Joe Spake

• DEAL LOCALLY WITH FOLKS YOU CAN MEET IN PERSON - follow this one rule and avoid 99% of scam attempts on craigslist.
• NEVER WIRE FUNDS VIA WESTERN UNION, MONEYGRAM or any other wire service - anyone who asks you to do so is a scammer.
• FAKE CASHIER CHECKS & MONEY ORDERS ARE COMMON, and BANKS WILL CASH THEM AND THEN HOLD YOU RESPONSIBLE when the fake is discovered weeks later.
• CRAIGSLIST IS NOT INVOLVED IN ANY TRANSACTION, and does not handle payments, guarantee transactions, provide escrow services, or offer "buyer protection" or "seller certification"
• NEVER GIVE OUT FINANCIAL INFORMATION (bank account number, social security number, eBay/PayPal info, etc.)
• AVOID DEALS INVOLVING SHIPPING OR ESCROW SERVICES and know that ONLY A SCAMMER WILL "GUARANTEE" YOUR TRANSACTION.
• DO NOT RENT HOUSING WITHOUT SEEING THE INTERIOR, OR PURCHASE EXPENSIVE ITEMS SIGHT-UNSEEN - in all likelihood that housing unit is not actually for rent and that cheap item does not exist.
• DO NOT SUBMIT TO CREDIT CHECKS OR BACKGROUND CHECKS FOR A JOB OR FOR HOUSING UNTIL YOU HAVE MET THE INTERVIEWER OR LANDLORD/AGENT IN PERSON.

Originally posted at spake.com

QUESTION: What's wrong with this scenario?

You need a new refrigerator. You go the big box store and are engaged by an energetic salesperson. She knows the specs for all the models off the top of her head, but you have done some research too and ask her some questions that require studying factory specs, and a call back to you at a later time.

Within minutes you are doing everything you can to beat down the prices on the your favorite models. You leave with the salesperson's card, and the she calls you back in a couple of hours with the answers to all your questions, offering to fax you the information. You are a picky shopper. You call her with more questions. You visit the store and the salesperson 3 more times, spending time with "your" salesperson, while other eager buyers wait. On one visit, you prevent her from getting her scheduled lunch break with your persistent questions. Throughout all this the seasoned salesperson maintained her professionalism and helped you at levels far beyond your exepctations.

You see, the majority of her pay was based on commission, and it was in both of your best interests for her to establish a relationship and provide you with superior service.

A few days later the lizard part of your brain gives you the BUY signal. As you are driving by another branch of the same big box store, you swing into the parking lot, go in, and tell the first salesperson you encounter the make and model of the refrigerator you have decided on. He writes it up, schedules delivery. You whip out your credit card, and in a total of 15 minutes, you have bought yourself a refrigerator. The salesman gets full commission for his 15 minutes of work.

The first salesperson, the one who spent all that time with you, gets ZERO. You run into that salesperson from time to time when you are shopping at her store. You always greet her with a smile, and have even asked her advice on other appliances you will be needing in the upcoming months.

ANSWER: Nothing. You got what you wanted. End of story. Lots of people depend on commissions to survive.

As a real estate agent, 100% of my income is based on commission, yet, it is not unheard of in this business to work with a home buyer for weeks, taking calls at crazy hours, juggling and re-juggling business and family schedules at their whim, establishing levels of rapport that rival those of family members, and showing them scores of properties, only to have them go to another agent to show them that ONE last house, which they buy without consulting you. No guilt at their loyal agent making ZERO, while their second agent who probably spent all of 2 hours with them takes a 5-figure commission.

Real estate and other straight commission people don't talk about this much. If you even think about it, it makes you crazy. It's part of the business of commission sales. You just suck it up and go on.

I have a business card stuck in the corner of my white board from a big box store appliance salesman. I took up a lot of his time when I was researching dishwashers a few weeks ago. I am not quite ready to buy yet, but when I am, I know who my salesman will be.

By the way, if you use Google+, I have just started a brand new business page. Visit it HERE.

As much as we ego-driven, type-A real estate agents, who have survived this epic down market and are still doing at least some business, don't like to admit it, times are tough. An article in the 11/28/2010 Commercial Appeal about agents supporting each other brings the point home. It's a bit disheartening to pay the ad costs and do the preparation for an open house, only to have no one show up; or try to explain to a home seller why her competitively priced house has been on the market for 2 months without a showing; or have to tell a potential seller that they are so far underwater that they will have to look at a short sale to get out of their house, or else figure out a way to stay for a while. It seems that any conversation I have with other real estate professionals gets to, "It's just not fun anymore." .........Read more at http://memphisrealestatebuzz.com/2010/11/30/its-time-we-come-to-grips-with-the-memphis-real-estate-market/

Between 1908 and 1940 Sears-Roebuck sold over 70,000 homes through their famous catalog. The homes were sold as kits and included nearly all the materials needed to construct a new home, all pre-cut and numbered. A look through the Sears archives of plans and exterior illustrations will have you taking a closer look at the older homes in your area. Most of the styles, from cottages to mansions, were popular in their day with many builders, but the Sears kit homes can still be identified by telltale clues....(read full post here).

This warning has been in the footer of my website for a few years now. Definitely worth a regular reading.

Real Estate Internet Warning©

Despite advertising claims to the contrary, the Internet is not an experienced real estate professional. It cannot consult, counsel, advise, apply knowledge of local real estate laws and market conditions, make judgments, own the result, or most importantly, understand your individual goals and needs and care about you as a client. Furthermore, while the Internet can provide information, it cannot interpret it. (used by permission, compliments of Molly W. Wasserman)

If you reuse the warning, please credit properly to Molly W. Wasserman.