Being a Realtor who manages his own team, I take on all types of responsibilities throughout my daily routine, none more important than training newer agents; I was talking to a new agent who was explaining to me that he just got a property under contract (his 1st) & he's ready to get paid! I explained that as Realtors we don't get paid until the deal closes, so that contract isn't worth the paper it's written on until the deal funds...he like most rookies would; walked away a little scorned, but still happy about his new-found riches.
So this agent went against one of the Golden Rules of Real estate; NEVER count your commission or its as good as gone...the next few days the madness began, he maxed out credit cards, came into the office with a few new outfits, offered to take the office staff (myself included) out to dinner in appreciation amongst other things. I guess at that point it was raining money!!
A few days later I asked how was the deal progressing, he replied confidentially; "GREAT! We just completed home inspections, no problem there & now my buyer is waiting on their commitment from the lender". Good for you I said in response to the great news.
Now as weeks past I saw a Rookie agent grow with so much confidence closing...& all of this was from his first deal being on the verge of closing...
But of course the Real Estate Gods had to intervene...
Apparently the property had a leaking oil tank that was discovered just 10 days before closing because a friend of the buyer asked if he did an oil tank sweep? According to the report the oil tank needed serious attention as the leak had spread across a neighbors yard & the damages were going to total $45,000 to remedy. This naturally scared off the buyer who did not want to deal with the headache.
Where does that leave the agent??? Credit cards maxed, some fancy new suits on the hangers, an angry buyer (who blamed him for not bringing up a tank sweep) not to mention his confidence level which started to decline like the U. S. Market.
The agent wasn't feeling very good about his career at that moment. I pulled the agent to the side after the deal died & explained to him that as Realtors we have to Bulletproof our transactions & cannot over extend ourselves by spending money we haven't made yet. A valuable lesson was learned through this experience, which is no matter how sound the deal appears, or the amount your buyer has on his proof of funds letter, NO deal is a definite until it's closed...
Now I also told him that the clothes & fancy gadgets can probably be returned, but he still owes the office dinner.
I don't think I will ever have to remind him that no matter the circumstance, Once you count your commission...or it's as good as
GONE!!
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