Note:This article was initially written in April of 2008. At the time, some commenters wrote that what you are about to read was akin to sci-fi. That these types of transactions were “one in a million”. Well since this article was written we can confirm that the future is here and that these types of transaction are the norm for us and not the exception.
If you are a real estate investor, do not limit yourself to deals in your backyard. Create a network wherein any deal, anywhere, can be taken down.
Over the last couple of months we have spoken to hundreds of agents who when asked, most can not easily articulate what they do in a transaction. Yet worse, justifying why they receive 6% commission on the transaction is even harder to define.
More often than not their answers have been based upon mantra-like rhetoric that centers around the ignorance of the consumer. One of my favorites, “I don’t get paid for what I do, I get paid for what I know” is representative of the kind of inanity surrounding an industry whose players for the most part are reluctant to provide great detail into what they do.
In this Web 2.0 world, many who are resistant to a culture of transparency and fear disintermediation believe they are beyond reproach and that the technologically savvy consumer could never do without a Realtor’s involvement in a transaction. The misguided belief that “there will always be a need” for a Realtor is ignorant at best.
While true, there may be quite a great number of consumers who DESIRE to have an agent involved in a transaction, much more for convenience sake then anything else, it is big mistake to think that they are NEEDED in a transaction.
The former implies that an agent’s services are thought of by some to be much like that of a “real estate concierge”,while that latter implies some form of prerequisite dependence. This article is written to dispel the rumor that an agent is needed in a transaction.
So from start to finish I will outline a recently closed transaction.
1. Property Selection: A property was found online through tax records as being owned by a bank. The bank had not as of the time of contact contacted or retained an agent. The bank was contacted and the decision maker at the bank communicated their willingness to receive an offer.
2. Due Diligence: Data was reviewed and it was concluded that this would be a great buy. All of the vital signs were reviewed online and required about 2 hours of time. It only took this long because it was located in another state that we were unfamiliar with.
3. Contract Offer: Offer was submitted via email and the bank received it, struck a few paragraphs, required an addendum and sent back to our office for review.
4. Contract Accepted: After one revision and a counter offer in price, the deal was accepted and it was time to prepare for closing
5. Contract Delivery: Contract and all associated paperwork was scanned, and emailed to attorney / Title Company to prepare for closing. Electronic signatures were accepted on the contract and originals were obtained via Fed Ex directly to closing rep
6. Transaction Tracking: Within 2 hours of submitting contract we were given a password to track file activity online…password sent via email to REO department as well.
7. Inspection: A local inspector was obtained online who went to the property, met the bank representative, took pictures, video and presented a full report online in under 24 hours.
8. Municipal Background: A lien was found on the property and there was a cloud on title. We forwarded this information to our attorney who had it resolved in 24 hours. Clear title was available and we were given an abstract for review.
9. Survey: The Hard money lender wanted a survey and an engineer’s report which were ordered and completed within 48 hours.
10. General Contractor Report: A general contractor was given the assignment to prepare a report showing a detailed review as to what repairs, if any, would be needed on the subject property. Took some time on this one as the GC was backed up. Report received within 5 days and nothing major beyond cosmetics found.
11. Greenlight: based upon all of the data, the closing was green-lighted.
12. Clear to Close: Transaction agent sent out email notifications that the deal was ready to be closed and that funds were on hand.
13. Mobile Closers:Mobile Closer sent to our office to execute all closing documents and loan papers from the Hard Money lender as well as an original HUD. Another mobile closer in Maryland was contacted forwarded the necessary documents and met with the designated bank official in Maryland and signed the previously executed docs from here. Closer Fed Ex’d closing docs back to the title company and the transaction was concluded.
14. Time Frame: From the time the property was located through to the time that the deal closed was 9 calendar days.
15. Commission Savings: REO Bank saved $18,000.00 in commissions and liquidated a property they wanted off of their books.
We never even visited the property!
While this type of transaction may be, at this point in time, beyond the scope or understanding and ability of most end users, to think that an end user can’t learn to do this or won’t want to do this, is unrealistic.
Many FSBO’s may not be able to coordinate this type of transaction…yet. However for a Realtor to say that they will never be able to, is quite foolish.
It’s not an if, it’s a when. Very soon various companies will begin marketing their services to the consumer that will enable the consumer to buy and sell real estate without the NEED for a real estate agent. This is irrefutable and not even remotely debatable.
What can be concluded is that there will most likely be an ongoing desire for a Realtor to be involved in a transaction. Yet, this desire is borne of convenience, not need.
As such, the seemingly sacrosanct commission will even be more scrutinized. Although it makes for good discussion and debate, I would not worry all that much about disintermediation.
If I was a real estate agent I would instead wonder if I was prepared for what lies beyond disintermediation.
That easy transaction you wrote about sounds like it’s a one in a million, especially in this market. It might be very misleading to the consumer to publish your story without looking at the whole picture.
I am a Realtor® and I take some offense when I read stuff like this. At the risk of sounding defensive, I’ve got to ask… Which “hundreds of agents” did you survey? Did you ask part time order takers who just starting working in the past few years, or did you ask agents who are serious professionals at the top of their profession? Sadly there are too many newer agents out there that are poorly trained these days, as can be found in any type of profession I suppose. I believe our Realtor® board membership tripled when the market peaked a few years ago and as a result there were agents jumping on board, lining up to reap the quick rewards of a real estate boom. Many of these untrained agents probably wouldn’t know the answers to your easy questions you’ve asked. The top agent’s who you should have asked, are probably too busy to give away more free advice and information. They’re working hard keeping deals together, which is one aspect of real estate that you might have overlooked. Keeping deals from falling apart is the hardest part of my job as an agent.
I’m always happy to hear when a seller or buyer saves money but the sad fact is, most deals are not that easy. Did you do any research to find out how many f.s.b.o. transactions wind up in court? If you did, you’d be shocked. Scare tactic?, no, sad reality. Most f.s.b.o. legal disputes arise surrounding non disclosure issues and poorly written contracts. I’m going to bet that your transaction, as it was through a bank, was one where there were disclosure forms which stated that the bank would make no warranty as to the condition of the house. I’m going to go out on a limb here and guess that you signed some waivers regarding that, right? I’m going to guess that the bank had a large clause or 30 about how they were to be held harmless for any disputes arising from the transaction which involved disclosure or condition. Banks are smart, they know what they’re doing. I think you should have pointed out the other risks involved to a consumer when purchasing a bank owned foreclosure. One major concern for any buyer considering one would be the title. The banks generally won’t give you a normal clear title warranty. You’ve got to do a lot of homework to ensure that there aren’t any problems in this regard before purchasing.
Your web log article sounds somewhat one sided and resentful. You stated that “real estate in the future will be based on convenience not need?”…For some, this may be true. For those who have the luxury of time on thier side, I suppose an agent would not be a neccessity, though I would strongly advise you to consult with a real estate attorney. As you know, attorney’s charge by the hour. If your deal is one of the many deals that are not-so-easy, you may be paying quite a sum. I am not one of those agents who tell people that you can’t sell without an agent, but I do point out all the negatives, In addition to liabilities, a major negative is time on the market. Right now there are over 25,000 M.LS. listings in our area and an average of about 1,500 transactions per month closing out of the 25,000 on average. Do you think that a single f.s.b.o. with limited advertising resources has the same crack at finding a buyer? Sure, you have your sign, and possibly some directional signs strategically placed and a spot here or there in the local newspaper. What is your internet presence going to be? Internet placement has generated more leads for my business than all other forms of media combined in the past 10 years. If you’re choosing an agent, be sure to ask what their internet exposure is. In a declining market, where prices go down each month, a f.s.b.o. may likely end up selling for much, much less and take longer. Did you point that out? You probably should have, since many readers may possibly be facing foreclosure. A home sells much faster with an agent. If agents are having a hard time selling in this market, the private sellers are definitely going to have a much harder time.
These days, print ads only produce about 6% results for agents who have multiple cross properties to sell. Last I checked, sign calls were hovering around 15%. Another tidbit that you might want to ponder if you are thinking of selling your home without an agent: Buyers who make offers on f.s.b.o.’s, usually want to save the commission too. Unfortunately, most sellers don’t use an agent because they don’t want to pay the high commission. Think about this for a while. The National Association of Realtors continually researches statistics for Realtor® listed properties vs. f.s.b.o.’s. Though the figures vary from year to year, they continually find that f.s.b.o.’s sell for an average of 20 to 30% less without a Realtor®. Feel free to do some research on this to verify that, I did.
You have the right to brag about how easy your transaction was. I am happy for you. I’m not thrilled, however, that you chose to slam the entire Realtor® profession.
As an experienced agent for over 15 years, I realize that one of the best ways to obtain buyers is through referrals from other agents around the world. Generating referrals is the best way to get top quality buyers. I work at a large national franchise real estate company. We get many referrals from other agencies within our system, but I also cultivate referrals from other relocation sourses such as internet services and human resource departments at major employers. These buyer referrals are usually very serious, especially if their relocation is because of a new job. Normally, a relocating buyer comes to town for one or two weekends to find a home. They don’t know the area so they wisely choose an agent well before coming to town to find a home. They pick the agents brain to find useful local information about the area, schools, commuting time, home values, proximity to health care facilities, etc. These buyers are generally more serious in nature. Does the go it alone seller have a crack at any of these?, doubtful. In this regard, if sellers are interviewing agents to market their homes, a seller should ask what type of referral network the prospective agent is affiliated with. If they look at a small in town office with no affiliate network, are they possibly missing out on prospects?
I don’t have time to tell you all the things that I do in a transaction. I would have to take time off for a few months so that I could write a book about it, but the book would not be free sir because my time is valuable.
Sometimes, I have to admit, once in a while, though rare, a transaction does go smoothly and seems almost effortless, like the one that you mentioned. I stop to wonder and almost feel guilty charging a higher commission in these extremely isolated instances. But then I have to stop and think about all the transactions that never happened. I think about all the buyers who I’ve worked with over the years who’ve never made a purchase, buyer’s who, for one reason or a thousand, have changed their minds. I think of all the buyers that I’ve lost due to a f.s.b.o. who won’t pay a fee to me. Of course that’s their right not to, but I have to think about the thousands and thousands of dollars spent on ads placed to get the buyers to call which that seller benefited from. I also have to remember how very difficult and highly stressful my job is at times, that I have to pay for my own health care for myself and my family. Believe me when I tell you, the easy deal does not happen on a regular basis. I urge you to walk a mile in an agent’s shoes and then you’ll truly understand what I’m talking about. If you don’t have the time to do that, I understand.
Most of my demands in my profession involve keeping deals together. There is certainly a price paid for knowledge. It’s not an easy job. Perhaps we agents are guilty of making it look too easy because a true professional agent can make most deals easier.
I advise you to interview full time, top producing agents and see if they have time to give you some of their responses about justifying their commission. I’m anxious to hear your response. I hope that you’ll post this response. I realize that you have the option not to. Again, glad to hear about your easy transaction, I sincerely hope the next one is as easy.
Scott..I don’t know where to begin. Thanks for the comment.
I understand your concern. yes, top producing agents are indeed different than most. However the number of top producing agents is quite small..relatively speaking. I think you would agree.
Glad things are working out for you..you seem knowledgeable and on the ball.
In any event..you wrote the following: ” don’t have time to tell you all the things that I do in a transaction”…seems you had time to write everything but. Typical.
I am a new agent and I am greatful that you have heard from more experience agents. My training is still ongoing, yet I took offense to this as well. Just in my short time in this industry, I have learned that our time is not respected unless we demand it too. THAT our primary goal is to market our listings, so that our sellers will receive their primary objective. Marketing today involves doing more than print advertising (it that works at all), but blogging daily and investing in tools that allow you to reach potential buyers on the great web, not to mention the investment of quality cameras that allow for not only pictures but virtual tours that can be uploaded online. People don’t waste time reviewing online listings without something to peak their interest.
Just to set appointments to show houses to a potential buyer is involved, must call the listing agents, the showing service and some cases the prospect to give the details or updated information that may or may not change their mind on that property. IT preparation and constant calling leads of sellers and buyers and constant communication and marketing of myself.
It is being well-informed on the options that are out there for new buyers, which would mean one would need to have good relationships with well-established mortgage brokers/lenders. It is constantly reading news articles and blogs that are full of information of current and or pending changes to our industry that could help or hurt a potential sale. It is the constant study and learning, so that we can provide the best service imaginable to our customer base.
It is about responding to those calls and researching and showing properties and knowing how to make sure our clients aren’t making a poor deal or getting into a poor deal.
Yes I am new to the industry and know that I left some very important details out about what I and my more experienced colleagues do, but apparently so did you in not responsibly reporting this clearly biased story!
Hi Beyonca…and thanks for your comment..I’ll respond to your comment as best I can..
I applaud the fact that you are a new agent and I sincerely hope that you become part of the 5% of agents who transact most of the business. I’m not sure if you know that but the majority of Realtors do not make enough money to survive above the poverty level. Not my stat…directly from the NAR. In fact most agents don’t generate more than 2 sides per year…again, an NAR stat.
You mention indeed the type of marketing that could make an agent successful but I also wonder if you know that less than 3% of all agents actually do that. Again..not my stat..it’s from the NAR. As you did not post a url, I’m not sure if you are even doing that..so we don’t know.
You mention the “constant calling leads of sellers and buyers and constant communication and marketing of myself.” Hmm…how much time is that exactly?
As you say you are “new” to the industry it is more than likely YOU who are misinformed… or rather have no information. We all start green in this business but experience is a great teacher. I have over 20 years of buying and selling properties and dealing with thousands of Realtors from across the Country. I did not form an opinion based upon receiving my new, shiny R pin…I have my experience from working in the market day in and day out and speaking with some of the brightest minds in business and in real estate including dealing with some of the best real estate agents in the business.
I appreciate your unbridled enthusiasm for your new career endeavor and instead of squashing your hopes, I actually am going to cheer you on and home that you do not end up like so many who have come before you. Good luck.
You have some deep seeded hate toward Realtors. What is your real problem with Realtors? I can only assume that you’ve had a bad experience with one at some point in your life. Chill out. We’re not all that bad, OK?
Hey Scott..we buy and sell properties for a living. We have worked with thousands of Realtors and yes…the majority have indeed been clueless. We can and have proven it quite a few times. However, we’re not stupid enough to think that all Realtors are bad just as it would be to paint any group of people with a wide brush. So we relate our experiences and tell people what to look out for and try to expose as much of the BS, with substantive fact, as possible.
We just don’t throw out opinionated barbs at people like they do us…we back it up with information. So please don’t take any personal offense…if you’re different, then let’s applaud you for being a different type of Realtor.
I commend you for commenting to my post, I very rarely have received a response, so therefore it seemed like a waste to include my website. I have included on this response…yet again you made an assumption that is clearly false. Your article or blog did not lean towards the educating and informing you spoke of in your response. YOU made blanketed statements that real estate agents weren’t necessary and in fact they are selling the consumer a bill of goods. That any well-educated consumer could handle a buying or selling of property from A-Z, which is not exactly true.
In regards to the stats you quoted in your response to me, again you make it seem as if this is the case only within the real estate industry, when in actuality, if you were to do actual research prior to making blanketed statements that many entrepreneurial businesses see a high ratio of casualties and very low successes. THE successes is what causes people to stay in the business and others to attempt.
I stand by my statement that your article/blog is clearly biased AGAINST the real estate agent/industry and the statements you made in regards to the agents credibility was blatant irresponsible and need I say again BIASED. YOU clearly gave one point of view and in your responses to mine and other’s comments to your article SCREAMS that you haven’t a remote leg to stand on much less two.
Beyonca..I searched our entire database, we have no record of any comment you have ever left. So perhaps other blog publishers have not responded to you.
You’re putting words in my mouth. I said indeed that Realtors aren’t necessary. That is absolutely true. I buy and sell homes all of the time without the need or involvement of a Realtor. Surely you can not be debating that point. There is no required or necessary need for a Realtor. It may be a convenience that some rely on, but they are not in any way NECESSARY.
I am and I know of many “well educated consumers” who can handle a real estate transaction without a Realtor. I can not honestly believe that you think that Realtors are a required and necessary part of a transaction. Trust me..your newness is most assuredly being exposed in your commentary.
I wasn’t talking about other businesses so why would I sate any numbers that were not relevant to what I was writing about. Your argument has no foundation other than to be upset by what the truth is…the truth by the way which the NAR publishes.
If you feel that my article was biased, then by all means, you have an open forum to tell us all how a Realtor is NECESSARY and REQUIRED in a real estate transaction. I’m all ears. Now please, to stay on point and address these points. If you can tell me how in today’s economy how an educated consumer can’t complete a real estate transaction on their own I will gladly admit to being wrong. I guarantee it. So I’ll be waiting
Thats the kettle calling the pot black! I brought up other industries because your claim implied that it was the case only within the real estate industry that there is a high turnover of agents.
Have you ever heard of the phrase “a lawyer who represents himself, has a fool for client.”? Well such is the case when it comes to handling buying and selling real estate. Are those who can educate themselves and handle the process without repercussions? YES, of course, that is a minority NOT the majority. There are far more cases of real estate transactions that have gone wrong that were handled by NON-real estate professionals.
Agents either possess intimate knowledge or they know where to find the industry buzz about your neighborhood. They can identify comparable sales and hand these facts to you, in addition to pointing you in the direction where you can find more data on schools, crime or demographics. For example, you may know that a home down the street was on the market for $350,000, but an agent will know it had upgrades and sold at $285,000 after 65 days on the market and after twice falling out of escrow.
Contrary to what some people believe, agents do not select prices for sellers or buyers. However, an agent will help to guide clients to make the right choices for themselves. Selling agents will ask buyers to weigh all the data supplied to them and to choose a price. Then based on market supply, demand and the conditions, the agent will devise a negotiation strategy.
Real estate agents can disclose market conditions, which will govern your selling or buying process. In valuable DATA such as how long other houses have been on the market, square foot costs of similar homes and other marketing data.
Top producing agents negotiate well because, unlike most buyers and sellers, they can remove themselves from the emotional aspects of the transaction and because they are skilled. It’s part of their job description. Good agents are not messengers, delivering buyer’s offers to sellers and vice versa. They are professionals who are trained to present their client’s case in the best light and agree to hold client information confidential from competing interests.
Handling volumes of paperwork that require state and federal disclosure documentation among other things. ONE missing paper would land most well meaning novices and some times AGENTS as well as sellers in court.
Many questions can pop up that were overlooked in the excitement of closing. Good agents stand by ready to assist. Tax credit and doc stamps and recordation fees. Worthy and honest agents don’t leave you in the dust to fend for yourself.
YOU seem so hung up on demeaning me and my experience level. So I don’t expect you to agree or support any item I mentioned above. I GUARANTEE you will continue on your arrogant, obnoxious and IGNORANT manner of biasness… AND do not care to entertain this discussion further, beyond this one last statement. NOT once did you attempt to accept or agree that your BLOG had an iota of true support other than your opinion and maybe experience in handling your transactions yourself. Your quotes from the NAR are unfounded and I have researched the NAR to see what valuable information or detail you obviously left out.
Continue to speak on my inexperience sir, because that is obviously the only weapon you have against me in this discussion. Surely, the facts is just a theory to you.
Beyonca don’t bother to be upset with these people, I think you are entertaining them. They are wrong in so many ways but they do have some points. Of course you can do a real estate transaction without a Realtor but most people shouldn’t without a lawyer. You can also pull your own teeth without a dentist too but that’s not the smartest thing to do. They have had some bad experiences with a few Realtors so they take it out on the rest of us by bashing the entire profession, very immature.
Certainly educated people can do a transaction on thier own but most properties are listed with those pesky no good agents who don’t deserve any money for their work so there’s not much hope for them., LOL.
I wish they wouldnt mislead the public into thinking that they can get as much money for thier home by selling thier home on thier own. I see that they bash NAR’s statistics when Realtors use them but when they use them they are OK I guess. Seriously, they are entertained by you. Don’t bother defending yourself. They have big egos because they have this gig so I guess they’re better than everyone else, LOL.
BTW Barry.. You do throw out opinionated barbs at Realtors all the time. You’ve made your show into some kind of Realtor bashing forum. Other than that, it’s a great show. I do have to agree with you that some agents are clueless but you really need to stop with the bashing. You’re going to lose a lot of listeners since I’m sure Realtors want to listen to the show.
Hey Scott…why would you tell Beyonca not to respond. I have gone toe-to-toe with many an agent and your response is quite typical. Whine, bitch and make excuses instead of supporting your stance with actual hard fact. It’s so typical. Remember you are talking to someone who is not “entertained” by what I write about agents…it’s based on factual experience for over 25 years.
I have bought and sold and made trmendous profits way above what a realtor could generate for me. I actually know how to market and I know the inner workings of even the most difficult of transactions.
I find it very important to tell the consumers and investors all that I can so that the shroud of the 6% be removed. Yes…there are indeed people who can benefit from the utilization of a realtor but as Scott so eloquently pointed out, any real estate lawyer can handle the transaction for thousands less than the average Joe realtor. Again a fact that is irrefutable.
By the way, for the record, many people know this, but obviously you don’t. My wife is a Realtor so yes I do know first hand what an accomplished and educated Realtor can do. I have had the pleasure of working with many top notch and extremely skilled and competent professional agents. Unfortunately they are the exception rather than the norm.
Based upon the last few Harris Studies (you have read them haven’t you), I am not alone in my thinking. But again, that’s fact based. If you or Beyonca are prepared to present substantive fact to the contrary…I’m all ears.
And yes, I’ve made this challenge to many a Realtor. This time are you capable of making a valid an substantive argument?
Scott..let me make a very clear distinction. i don’t bash realtors…I bash incompetent realtors. As for Realtors not listening..I guess the ones who don’t want to learn may tune out. But our audience has told us in volumes that they want to hear an alternative voice. Also, you are listening to our archived episodes. We’ve pretty much done away with Radio..we have taken the plunge to put our mugs on video…so be sure to check out our youtube channel. Not much realtor bashing there. Just pure content for those who want to make money…which is what we’re all about.
Beyonca I speak to your inexperience because that’s what is driving your argument. I could go on for a long time refuting everyone of your assertions. But I have written about it many times and have been quoted and challenged in the press many times..all to no avail. You really need to rea dmore here and do some more research. Everything I quoted is written here and has indeed been written and published by the NAR. I do not seek to deman you and I sincerely apologize if you were personally offended. Seriously, it is not my intention to personally attack you and if I came off that way, I sincerely apologize.
I am not one who seeks to silence people by personally offending them and when I hear that someone is personally offended I must apologize. I’m not that kind of person…so please accept my apologies.
I enjoy spirited discourse and sometimes I can be a bit arrogant, yes I can, but that is because I can back up every word I say and I have done it many times. If you take the time to actually peruse our site and listen to the many ..many radio show episodes, view our video library and read our real estate based articles you will find a wealth of knowledge that has been provided free of charge for Realtors to learn how to prosper in this business. You will find that there are many more of educational, money making articles than the ones that seem to tick agents off. yes, I expose them and they get ticked off but as the saying goes, if the shoe fits…
If the shoe does not fit you, then don’t worry about what I say. Your business can not be impugned. However those for whoim the shoe does fit, I want to make sure the consumer knows how to peel back the layers of the onion. I’m not interested in a 3 Musketeers mentality of all for one BS. This is business and it’s very competitive. If a realtor is stinking up the joint they should be called out by their peers but it seems the NAR has done a great job of instilling the 3 Musketeers mentality…as illustrated by your comments and by others who find what I say somewhat repugnant.
But one thing I always get a kick out of is the same old response about lawyers and doctors. I can not tell you how many times I have heard that. They must teach that in real estate school. For one to compare themselves to someone who has taken literally 5-10 years or more of schooling to being a realtor with 40 hours of training to pass a test is somewhat ridiculous.
So let me ask the question I always have a kick asking upset realtors…ready…here goes…
If I wanted to sell my house, and I spent $200 bucks and 40 hours on an online course and got my license, would I all of a sudden be better prepared to sell my own home…in essence then I would be just like you and as you say in your comments, better able to sell my house.?
Be careful, for the answer…be very careful…many an agent has walked smack dab into the noose on that one.
Let’s face it Barry, you’re obviously biased because as a savy investor, you see Realtors as an obstacle. Though I didn’t major in psychology in college, I can reasonably deduct without much uncertainty, that your choice of words such as “noose” makes your distain for our profession quite apparent to anyone, especially if they are regular listeners. It is extremely apparent that you want to project to your viewers that our profession is uneccessary because that is what would make you, and other investors, the happiest, right? After all, with us out of the way you could forever low-ball all the unsuspecting, unrepresented, under-marketed sellers and make more money they you ever knew possible -Cha-ching! You somehow think that by preaching this Realtor hate some of your listeners who want to sell will call you before they call a Realtor so you can cut us out. Maybe they do, so I suppose I understand why you frequently bash Realtors on your show. I’ll forgive you. I’m going to go out on a limb and guess that you have “We Buy Houses Cash” signs all over the roadways, so these unsuspecting, uneducated distressed sellers call you first before they talk to a professional agent. I think I got your number, don’t I?
Since Realtors aren’t likely to dissapear, you’re going to have to deal with the never ending whirling eddy of middle man hell you call the real estate profession for the rest of your investor career, sorry. Face it you hate us all so why not admit it. It’s probably good therapy for you to admit it, right?
Now, we have been over this subject before, we know there are bad agents out there. (Here comes my playful dig at investors…) As with any profession, there are good and bad just as there are in your very own vulture-like, greed driven profession. (Not to say that you are a vulture-like, greed driven investor, certainly not. I’m certain that you’re strictly in your line of work for charitable reasons. *coughs loudly* I said playful dig, OK?)
To answer your question…
“If I wanted to sell my house, and I spent $200 bucks and 40 hours on an online course and got my license, would I all of a sudden be better prepared to sell my own home…in essence then I would be just like you and as you say in your comments, better able to sell my house? ”
No you wouldn’t be better able to sell yourself quite simply unless you did this full time as your profession but I think you probably already knew the answer to that, right?
BTW I like investors. I have plenty of cash investors buying up all the deals here in Orlando which makes me, my family and my charity beneficiaries and church very happy. Keep up the good work but stop with the bashing, enough is enough. Though it is somewhat entertaining, you’re starting to sound bitter and that’s distasteful.
Hey Scott..I have NEVER put out a yellow sign in my life. In fact most of my deals come from Realtors…why? Because they know we close and they know they make money with us. Sort of like the Jack Nicholson speech…Realtors need guys like us even though they may detest it. I’m going to say it for what must be the thousandth time now. I don’t have disdain for Realtors, I have disdain for incompetent Realtors and in 25 years… I’ve seen a lot. Hey but let’s say I never have ever said anything about a Realtor…how do you respond to the fact that general public has such a low opinion of realtors. Surely I did not influence such a wide spread public outcry. You just can’t face that fact.
I also have never submitted a lowball offer. I know how to comp out properties and no flowery BS CMA will suffice.
Aaaaah..and like many before you, the insult that says it all rears it’s ugly head. “Vulture-like”. It’s sad. Really sad. You see we are unabashedly capitalists and real estate is the commodity that we trade in. Real Estate to us is like a stock or a bond..it is merely an asset to be bought and sold for profit. I’m not a social worker. I have my own charities, I liquidate. Pure and simple, real estate is as faceless to me as the Bank who is dumping the REO. I love it when people call us vultures. It means that you believe you are different…which if that’s the case…I am glad that we are different. There’s a difference between greed and profit. But I guess left-leaning socialist types like you try to tell us how much we can make. Sorry..ain’t gonna happen.
So are you saying that only full time realtors can sell houses? So all of the licensees working at Red Lobster ..what are they? Since most realtors do not make enough money to be classified above the poverty level…I guess that pretty much eliminates most of the part time job holding realtors. Thanks for that clarification.
You’re new here. Exposing incompetence is a sport. It’s a hobby. Not our focus whatsoever. Get off this article and actually look around. You’ll see we actually don’t have all that much time to spend on the dolts. We’re too busy helping people make money…whether they be realtors or investors.
Hi Barry, Thanks for the reply. I’m actually not new here.
You keep saying you don’t bash Realtors yet every episode that I’ve seen/heard you get a few digs into each one, slamming Realtors. Maybe you don’t realize that you’re doing it. You keep saying you have no hate but your actions are speaking louder than your many many apologies. I have a distain for incompetent Realtors myself but I think you’re going a bit overboard for entertainment value I guess.
I think part time Realtors (the ones who have another full time job and do real estate a few hours a week) can be a real hindrance in a transaction, yes. If a seller hires a part time agent, I think they should have to disclose it. If you list a home, you should be available to answer inquiries quickly and be able to show the house. I work with many part time agents on co broke transactions, very hard to get a hold of. Accessibility is crucial at times as you know. (I heard your “Does Keller Williams want to sell this lisitng?” episode so I know you know what I’m talking about here).
That was a great episode, but as usual, you were Realtor bashing, poor agent. (Keller Williams could sue you for that article, you may want to post a retraction to cover yourself. You’re referring to one agent who works with a single Keller Williams office but it sounds like you’re talking about the entire KW organization.) In that rant I felt your points were mostly valid but as an REO listing agent myself here in Orlando I can tell you that the asset managers do in fact dictate rigid requirements for escrows, proof of funds and such. If we don’t follow their guidelines, they will fire us and never use us again to list properties. The asset managers tell us that it is the banks who require this, not them. Some of the requirements make it more difficult to sell, no doubt some requirements are rediculous. These are becoming more the norm here in Orlando then the exception. We do get some less organized asset managers and smaller banks who have little requirements, just like the old days. I believe the larger, more organized banks and asset management companies have more comprehensive requirements merely to keep them organized and streamlined so get used to it. They generally won’t take an offer that’s submitted that doesn’t have what they require with the submission. There is a new breed of REO listing agents out there who take on so many listings they can’t come to the phone, I know that is very frustrating. Some Asset managers and real estate brokers are now requiring that any and all correspondence involving an REO transaction be in writing only. Talk about frustrating!
I think that the reason that most Realtor’s incomes are at or below the poverty level is because they have to factor in the hundreds of thousands who merely have a real estate license. Face it, there are many part time agents out there and many more who don’t even do one or two deals a year. Most who chose to make it a full time profession are well above the poverty level. On that note, I must end this ramble. Good luck with your show.
Hey Scott..great value added contribution! Good insight into what REO agents are having to deal with.
Like I said, there are thousands of articles here and the radio shows are but a portion of the content. As for KW filing suit…oh well. But I doubt it, there’s nothing in it that didn’t actually occur. Lot of opinion but that’s not actionable. In any regard, despite our difference in opinion… I GREATLY APPRECIATE the discourse that ensued and hopefully others can see the value in engaing in said discourse. I think we both made great points and you earned some stripes in my eyes for your statements on part time agents…so this was not for naught!