Once upon a time there was a nice young couple who wanted a 2 bedroom condo to call home and to begin a future in. About 2 years ago this sweet young couple met a nice real estate agent while visiting open houses beyond their financial reach.
Knowing nothing about real estate and very little about managing their finances they wisely sought out professional assistance. They developed a working relationship with that agent, who helped them find the condo they were dreaming about and live in today.
The agent, not content with this sale, explained to this nice young couple that they could purchase a second condo and rent it out. While they would be upside down to the tune of about $1,000 per month, they should not worry about it because they could afford it and in two years she would sell it for them at a huge profit. Nice agent also assured this young couple that she would find them a tenant and check their credit etc... for the 2nd condo. She didn't.
Relying on the professional they went ahead with the 2nd purchase anticipating a large profit with which they could purchase a nice home with a yard in a couple of years. This nice agent also arranged for financing on both units, both loans were 2 year fixed, both of which are now adjusting, massively. It was a financial plan-of sorts.
2 years ago the hot sellers market was winding down, most agents knew what was developing in the market and were hoping for a mild downturn. This was not a new agent, she had to know the position she put this couple into.
Nice young couple had a hard time finding a tenant and the $1,000 a month became a bit more. They eventually found the tenant from hell, who wrecked their rental condo, annoyed the living crap out of all of the neighbors and took over 8 months to evict. Naturally the tenant did not pay rent for those 8 months and broke the bank.
Nice young couple is watching the market crashing around them while going through the eviction process and are beginning to freak out. They immediately arranged for a nice large heloc so they could cover the unexpected expenses. Nice lender must have been feeling very generous, gave them a very large line to draw freely from, and they did - they maxed it out trying to keep their heads above water.
Both units are now short sales.
Sidenote: If this couple had not purchased the 2nd condo they would not be in trouble today.
Nice agent who sold them the unit noticed the rental condo was on the market and called the young couple at home. She was quite upset that they listed with another agent. Didn't they know how good she is at what she does? She works with an investment firm now and has many investor/buyers for the condo. (Duh! Where are they? Where are the offers?)
It pays to educate your clients at the time of listing. My clients were prepared for agents trying to extract information and were prepared with the right answers. That didn't stop them from the shock of this particular phone conversation. Both husband and wife called me the next morning. The wife, who spoke to the agent assures me that she did not disclose the amounts of the offers.
I checked DRE records and the MLS, located the agents phone number and her brokers. I called the agent, no answer, did not leave a message, hung up. She called right back. I told her I was aware of the details of the conversation, discussed the business and professions codes she violated, the lack of ethics that she displayed. Asked her why, if she had a buyer, didn't she call me and write an offer. DUH! She was also informed that the couple was very displeased and didn't want her to call them anymore.
Are you ready for the comeback?
Well, we have known each other for years and are very close, I thought it was OK.
Hey - get a clue - they didn't hire you! You don't represent them!
AND
YOU KNOW WHAT YOU DID WAS UNTHINKABLE!!!
Did You Get Your Real Estate License in a Box of Cracker Jacks? Are you smoking crack?
This is really bad! Unprofessional and unethical behavior is turning up on an almost daily basis these days. I don't have time to turn all of these people in to a system that doesn't deal with them anyway. It is a disgrace!
It is illegal for an agent to disclose the terms of any offer prior to the close of escrow! All agents know this, it is part of basic training.
My question to you:
What would you do if you received an offer from this agent?
The term REALTOR was deliberately omitted from this post!
| Laurie MannyLong Beach Realtor (562) 212-5420 |
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Main Street Realtors Belmont Heights 244 Redondo Avenue Long Beach California 90803 |
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I don't know CA law but in FL the first agent could loose her license for calling the couple once they had listed with another agent. That first agent sounds like she could benefit greatly by receiving a slap.
If I received an offer?
I would present the offer. But I'm delighted that there are currently multiple offers. One might even be from an ethical agent with a shred of competence.
And... Have you spoken with the Broker yet?
I don't even know how to respond to this?? So many violations. No wonder you omitted Realtor.
We deal with this type all the time...it's more like they get pulled over and the cop asks for their Real Estate license, We have very strict rules for things like that and loss of license is most likely the outcome. Protect the public is the big thing here.
I would take the offer in the best interests of YOUR CLIENTS
I can't believe she would call the couple considering she was the root cause of their finacial meltdown. I would present the offer, once the couple saw her name that offer would be dead on arrival.
I am with Missy, not sure how to respond to so many violations ! And boy...they are a doozies !
So many violations, so little time. But don't fall into the trap yourself. If she submits an offer you are required to discuss that offer with your clients. They don't have to accept in, they don't have to give a reason why they aren't accepting and what are the chances that she really has a client to buy the property?
The industry is so full of agents like this there is really no way to control it. Licensure is so easy, it's an open invitation to high-binders and opportunists. Laws are promulgated but not implemented. Regulation is adopted but not enforced.
Unless a consumer devotes their life to prosecuring their life to complaining about an agent, nothing will be done.
I have a friend who filed a complaint against an agent and it took two years for the investigator to contact them. What agent fears that?? I've served on the Realtor Grievance Committees and there are few, few complaints that make it to Professional Standards. Even then, the form is more important than the substance. They try but the system is stacked to protect the guilty.
Laurie, that is absolutly nuts, but we do know that does happen sometimes. Obviously they made a much better choice. To many agents react with thier "feelings" and not with thier minds. (Maybe the don't have a full one, who knows.) I actually had someone leave voicemails on my phone after I didn't use them for a service. Some wih profanity, some without. (Did I mention that when they were working in my house they raided my fridge!) And they wonder why they don't get call backs.
If I received an offer from her I would have her clients get pre-qualified with a lender you know. I can't believe an agent would act the way she did, its just disgraceful.
Laurie..OK so I'm laughing like crazy....as I know the agent must have ralatives that work in the South Bay.. what a boob.. longevity and good business ethics are not synonymous.. The chances of this agent actually writing an offer are nil.. but if it did materialize.. you being the consumate professional you are would look it over.. present it to you client with the other offers you have and no doubt pick a terrific offer from a good agent.... then write a brief note to the nitwit agent telling her you are so sorry her offer was rejected.. trying hard not to spit out the champagne your clients bought for you on the note....
Hi Laurie,
Getting the license is the easy part, pass a written test, done. I've said for many years is like passing a written driver's test, just because you pass that part, it doesn't mean you know how to get behind the wheel drive. Same this in r.e., just too many "agents" like this who are licensed yet clueless.
Laurie, I am speechless! How does she get the unmitigated gall to call her victims at all, much less cross the sign line ethics boundary? I doubt she even has a viable offer. Have you asked your clients if they would entertain any offer She writes?
I would write her up. Whether she gets a slap on the wrist, a suspension or nothing, is not the point. We need to make the attempt to remove these violators from our industry. Evil flourishes when good men and women do nothing. She is evil... A liar and a scoundrel...and that's my 2 cents.
Laurie -- OMG what audacity and stupidity. . .not a pretty combination! Here they give a RE license to anyone with a pulse.
That a terrible story but very common. Regardless of where they got their license, Real Estate like every other industry has people who are unethical in their work habits. The same applies to the mortgage business. Shame on the consumer for following this realtors advise, but shame on the realtor for advising what they did.
Sean Allen
I have run into several agents just as bad or worse. they do seem to give us a lot of material to write about here on Active Rain. I hope they serve as an education to the rest of us.
If she brought an offer, I would present it. Our state law requires that all offers have to presented immediately.
I was exhausted just reading this... wow! What nerve of that agent.
But also, why did this couple allow her to play with their money? They're grown ups and should have done research on their loans because the foreclosure market has been heating up for more than 2 years already.
HI Laurie - glad they have you to help them throguh. I am sad for them. Please report that agent!
I have had a run in as most people in this business for any amount of time will, with unethical and even criminal people in the business. There are all kinds of people out there and that is the difference between an agent and a professional agent. THe tough thing is teaching the public this.
Visit my website: www.TeamQuintana.com
Ross Quintana
Team Quintana Real Estate - Spokane Washington
Spokane Real Estate Experts!
I think she might have crawled out of a box of Cracker Jacks versus getting her license from it. What a trip.
I wish the other agent could read this and get a clue! But she's probably too stupid to use a computer. Here in Alabama we still string folks up for doing things like that. She should at least be taken out back and have the crap beat out of her.
I feel for the couple, they trusted this agent with their dream and she stole it. I think she needs her license snatched from her and never given back. THE only one she ever thought about in the entire process was herself. It is so unfair to the couple and our industry.
Sharon
I am not at all surprised - this is how the unprofessionals in our business make a living. The bad part is that other agent is probably sleeping just fine at night.
The other agent should go before your real estate commission and they should lose their license. End of discussion.
Laurie, this couple got sucked into the wealth-creation appreciation band-wagon, huh?. I would bet the agent wasn't acting alone.
Box of cracker jacks indeed. She'll end up getting what's coming to her in the long run. It just hurts now to have those people in our profession.
Sounds to me like the initial mistake on the part of the young couple was to listen to the "realtor's" (small "r") advice about investing in the second condo. Did you question her about her expertise in real estate investment or just assume, because she was realtor, that she knew all about it. Just as all the consumer-oriented real estate publications are suggesting that realtors be interviewed and their resume checked, so should prospective buyers or sellers when touching on an area that requires special expertise.
I ALWAYS tell my clients that I'm a REALTOR--I'm not a lawyer, not a CPA, not a mortgage officer, not an investment counselor. Would they have listened to their dermatologist's advice about a duodenal ulcer?
Well, maybe they would........
Very good blog. There are just too many bad RE agents out there. We all need to remember the power we can have at times.
Rich Lecinski
Long Realty
Oro Valley - Tucson Arizona
www.arizonagreatliving.com
The sad part is even if you did turn her in to the board it's unlikely anything would be done. Hold your head high as the true professional.
I'm glad you left out the term REALTOR...although she should not be one! Can you file a compliant? She had no right to call your clients and she just makes us all look bad!
awful story. Is money so inportant that you would hurt others to make some....just awful.
holy cow...just when I thought I had seen it all. Unfortunately, this bad experience and that bad service can spread through the public, and blanket us all as greedy crooks sometimes. Good for you for being a Realtor, and not a greedy nice real estate agent
holy cow...just when I thought I had seen it all. Unfortunately, this bad experience and that bad service can spread through the public, and blanket us all as greedy crooks sometimes. Good for you for being a Realtor, and not a greedy nice real estate agent
What a horrible situation. I hope there is a way to file a complaint against the agent for the ethical violations. If she brought and offer you would have to present it but hopefully you won't be faced with this. This is exactly what gives real estate agents a negative reputation.
I am still in awe over the behavior of this so-called "Realtor". I would be calling the DRE so fast it would make her head spin. I agree with Diane, this is exactly what gives us a horrible reputation as real estate agents. Please let me know what happens about her.
Makes me embarrassed to be part of this business. There are bad apples everywhere but they wreck lives in our business. I hope you are successful in reporting her and that something comes of it. Unbelievable.
Treat it according to the twerms/policies she should have observed.
I would present the offer. The clients know just how she is. So anything in the offer that seems a little fishy, I would turn it down. I feel so sorry for these poor people. I hope everything works out for them.
Laurie...
I think if I hear the phrase "short sale" again today...
I am actually going to start banging my head against the wall.
Ouch :)
P.S. Our market is starting to turn into one HUGE "short sale". That's it...It's time for that wall :)
Nervosa? Very funny Code Monkey's :)
TLW...ROAR!
In NJ if you have an offer in writing it must be presented. Aside from that, what you see going on with the other agent is the death rattle. The one good thing about the turn in the market is that these people will not survive. There will be some last screams that will pass. Good luck to your clients.
This is exactly the reason that I wish there were more restrictions out there on who can obtain a license!
Bad agents get a reputation and their offers are always treated with suspect. I feel sorry for their clients. I always present the offer and suggest extra safeguards.
Hi Laurie - jeez, and this person still has her real estate license? That person is exactly part of the reason our industry doesn't enjoy the reputation it really should have. I would have called her up just as you did and given her an earful, as I imagine you did. Yes, I'd report her in a heartbeat. I don't know what your state laws are, but there surely are several potential violations of our Code of Ethics. Having chaired our Grievance Committe a number of times over the years, I'd love to get my hands on that complaint!
REPORT HER!!
Ann
I LOVE that title you used for this post! And just so you know, I usually only get my jewelry and trinkets from my boxes of Cracker Jacks. Maybe I should buy the bigger boxes, and perhaps I just might find some licenses in those boxes instead of jewelry and stick on tattoes.... ;-)
Ann
Laure - It's no wonder this agent said "I sell a lot of short sales!" She probably created many. The fact that this person is apparently not a REALTOR® is a shame. She has flagrantly violated the REALTOR® code of ethics in many ways. About the only recourse for this couple would be arbitration if the arbitration clause was used. If not, then they would need to proceed with civil action. They obviously don't have a lot of cash or they wouldn't be in two short sales. So, this incompetent, unconscienable agent is able to scurry under the sink and come out again to feed on more unfortunate prey another day.
Perhaps some attorney needing business would want to pick up the gauntlet on this (filing against both agent and brokers) and see if there might be enough people and enough money to get a class action suit going on this one. I can't believe I would ever suggest suing anyone, but you know sometimes there's just no other way.
Laurie - thanks for being a REALTOR® and taking the high road simply becuase it's the right thing to do.
Fat chance this agent will actually come through with an offer, it is amazing she is still in business
Laurie, My first reaction is 'holy crap.' It just befuddles me. You would have to present the offer to your clients, but I can't see either your clients or yourself trusting this person and that she could even help to bring it to close. Now, I surely wouldn't counter or call this person to let them know that the offer was rejected.
Love your title & the crack part. I have these thoughts of other agents too often. I work hard to not get negative but I am assisting customers here in VERY similar situations as the lovely couple on the swings. It is a disgrace. I hope these agents can still sleep at night, the money they made those couple of years must make a nice pillow or something.
Wow....Laurie, your post left me absolutely speechless. That's not an easy task by the way. I would most definitely turn her in. The real victims-your clients, should write a letter as well : )
For her it was ALL about the commission. She broke every ethical rule in the book. How do [people like that stay in business. I bookmarked this post. Very very informative...
I would be ashamed to call anybody if I was the one that gave them the advice that ruined them financially. I hope they get back on track and get their dream home.
I would doubt very much that the agent has any buyers....and if she does, at least here...you have no choice but to present the offer....just check the financing upside down and backwards !
Ugly situation, Laurie. But she is not the only one out there using these kinds of tactics. Lots of violations and probably worth the time to report her. One wonders how she can look herself in the mirror - serious denial, I think.
Jeff
I agree, if your buyers were to get an offer from this agent they would reject it immediately. I would also report her to her broker, your Board of realtors and you state licensing board. She needs to go away fast!
April Ferrao
www.aprilbringsuhome.com
Re/Max Boone Realty
Columbia, MO
Laurie - She must have slept through Ethics and Law classes. This is why I believe state licensing agencies should monitor real estate more closely. Too much of this goes on out there. How these kind of agents stay in business is beyond me.
Yep. She needs to be turned in. She can bring her highest and best offer if she likes, but I'm sure the sellers are done trusting her.
This is a sad story. Unfortunately parts of it are more common that we all want to think. There are unethical things happening and the agents doing them seem not to care. It this just a sign of the times?
Hi Everybody,
I want to thank you all for your incredible responses. This post is going to be turned over to the young couple complete with all of your comments. It is my intention that they see the response by outraged professionals from across the nation. Tonight I spoke to the husband who is currently out of town on business, he will not be in front of a computer again until Sunday.
My recommendation to them will be to seek legal counsel and if possible to go after the agent. I am going to further request that they file a complaint with the DRE.
It seems pointless for me to file the complaint. So few complaints here are even looked at. Complaints from consumers have to be processed and addressed. It is my opinion (I could be wrong) that this is the best way to handle this situation.
I am especially fond of the comment about taking her out back for a good old fashioned whooping TYVM, lol.
Thank you all very much for your comments and by all means keep them coming. Tell this young couple what you really think.
Thank you,
Laurie
To the young couple involved in this calamity. You may leave your responses here anonymously if you like.
The rough market seems to be bringing out the sleaze in some of these agents.
I can't believe she would call the couple, I am in shock over the behavior of this "Realtor" Report her!!!
Classic "Manny" at its best. Gee, the only problem is that the client sat there and listened to the BS spewing from the old agent....there has got to be some issues with the sellers too?
Exactly what Neal said...great to see you posting Laurie!
I seriously am trying to stay away from short sales and foreclosures here in Florida...They are taking forever for an answer...I have one going on 3 months now...my customer is not an investor and is getting very upset...I mean we offered what they were asking...
Kidding: In dream land, I would have got out my oozie (I don't own one, just being funny) and kaboom...she would have been covered in multicolored paint balls...LOLOL!
Laurie, I can feel you seething between the lines. Grr!!! I can't stand unethical agents either. I just did this short sale transaction and thought everything was going well until escrow refused to do the transaction. They do not do arms length transactions in the same escrow. Needless to say I was very surprised. I was never disclosed. The agent says to me, " I thought you knew. After all, this is a short sale and that's how short sale transactions are done!" Again, the failure to disclose and the act of assuming...
Great post, by the way. It really catches one's attention!
Kersplat :)