Are You Accepting Short Sale Referrals Like This? Maybe You Shouldn't

Real Estate Agent with RE/MAX of Orange Beach

Real estate can't get any easier than someone from out of state handing you a new listing and the buyer for it, right?  A referral inquiry comes in and not only is the referring agent handing you a listing, but is handing you the buyer as well.  Here is a copy of the latest email I received.

"We have a client that has a home in your area that he needs to sell, short sale. We also have a buyer (investor) lined up...he is aware of the time involved in a short sale, and is purchasing another one of our client's homes here in my home state. Would you be interested in the referral? We would ask for 25% each side. Let us know what you think."

Would you take it?  As for me, I turned it down.  I do list and sell short sales, but this type is not what I choose to risk my license for as it just oozes implications of fraud.  Lately, I have noticed an increase of referring agents from other states calling me with this same or similar scenerio.  What do you think ActiveRain? Do you accept referrals like this one?

Comments (7)

James K Barath, CMPS
Canopy Mortgage, LLC - Crown Point, IN
FICO Pro, Certified Military Housing Specialist

The word no can be very empowering in business and in life. Understanding your niche definitely brings clarity to a question such as this.

Nov 04, 2009 10:47 AM
Teresa Cox King
RE/MAX of Orange Beach - Orange Beach, AL
Orange Beach and Gulf Shores, Alabama

James- I am noticing that many local agents are taking these listings as they are not aware of the potential for fraud.

Nov 04, 2009 10:52 AM
David Salvato
David Home Inspection Service Home Inspector San Bernardino - Los Angeles, CA

Teresa I hope everyone is reading this! Good information...

Nov 04, 2009 11:14 AM
Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes

We would turn it down as well -- some things are not worth taking.

Nov 04, 2009 11:26 AM
Teresa Cox King
RE/MAX of Orange Beach - Orange Beach, AL
Orange Beach and Gulf Shores, Alabama

David- Thanks for your comment.  On the surface it sounds great, but in reality...not so wonderful.

Bob and Carolin-  I've been watching a few local agents participate in this sort of thing and frankly, I can't participate in a deal where a third party puts my seller and my buyer together, sets the price and then lays it out for my license and E&O to handle.  Have they not heard of the "Affidavit of Arm's Length Transaction" all parties must sign?

Nov 04, 2009 01:25 PM
Robert L. Brown - Grand Rapids, MI
Grand Rapids Real Estate Bellabay Realty, West Mic

Not worth the time and hassle. But then again some people would jump at the chance to do the deal.

Nov 04, 2009 02:14 PM
Thesa Chambers
West + Main - Bend, OR
Principal Broker - Licensed in Oregon

I have not seen anything of the sort - but we are not seeing investors buying - I would certainly have a ton of questions - "Arms Length" and I certainly would not want to participate in dual agency (although allowed in Oregon) on a short sale..... If is smells bad it usually is not worth putting in your mouth - because when it hits your stomach you will regret it same goes in Real Estate - if it smells bad - better to trust your gut to a better meal.

Nov 21, 2009 04:57 PM