciation of the exasperation you are experiencing at this juncture.

Ray

CalliopeKel

Canon EOS-5D

09/24/2006 08:49:58 AM · #15

a couple hundred dollars is nothing in real estate, seriously, she is lucky she didnt lose thousands having to flip a house that quickly.

09/24/2006 04:09:56 PM · #16

In our area, homes definitely do not sell themselves for the most part. The home that she bought was on the market for 10 months at a price almost $10,000 lower than where I listed it when she had to sell (8 months later.) At $10,000 higher, it sold within 3 weeks. Actually sold 3 times - one contract we decided not to work with and then "multiples" meaning two offers or more at the same time - and we chose one of those.

It is correct that people can sell their homes themselves. They can also repair their own cars, remodel their own homes, sew their own clothes, create their own wills, and take their own photos. People pay what the market bears for services rendered. There are many, many objective studies which show that FSBO's (for sale by owners) overall receive less for their properties than those listed by a Realtor. This happens for many reasons.

This lady, for example, would have been a prime candidate to sell the home herself due to having to sell so quickly after purchasing it. I even talked that possibility over with her. Did she want to deal with it? No.

Also, Realtors have quite a few expenses that many people are unaware of. Of course, advertising is a big chunk. But did you know we have to carry insurance? Errors and Omissions insurance is kind of like Realtor malpractice insurance and costs several hundred dollars a year. Then there are dues we must pay to the area MLS, Board of Realtors, and acredidation renewals. We must pay these even if we are not making money at the time. We have no benefits unless we arrange on our own for some, and we must make certain to keep all of our tax bills straight and paid for 100% out of our commissions - brokers don't handle that.

Each broker set up is different, but a very typical commission split is for example on a $150,000 home (pretty much average in my area) The seller pays a 6% commission of $9,000. That is then split 4 ways generally - 1/4 to the listing company, 1/4 to the listing agent, 1/4 to the company of the buyer's agent, and 1/4 to the buyer's agent. So if I list that home and another agent sells it (the most likely scenerio), I take home a check for about $2,250. Out of that must come all my taxes, advertising fees and other expenses mentioned above.

I am not in the least offended by the comments about good pay for Realtors...it is good pay which is one reason I do it! But a walk in the park it ain't. My purpose is not so much to defend what I charge, but to educate because many many clients are unaware of these facts.

As an aside, the fact that I am an "award-winning photographer" is a great tool I use to market myself. If you've ever seen the majority of photos on the MLS sites....it doesn't take much to stand out with even half way decent shots.

Canon EF 24-105mm f/4.0L IS

09/24/2006 04:16:37 PM · #17

Originally posted by briantammy:

Actually, the Realtor probably receives closer to $6,000. If the average home price in your area is $400,000 or so, then the Realtor also needs to pay a higher cost for living in that area.

Also...the easiest part of my job is 1) finding a buyer for a listing and 2) finding a house for a buyer. Once the contract is accpeted, thats when the real fun begins - whether it took 24 hrs to get the contract or 24 months to get the contract.

robs

Canon EOS R6 Mk II

09/24/2006 04:23:07 PM · #18

Originally posted by BeeCee:

So if it's that easy, why do people use realtors? Because, behind the scenes, it's NOT that easy!

Sorry but it's always seemed far too much for the amount of work (yeah - I have more then a rough idea:). There is NO WAY it should be percentage based on price. I would assume at some point, that a stepped fixed price with so many hours will eventually interest one of these larger companies. The backoffice processing has changed a lot over the last few years.

cpanaioti

Canon EF 70-300mm f/4.5-5.6 DO IS USM

09/24/2006 04:27:01 PM · #19

It's not just time you're paying for, it's expertise.

There are lot of people that get into trouble when going it themselves. They don't know what to do with multiple offers etc. etc.