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Realtors vs. Real Estate Investors - How can we speak the same language?

By
Services for Real Estate Pros with www.JKKPropertyInvestors.com

OK, so here's the thing..

I'm an investor.  I am not a Realtor.  Everything I buy and sell is my own.  I have purchased about 120 properties in the past 4 years.  Rarely is a Realtor involved.

However, anytime a Realtor is involved, I gladly pay the commission.  I always have my for sale properties listed on the MLS, mostly so buyers can find them on Listing Book.  Years ago, it was rare for a Realtor to show one of my listings.  Rumor had it that Realtors didn't like working with investors or "for-sale-by-owners" as we're often known.  Today, I get a lot of Realtor showings.

Here's my current delimma.  I have had my real estate license.  Years and years ago.. I worked as a Realtor.  I have continued to take Realtor classes over the years and now I no longer have my license.  Point being, I have been to a lot of the training offered to Realtors.

I am getting to my point...

Today, I made a Realtor very mad.  Here's what happened and I'm still not sure I was wrong, though he is very sure I was.

I had a property listed.  We had a gorgeous weekend and I think I had 7 showings in about 3 days. Sunday, March 7, I got an offer from Realtor 1.  He said his client had looked at it some time before and was calling back from out of state to now make an offer.  The offer was low so Monday morning I sent him a list of all we'd done to the property and the lowest price I could accept and why.  I did not hear from him on Monday.  I did not hear from him on Tuesday.

I also told him on Sunday and Monday that it was getting a lot of showings, probably because of the weather and the fact that we had dropped the price. 

Tuesday afternoon, another Realtor called to show the house.  Tuesday evening, I got home from yoga at 9:30pm and had an offer in my email from Realtor 2 for full price.  I called and talked with him and told him we would take the offer and I would fax him the signed documents in the morning.

Wednesday morning, I got another offer from Realtor 1 for less than I had explained to be my minimum.  I emailed to tell him I had accepted another offer at 9:30pm the night before. 

Realtor 1 was very upset that he was not informed that there were multiple offers.  I said, "there weren't.  Until late last night, your's was the only offer but I hadn't heard from you in over 48 hours.  I didn't even know if your client was still interested after my counter offer."

Here's my question, finally.  He says I should have called him to tell him I had a better offer and I should have asked both buyers for their "highest and best".  I said, "really?  I should have told the Realtor with a full price offer that I'd have to call to check with you first even after all the time you'd had to respond to my counter?"

What do you say?  Obviously, I don't know the Realtor world but I do think we all need to be able to play well together.  Realtors can help my business and, with all the business I do, I can certainly help a Realtor's income.  Was I supposed to call Realtor 1 before accepting offer 2?  Would you have?

Realtor 1 immediately said, "this is why I don't like to work with for-sale-by-owners" and that I was going to alienate myself from the local Realtors.  I would like to know the majority consensus.  I told him that I thought he took a long time to do this deal and that I would never sit on an offer or counter offer that long if interested.  If he's willing to wait almost 3 days to respond, I would think he could lose a lot of deals.

Thanks for your input!

Donnie Worley
A Team Real Estate Professionals - Johnson City, TN

Communication is the name of the game.  Your letter to Realtor 1's client describing the terms and price you would consider put the ball back into their court.  If they were serious then Realtor 1 should have made contact to let you know there intentions.  Since 2 days went by with no contact I would consider it "you snooze you lose".

Congratulations on the closing.  I wish you many more!

Mar 11, 2010 08:21 AM
Larry Estabrooks
Independent Real Estate Agent - Moncton, NB
100% representation means NEVER DUAL AGENCY !

Question - In the laws of North Carolina, do "offers" that have to do with the purchase and sale of real property have to be in writing?

Mar 11, 2010 08:28 AM
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

The first two things I learned in real estate scholl is MOL, and time is of the essence. The person who should be angry is realtor 1's client.

Mar 11, 2010 10:03 AM
Ted Tyndall
Davidson Realty Inc. - Saint Augustine, FL
I will help You find the Home YOU want to Buy

karen, I am like everyone else. You handled it properly. The other agent could have stayed in touch but failed to do so. Your goal was to sell it to the first fair offer and that is what you did.

Mar 11, 2010 10:30 AM
Jonathan Smith
Haynes, ND

You didn't do anything wrong.  Realtor #1 should have come back to you right away if his client was that interested in the home. 

 

Mar 11, 2010 11:10 AM
Nu Nu
777S INC (Videos by Vegas Bob) - Las Vegas, NV

I understand some of your post because my husband is a Realtor & Real Estate investor, and by reading the comments I am on your side.

Mar 11, 2010 12:18 PM
Esko Kiuru
Bethesda, MD

Karen,

The first agent was just slow on the draw and low on the price and lost a deal. That's it. You didn't have to tell him anything about the offer you accepted.

Mar 11, 2010 12:19 PM
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Oh Brother.

Karen, you obviously understand FAR more about RE than that R.

The ones who haven't made an offer, but keep calling the listing agent  'ordering' them to keep them apprised if any offers come in are just as bad.

Make the offer or don't make it, but quit playing games and then blaming the LA when you LOSE.

Mar 11, 2010 12:22 PM
John Novak
Keller Williams Realty The Marketplace - Las Vegas, NV
Henderson, Las Vegas and Summerlin Real Estate

Hi Karen - It's unanimous here (me and my dog) that you absolutely did nothing wrong. Sundance also thinks it's a good idea to reward yourself with your favorite treat for getting full price!

Mar 11, 2010 12:29 PM
Lorraine Santirosa
HomeSmart Realty West - San Diego, CA
#1 San Diego Military Relocation Expert!

Realtor #1 knew he had blown the deal and was looking for someone to blame. It happens all the time.

Mar 11, 2010 02:35 PM
Aaron Vaughn 830-358-0455
Conifer Builders LLC - Canyon Lake, TX

Hello:

I think the most important thing to gage a real estate investor is to really dig deep and find out how savvy they are.

Mar 11, 2010 02:55 PM
Samantha Davault
Alexander Chandler Realty - Fort Worth, TX
Fort Worth, TX

Hi Karen,

You did respond to him and tried to communicate with him the fact that you expected to have activity on the property.  He should have stayed in communication with you.  You gave him the facts and he didn't move forward until it was too late.  I understand that he may not have been able to get it together before you received your full price offer, but it is not your problem that he is not in place to act more quickly.  You snooze you lose in this business and you gave him plenty of opportunity to respond to you and let you know if he was bringing a better offer.  He failed to do so and that is his client's loss, but not your responsibility.

Mar 11, 2010 04:48 PM
Karen Rittenhouse
www.JKKPropertyInvestors.com - Greensboro, NC
Real Estate Investor

Larry: 

Original offers are almost always in writing. The counters are often then verbal, until agreement is reached at which time everything is, once again, put in writing.

Offers and counteroffers do not have to be in writing however, to be ENFORCEABLE, they must be in writing.

Mar 11, 2010 11:44 PM
Karen Rittenhouse
www.JKKPropertyInvestors.com - Greensboro, NC
Real Estate Investor

Thanks, Sundance, I will give myself a reward when it closes!  An offer can be such a long way from a closing!

Mar 11, 2010 11:46 PM
Sarah Rummage
Benchmark Realty LLC, Nashville TN 615.516.5233 - Nashville, TN
Love Being Realtor® in the Nashville TN Area!

Realtor 1 is just playing games.  You were more helpful to him than I would have been. I would have ignored him.  He's a big boy. He should have known that a better offer can always come in and be accepted. 

People think that in this market they can tease you, play hard to get, and get you to settle for a lot less than list price.  Ocassionally they can, but a lot of times they lose out.

Sarah

Mar 13, 2010 12:59 AM
Karen Rittenhouse
www.JKKPropertyInvestors.com - Greensboro, NC
Real Estate Investor

Sarah:

I am shocked by the rude attitude of, truly, most realtors when they call me.  Rarely are they nice.  Usually they start with a real attitude and tell me everything they noticed wrong with my property.  At that point, I can't print here what I think to myself, but I absolutely DO NOT want them to get the sale.

I think they are doing it as a way to convince me my house is worth less than I'm asking.  I prefer to believe that, anyway, rather than that the profession attracts people with no social skills. 

But, what I truly think after our initial conversation is that they are idiots, they don't know what they're doing and they're not going to make any commission off my house.

Believe me, you get more closings by being nice!

Mar 13, 2010 01:13 AM
Janie Killian-Sullivan
Killian Properties (Oklahoma & Texas) - Waxahachie, TX

I agree you did nothing wrong but I'm stuck on one statement you made.  You said you "listed" your property.  If you aren't currently licensed, my I ask what you mean by listing your property without a Realtor involved.  Just curious. 

Mar 13, 2010 07:27 AM
Karen Rittenhouse
www.JKKPropertyInvestors.com - Greensboro, NC
Real Estate Investor

I pay a Realtor to list my properties for me.  Mine is always the contact information on the listing.  Many "for sale by owners" are listed that way on the MLS.

Mar 13, 2010 07:35 AM
Anonymous
Jill Holden

Karen, I'm a fairly new investor. I've recently been told by a Realtor, I should get my license as I will earn more money in the long run. I'm not so sure. I've been self employed since 1987 as marketing consultant but am a bit burned out and really like the investor side of RE. What do you think, since you've been on both sides... I guess the obvious answer would be - be an investor w/o license?

Apr 28, 2011 02:58 PM
#50
Karen Rittenhouse
www.JKKPropertyInvestors.com - Greensboro, NC
Real Estate Investor

Jill:  I am an investor.  I used to have my license but I let it go.  I make a lot more money investing than I ever could as a Realtor.  I work with Realtors and have 2 who work for me full time to run my property managment company.

No matter what you decide, you need to own some rental properties; I believe everyone does.  It's hard to save enough from a w-2 job to retire, but rentals secure your retirement quickly.

I hope you will check out my blog www.KarensPerspective.com and read all the articles I've written about real estate investing.  I believe in it 100% and have many successful students who also believe in it.  Owning real estate is a great way to create huge, long-term wealth.

By the way, a number of my students invest part or full-time but also have their real estate license.  You can certainly do both!

Thanks for asking.

Apr 28, 2011 03:18 PM