Matthew Heavener

I don't go head to head with other REALTORS for listings very often. Mostly, I work from referrals, but the other day I arrived and found out I was being compared to another REALTOR. I did my best dog and pony show, and at the end I asked them to make a decision. That was when I was caught off guard. The people said they would make more money using the other REALTOR. So, I explained that reducing the commission usually results in less service, and in this market it was not a great idea. Then they surprised me by saying, "No you are charging the same commission." So, I assumed the other agent was recommending a higher price, and I explained that anyone can overstate the value to make the return look better, but my comps were based on reality not wishful thinking. Then they surprised me by saying, "No they are recommending the same price as you." At this point I was curious. So, I asked if I could look at my competitor's net sheet. Almost every closing cost was understated by 40-50% (including taxes, recording fees, and promulgated title insurance rates). I then sat back very confident, and said "Well you should use me because I am not going to lie like this agent has." Another listing is in the coffer.

I have been working with a couple who want to purchase a shortsale or REO. I understand the buyers want to take advantage of these deals right now. However, I am horrified at the lack of service that the listing agents are putting into these transactions. I cannot believe that agents will use excuses like "I have too many transactions, and your offer just got lost", or "I am doing too many transactions to respond to the offer you faxed, I only accept offers by email." In Florida, a listing agent has an obligation to present any and all offers. The idea that you would ignore offers that come in is astounding, irresponsible and potentially a legal liability. If a bank discovered that they accepted a lower offer because the agent lost or rejected an offer based on the mode of delivery, they would have a case against that agent for the loss of income due to the offer not being presented. Additionally, the foreclosed home owner could legitimately claim that the bank undersold the property as a result of negligence, and therefore the judgment against them should be considered illegitimate.

In short, if you can't handle the business, don't take it. I have heard excuses like, "Well I am only getting paid X," or "Sorry, I have 30 listings right now, and I just can't update everyone." These are inappropriate excuses for providing bad service, and most often result in making the selling agent work both sides of the transaction. Unfortunately, these agents have secured properties in high demand, and the buyers are looking for their properties. However, this will change, and if they don't learn how to behave more professionally, they won't last through the next change in the market.

I couple of years ago I sold a house to a couple who were young and could barely afford anything. He was an aspiring children's pastor, and his wife was still finishing college. I asked them if they would be willing to get something that needed "TLC", and they said that would be a good idea. So, in a market where nothing was selling for less than $120K we bought at $80K, and boy did we have issues.

The day after closing I met them to help them in their move. The previous owner had left pets in the house and they had peed everywhere. The A/C had been flooding the carpet and really brought out the stench. It was foul, and to top it off the previous owner had left garbage everywhere. One of his friends came in and quietly pulled me to the side and said, "Do you feel guilty selling them this house?" I was taken back, but then asked him to close his eyes and take a deep breath. He inhaled and then looked as though he would vomit. I then told him, "That! is the smell of money."

About two years later, the wife became pregnant and they decided it was time to move up. When I asked them, "what are you looking for?" They replied without hesitation, "Another deal!" About three months ago, they purchased a $200K REO home for $165K and put 20% down. Thank God for stinky houses.

Hello everyone,

This is my first attempt at blogging. So, please forgive any newby indiscretions. At any rate, I am an broker in Jacksonville, FL, and duval county was recently designated a declining market by FREDIMAC. I am curious as to whether any enterprising young lawyer has attempted to classify this as redlining, and as such create a class action lawsuit for those whose LTV requirements are being changed to include an additional 5% down payment. I am not sure about other places but the majority of the foreclosures in Jacksonville are in a specific area of town that Mortgage companies have to be careful about redlining. Whether intentional or not if the result of declaring a city or zip code is that minorities are disproportionately unable to secure financing it seems it could be construed as redlining.

Thanks,

Matt Heavener