OK, you'll like this one. I've recently been communicating with a Seller that wants to list and sell a couple of vacant building lots in Poinciana. The lot market in Poinciana has pretty much dried up since most of the builders moved out of the area last year.
During the peak of the market, 2005, a building lot in Poinciana would fetch about $60,000 to $70,000. These were incredible prices since as recently as 2002 you could find lots in the $5,000 to $7,000 range. Sure wish I would have bought about 50 of those...but nooooooooo.......I'm an idiot!!!!
This guy's lots are now worth about $30,000 each, assuming we could even find a Buyer. Anyway, he sent me an email asking if I heard of a company.....let's call them....Surf and Turf, Inc.
I picked this name because one of their marketing techniques is bringing Buyers and Sellers together through promotional Dinner Shows. Have a piece of fish, watch a show and buy a lot. Does this work? I don't know.
What I do know is that they are NOT licensed agents. They are in fact, a Nationwide Advertising and Marketing company that specializes in vacant land.
And.....Why spend thousands on realtors with rock solid contracts that don't allow you to sell? Especially when....The real estate market across the country is better than it's ever been. Anytime is a good time to sell!
Those are their words....not mine.
Now folks, I'm a firm believer in free enterprise. If it works.....go for it. BUT....here's my problem with these types of "Marketing Companies". Actually let me just tell you what they told my lot guy.
"We will sell your lot's in 90 days for $120,000 each. All you need to do is cut us a check for $1,897.00!!!"
Where did they get that $120,000 figure from? My guess is they pulled it out of their arse!! But hey, what do they care? It's all about the upfront fee. IF....this Seller were not already well informed, by me, he could have very easily wasted $1,897.00. AND.....may have believed his $60,000 worth of Real Estate was actually worth $240,000!!! Incredible.
So folks, be careful out there. Do your research before hiring a "Marketing Company" instead of a REALTOR®. If not, you may very well be buying dinner and a show for a lot of "Buyers". I do hear the fish is excellent though? What say you?
****Image courtesy of TLW and ROAR! Productions.
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Bryant Tutas
Broker/Owner
Tutas Towne Realty, Inc
Licensed Florida Real Estate Broker
http://www.brokerbryant.com/
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Blog Boy...
As you know this one makes me cringe :)
So what do I do when that happens?
I order the Fried Cat Fish with a side of Hush Puppies :)
P.S. I'll take a Vodka on the rocks too ... But ... Don't tell my husband I asked for liquor :)
TLW...ROAR!
Thanks for the post. I haven't run into that yet! I'm glad that you were there to help the seller... who knows how much money he could have ended up shelling out.
Plus, isn't there something wrong with getting paid for real estate stuff when a person/entity is unlicensed? Yike! Shouldn't they be brought up on charges with FREC? Or, does that NOT apply to marketing only?
hhhmmm, that is interesting. I too would be wondering where they came up with the 120k value?
Sean Allen
BB, there are so many scams out there right now.Hadn't heard of this one, but now I will be warned.
Good post and a good warning from consumers.
Good post and a good warning from consumers.
I'll admit... I had a comment but got sidetracked with the fried catfish, hushpuppies and vodka. Thanks, TLW, now I'm hungry. :)
Oh, yea... $120K each? I think you pegged exactly where that number came from. Wow.
How can they not be licensed and suggesting a selling price?
FSBO companies work that way because all they do is provide the means and nothing else. No advice, etc. That steps into the "real estate activity" territory here in Oregon.
I'm very leary of any upfront fees....especially from my end (mortgage) of things, outside of the appraisal. Heck, if I would of been charging upfront fees this entire time, I might just be retired and living in Poinciana.
Gee. Aren't you glad to find out that:
The real estate market across the country is better than it's ever been. Anytime is a good time to sell!
LOL Jesse...
I love doing that to you folks :)
TLW...ROAR!
BB, Sometimes you just want a free dinner and then leave. Depends on the resturant. It would have to be one great resturant to get me there though. AJ
ps. BB, I got a bridge for sale. Are you interested? I really needed a little LOL today. Have you heard....
Companies like that get away with their scams because of greed. I'm happy your client was well informed and didn't get caught on the hook.
Hi Guys. You know I don't know how these folks get away with out having a license. BuyOwner.com is the same thing. They state they are nothing ore than a marketing company yet they provide contracts, title info etc...It seems to me if you are matching up sellers and buyers for a fee then you are practicing real estate whether you call it that or not.
The seller emailed me back to say these people won't leave him alone now that he has declined their "services". His words were "aggressive and rude"
AJ, I could use a nice bridge!!!!
Lenn. I am so pleased these folks have enlightened me on current market conditions. And to think I thought it sucked!!!
By the way....practicing real estate in Florida, without a license, is now a 3rd degree Felony!!! Of course in reality practicing real estate WITH a license in Florida can sometimes be a 3rd degree Felony too :)
As always........Thanks for stopping by!!!!!!!!! Great comments as usual.
These types of marketing companies remind me of "smash and grab" thieves that just grab that moolah and take off! But do the math here.
If I market to 100,000 people and tell them it's on $1897 up front for me to guarantee (worthless of course) the sale of their land, and only 2% respond and send money ... then I am $3,794,000.00 richer. Odds are that I can be out of the country by the time your 90 days is up and you are still stuck with a piece of dirt.
But in my world, it would take much more than that to be able to look in the mirror every day and not be disgusted with myself. Guess that's why I'll never be rich...
BB, Sad but true! There are always going to be scammers out there and they will consistently find new and innovative ways to go about what they do. The sad thing is, and they know this because they are working the numbers, but there will be many that will break down and pay them.
Does White or Red Wine go better with ARSE? Wow, that is simply amazing that people fall for this type of slick crap....I am amazed that they do but they do. Thanks for pointing out yet another one!
Best,
Scott
Well there's an interesting way to get around the real estate licensing laws. And now that we know where they're getting their ideas, I can understand the stench ;)
Good grief. There seems to be no rules if you don't have a license to sell real estate and a ton of rules if you do have a license to sell real estate. Sooner or later some poor chap will be telling his story on Dateline how he got scammed by these people.
Bryant- I thought that this sounds like practicing real estate without a license is a felony in Florida. I am wondering how do they get away with this?
Byowner does have a broker. Even though they say on their billboards, NO BROKERS! What a joke!
The one is WE buy ugly houses. They flip the properties in escrow without the knowledge of the homeowners.
You mean it's not a good time to buy? How come they can advertise and everyone runs to believe their crap and on the other hand...we licensed agents try to be up front and honest about our local markets....and they have a hard time believing we are thinking in their best interests?
Even people who relocate here from say...there. They believe it's the same all over.
BB,
Thats pretty cheap...when the market was strong my area was fetching about 500K per acre. Back in 2001...demucked was doe about 185K...I'm not sure what it is now but about 6 months ago it still was expensive...there isn't much land left here to build on and many look for horse acreage so it's a luxury to get it here so they charge a higher price.
I say they need a real estate license. They can call themselves whatever trade they want. That doesn't mean they can avoid the license. I assume they can show results of similar 120K sales in the area that they have obtained??? If not, I will be happy to list it for only $1797 upfront :-)
Bryant - There are a lot of sleazeballs running around. If we keep shining a light on them hopefully they'll scurry off.
Carol, You are right that the potential to make big bucks is certainly there. The Internet is a HUGE place. You only need $$$ from a very minute percentage to make a great profit. In fact I'm still trying to figure out to get 10,000 people to give me $100 :)
I guess the moral of this post is that the consumer has to be very very careful out there!!!! It is very easy to be separated from your money.
Now this is what I need all you folks to do: Make out a check for $100 to:
Broker Bryant's Marlin Fishin' Fund
1234 Sun Ray Marina
Costa Rica 45678
THANKS FOR YOUR PARTICIPATION!!!! ONLY 9,974 MORE TO GO!!!!
Blog Boy...
Why don't we do what we saw another Blogger do?
Remember? We can ask every member to send us a dollar.
That's a total of $80,000. That will almost cover my allowance :)
TLW...ROAR!
Do you get fries with that???
BB-funny but I had a gentleman contact me from AR and want to list his property; vacant land. Land in my area is about the same as you mentioned. So we did some comps, I know this area very well, and know that there are some high priced listings, but they don't sell.....they are just high priced listings. So, I write the guy, give him my opinion, etc. All good....then today he sends me links to 2 of the high priced listings....and wanted to know if I knew of these. Yes, I did. they are part of the CMA, and close to his property......ones that aren't selling. The strange part of this is the Agent is excellent, but their expertise isn't this area....it's a Mountain and lifestyle away :) I hope I end up with the same result as you....an informed, realistic seller :)
I am afraid we have a few of These in our market and the sellers are so unhappy after the experience they try to avoid all Realtors since we are all alike.
Bryant - Here is the sad part: many people will STILL think that these people are somehow working with realtors and when the story is retold about how they got shafted, it will have realtors involved! These guys should be taken to court!
Very interesting. Ive been seeing people get busted for not having a license doing stuff like that lately. So Broker B.....thanks for the comments the other day. I enjoyed learning your insight.
I think I sent you an e-mail a while back, about a question on Trulia, about real estate in Poinciana. Answers are still being posted. In case you wanted to contact the seller, here's the link: http://www.trulia.com/voices/Market_Conditions/What_is_the_expected_recovery_time_for_investors_w-21536--
whoooaaaaa.....
really?
Guarantee????
Can I get a piece of that action???
So, Katerina said I need to kiss up to you to get more featured posts...I dunno though...the picture on the bed was kinda scary...I am not sure if I could deal with that much closeness!
Jeremy, I think this may work for you. Now send me a check and I'll see what I can do :)
Sarah, I always give a guarantee. "List with me and I guarantee to shave before I meet with you.....maybe"
Lisa, Thanks!!! I went over there and set up my alerts so I should be good to go now.
"Utah Dave", Always good to see you.
Barbara -Jo, You are correct. No matter who it is the consumer thinks they are REALTORS(R)
Terry, Guilty by association even though we are not associated. It sucks!
Kathy, One of the biggest problems is when folks take listings out of their area and don't have a clue about value. I see it everyday.
Kelly, Yes you do!!!! And a piece of pie.
Hey Hun:)
I don't know of any of those companies here in Colorado Springs, how scary! Sounds like they really scam people and it almost seems illegal because they are not licensed real estate agents.
BB,
This is exactly why I have such disdain for people like Erik Estrada.
He showed have faded into the sunset after CHIPS! "0