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I Have a Referral For You! Not!

By
Managing Real Estate Broker with Howard Hanna Rand Realty License # 49FA1074963

Real Estate ScamsWe get our fair share of referrals from around the country, so it is often difficult to separate legit messages from schlocky  vendors looking to sell us something. Prior to this past weekend, a message was left in my office from what was ostensibly an agent in California who had a buyer looking in Briarcliff Manor. That's right in my wheelhouse, so she got a call back within the hour. 

Voicemail. And then, of course, the weekend. 

I've been down this road before with the 4:55 pm messages, and I thought for a moment that I'd get a call on Monday telling me I was too late for the referral, but for only $XXX a month....

Fast forward to Monday, and "Mary" calls me back when I am on the road and she still does have that referral. Best of all, they weren't a real estate brokerage and they weren't looking for a referral fee, they would just ask $55 for the lead, and I could pay them after it was verified. But the buyer, I was assured, was real. OK. I'll play along. We agreed to speak once I got back to the office.

The call lasted 10 minutes. Mary was calling from "Reply" Real Estate, one of the jillions of outfits that spams me, and she said they got my name from Merchant Circle, another one of those sites that spams me. Not good news, but before I got too judgmental, I felt it wise to get to the people who sought a home in my community. That's when the other shoe dropped. 

If I wanted the $55 "lead," I would have to commit to a monthly purchase of anywhere from 8-20 leads from this operation, which was pitched along with the requisite guarantees of accuracy, clean hygiene and whatever else she could throw at me. 

I told Mary that I was not going to hire them to be my $450 a month lead company. And Mary then told me that she wouldn't be able to put me in touch with the most likely fictitious Briarcliff Manor home buyer. 10 minutes of my life down the drain with a bait and switch vendor. Maybe the buyer was real; if they were, they should be aware that the firm they hope will set them up with an agent isn't in a big hurry to look after their best interests. And if they don't exist, well, that wouldn't say much about "Reply" Real Estate's integrity. 

Just another example of the oily way some vendors do business. They wave a fictitious or unsuspecting client under your nose, just to sell you on an expensive service that was unrelated to the referral. I used to be far more outraged at how some of these outfits play to agents' eagerness to generate clientele and income, but I am over that for the most part. It is part of the landscape now, like telemarketers and junk mail.  I'm sure there is some agent out there that loves Reply and gets a ton of business from them, but I can't get past the subterfuge. If the first bite of the apple is sour, I'm not keen on eating more. 

BY the way, if someone from Reply or Merchant Circle want to "reply" to me or dispute the accuracy of this post, my contact information is right in the sidebar. I considered not naming names, but thought it best to be transparent about who was who. 

 


Comments(179)

Don Kanare
RE/MAX NORTH LAKE - Incline Village, NV - Incline Village, NV
Incline Village Real Estate

Reply Real Estate is an operator that while they may be doing things legally they are certainly not anyone I would do business with.  There are lots of phony referral businesses out there, I stay away from anyone who wants me to pay them $$ for leads.  A legitimate referral is one thing, these boiler room operators turn over staff faster than I eat potato chips.

Mar 14, 2012 07:33 AM
Jeannie Wilson
Sugar Sand Properties - Santa Rosa Beach, FL

I also got suckerd into reply a couple years ago.  What a scam! I had a certain time that I had to tell Reply that the lead was no good and if your reason wasn't good enough too bad.  If I missed the deadline I had to pay for the lead.  They sent me lots of "leads" that were ridiculous.  It was awful. 

Mar 14, 2012 08:26 AM
Bill Reddington
Re/max By The Sea - Destin, FL
Destin Florida Real Estate

I stop them after one sentance. I pay a 25% referral to licensed agent at the conclusion of a sale. As soon as I say that they usually hang up.

Mar 14, 2012 09:53 AM
Mike West
Heritage Oak Properties - El Dorado Hills, CA
El Dorado Hills, CA CDPE, CNE, Licensed Loan Origi

Sad but true.  I don't think Reply is any better or worse than the rest of the sleeze ball Internet marketers out there making a nice living by scamming unsuspecting Realtors.  I have yet to hear about a lead generating outfit that actually provides qualified leads.

There is a lady, who pro ports to be a Realtor who hangs out on a RealTown.com thread, Real Estate Experts, who claims to be working with a truly functioning lead producer.  She offers to provide you with the name and contact information if you send her your information.  All talk at this point.

I have come to the conclusion that the only way to get leads is meet many, many, many people and do your thing.

Mar 14, 2012 10:13 AM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Whenever anyone starts off the call with "Hi Carla how are you doing today?" . . . BROTHER!  I asked one guy if he got off on annoying agents.  He hung up.

Mar 14, 2012 10:13 AM
Steven Pahl
Keller Williams Tampa Properties - Tampa, FL
Real Estate Consultant Tampa, FL 813-319-6423

Had the same conversation with a company out of Montana today, said he didn't know what the DNC list was and wasn't aware that it was illegal to call cell phone numbers.  He was very pleasant though!

Mar 14, 2012 12:40 PM
Anonymous
Christine Sutherland

I actually do buy leads but I have a very thorough pre-qualification process that I work through. Over 90% of them I gracefully decline in less than 1 minute. But there are definitely gems amongst them and about 1% are pure gold in terms of what they continue to produce over time.

I think there's an easy way to determine if a lead provider is genuine and that's whether they're prepared to offer an initial set of leads for free or on a once-off basis. If the leads are quality then they should have total confidence in winning you as an ongoing client.

If they won't do this, then obviously they have no confidence in their "product".

I found my own lead provider after careful research, including haunting various forums to get the low-down on performance. These days I think it's important to consider a bigger variety of lead sources than we may have previously, but ROI is still always the primary issue.

Mar 14, 2012 12:47 PM
#167
Elyse Berman, PA
LoKation Real Estate - Boca Raton, FL
Boca Raton FL (561) 716-7824

Phil,  I get these type of calls all the time.  They're always trying to sell you something.  The name doesn't stand out, so thanks for the heads up on this one.  

Mar 14, 2012 01:29 PM
Tibor I. Olah
Apex Results Realty Inc.Brokerage - Burlington, ON

Does the title Glengarry Glen Ross ring a bell, if you haven't seen this movie you should I think they are using the same leads still.

Mar 14, 2012 02:28 PM
Monica Hess
Feng Shui This - Murray, KY
Kentucky's Feng Shui Master

I always tell them we pay upon closing.  Then block their number.

Mar 14, 2012 11:22 PM
Kerry Jenkins
Prime Properties - Crestline, CA

I too have recently been getting more calls from these companies. Funny thing is, my cell phone number has been on the Do Not Call list for about 7 years now...so if i file a complaint with the FCC do I get that $10,000 fine? Sure could use that money...lol.

Mar 14, 2012 11:46 PM
Marnie Matarese
DWELL REAL ESTATE - Sarasota, FL
Showing you the best of Sarasota!

The first question I ask is "Are you a licensed realtor?"  They say no and then I say that I am sorry but I am unable to work for them or with them because I will not be able to give them a referral fee.  Makes it very quick and easy but the calls are truly annoying.  But, at least they are working for a living and I am not paying them to hang out somewhere doing nothing.

Mar 15, 2012 07:09 AM
Anonymous
Shane

In response to this comment:

"Shane, I don't think that anyone does not see the value in a lead generation service.I do not believe for a minute, that paying $55 per lead would be cost effective for you, even if your agents DO close 20+ deals a month."

It is more than cost effective at $55 per lead!  $55 x 1000 leads per month = $55,000 mn

1,000 leads, 30% closed per month = 300 deals a month

300 deals, Average deal value $2100 = $630,000 a month

Commission to Agents (60%)= $378,000

Commission to Company (40%) = $252,000 - 55k for leads = $197,000 a month, minus office expenses.

Soooo you do the math.  Oh, I did already.  

Again....The problem is not the lead source, it is the qualification process and that the company/realtor does not have a database/contact management system.  Our business is no different that any other, it is a numbers game! You must funnel through the BS leads to get the good ones.  I don't know why Realtors expect every lead to be a deal.  There is NO BUSINESS IN THE WORLD that this is the case!

Mar 15, 2012 09:05 AM
#173
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

seems it is a painful issue for most of agent over there: we try to sell and we are tried to be sold:)

liked your: ''one of the jillions of outfits that spams''.

If they exist in plenty= someone buys those leads , right? otherwise, they would be not able to function.

Mar 16, 2012 05:19 PM
J. Philip Faranda
Howard Hanna Rand Realty - Yorktown Heights, NY
Associate Broker / Office Manager

Shane, I think that if you plan you work and work your plan you should get results. And I have no beef with buying leads. 

My issue is that a referral should be just that- a referral, and not a sales pitch for something altogether different. 

Mar 17, 2012 03:14 AM
Donald Reich
Madison Specs - New Rochelle, NY
Cost Segregation Specialist

I did the "Reply Real Estate" gig for a couple of months. A total waste. Most of the "sellers" had no interest in meeting me or selling. One was even a licensed agent!

Mar 17, 2012 02:26 PM
Jordon Wheeler
The Jordon Wheeler Group - Fairburn, GA
J W Group Real Estate Sales and Service

Hey J Phil,

I tried Reply! Real Estate and like so many others had aweful results and very terrible time cancelling the service.  They did change some of their process last year but still no interest from me.

Best of success to you and the team this year!

Mar 18, 2012 05:10 PM
Dawn Marthini
The Real Estate Firm - Gilbert, AZ
Selling Arizona Since 2001

I just tell them the truth- I'm already too busy to take on any new business.  Thanks, but you'll need to find someone else who needs the business right now.  I really hate these scams- bought into one about 5 years ago and that'll be the last time I ever waste money on something I can do for myself!  Great post!

Mar 20, 2012 07:20 PM
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

I hate these too.  I get junk emails daily and calls often weekly.  Sometimes I try to listen, but if they are slimey, no way. -Kasey

Apr 16, 2012 03:12 AM
Matt Robinson
Professional Investors Guild - Pensacola, FL
www.professionalinvestorsguild.com

Just like everyone else on here, I get these solicitations all the time as well, and typically ignore them.  They are now texting me to my cell phone, something I never gave them permission to do.  I think something should be done to regulate this kind of business, but you're right...just another annoyance we have to deal with for now.

Jan 28, 2013 01:56 AM