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Agent? Lender? Contractor?

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Real Estate Agent with Alain Pinel Realtors

Recently, I began to work with a lovely couple, that was looking to purchase their very first home together. As always, I advised them to speak with a mortgage professional to pre-approve them for financing. They did as I requested, and we were off and running.

One day, I received a random call from someone identifying himself as the lender for my clients. This was not the individual that they were previously pre-approved with. He tells me that he had shown my clients the very same home that I had shown them. Immediately, a red flag went up in my head. I asked exactly who this guy was, and why as a lender, he is showing my clients a home?? He states he is a family "friend", that is a lender and has a real estate license.

I speak with my buyer, and this is the original lender that they had tried to contact. Go figure, it took him a few weeks to get back to them. My client didn't realize this was out of the ordinary, so he told me how he did meet him at the property they were thinking of pursuing with me. The lender/agent had also told my buyers/now friends that he was also a licensed contractor. He tells them that I would not be able to point out faults of the home, since I am just an agent. I work hand in hand with a very experienced group of professionals, that would be able to give the home a thorough inspection, so I would see to it that they were taken care of.

Long story short, the lender/agent/contractor convinces them to write the offer with him. It ends up this individual does not even have his NMLS number and flies around the state, representing others in this manner as well. The buyers did not get their home either.

Although a partial vent, this is also a lesson to those buyers out there. You want to form a relationship with an agent that has your best interests at heart. There are some very reliable professionals that double as a mortgage and real estate professional, so this blog is in no way meant to belittle them.

One should work with a REALTOR® that is familiar with the market you choose to purchase in, works in the profession full time, has your best interests at heart, does not talk down on his colleagues to gain the upper hand, responds to you in a timely manner, and has experience as a real estate professional specifically.

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Ryan Nunnally - Alain Pinel Realtors - Silicon Valley, California  www.RyanNunnally.com   www.facebook.com/nunnallyrealestate                                                        

Ryan Nunnally can be reached at (408) 568-4552 or via email at rnunnally@apr.com

 

 

Show All Comments Sort:
Karen Feltman
Cedar Rapids/Iowa City, IA KW Legacy Group - Cedar Rapids, IA
Relocation Specialist in Cedar Rapids, Iowa

Welcome to the Rain!  Looks like your buyers stepped into quite the pickle in dealing with a family "friend". In the future, I would suggest that you ask a few more questions of your new buyers, perhaps in the form of sitting down for a homebuyer consultation to go over some of these situations.  Too bad that they were lured into a position where they did not get the home that they wanted.  I hope that you will have success with them and many others in the future.

Jan 26, 2012 05:15 AM
Ryan Nunnally
Alain Pinel Realtors - Los Gatos, CA

Hello Karen, and thank you for the welcome! I forgot to mention that these clients were referred to me, I had dinner with them discussing the homebuying process, how agents will approach them at open houses, etc. This was a special case, with a special individual. I wish you many successes as well.

Jan 26, 2012 05:20 AM