Hi folks. Did you know, when I wake up in the morning the first thing that comes into my head is, "What can I Blog about today?" Then the phone rings and my question is answered.....
"Good morning, Tutas Towne Realty, this is the incredibly good looking and intelligent Broker Bryant speaking, how may I help your dreams come true today?"
"Hi Broker Bryant, this is your Seller over at 4321 Desperation Ave. I'm calling to let you know I have found a Buyer for my house. My neighbor, who has lots of money, wants to buy my house. I know he has lots of money and can pay cash for it, if he wants. I told him I would only take full price ($259,000) for it but at that price I would leave the appliances. He said something about putting 5% down and me giving him back a check for $15,000 at closing and he wants me to pay all his closing costs. Did I mention he has lots of money?"
"OK, OK, Mr. Overwhelmed, the first thing we need to do is have him call me. I need to talk to him about his qualifications and make sure he is in a position to even purchase your home. Then we can get his offer in writing so we can sit down together and go over your options. By the way, you can't just give him money back a closing, that could be mortgage fraud and we can't do that. But we will worry about that after I get a written offer from him. OK?"
"OK, but I know he has lots of money. I told him I was in foreclosure and he said he could help me out. He really likes the house, since it is the best house in Poinciana, and he has lots of money."
Anyway, I received a call about an hour later from a REALTOR®, all excited, wanting to submit an offer on this listing. She asked me the price and I told her it was $259,000. "Broker Bryant my Buyer would like to offer $225,000 and wants the Seller to pay $14,000 in closing costs. He will be getting 100% financing. Do you think we have a deal? He said he has already talked about this with the Seller."
Now folks, does this offer sound anything like what the Seller had mentioned to me earlier? Of course not. They never do. Desperate Sellers hear what they want to hear and say things they shouldn't say and Buyers will and do try to take advantage of the situation. Why would you tell a potential Buyer you are in foreclosure?
This is one of the most important reasons to hire a REALTOR®. We are not emotionally involved in the deal. We are a calming force and we are trained to weed out unqualified and unrealistic Buyers. Without a REALTOR® looking out for him, who knows what kind of a deal this Seller would agree to? You can be sure it would have cost him a lot more money than what he is paying me. This assumes he wouldn't have wasted months and months of market time, while the neighbor, with lots of money, tries to sort out 100% financing on a second home.
Hiring a professional REALTOR® who has experience and market knowledge in your area, is the best investment you can make. So before hiring a REALTOR® to sell your house ask these questions.
-
How many properties do you personally have listed on the market in my area, today?
-
How many closed transactions did you have in my area last year?
-
How many pending transactions do you have in my area, today?
There are many more questions you need to ask before hiring a REALTOR® but, in my opinion, you need to have the right answers to these three, first. And make them show you their sales record from the MLS.
By the way, I never did hear back from the Buyer or his REALTOR®. I guess I need to call Mr. Overwhelmed back and let him know the neighbor has no money. Better yet, I will send him a link to this post.
I wonder who will call me tomorrow morning?
Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close. Want to find out more? www.CentralFloridaShortSales.com Copyright © 2010 http://www.brokerbryant.com/ | All Rights Reserved
Reserved for TLW
I believe that we all have a seller client or two that sees and hears what what they want to hear and, if given the opportunity, will easily say the absolute worst thing imaginable to a prospective buyer. Whether they like it or not buyers and sellers need Realtors.
Bryant.....sellers should leave the job of selling their home to the agent they hired.....every time a seller opens his mouth, he causes more harm to himself.
as always Bryant you have just posted the perfect re-blog--I had to re-read the following b/c the first time through it sounded like advice for FSBO's. I guess my mind was wandering into the land of 'that's so true'
Hiring a professional REALTOR® who has experience and market knowledge in your area, is the best investment you can make. So before hiring a REALTOR® to sell your house ask these questions.
be good cheryl(off to re-blog)willis
Wow, sounds like the beginning of a interesting day. But you're right people only hear what they want to. And that's why I always tell new agents when presenting an offer...mention the price last. Because, sellers seem to block out anything else. Good Luck, Lisa
One of your best blogs yet. And you are not incredibly good looking. LOL! Yeah, sellers do tend to get excited with certain "buzz" words. I'd hire you in a second if I had needs in your market BB. Great blog.
Well said, like a pro! I can't agree with you more on what a seller could say to hinder their sale. I say leave it to the pro negotiator. Great writing.
BB -
This weathly guy must move around a lot...to be neighbor to so many people...including some here in Oregon.
Bryant
That's the way to start the day. Emotions can really make a mess out of deals often; it is always good to get an agent involved. I hope your mornings start out like that often for you in the future.
Seems like I always get these guys with lots of money show up right as my seller is about to sign a contract with someone else. Seller thinks that his neighbor's brother-in-law's friend will offer him an extra $5,000. The offer never materializes, but we both get to do a little dancing around before signing the good offer from the pre-approved buyer.
WOW he does have money only thing we need is a lender who will wire the money based on his qualification !! Don't we love our desperate seller !!!
Bryant--OMG...You didn't answer the phone that way the last time I called...I like it! Let them know exactly who you are from the get-go! :) Seriously though, this really points out why sellers, desperate or not, are not the ones in the best position to negotiate on their own property. Hearing what you WANT to here can really bite you in the long run!
What a way to start the day, there always seems to be a neighbor who is interesting in purchasing the house, but they never want to pay what the home is worth. Here in Manhattan, sometimes we have people who will buy the apartment next to theirs so they can combine and create a larger unit, but this is always very difficult to do.
Good post, Bryant! Sounds like you're the exact Realtor your seller needs to keep them in check. Good luck with that one, brother!
Ah yes. I heard this one, or a variant thereof, once or thirteen times!
Wow, Bryant, what an interesting and stimulating blog you created. I will check back often. Thank you for commenting on my Alaska blog post. Marianne
BB, being detached from the emotion of the situation is probably one of the best things you get with a good Realtor.
Your blog is great! Made me laugh!! Very well written.
oh never a dull moment. Once our seller brought a "buyer" they found to take a look at the listing, it was not quite ready for the market yet. The buyer called later and come to find out they were looking for houses for $300,000 less than that listing....
Thanks for a good laugh Beautiful Broker Bryant!
well, I like what you wrote and I got a kick out of the links back to your other blogs - which are also some good writing - and I still haven't finished writing the blog I have mostly in my head so when I saw that you were giving permission to re-blog I kind of thought it would be a good piece to put up while the world waits for my words of wisdom blah blah blah
thanks for permission to re-blog
I once had a contract on a property I had listed and I was serving as transaction broker for the buyer. After I had written the buyer's offer (not yet presented it to the seller) the buyer showed up at the seller's door. My seller was an older lady and I just happened to call her while the buyers were in the house. I told her to ask them to leave immediately. Not only was it not safe for her to let strangers into the home, but the buyers had quite some nerve to infringe upon the seller's privacy out of an act of selfishness. We see it all don't we? We see it all.
The question about how many listings we have in an area can backfire sometimes. Regardless, I got a chuckle out of your link to that "incredibly good looking" and intelligent Broker... LOL!
Stuff like this just makes you love this business even more, doesn't it??? And, thanks for the helpful tip on how I should be answering my business phone. WHy, I had never even thought about letting folks know how beautiful and smart I am before we engage in a conversation. ROFL
So did the deal close????? Definately stuff like this makes each day interesting. Of course, since you are exceptionally intelligent incredibly good looking, your days must be better than ours anyway! LOL!
Oh brother! Keep us informed. It's kind of sad when people get our clients hopes up!
I hope he takes the REAL offer!
Bryant - Man, that's just sad, huh? I'm not at all surprised to hear that the "full price" offer didn't materialize from the neighbor. As you said, the seller heard what he wanted to hear, it seems.
What a clever post! Yes, Realtors do have value!
Sorry to say but this wealthy neighbour has already moved up to Canada. Heard from him later in the day today.
With clients who start your day that way, you'll never have a lack of blogging material.
So there is a 4321 Desperaton Avenue where you live too??? Doncha just love people who walk into the trap of blogging fodder. I had a transaction similar to this but it was an arms length transaction where the buyer's agent was pulling the shenanigans.
ARRGH! Christine stole my comment--I'm telling you, if you haven't seen it already, we're about as similar as two peas in a pod--same phones, same business philosophy, same hubby's helping our businesses, both working on our short sale skills... The list goes on and on--and when she beats me to a post, she's often written exactly what I'm thinking of commenting! I just need to start beating her to the posts, don't I?
As for your morning wake-up thoughts--ME TOO! Funny thing is, that it's often the crazy stories like this that take up your whole day. So, by the end of the day, you're sick of thinking about it and write about something completely different!
BTW, I was chatting with another member the other day and we were laughing about your MILLION DOLLAR top producing agent, bling-bling video! You're a superstar Bryant! LOL
Hugs to TLW...
Very interesting indeed BB. Any time a seller opens up and talks to a potential buyer, they are letting money get away from them. If my seller insist to be home and a buyer ask questions, I prefer they only say.. make an offer.
Too good to be true goes both ways. I have been known to tell a seller that we need only one buyer, but it has to be 'the right buyer'.
Bryant- My first question to the buyers agent would be, where is he getting 100% financing from in FLORIDA? I'd like some of that please:) What a joke!
We had one client who answered the door to a stranger who did not have an appointment. She said she was an agent, but she was not. She said she had been trying to reach us but that we never returned her call. She said she had an investor who wanted to buy their house for all cash. All they had to do was cancel their listing with us and cancel the short sale. Then sign over their deed to her and she would let them stay in the house for a reasonable rent. That she was going to buy the house for them and then she would sell it back to them once they get on their feet again!
YEAH RIGHT! If it sounds too good to be true... of course we sent them directly to the Florida Attorney General website that explains all these scams.
The buyer (with the agent?) should never have called the buyer. Buyer should never have discussed anything with them directly. Oh well . . . that wasn't your fault. What a start to the morning!
Bryant:
This was just too funny. You have a way with words and so does your seller.
I'm waiting to see what TLW has to say about this one. I bet she will make me laugh, too.
Broker Bryant - You've got to be kidding, right??? :)
You wrote "Hi folks. Did you know, when I wake up in the morning the first thing that comes into my head is, "What can I Blog about today?" Then the phone rings and my question is answered....."
I see that no one has made any comment that you should not be thinking such thoughts as your first thought of the day. Don't you see the beautiful wonderful woman in your photo? What would she think?
Did you know that she has a BIG GUN that she uses to shoot counteroffers very accurately? (See her video in her signature block)?
Do you know what she could do to that hot air balloon, you know, the one with your image on the balloon?
(HINT, HINT, HINT - Change your post so that the SECOND thing that comes into your head is "What can I Blog about today?"). You'll get into less trouble that way. :)
Broker Bryant, what answers would you recommend a new-ish REALTOR answer those three questions?
Too good to be true indeed and I don't want to be fooled by that. It just smells fishy for me.
B.B. You really have some strange names for streets down there in Florida. Hey- is Mr. Overwhelmed related to my friends the Overwhelmed's of New Rochelle, NY? Nice people, but not too swift if you know what I mean.
I think about blog posts throughout the day, too. The best ideas come from what I am doing as I go thru the normal Realtor daily events.
BB The phone calls or emails does provide ideas for blogging. You gave a good reason why sellers should use an agent; without your assistance this seller would be in a real mess dealing directly with the neighbor.
This is exactly why most sellers should hire us so too often they open their traps and give away top secret info.
BB - It's difficult to get across to Sellers that if ANYONE wants to discuss an offer with them, they need to refer them to their REALTOR. They are paying us to represent them for several reasons.
Andrea - my thoughts on how a new-ish REALTOR should respond to those questions: focus on your accomplishments:
- focus on positive results without giving numbers or restricting to one area. AND point out that you will provide superior service because you are new and need to establish yourself. Good luck!
BB - It's funny that you begin your day with activerain thoughts. It's how I usually end my day!!! Good points!
Broker Bryant:
I find it very easy to believe that one of your first thought of the day is "what are you going to blog about." That is a familiar sentiment.
This story is an excellent example of why people should rely on and trust the instincts of their Realtor.
Do ya think he really told him he was in foreclosure or is this just another one of those excellent blogs of yours - LOL
Bryant, great story and some lessons to be learned here. Unfortunately the ones that need to learn this lesson rarely will read or listen what we have to tell them.
Hi Bryant, that was good to read this cold Friday morning! Being desperate and showing it will only feed yourself to the lions. Great post Bryant! :)
BB,
I had a girl call right from my vacant listing. She wanted the home. Only qualified for 50% of the price but her dad would cover the rest. No, she had not yet discussed even this with moneybags Dad.
And what does one do with your three questions if one is a new(ish) realtor, with limited experience listing and selling homes to date but loads of life experience buying and selling homes, staging homes successfully, and effective negotiation skills honed during an 18-year career as a criminologist (only some of which was applied to work with inmates -- mostly with bureaucrats) which are particularly effective because I come off as being very "nice" (and I am)? What then, BB? Respectfully... Tanya in Montreal
BB - had you written for Conan...do you think he'd still be on the air?
Thanks for putting a smile on my face this morning :). You just can't make this stuff up!
A colleague of mine once said, "Realtors keep buyers and sellers apart so that they can come together at closing."
Very well written post. That is exactly why you hire a Realtor in the first place, to take the emotional aspect out of selling a property. I know a few Realtors that have had other agents sell their home for them to take away the emotional side of the process.
Real estate should never be based on lottery odds. Just like people plunking down dollars every week knowing that they finally have a winning ticket, they keep going despite the constant setback. Hope is a good thing and being positive about the future is good. When it defies reality testing, it is a delusion. That would describe this seller, the "potential", and the desperate Realtor who tried to negotiate a verbal contract with no data.
Happens all the time! Desperate sellers talk desperately and listen desperately. They need good Realtors to help prevent them from acting desperately.
There are many good reasons that a seller should not talk to prospective buyers. You've nailed one a few of the most important. Selller conveying desperation and giving information that the buyer can use against the seller. Alas, a seller, doesn't know all the nuances and hence is at a great disadvantage in this situation.
I love it. If I call you will I really get that opening line? LOL!
No kidding, don't we all hear these sorts of comments? In fact, when taking a listing, isn't there often the line: "well, my neighbor/daughter/son/friend wants to buy it. They love my house. If I sell it to them, will I still have to pay your commission?"
With all your short sale experience, you will never run out of material!
Yeah, I'm with Katerina. That was my first reaction, too. Unless that buyer is getting a VA loan, where is he coming up with 100% financing? And why does he think he can lowball? Doesn't sound like a very realistic buyer much less a competent agent.
I also know what you mean about sellers talking to buyers. I tell agents when they go to one of my short sales, DO NOT TALK TO THE SELLER, and don't let your buyer talk to the seller. The seller already scared off one buyer who was in escrow by telling him the electrical wiring was about to blow up the house.
Interesting way to start the day, huh, Bryant?
Good thing you were able to straighten this mess out. Good thing your sellers could count on you to give them the right direction in this matter.
Bryant,
It is a good thing that they trusted you to get it straightened out. When you want so much to have your home sell. you want to believe anything will get it sold! Good job! :-)
Wendy
Ah ha ha! I get so many calls like that too, (laughs loudly). Great article!
Geez, this sounds so familiar. I once had a seller (Mr. Despairation) who sold to his neighbor. The buyer worked at a credit union and the CU was financing her purchase. Appraisal just happened to come in low . . . Hmm? Great points in your post!
Bryant,
All the sellers out there, desperate or not, should read this blog and take the advice seriously. That way they can save money and plenty of headaches.
Well that would have been an unpleasant situation at the closing table when the deal was nothing like what he remembered.
Hey Bryant... Good post...but I have a question for you. I have been in the real estate business for 17 years and just moved from the Austin area to the San Antonio area. The last 8 years of my career was in on-site sales so...even though I am up to date on the latest changes in real estate...if you were to go to the MLS...you wouldn't see any "sales" under my name. However, I KNOW I could compete with any seasoned agent out there now. Is the ability of an agent soley dependent on the number of sales or is it the quality of service and ablity to get a good price for the home he or she is listing?
You were once a new agent... Would you have hired you back then? Just curious.
Great post, there are so many big talkers out there when it comes to real estate. When it comes time to pony up it is amazing how fast the story changes.
Great post as usual. So true what you said. When somebody comes to me and says they have no money for a down and no money for closing costs, that translates (90% of the time) into, "We have absolutely no money at all and that means we might not have enough cash reserves to qualify for this loan and that probably means our credit is blown-out too, because we live hand-to-mouth and don't save."
Now don't get me wrong, if someone like this called me, I would still entertain the notion that there may be a loan here and I of course I pull credit. But it's not like I have butterflies in my stomach as I'm doing it.
I am sure that the guy with a lot of money had a perfect credit history-- except for the bankruptucy 2 years ago. You have got to love the public.
YIKES!! You guys have been busy. Great comments.
I just finished with a very hectic day so will come back in the morning to respond to any questions. I hope everyone had an awesome day!!!
Great Post. I had a client the other day tell me that some fellow nurses were putting together a group to buy her beach house. Of course the next day they changed their mind. Sometimes friends and co-workers will say anything to try to comfort a friend in distress.
@Barbara my point exactly!
The more the seller talks the more he causes harm to himself. :/
Bryant, I missed this last week but glad I came back. Common sense and desperation are often lost cousins when the sellers get desperate. Theirfalse enthusiasm has them talking when they shouldn't and they often listen like a long married husband and only hear every fifth word. I have had a seller screw up their own deal by insisting on being around for the inspection and talking when they should have just gotten lost. Good post, congrats on the feature
BB - Maybe the seller did hear right. Could it be that the buyer had some time to think about it and sat down with an experienced agent who helped him make an informed decision? Still, if it's too good to be true....
That's a great idea for generating blog topics, BB. How many times do we have counseling sessions with sellers (and buyers) that never result in a sale? Oh, well--it helps sharpen our skills.
Cheers,
Robin
That is why I counsel my sellers not to talk to the other agents or buyers. Also, I always tell them that if the neighbor thinks the house is underpriced to have them contact me and I'll write up their offer on this too good to be true price. As nice as they can be, when you are selling a home, these people are not your friends.