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Need to Hear vs. Want to Hear - Ughhhhh

I had a very interesting meeting with a person today who attempted to refer an auction deal to me last year. It had been so long ago, I had totally forgotten about it.

Eventually, the conversation turned to this past referral try and I asked John what ultimately happened. He said that the property sold at auction for about $90,000. Interesting thing, he said. That's exactly what you told the seller she was going to get.

I asked him why the seller chose to work with someone else. We presented a good proposal, fee was about right, so were the expenses. So what was the problem?

The vendor that the seller chose told him that the property MIGHT be worth upwards of $120,000 vs. the property is PROBABLY worth $90,000.

So big deal. I was right. Didn't make me a dime. Is that seller going to remember that I told them the truth? No. They are going to remember that the other guy could not perform as promised, but he's got my fee in his pocket.

Ughhhhh.

Some days it doesn't pay to be the good guy.

Ughhhhh.

Richard F. Kruse is the President of Columbus, Ohio based Gryphon USA, Ltd. (www.gryphonusa.com). The Gryphon Organization includes Gryphon Asset Management providing receivership and consulting services in the distressed marketplace, United Country Ohio Realty & Auction Group (www.ucohiorealty.com & www.ucohioauctions.com) providing real estate brokerage and auction services throughout Ohio and OnlineAuctionUSA.com (www.onlineauctionusa.com) providing commercial asset liquidations from the Midwest to East Coast.

United Country Ohio Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17

Posted by Rich Kruse on 12/05/2006 04:46 PM

Comments (19)

auction, truth, ughhh

Originally posted at: Asset Management & Recovery: Need to Hear vs. Want to Hear - Ughhhhh

19 Comments on Need to Hear vs. Want to Hear - Ughhhhh

DEC

2006

This is why not taking an over priced turkey is a bad idea. You can always baffle them with your BS later

Hi Rich, we are on the same page here Monika and I talk about this all the time. Agents buying listings.

I do disagree with Dave on this point. A few of the agents that have practiced this way have pretty poor reputations in our marketplace and they are no way dominant in their market.

When we go in and tell a seller the bad news that their house is not worth what they think, we tell them, "I would rather disappoint you now than have to come back later and ask for a price reduction and dissapoint you later.

If someone is making close to 2,000 a month mortgage payments and 500.00 per month for property taxes how much do you think they are paying in the long run after 10 months on the market?

Oh well, Go Buckeyes

Dave - In an auction scenario there is only one shot so, for me in that case, it was a choice between BS and no BS. Should I lie and maybe get paid or not lie and maybe not get paid?

The eternal question. I chose wrong. The liar got a fee, the upset sell felt lied to and paid a fee anyway and I got the "we should have listened".

I wish there was a fee paid every time somene says "I should have listened to you."

Rich - we feel your pain. We are now addressing over-priced listings up front in our listing presentation, letting the sellers know that they WILL find someone to list their home for a higher price, but the comps show no one in their right mind - nor any appraiser - would ever value their home @ that unrealistic price. It's all about setting expectations...then even if they go with an agent who tells them their home is worth more, they can't say you didn't warn them....again, no $ in your pocket, but you can always say, "I told you so". :)
SK

Rich,

It always pays to be a good guy. Some times you have to wait for the remuneration!

You can make up the loss by shopping at Cosco.

Bill

DEC

2006

Good Morning Rich-

I would also like to think that it pays to be the 'good guy' but it can be frustrating!

Too many people are WAY to gullible.

In an area that I live near there are 2 stellar examples: one listing 110k over priced, one about 45k over - that might not seem like a lot until you realize that the going price right now for those condos is ONLY 235,000! Those poor people were fed some major BS,

Rich - it is, at times, a struggle to hear what you heard and wonder if it wouldn't pay, just once, to not be the good guy..... It is frustrating to see the people who baffle folks with BS walk off with your pay check.

"Cream rises to the top" - stay there and it will pay off!!

Ann

Rich, what is that saying? Oh, that's right... Good guys finish last. We might not always get every deal or close every deal, but in the end we stilll have our integrity, honor, and word. That is by far worth more than a deal earned by doing wrong. Keep up the good work.

DEC

2006

Rich,

There's plenty to go around. You may not get them all but just look at this blog, David, Jay, Adam & Sharon, Mac, Ann, Jason, and please include me all think of you as a friend. How many bad guys can say as much?

As long as you've got the bills paid there is a lot to say about the intangible!

Bill

William J Archambault Jr

The Real Estate Investment Institute

http://www.reii.org

Thanks for the nice words Bill. By the way, I received another letter from you, but have not had a chance to look over it. I will have some time this weekend.

Thanks

MAR

2007

Hey Rich,

Excellent post. You did the right thing, but yeah, it didn't make you a dime. It did however keep your integrity and reputation in tact, which I suppose is more than the other chap can say. Hang in there, the good guys do win!!

MAR

2007

O your day will come when people understand the truth you are giving them. Great Job

Ben

MAR

2007

Hi Rich,

I understand your pain. I have been "right" many times and not had the listing only to watch the other person ultimately sell it for less than what I originally suggested due to the fact the days on market had stigmatized the property. ugh. I feel your pain...a lot! I am going through it right now with my CMA saying $235 and the other two agents saying $269. No basis of fact on their part, but that is what the seller wants to hear. -Ken

MAR

2007

it always pays to be the good guy, just sometimes not in GREEN!

MAR

2007

That seller may refer to you because you were honest and gave good advice. Being the good guy always seems to pay off in the end. Keep up the good work.

Fran

MAR

2007

Yep has happened to many of us. But what really catches is when they are way over priced and then boom sold.... someone walks in (usually no knowledge) and jumps at it. Of course the appraisal might be a bit of a problem...

APR

2007

Great post and excellent comments- I put some of the comment in the cookie jar to save for later- do y'all mind if i borrow them?

APR

2007

I feel your pain. But as my mother always said "Life's not fair"; words that are pPainful but true.

APR

2007

I always feel good about the ones that got away when they list with someone else & then fire them or better yet go for 6 months then expire.

It's the ones that I turn down thinking I'm all so smart & know the market better than "the other guy" only to have them sell in 30 days or less that hurt!

Some days you're the windshield, some days the bug!!

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