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An observation

This topic contains 9 replies, has 0 voices, and was last updated by Avatar of amyhutton amyhutton 8 years, 5 months ago.

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  • #6230
    Avatar of amyhutton
    amyhutton
    Participant

    Most of the transactions I’ve sent through have not gone forward. They have been killed by attorneys for the sellers. Now anyone who has been in real estate more than a year already knows that if an attorney is consulted, you’ve pretty much lost the deal.

    We have one home that’s been on the market for two years and mine was the first offer. The attorney killed it. He’s leading the seller right into foreclosure. Nothing I can do. It’s almost always the attorney that kills the deal, and sometimes the listing agent who doesn’t seem to understand that the seller can’t make one cent on the deal, so the price we offer is inconsequential to the seller.

    So anyhow, I sat down with my buyer’s agent today and we decided that we need to target homes where the seller cannot afford attorneys. This means lower priced homes in non gated communities. So we’re going to target $150k-350k houses in middle class neighborhoods, instead of the affluent neighborhoods we have been targeting.

    Anyone else seeing this same phenomena? We have one deal that’s getting signed by the seller tonight, and it’s on the mkt for $138k. No atty.

    Amy

    #31963
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @amyhutton wrote:

    and sometimes the listing agent who doesn’t seem to understand that the seller can’t make one cent on the deal, so the price we offer is inconsequential to the seller.

    Realtors are all hung up on this “fiduciary responsibility” thing, in that they think they need to get the highest price even at the risk of losing it to foreclosure. What the Realtors don’t seem to understand is that on Owner Occupied Properties and under the “Obama” Plan, there are not supposed to be any Deficiency Judgments or Taxes due on the deficiency. So the question to the Realtor, Attorney and the Seller… “What the hell does it matter how much you get for the property”?

    FYI: Did you all know that “Obama”, the freaking President of the United States, doesn’t even come up in spell check. It recommends other words such as…

    Oppression
    Abomination
    Obliterate
    Obladee Obladaa! (not really, just seeing if you’re paying attention.

    No, I’m not making any kind of political statement, just found it interesting.

    #31964
    Avatar of corkhorner
    corkhorner
    Participant

    Scott, ‘political statements’ are often disguised in humor. 8)

    Obama imo is doing well under very difficult circumstances.

    EVERY president goes thru MANY cycles of popularity….do they not?

    Being pres is practically a thankless job. This is still America wheere citizens are allowed to speak out without disappearing?

    c h :idea:

    #31965
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    No political statements here. I just found it interesting what came up in my spell checker for “Obama”. If you want to find something even more interesting, Google or look up our previous President’s name in your Thesaurus.

    #31966
    Avatar of shortsaleguy
    shortsaleguy
    Member

    @Scott_L._Moyes wrote:

    @amyhutton wrote:
    and sometimes the listing agent who doesn’t seem to understand that the seller can’t make one cent on the deal, so the price we offer is inconsequential to the seller.

    Realtors are all hung up on this “fiduciary responsibility” thing, in that they think they need to get the highest price even at the risk of losing it to foreclosure.

    Amy still one step away from a fortune. I kept beating my head against this very issue for months. Scott is right on about the fiduciary relationship.
    Get the darn agent out of the picture. Go right to the owner. DO NOT DEAL WITH AGENTS! Unless you want to waste your time calling a bunch of them until you find the one that will work with your “flips”.
    I say, ONLY when you have the owner under contract and control do you bring an agent in to an “employment relationship” with YOU. They are your competition treat it as such and you will be a millionaire within two years. I know I will be. I know you are going to make a fortune. Just bring the agents in later to work for you.

    Now the Attorneys well they will kill the deal since they are in a fiduciary relationship with the Seller and have their E&O insurance and license on the line. The Attorney works for the Seller. You have the Seller’s TRUST you have the deal. Forget the Seller Attorneys but make sure you have one on your side. You are going to need one eventually.

    #31967
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    I may be right regarding the Agents fiduciary responsibility but I DO NOT recommend trying to get rid of an Agent who is already has a relationship with a Seller. I recommend you find a way to work with Agents, Realtors and Brokers. If you start trying to “cut them out” of deals, the word will get around and you’ll be toast in that market.

    Money Talks. Keep it simple and put money in their pocket and the word will get around you can get Agents paid on deals they couldn’t get done.

    #31968
    Avatar of amyhutton
    amyhutton
    Participant

    If you try to cut out a Realtor, s/he’s going to end up getting paid anyway, so why try? I want to have a rep with Realtors that I am easy to work with and protect their interests.

    Amy

    #31969
    Avatar of shortsaleguy
    shortsaleguy
    Member

    @Scott_L._Moyes wrote:

    I may be right regarding the Agents fiduciary responsibility but I DO NOT recommend trying to get rid of an Agent who is already has a relationship with a Seller. I recommend you find a way to work with Agents, Realtors and Brokers. If you start trying to “cut them out” of deals, the word will get around and you’ll be toast in that market.

    Money Talks. Keep it simple and put money in their pocket and the word will get around you can get Agents paid on deals they couldn’t get done.

    Sorry I did not mean to imply “cutting off your nose despite your face.” If they already have a relationship with the Seller it is too late. This has been my personal experience, over and over again in my market.
    What I am suggesting is to keep the agents, agents. They have no other way of thinking (Generally) other than in an “employment relationship” with their client. This has been my experience and maybe that of others lurking here. So it looks like this(without A-B-C details) :

    1. Market for Seller
    2. Sign contract with Seller
    3. Hire Agent to List property
    4. Agent finds buyer agent via MLS and his internal network
    5. Close property with End Buyer

    You see what I am suggesting here? Step 2 comes after Step 1 not before. Unless I am missing something in the NARSCOR system process and you cannot afford marketing. Dealing with agents to get to their Seller clients is an exercise in futility. One exception- The agent is losing the deal and they are as motivated as the Seller to dump the house before the bank gets it at auction.

    I am not trying to be negative or mess up the focus here in this forum. I have personally just had enough of dealing with agents that “own” the Seller. I know you have to use bodies on the ground but in your own local area I would say, GET THE SELLER FIRST. This is a ZERO Sum game.
    Thanks letting me express my frustrations with agents.

    #31970
    Avatar of markkehoe
    markkehoe
    Member

    Amy;

    just stopping into an attorney for free consultation gave me the strong impression that they were single-minded about going to foreclosure, and have never considered forensic challenges to a mortgage.
    Scarry meeting, and I left after my brain started thinking “just call the bank” without the lawdawg’s help. Got that piece of advice from my Terminix technician; well the house is still bug free!

    Mark

    #31971
    Avatar of boise
    boise
    Member

    Great Discussion. Interesting how agents are perceived as the enemy, don’t get me wrong, nobody likes agents but themselves. Most refer to agents as a necessary evil.

    #31972
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @Boise wrote:

    Great Discussion. Interesting how agents are perceived as the enemy, don’t get me wrong, nobody likes agents but themselves. Most refer to agents as a necessary evil. Trey

    The PAC/EHTrust Transfer was created for Realtor/Agents many years ago. No one here should ever consider or perceive an agent as “the enemy”. More than half of the transactions I do are referrals from licensed agents.

    One of the benefits of using the EHTrust Transfer is, we don’t have to use a licensed agent, even if the property is listed with them. We can legally bypass the agent altogether, which I prefer not to do and DO NOT encourage our members to do. It only takes one agent to destroy your rep in your area. And it only takes one or two friendly agents to refer you all the business you can handle.

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