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Realtor, you are Switzerland.

By
Real Estate Broker/Owner with Cornerstone Business Group Inc 0225086119

Realtor, you are Switzerland.  I had a company call me this past week asking me to do an interior BPO on a short sale.  It was in an area I tend to deny because of the distant and accessibility.  After I ran the price up, I said yes. 

On Saturday, I called the listing agent to gain access to the property.  He said, "Be careful.  This guy is uncooperative and dangerous.  Get in and get out as quick as possible.  The house is a mess.  Don't hang around."  I went wondering what I was going to encounter.

When I got there, I knocked on the door and the homeowner answered.  He said, "Come on in."  He was friendly, though a bit intoxicated.  We talked for a while.  I went through the house, did my assessment, took photos and talked to the owner.

What I learned in the process was that the listing agent is a friend of the wife in a divorce case.  He listed the house at a 30 day quick sale price.  It's a fine house which should be listed at 100% more Plugging his earthan it's listed at.  Area comps reveal it's radically under-priced.  It appears that the goal was to get the house sold as quickly as possible so the wife could be done with the marriage. 

Friends, we're Realtors, not law enforcement, not legal representatives, not marriage counselors, etc.  When we represent a client it should be a blank slate and for their benefit.  Divorce sales are not uncommon for most agents, and it is not in our best interest to side with one side of a marriage dispute no matter which partner we know. 

This house has an offer on it that is likely 50% of what it should sell for.  The homeowner asked me if he had to take the offer.  I almost hated to get involved at any level, but the truth is, "No."  I left it there and moved on.  Please, Realtors, be Switzerland when dealing with cases like this.  I would imagine there could be legal ramifications if we only represent one side of a couple in a divorce sale. 

Comments(51)

Denise Hamlin, Broker/Owner
Cardinal Realty ~ 319-400-0268 - Iowa City, IA
Helping Happy Clients Make Smart Choices

Killer title. Great post. Sometimes it's hard, but it's not our job to get involved, we do indeed need to be Switzerland. 

Nov 19, 2012 01:44 PM
Richard Bazinet /MBA, CRS, ABR
West USA Realty - Scottsdale, AZ
Phoenix Scottsdale. Sellers, Buyers & Relocations

Bingo Mike! The golden rule is never to get involved. But sometimes it is really difficult not to get sidetracked as some people gets abused or when you see a wrong being committed. Lets remember that there are always two sides to every story.

Nov 19, 2012 03:07 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M
Mike - That sounds like a mess waiting to happen never mind that the bank is unlikely to take the offer.
Nov 19, 2012 03:52 PM
Wayne Zuhl
Remax First Realty II - Cranford, NJ
The Last Name You'll Ever Need in Real Estate

Good morning Mike - great advice, and I'm sure you handled the situation correctly. We're not there to make friends or take sides in messy divorces.

Nov 19, 2012 07:45 PM
James Dray
Fathom Realty - Bentonville, AR

Mike congratulations on the feature.  Sometimes agents just don't get the idea we deal in real estate and not legal matters (custody, divorce and the like).  <!--[if gte mso 9]><xml> <w:WordDocument> <w:View>Normal</w:View> <w:Zoom>0</w:Zoom> <w:TrackMoves/> <w:TrackFormatting/> <w:PunctuationKerning/> <w:ValidateAgainstSchemas/> <w:SaveIfXMLInvalid>false</w:SaveIfXMLInvalid> <w:IgnoreMixedContent>false</w:IgnoreMixedContent> <w:AlwaysShowPlaceholderText>false</w:AlwaysShowPlaceholderText> <w:DoNotPromoteQF/> <w:LidThemeOther>EN-US</w:LidThemeOther> <w:LidThemeAsian>X-NONE</w:LidThemeAsian> <w:LidThemeComplexScript>X-NONE</w:LidThemeComplexScript> <w:Compatibility> <w:BreakWrappedTables/> <w:SnapToGridInCell/> <w:WrapTextWithPunct/> <w:UseAsianBreakRules/> <w:DontGrowAutofit/> <w:SplitPgBreakAndParaMark/> <w:DontVertAlignCellWithSp/> <w:DontBreakConstrainedForcedTables/> <w:DontVertAlignInTxbx/> <w:Word11KerningPairs/> <w:CachedColBalance/> </w:Compatibility> <m:mathPr> <m:mathFont m:val="Cambria Math"/> <m:brkBin m:val="before"/> <m:brkBinSub m:val="--"/> <m:smallFrac m:val="off"/> <m:dispDef/> <m:lMargin m:val="0"/> <m:rMargin m:val="0"/> <m:defJc m:val="centerGroup"/> <m:wrapIndent m:val="1440"/> <m:intLim m:val="subSup"/> <m:naryLim m:val="undOvr"/> </m:mathPr></w:WordDocument> </xml><![endif]-->

 

 

 

Nov 19, 2012 07:57 PM
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Mike.  It is agents like that that give us a bad name.

Nov 19, 2012 08:03 PM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Jeff, it was so far off that I couldn't imagine the bank even considering it.

Absolutely, Denise.

Very true, Richard.

I think your'e right, Christine.

I could definitely see it getting ugly, W & J.

You're right, James.  Have a great Tuesday.

It was definitely a Switzerland opportunity, Conrad.

Nov 19, 2012 08:50 PM
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By Real - Alexandria, VA
Alexandria Virginia Homes For Sale

Mike- This is such a well deserved feature. Divorce can be so messy, the last thing that needs to happen is an agent taking sides. It's sad to even hear that. If you can't represent both fairly due to a previous relationship it's time to refer it to someone who can. I hope this man gets the amount the house is worth, I know your BPO will help.

Nov 19, 2012 09:54 PM
Keith Lawrence
Christie's International - Mahwah, NJ
ABR, SFR

You are correct about being neutral in a divorce.  At the first meeting I usually try to meet with the Husband and wife together.  This way if there are any questions both hear the answer.

Nov 19, 2012 10:02 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

The last one I had, I sat both people down and had a long talk covering all things I could think of. Their response? No one has ever talked to us this way...thank you. EPILOGUE: I sold the place and everyone went their own way..Good post Coop

Nov 19, 2012 10:16 PM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Mike, you make a very good point. Our job isn't to takes side, but to market the property and get the seller the best price.

Nov 19, 2012 10:22 PM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Absolutely, Amanda.  Have a great Tuesday.

Keith, you and Richie have a great system. 

That's right, Michael.  Nothing more, nothing less. 

Nov 19, 2012 10:25 PM
Dana Hollish Hill
Hollish Hill Group, JPAR Stellar Living - Bethesda, MD
REALTOR * Broker * Coach

Mike - You are so right. These delicate situations require a level head and require a lot of tact. As an exclusive buyer's agent I am so used to representing only one side. Lately I have represented sevearl people headed for divorce and it is difficult, especially if they are friends.

You did the right thing by being Switzerland.

Nov 19, 2012 11:26 PM
Connie Harvey
Pilkerton Realtors - Brentwood, TN
Realtor - Nashville TN Real Estate

Mike, you did the right thing. One should never take sides in a divorce. It's not good business.

Nov 19, 2012 11:34 PM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Thanks, Dana.  Have a great Thanksgiving.

Never, Connie.  Have a great Thanksgiving.

Nov 20, 2012 01:17 AM
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Mike, I was representing the sellers who were going through a nasty divorce, he had his own Realtor, she found me and we both had to do CMA's and they were presented to the Judge and mine was chosen.
It was probably one of the most difficult transactions I've ever had. Not because it was difficult to sell but he did not want to cooperate and I had to work with his Attorney.
His agent's CMA was waayyyy under mine..clearly she wasn't being ethical and honest. Great Post!

Nov 20, 2012 05:37 AM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Beth, it's sad that any other agent would purposely try to manipulate the numbers, but it's obvious that it happens.  Have a great Thanksgiving!!

Nov 20, 2012 10:16 AM
Sussie Sutton
David Tracy Real Estate - Houston, TX
David Tracy Real Estate for Buyers & Sellers

I really don't like divorce cases in a resale. However, that is the one I am working right now. Hopefully they will net enough to pay the loan on the home and closing costs. They seem friendly to each other so I will see.

Nov 20, 2012 10:53 AM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

I've been fortunate to not have to deal with those, Sussie.  I'd like to keep that trend going.  8-)  Happy Thanksgiving.

Nov 20, 2012 10:56 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

That listing agent has also violated the COE by misleading a consumer about a property value. 

Then on the other hand, the gentleman who needs representation is simply letting things happen.  Not a good plan.

Nov 20, 2012 06:33 PM