Real Estate Blog - Wha da ya do here?

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Wha da ya do here?

My very first customer called me to list his condo...When he tried to buy a home from me...he was all cash, no checking account...had his cash in the mattress...

I told him to get a checking account and get with the program, so to speak...get a credit history and so on, and so on...

So, for some reason, he thought I was mad at him b/c he couldn't buy a home at that time...not the least bit true...I was just counselling him to help him out later.

So...some really abusive RE agent sold this guy (maybe 8th grade education...doesn't write in cursive, just print's his name...understand's the flipping thing though, not dumb by any mean's, quit school to take care of his mother, nice guy. So someone got hold of him. Sold him a home that might be worth $125K for $185K...he replaced the carpet...put new vinal flooring in the kitchen (should have been tile)...replaced the fridge with one a little better...and is redoing the bathroom...which is what he does for a living.

He calls me and says, "Karen, I need you to help me." I say, "X, what happened?" He said, "I bought this condo, I don't like the neighborhood, and I want to get out of here, please help me sell." I said, "How much did you pay for this?" He tell's me and my heart sink's.

He was so totally taken advantage of by this other agent who obviously knew that he didn't understand the market...He thought he was getting a great deal...He want's me to sell this property that is now worth about $130K for $225K...It will never happen. I have discussed this with him and he is heart broken...

What do you say to customer's who have trusted other agent's to be honest, when in fact THEY HAVE TOTALLY SCREWED THE CUSTOMER????

MAKES ME SICK...HE DOESN'T EVEN REMEMBER THE AGENT OR THEIR NAME...

WHAT DOES THAT TELL YOU?

WHAT DO YOU DO UNDER THESE CIRCUMSTANCES????

Posted by Karen Monsour,REALTOR® Broward,Palm Beach,Miami/Dade! 954-464-4194 anytime! on 05/07/2008 08:54 PM

Comments (12)

abusive agents, real estate, karen monsour, customers

Post is included in group: Realtors®
Post is included in group: Singles with positive attitudes
Post is included in group: Letters to Realtors,Attorneys,CPA's,Credit Bureaus

12 Comments on Wha da ya do here?

MAY

2008

In todays society you have to have credit. He could have been making interest n his money.

Shaun,

You know it and I know it. But I think with an 8th grade education, if that...he watched his mother put cash in the mattress...he didn't know better until I explained it to him. He's a really wonderful and nice person, who is trying to do the right thing, with little education...

Now he know's he can trust me...I help him and he appreciates it!

There's nothing you can do, Karen. This is a lesson to him and a good one too. You've had a long-standing relationship yet he goes elsewhere. He will either hold on and rent it out or he'll take a huge loss. Either way, I bet he sticks with you from here on out.

Tchaka,

Yes, you are right, he will stick with me and he told me he won't ever do it again. He has his eye on another property, however he has to sell this one first and he will not get $225 for this property and he doesn't want to rent it. He wants to be a flipper. I told him...he made a mistake and he agree's...

This place might sell, with improvements, for about $150K in this market and he paid $185K...he got screwed and he know's it...I cannot preform miracles for him, but he is a nice guy, just need's help. He can't even really read the contract's and so on. Doesn't know the name of the agent who sold him this condo...which really makes me even madder as, this agent had to know, he didn't understand the contract he was signing and totally took advantage of him. Sad, so sad. Know he is looking to me to fix it. What to do???

You hold his hand, look into his eyes and tell him the truth about the market and how he was 'had'. Then you tell him that the market will eventually turn around and ask him to stick it out until it's a better time to sell.

MAY

2008

Nancy,

We had this conversation already and he said, "I'm not going to do anything else without you!" He understands that he needed to trust me. It was his Aunt who told him to buy this property...I told him he lost about $50K...so sad. I like this guy, he's very nice and I wish he would have called me...then again...some people trust their relatives over a Real Estate agent...why. you tell me, I don't know.

MAY

2008

I'm confused. He was a cash buyer when he initially contacted you and you didn't help him because you wanted him to get credit going, a bank account, etc? He didn't need any of that if he was purchasing for cash. I've met many people who are cash-under-the-mattress people. Their choices, not my business. (Or am I missing something/mis-reading your post?)

The price drop that you noted is probably not out of the norm from what I've been reading about in other blogs in your area. (Agent blogs that regularly give updates on market conditions. Fascinating reading for those of us who are interested in what is going on in all areas of the country.) He may have paid current market price 2 years ago, and saw his values plummeting along with the rest of the areas prices so that it is worth much less now.

It doesn't mean the agent lied to him or raked him over the coals. I would be carefully looking at the raw hard data from the sales when he purchased to make sure I'm correct before badmouthing another agent publicly. But thats me..I don't like badmouthing.

Just give him the facts. "Your home is now worth $XXX. The market is what it is. How would you like to proceed?"

Kris - I believe you misunderstood Karen's blog. Her client is an all-cash transaction type. Her recommendation about opening a bank account etc, is to help him establish credit for future ventures. It didn't have anything to do with this particular transaction where he screwed himself by not working with her on the purchase.

Karen - does he still have his original purchase contract? Is the agent listed anywhere? I'm guessing this home was never on the MLS so you can't track the agent down that way either. Bottom line: he's going to take it on the chin but that's part of being a flipper. He will then stick with you and he'll make that money back in one flip and from there on profit. He's lucky to have you working with him, you're not trying to make a fast buck, you actually care about his overall welfare.

Tchaka: Why would the first agent need to be tracked down? (I'm still missing something apparently)

And yes, I missed something the first time around. The first paragraph in the post confused me.

My point was this: He may not have been taken advantage of the first time around...the market has plummeted over the last couple of years. His situation sounds like the norm, not the exception. I personally would be uncomfortable stating that he was taken advantage of simply because the value of his home took a nosedive over the last couple of years. We would all be guilty of taking advantage of clients then wouldn't we? Hogwash.

Kris - I will let Karen answer your questions. From what I gather, the agent she cannot find is the one who sold him the house. I understand the issue of markets dropping, but this guy is a flipper - he doesn't hold property very long. I doubt he's owned this house more than several months. And as bad as our market is, I can't see a home going from a legit $185k to $125k in 2 months.

Tchaka: I must be really confused...(not the first time :-) Karen stated it was her very first client. I believe she's been in the business a couple of years, not a couple of months.

Karen - Wake up!!!!! Start bloggin'.

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