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Don't Pay A Scalper To Buy Homes From The Auction. *SCAM ALERT*

By
Real Estate Agent with RE/MAX Compass 0524642

Earlier today a gentlemen called asking if I wouldn't mind sending him some "comps" for his home on 123 Smith Street. As usual, I asked my routine questions:

 

1. Why are you selling?

2. Will you be buying a home, and if so are you pre-approved?

 

The man on the phone whom I'll refer to as BUD said he was an investor and that he was looking for an agent to to "appraise" his home. He then said that the agent who impressed him the most might have the good fortunes to work with him at an up and coming auction here in Houston. He went on to ask if I would provide him detailed assessments on 15 different homes and that he'd be happy to pay me $10.00 for each evaluation.

Without laughing I asked if HE was going to be buying these homes and he said "NO, I've got buyers and I am going to be pointing them in the right direction at the auction." Later in the conversation BUD admitted that these buyers would then be paying him a percentage of the sales price both BEFORE and after closing.

BUD is not a Realtor or attorney in the State of Texas. This makes him and his practices very, very suspect. You cannot practice law, or real estate without a license. When confronted with his efforts BUD hung up on me, but not before saying.... "I'm helping people and they pay me lots of money to do so!"


I forgot to mention that Bud said he believed his home was worth about 85k, in reality, it's worth about 35k.

 

Facts:

You don't have to use a Realtor or attorney to buy a home at the local auction. If you do, YOU DON'T have to pay any Realtor fee's. This is the sellers responsibility.

It's in every buyers best interest to seek the advice of a "professional" before buying investment property. Paying some guy BEFORE closing who isn't licensed to do anything but drive his pick-up truck is like me eating cookies to lose weight and charging you to watch before it happens. Very stupid idea.

Sad thing is.. he wouldn't be doing this if he wasn't making money off of it!

Posted by
Greg Nino
Realtor
RE/MAX Compass 
Direct & Text 7 days a wk: 832-298-8555 
 
 
Realtor since 2004
Mediator & Arbitrator for the TX Assoc. of Realtors
Member of the Professional Standards Committee for the TX Assoc. of Realtors
Arbitrator for the Comptroller's office for the State of TX for Arbitration of Property Tax Values

 Member of the RE/MAX Hall of Fame & Platinum Club

 

The information contained in this blog is believed to be reliable and while every effort is made to assure that the information is as accurate as possible, the author of this blog, and its comments disclaim any implied warranty or representation about it's accuracy, completeness or appropriateness for any particular purpose. All information is copywritten and the property of Greg Nino.  

Comments (10)

Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

85K to 35K. Maybe he works for Zillow. You get all the wild calls Greg.

Mar 22, 2011 10:34 AM
Alan May
Jameson Sotheby's International Realty - Evanston, IL
Home is where the hearth is.

wow.. amazing... 35K here won't pay the down-payment.

Mar 22, 2011 10:41 AM
Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417
HomeSmart Stars - Addison, TX
Real Service. Real Results. Real Estate

Sounds like he's doing the legwork (and asking you to do some too) for people who are too lazy to get out there and do their own research.

Mar 22, 2011 11:43 AM
Robin Rogers
Robin Rogers, Silverbridge Realty, San Antonio, Texas - San Antonio, TX
CRS, TRC, MRP - Real Estate Investment Adviser

Where do you get these guys, Greg? Do you have your flyers up at the Dollar Store?

Cheers,

Robin

Mar 22, 2011 12:29 PM
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

Greg, i'm sure there are still poachers in Africa Killing endanger species too (because someone is will to pay) but that certainly doesn't make it right. Did you star69 his #and call him back to forward your invoice?

Mar 22, 2011 12:38 PM
Tish Lloyd
BlueCoast Realty Corporation - Wilmington, NC
Broker - Wilmington NC and Surrounding Beaches

Surely wish you had gotten his email address -- we could have ALL HELPED him OUT!!!

Mar 22, 2011 01:03 PM
Lora "Leah" Stern 914-772-4528
Coldwell Banker, 170 N Main Street, New City NY 10956 - New City, NY
Real Estate Salesperson

Hope you didn't play along with him for long.  SOunds like he was having you do his dirty work and collecting from others for your efforts.

Mar 22, 2011 02:52 PM
Doug Rogers
RE/MAX Coastal Properties - Destin, FL
Your Real Estate Resource!

In this market you were a nut to pass up ten sure bucks.

Mar 23, 2011 08:08 AM
Mike Wong
Keller Williams Realty Southwest - Sugar Land, TX
Realtor: Commercial, Residential, Leasing, Invest

What's scary is people like Bud and his friends hold seminars and classes in Houston to pick up victims customers who don't know any better.

Mar 24, 2011 04:24 PM
Tni LeBlanc, Realtor®, J.D.
Mint Properties, Lic. #01871795 - Santa Maria, CA
Tenacious Tni (805) 878-9879

There is a lot of this going on lately.  If these people have it down why do they keep trying to get a Realtor to come along with them? Give me a break.

Mar 31, 2011 05:51 PM