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Awarding Those who Screwed You

By
Real Estate Broker/Owner with Daytona Condo Realty, 386-405-4408

There is something fascinating happening in our area. Actually it is more 30 miles north of us in one of the 10 fastest growing places in the nation for the last 10-15 years. The place is a beautiful town to enjoy life, but seriously lacking on the jobs, etc.

There was a group, who, in pursuit of big bucks, came up with a way to bring Russian immigrants to the town. This is a phenomenon deserving a separate blog. Anyway, that's how the Russian community (very loose, though) thousands families strong popped up in a relatively small Florida town.

Well, when these people figured that this paradise is when you do not need to think about working any more, they in mass joined real estate. The market started booming and there was enough work. Not surprisingly, a lot of these agents worked practically exclusively with Russians from Brooklyn and other areas. They were incredibly busy making relatively easy money. I can't imagine how many people bought houses unseen just because others did, and because they were told that this was the best way to make money without doing anything and risking nothing.

At that time a smart a... like me was telling potential clients not to jump on the bandwagon, that the boom was about to end, and we sort of successfully cut ourselves from very lucrative income. We pat ourselves on the back that we were doing such a good work for them being realistic, and cautious.

When the market rapidly cooled, I thought that the agents in this paradise town will feel the grunt. And it felt this way... for  awhile. I was showing a property there to my client today, and I could not believe how busy one Russian office was. They are incredibly busy, closing after closing, and they are practically all short sales. Again, they deal practically exclusively with Russians. BUT THESE ARE THE SAME PEOPLE THAT BOUGHT THE PROPERTIES FROM THESE AGENTS IN THE FIRST PLACE. I just could not believe my eyes. They screwed those people 2-4 years ago promising hefty profits, and now they get the same people to sell with them trying to get out. They don't see a problem. Now they are helping them to get out of the mess, that they helped them create in the first place.

I could not believe it. People were awarding the same agents who screwed them before. Something is terribly wrong here.

What is interesting is that is not characteristic for the real estate in this area. Membership is 43% down, a lot of people went to work for Wal-Mart and Publix, a lot of agents are barely surviving. And a few predominantly Russian offices are booming.

I am looking in the mirror. Why are we, Russians, for the dubious distinction of being able to speak Russian, would deal with agents, who were absolutely clueless of what they were doing, as long as the money kept coming, and after being screwed once, go back to the same people and award them with our desperate business again?

I do not get it. Even though I am Russian.   

Vickie Nagy
Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen
Sorry you had a bad experience. To say "it happens" is trite.
Feb 05, 2008 04:10 PM
Judy Greenberg
Compass - Long Grove, IL
Compass- Long Grove -Buffalo Grove
If you figure out their secret, let me know.... its happenning where I live too.
Feb 05, 2008 04:15 PM
Lynda Eisenmann
Preferred Home Brokers - Brea, CA
Broker Associate ,CRS,GRI,SRES, Brea,CA, Orange Co

Hi Jon,

I've seen similar things like with with other cultures, it really not that uncommon at all.

BTW, I found your comment, "Membership is 43% down,...a lot of agents are barely surviving....And a few predominantly Russian offices are booming." So what are they doing differently, other than working with Russian consumers?

Feb 05, 2008 04:25 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Vickie - It is not my bad experience. I just can get it when first, they sold me on something promising golden mountains, and then, sorry, s-t happens, now why don;t we sell your home through a short sale? Oh, you lost money? Oh well, this is the market.

How many people would say: 'OK, what;'s really the problem. I lost my deposit, now I will hurt my credit, but heck, I am so happy with this agent, that I will award her with this deal.'

Would you?

Feb 05, 2008 04:32 PM
Jon Higgins
Century 21 Elite Performance - Springboro, OH
ABR
Jon - I'm not sure I get your point here.  I get a sense of martrydom here.  Also what are these people supposed to do?  Do you think they had the same crystal ball you had?  Yeah we knew it was coming but you couldn't agree that people made a lot of money and were quite successful when times were good.  That is a lure to anyone.  They are helping people get out of the situation - which is better to say than others who are not.  Sitting on an ivory tower judging it from a holier than thou standpoint really doesn't serve anything either does it?  What are they supposed to do - let them go into foreclosure?  I like your ethics - but I have a problem with the whole martyr thing.  Just giving you some honest feedback - if I'm off base so beit.
Feb 05, 2008 04:39 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Judy - I doubt I will, I am not that smart, and I do not have a thick skin to call people who I screwed and offer being their 'Agent for life'.

I am afraid that I would not be able to execute it, even if I figured this out. I suspect the answer lies not in the real estate but it is rather something cultural. I would love to pat myself on the back and say that I am a changed person and that's the reason I do not understand it now, but the truth of the matter is I never was good at that even back there, and this is why I feel so at home in US.

So, even though I still occasionally get a Russian client, this is less business and more a reminder why I immigrated in the first place. They often help me keep myself in good shape. Because with some of them I within minutes back to where I was 20 years ago. It gives me a tremendous reason to appreciate what I got here.

 

Feb 05, 2008 04:42 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Lynda - Yes, you are right. But isn't that puzzling? We still are not talking about people, who do not completely understand what is happening, they are independent. They may have limits to their command of English,l but this applies to both the customers and agents. These are educated people.

But shouldn't normal people be angry? I would think that being screwed, I would be the most unlikely candidate to give that agent my business. This may be and is not uncommon, but it is morally strange. It is not that they can't turn to another agent. Being angry is not there.

We helped people from Brooklyn to sell their home in this paradise town several months ago. They bought a house unseen because they were expecting that they would flip it at closing and walk away with some nice stash of cash. When that did not happen, they figured that $1,900 was too much for them to carry for years. We got the buyer withing 3 days as they understood that price was critical for quick sale (these homes are on the market for tens of thousands less now). They had to bring a check for over $30K, which they took from their HELOC on a Brooklyn property just to get out of the deal. They are nice people, he is a technician in New York subway system, she is a nurse. Wheat stunned me is that they came to us after they could not find the agent who sold them that home. They were looking for her, but she was no longer in the area. If she were still there, they would sell it through her.

This is beyond me.

Feb 05, 2008 04:56 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Jon - I am not sitting on any ethic tower, I am in a different area, and I do not work with this clientele. This said, what puzzled me is that people go the same agents that screwed them. Same is a key word here. I always thought that a normal person should be angry with the situation, and I do not see why lick the biting hand.

What surprises me is a tie. I do not get why. There is not other connection (or I don't see it) than the common language, but culturally, educationally, and status-wise these people are supposed to be independent. They have the command of the English language enough to communicate with non-Russian speaking agents, but they do not go to them. Is coming form the same country warrants to award them with a business?

I still think that really independent people would not deal with the same agent. No, they do not need to sit and wait for a foreclosure, there are hundreds of other agents in the area.

I simply think that if an agent, who affected my decision 3 years ago, would call me and suggest that she/he would help me with getting out of the mess and losing money on the way, I would say: 'Thank you. You have already helped me to get into it' and turn to another agent. Wouldn't you?

Feb 05, 2008 05:08 PM
Nancy Brenner
Referral Associates of Georgia, Inc. - Roswell, GA
Roswell Georgia Real Estate Agent
Jon - was it the agents that sold them the houses or the lenders that gave them a loan they couldn't pay at fault here?
Feb 05, 2008 05:34 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Nancy - I tend not to blame the lenders. They were working with people who were brought by agents. The clients talk to agents, they simply give the info to the lenders. Yes there were tons of programs making getting the mortgages easy.

I am not looking for who to blame here, I am simply surprised that the same people sold properties promising profits, and now selling them for the same people, and even though instead of profit they deal with losses, they still deal with the same agents.

I think we all try to retain our clients. I do not think though that I would be able to pull something like that.

Feb 05, 2008 05:41 PM
Jesse Clifton
Jesse Clifton & Associates - Fairbanks, AK
Very interesting.  I would be willing to bet the buyers, who are now sellers, didn't know they were being sold down the river.  Understand I'm not making an accusation, but the agent who sold them the house may be blaming the loss of equity on lenders or just an unexpected market turn.  If the buyers had the same level of information we do, they would have been in a better position to forecast a slowdown and probably wouldn't' have bought.  Now that they are in a situation where a short sale is needed, they return to the same agents... because they probably just don't know any better.
Feb 05, 2008 05:48 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Absolutely correct. The agents actually lost a couple of their own properties this way. And still, it is quite a phenomenon.

 

Feb 06, 2008 04:41 PM
Jenniffer Lee
RE/MAX Complete Solutions - Boca Raton, FL
Broker/Owner/Realtor at RE/MAX Complete Solutions
Some people bought eventhough they were warned.  If you warned them the you did not screw them even if they got screwed.  There's nothing wrong with trying to help them.  Greed won over good advice and the bottom line is that they need help now.  If you can help then you are not screwing them.
Feb 06, 2008 11:37 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Jennifer - OK, let's imagine that you succumbed to a promise, that sounded too good to be true, got into a contract and bought a home in a place unseen, as you expected to be able to flip it right away for a nice profit. And you couldn't. The market changed. The agent, who sold you the house (remember, because you would flip it and make money), now can't sell it, and can't rent it.

You are destined to lose money. Your deposit, a year or two of mortgage payments. It will hurt your credit history. You understand that nobody can predict the market, the the final responsibility is yours, etc.

WILL YOU LIST WITH THE SAME AGENT? It is not about helping out, it is first getting someone into something, and then change your ways 180 degrees and make money on the same client second time.

My sense of whatever there tells me that you make money when they make money. You may make money when they still lose, when you are helping them out. But making it both ways is what puzzled me.

Please, there are tons of agents. My only point was that I could not get it when people deal with the same agent who put them in this situation. Of course, it is incredibly convenient.

Feb 07, 2008 01:13 AM
Simon Conway
Orlando Area Real Estate Services - Orlando, FL
Jon - very interesting piece. Obviously this is some small town in Flagler - e-mail me any beach property up there please! We can do some business. Now then, back to the main point. For whatever reason, some people feel comfortable dealing with people from the same original culture. Personally I don't understand it either, but I too have seen it myself.
Feb 10, 2008 02:34 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Simon - I will e-mail you some info. Always good to add business.

As for the phenomenon, there is one, I think, explanation, that first missed my mind. This is a mirror of the morals in the society. In Russia screwing others is quite a popular sport, and people often screw others and are screwed by others. So, they tend to see it as part of living.

After this blog was posted I had a Russian speaking couple referred by a Russian Food store come to us. They are looking for a place to open the business and buy a home. One of the areas is Orlando, and I told them that in Orlando I can refer them to terrific Realtor. The first thing was that they would only work with Russian agent. Why? Because Russians would better understand their specific needs(?). What surprises me is that they do not have problem speaking and understanding English.

Go figure

Feb 12, 2008 01:47 AM