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How Greedy Are You? Real Story...Just Happened!!

By Curt Fletcher

Real Estate Sales Representative

December 24, 2007 06:14 AM

Okay, so I have a buyer that is closing on their New Home this Thursday. It was a build job, so we have been working together for about 5 months. In this time, I have spoken or seen them about 3 times a week....every week. That's how I do business....lots of communication.

The loan they were doing changed a bit from the start (imagine that, big shocker these days). In any case, we changed to an FHA Loan with the seller (Builder) contributing 6% for closing so my home buyers can be out of pocket as little as possible.

I get an email last week (Friday) from the lender that says the buyer will need to bring about $2,600 to close. So I call the buyers and let them know. After a bit of uneasiness, they say they don't have it right now, but they can come up with about half of it.

So I talk to the Realtor on the deal (who I am paying a large Bonus to...10K) to ask him if he will split the $1,200 Title Policy with me. Over the years, I have done this many times with no issue.

Here is the email he wrote today (Christmas Eve):

This is a copy / paste...

I am a little disappointed that you can not make this deal happen without cutting into my pocket. I have sent more than 600.00 dollars worth of referrals to you over the course of 6 months, not to mention all the emails and the positive comments I have made to my broker and other Realtor companies. I have already given away 100% of my commission on the home that the buyers had to sell in order for them to even be sitting in front of you. If you are to roll this house into the new year I am assuming that you will be taxed? That in itself will be more than 600.00. I am hopping that you will do whatever it takes to close this deal this week, if that means pulling out the sod and bushes. Please let me know if there is anything else I can do to help.

Happy Holidays,

Wow!

He copied the buyers on this email. To me, this screams, I don't care about my buyers, just give me the money.

The funny thing is, I have not even seen this guy since the day he first brought these folks to me!! In that time, I have become very good friends with the buyers. We know each other's family's, exchanged Christmas gifts, etc....and they don't even know his last name!

My response to his email was a phone call. Very simple. I said okay, you have two choices.

1) Help the buyers close and contribute $600 of your 10K Commission and make out like a bandit....or

2) Not have the buyers close and you get $0.00.

After encountering some resistance, he reluctantly agreed.

Amazing!!

Let me hear your thoughts.

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Curt Fletcher

Fort Worth, TX

aka "The Likeability Guy"

Gary, I see what your saying as that is the way I wrote it. The thing is, the bonus expires on 12/31, so by not coming up with the $600, he would actually just be out the Bonus amount. We have already contributed the max allowable on the seller side, that's why I asked him to split it. I appreciate the feedback and the honesty!

Dec 24, 2007 06:41 AM

Curt Fletcher

Fort Worth, TX

aka "The Likeability Guy"

Hank, I agree with that assessment, but at some point doesn't common sense kick in? I mean seriously, if someone came up to you and said they will trade you $600.00 for 10K, would you even think about it?

In this case, the Realtor literally didn't have any part in this transaction, he just showed back up because I told him the home was about to close.

Dec 24, 2007 06:45 AM

Curt Fletcher

Fort Worth, TX

aka "The Likeability Guy"

Eric, I totally agree with not giving away your commissions. I am simply talking about a bonus that I decided to give this guy on top of his normal commission. I would not ask him to part with his 3%, which in this transaction would be $4,470. I am giving him an extra bonus of $5,530. It is $600 of the bonus that I was asking for help with not his regular paycheck.

Dec 24, 2007 06:49 AM

Elizabeth Nieves

The Elizabeth Nieves Realty Group - Durham, NC

Bilingual Raleigh - Durham North Carolina Real Estate Team

Curt: I wish I could tell you that this is the first time I've ever seen anything like this...but OH NO! This kind of greedy behavior is way too common in this business...in the world really. I've seen agents let a deal fall apart over $250...rather than pull it out of their own pockets. I'm glad you stood your ground.

You know...the funny thing...by copying the buyers, he showed them what a greedy person he is.

Merry Christmas!!

Dec 24, 2007 08:11 AM

Joey Almeida and Oscar Peralta The Almeida/Peralta Group Chandler, AZ

Global Realty Marketing - Chandler, AZ

Curt, Sometimes people do not see the big picture...I'm glad you made the deal work at the end. The email issue is a big no no.....Happy Holidays....

Dec 24, 2007 08:38 AM

Marc Grossman

Marc It Sold! - Longwood, FL

GRI, Greater Orlando Real Estate Broker

Curt, This business is filled with all kinds of people and motivations - go figure!

Dec 25, 2007 01:00 AM

James Downing - Metro DC Houses Team REALTORS®, CRS, GRI, ABR,MRP, MilRes

Real Living | At Home - Washington, DC

When Looking to Buy or Sell - Make the Right Move

Sorry - I don't give up my money. If someone ask me to split something; I would say NO.

It's not about greed - it's business. I don't ask my Accountant, Doctor or Supermarket check out person to "split" the difference with me. You shouldn't ask either.

Dec 25, 2007 01:16 AM

Hank Roeters

Platinum Partners Realtors - Darien, IL

Based on the information presented here the buyer is getting:
6% from seller
Max allowable contribution from sellers side.

And now they are unable to come up with $2,600 to close, and you want to contribute another $1,200 for title cost. Does anyone else think that perhaps these buyers don't qualify for the loan, and won't be able to make their payments if they get it? Who will be there to contribute if that happens?

Dec 25, 2007 02:32 AM

Curt Fletcher

Fort Worth, TX

aka "The Likeability Guy"

Elizabeth, Thanks for the feedback! Merry Christmas to you too!!

Dec 25, 2007 02:49 AM

Curt Fletcher

Fort Worth, TX

aka "The Likeability Guy"

Joey & Oscar, Thanks. Yah, I just don't get people that don't understand. The email with the buyers on itis really what surprised me the most. Happy Holidays to you as well!

Dec 25, 2007 02:51 AM

Curt Fletcher

Fort Worth, TX

aka "The Likeability Guy"

Marc, You are right on with that. Everybody is different. That's why I love this somuch probably. If we all thought and acted the same way, it wouldn't be much fun.

Dec 25, 2007 02:53 AM

Curt Fletcher

Fort Worth, TX

aka "The Likeability Guy"

James, I see what you are saying, but the line it's business makes no sense. Are you saying you would not trade $600.00 for 10K? I must really be missing something. I wasn't even asking him to split his commission, but rather part with a small $600.00 of the over 5K bonus I decided to give him....I didn't have to give him the bonus. I was simply relationship building...paying it forward so to speak with a new agent.

Dec 25, 2007 02:56 AM

Curt Fletcher

Fort Worth, TX

aka "The Likeability Guy"

Hank, that is the first thing I would think to. Their payments are not high, actually only slightly different then what they were paying in their previous home. They have some money to put into the deal, but only about $1,500. Under their other loan program that changed, they were not going to be putting money into it at all, so they bought some Christmas Presents, stuff for their home, etc..

They make plenty of money and have decent credit, just an awkward time of year to have much in reserves...plus they had to drop some cash to get out of their previous residence.

Very valid concern, as I thought that too, but after diving into the details, and getting to know them very well over the last 5 months, they won't have any issues.

Dec 25, 2007 03:01 AM

Eric Lee

Realty Executives - Phoenix, AZ

e-PRO, SFR - Phoenix, AZ

I would say the real issue is that the bonus is really the agent's commission on the sale of their prior residence. The email said he had done their house for free. He was obviously counting on this commission to make him whole on both transactions. So yes, this was cutting into his pocket.

I had a very similar situation come up where I cut my sellers/buyers a deal on the sale of their old house because there was a bonus on the new house. After selling their old house, they backed out of the new house and bought a different house (with me thankfully) with a lower commission. While I am happy to discount/rebate with clients that are both selling and buying, this precise scenario is why I no longer take the discount on the 1st transaction but on the 2nd one.

Dec 25, 2007 03:35 AM

Curt Fletcher

Fort Worth, TX

aka "The Likeability Guy"

Eric, that scenario makes more sense to me. In this case, however, the agent had no idea he was getting a bonus from me when he sold their home. I talked him into bringing his clients out to see me, then about a week or so later after the agent returned my phone calls, he mentioned that my area would not work for them.

That made no sense because we found the perfect home at the right price in the best location and school district in the area. I asked him, if I could give them a call, and he said sure. After speaking with them and asking for a second appointment, they bought from me....the agent was nowhere to be found during this time.

In writing a deal on the new home, he sold their existing home almost simultaneously. After we wrote the contract, I filled out his commission sheet and then added a bonus and emailed it to him. When he sold their current home, he had no idea that they bought a new one. He was shocked!!

That is why he mentions all the referrals he has tried to send me.

Dec 25, 2007 04:43 AM

Karen Anne Stone

New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX

Fort Worth Real Estate

Curt: This obviously makes no sense whatsoever. How can this agent be so short-sighted ? All negotiations, and all sales... for that matter... need to be what I call "two-way streets." There needs to be give and take involved. How much give and take ? Well, however much is necessary to make the transaction stay together and work... which means... to make it "close."

What did this agent win by keeping his strangle-hold, or at least trying to, on the $10,000 bonus. Perhaps most of that bonus, true. But how much is the loss to be realized down the road when you yourself are considering who to chose as the next agent you want to do business with ?

Two way streets... give and take... it's what makes the world go round... and that includes the sales world. If one person in a negotiation is so incredibly and stubbornly insistent that everything goes their way... and does not budge... that does not sound like very much of a negotiator's two-way street to me. It sounds like a one-way street... and you know as well as I do, that one-way streets can often turn into dead-end streets.

It appears to me like you are in need of an agent who knows how to make things work... an agent who is a "deal maker" instead of a "deal breaker." And... as luck would have it... I think I just might know someone who would be very good at that. And... I think I know how to contact her :)

Feb 15, 2008 03:25 AM

Curt Fletcher

Fort Worth, TX

aka "The Likeability Guy"

Karen, My thoughts exactly! As the #1 sales manager for a large company, I often refer home buyers to specific agents that I have worked with in the past that I know are good...typically sending 2 or so a week. Obvisouly, I cannot in good faith refer anyone to this guy since he only cares about himself.

Where is your office? I have a feeling we work in the same general area. I would enjoy the opporunity to earn your business and refer my clients in need of an agent to you.

Feb 15, 2008 01:25 PM

Marchel Peterson

Results Realty - Spring, TX

Spring TX Real Estate E-Pro

Curt, my real estate motto has been "something is better than nothing".

Feb 15, 2008 02:11 PM

Karen Anne Stone

New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX

Fort Worth Real Estate

Curt... I would love to stop in and meet with you at your model. Perhaps some time Saturday if things are quiet, or Monday or Tuesday... whatever works for you. I work your area... and have sold homes in McPherson Ranch, The Villages of Woodland Springs, Sendera Ranch, Tehama Ridge, Heritage, and many other parts of The Alliance Corridor... including Keller and Haslet. I have also worked with Todd Greenfield when he was at Quail Grove over on Harmon Road... before he left Legacy. I would be pleased to work with you. My cell is (817) 929-3400. Please give me a call at your convenience. Take care...

By the way, Curt. I have some great programs that I am sure will interest you. I'd be glad to share them with you. In the meantime, you might take a peek at one of my websites... www.NewHomeHuntersOfTarrantCounty.com .

Feb 15, 2008 05:17 PM

Cheri Smith

Prudential Gary Greene, Cypress TX - Cypress, TX

Realtor Prudential Gary Greene

In the 3 little years I have been in real estate....this behavior is the norm. I do whatever it takes within reason to get the deal to go through. PERIOD. Other agents are more than happy to let me take the cut but they won't share the cut with me and I am fed up with that type of agent.

Feb 16, 2008 02:14 AM