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I was sent another referral yesterday, but I’m worried about him already

Yesterday I was sent a referral from a mortgage broker that I met through another agent in another state, but this referral has me worried. This potential client had already been pre-approved and was already somewhat actively looking when I first talked to him.

He said he had found a place that he liked. I happened to be next door to it at a friend's house and said if he wanted to see it, I would wait here for him. He showed up, loved it and was ready to put in an offer until he found out the HOA dues. Not a problem, I can understand that, it was going to raise his monthly costs nearly $300 a month more than he wanted to pay.

So, I asked him how he had been getting into the properties that he has been seeing and he said he had been calling the listing agent. I told him this was unwise as they represent the seller and not him and I would love to sit down with him and discuss why he should have exclusive representation. He said fine and we scheduled an appointment for the next day. He called 15 minutes before our appointment and canceled and then I got a call from his mortgage broker that he had found a FSBO that told him that if he bought without an agent that she would lower the price by 2.5%.

This concerned the mortgage broker and he wanted me to look into it a little and make sure he wasn't walking in to something that could be a ticking time bomb. Well, this buyer was walking in to something that wasn't being told to him. This FSBO wasn't exactly your typical FSBO, they were an agent! Now, you can do this in Oregon, but I wouldn't advise it. The problem is, by law, you have to disclose that to a potential buyer or seller in a real estate transaction that you are an agent, and this person didn't.

I've told the mortgage broker to tell his client that he needs to proceed with caution. At this point, this person is already doing some shady things and not disclosing other things as well, like some things I found out about the property.

If you are a buyer looking into buying a property, than I suggest you get representation. You wouldn't go in to a court room without a lawyer, why would you go in to the biggest transaction of your life without an agent?

Todd Clark - broker
Kastings & Associates
Phone: (503)524-9494
Fax: (503)622-8739

Photo courtesy of Woodsy

Posted by Todd Clark (Broker) (503)524-9494 (Beaverton, Oregon Real Estate Expert) on 08/04/2008 08:54 AM

Comments (11)

new client, self representation, fsbo, listing agent, commission, savings, beaverton oregon real estate, tigard oregon real estate

Originally posted at: Living Beaverton - Your guide to everything Beaverton: I was sent another referral yesterday, but I’m worried about him already

This post has been included in Oregon Information Washington County, OR Information
Post is included in group: 1st Time Buyers

11 Comments on I was sent another referral yesterday, but I’m worried about him already

AUG

2008

Sounds like a fun buyer. Hopefully it works out in the end.

Todd - This has disaster written all over it. While it is certainly possible to buy or sell a home on your own, very few people take the time to learn how to do it well. Most agents provide a valuable service! The fact that the agent selling the listing is not abiding by the law and is being shady initially is disgusting. Additionally, as you are well aware, they are setting themselves up for a lawsuit.

Agent should disclose. It is the law in Virginia. Not having a buyers agent is always asking for trouble!

Many people have disdain for agents and they can "do it themselves". I don't doubt some can do it themselves, if they know what due diligence, CIC resale packet, SRPD, contingencies, etc are!

The last one I refused to do a dual agency with on a listing of mine I made him sign everything. He had to sign that he refused representation. I tried to get him appointments for inspections and a walk through, no thanks, he didn't need those! Got that in writing too.

Oh yea, there were tears after closing when a couple of things were wrong with the property that didn't have an SRPD because my client hadn't lived there for years.

I had to remind him, sorry, I went out of my way and pushed for you to get those inspections & walk through done but you didn't think they were necessary.

I wanted to add to that last sentence: because you know everything about real estate transactions and us Realtors "don't earn our money."

Direct quotes!

Hi Todd:

Here too in Florida it is mandatory to disclose that the seller is an owner/agent. The reasons should be obvious; an agent should have more knowledge than the buyer/seller, etc. We have so little control over what people say and do. Sometimes the buyer is his own worst enemy.

Todd- In New York an agent has to disclose interest in a sale- This is an ethics issue. It never ceases to amaze me that agents will do whatever they please with total disregard for the code of ethics- although this agent maybe a licensee but not a Realtor- So maybe he does not have to live by a code- This is why we need to tell people that they need to work with a REALTOR. Good luck with this potential client!

AUG

2008

Todd that's scary and he may come crying to you later. Poor guy it's sad that some people just don't realize how much money that 2.5% could save them in the long run. By the way is that 2.5% before or after the negotiated price?

People hear bargain and their senses seem to fly right out the window. Hopefully he'll come back to you and let you help him make an informed decision.

Todd - great post, especially the last paragraph! Well, you've done all you can to warn this buyer. I hope they heed your warning before it's too late.

AUG

2008

Chuck - I hope it does for them also, I'm actually more worried about the agent losing their license over the slightest disagreement.

Erik - I think not mentioning that and trying to pass it off to the buyer as a FSBO is very foolish!

Pat - It is the law here also, but you can disclose it on any form. I think it is foolish to even get this far without mentioning it.

AUG

2008

Renee - WOW! That is so sad, but hopefully next time he will realize that we earn our money and know what we are talking about!

Mott - I couldn't agree more that a buyer can be their own worst enemy.

Barbara - I think this person will reveal they are an agent to this buyer long after the buyer has told them everything about themselves and give away all negotiating power. (SO SAD)

Mandi - I'm guessing long before, so he really isn't saving anything, I could have gotten him 2% less in price by showing the comps and then had that agent paying his closing costs of 3%.

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