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Respect my Relationships

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Mortgage and Lending with Mortgages in AZ, CA, CO, DE, FL, GA, IN, MD, MN, MT, NC, NJ, NV, OK, OR, PA, SC, SD, TN, TX, UT, VA, WI NMLS #138061 MMCD #1141

Respect my Relationships

 

 

     When doing a real estate transaction, my top priority is my borrower.  Nearly as important is their agent.  Also important to me is my relationship with the listing agent on a purchase transaction.  When everyone is on the same team, communicating, and working toward the same goal, things just go better, and business is much more pleasant than when one party is trying to steal the show or is hostile toward other sides.

 

buyer lender relationship

 

     While I try to accommodate listing agents because I know they've got anxious sellers and sometimes not knowing what's going on with the other side can drive a person cuckoo, sometimes we approach what I call "the line".  You don't cross the line.  Or I will call you out, albeit kindly.  One way a listing agent can cross the line is calling while in negotiation with my borrowers and their agents to ask "can they afford more?".  

 

 

     I don't say yes.  I don't say no.  I simply ask, "if I were working with a buyer that you represented, how would you want me to answer this question?".  100% of the time they've understood and not pressed further.  I understand the different scenarios where a buyers purchasing power is important to understand - perhaps you're trying to put a deal together and the numbers are close based on the preapproval letter but not quite where they need to be.  Perhaps you're prying, trying to squeeze some info to strengthen your seller's position?  It's not my position to decide which it is, so please respect my relationship and speak with the buyer's agent to negotiate.

 

 

     Recently, I've had the seller's side reach out to ask me about an application in process, to - not generic "how are things going" type questions.  Instead, loan specific questions like "what are the conditions on the approval?".  My response was a simple "please contact the buyer's agent with any questions related to the buyer or their loan application as I'm providing updates to them along the way". Seriously folks, respect my relationship with the borrower & their agent.    

 

 

     If an agent is being unresponsive or hostile, sure, pick up the phone and give me a call.  But bypassing the buyer's agent and coming straight to me on buyer details and updates?  Give me a break.  Respect my relationships, and let's go to settlement.

Posted by

John Meussner
NMLS ID #138061

It's more than a house - it's home.  So we offer a wide range of mortgage products at competitive prices to help our clients achieve financial security at home.  While we get great feedback on our prices and products, many clients say their favorite part of working with John Meussner & MasonMac is the level of service provided along the way.

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Comments (43)

Sham Reddy CRS
Howard Hanna RE Services, Dayton, OH - Dayton, OH
CRS

Great strategies!!!

One way a listing agent can cross the line is calling while in negotiation with my borrowers and their agents to ask "can they afford more?".  

Sep 14, 2016 09:38 PM
John Meussner

Thanks Sham!

Sep 15, 2016 06:51 AM
Les & Sarah Oswald
Realty One Group - Eastvale, CA
Broker, Realtor and Investor

I have called  loan officer as a LA and BA. My duty is to represent my client. Representing my buyers, I expect a full disclosure to their qualifications. As LA receiving offers, my responsibility is to make sure the qualifications are to par. Do I advise my sellers that the buyers are stretched to the max? That if interest rates rose at the end of the month, they would no longer qualify??What if the proposed contract states 30 days but the buyer is ready and qualified to close shortly after due diligence? During multiple offers, a buyer who is able to close sooner might be a stronger buyer than one who offers a higher  price but needs a 45 day escrow because lender can't close sooner. There is definitely a fine line to what LA can and should ask, but as long as we all know our boundaries, we should be OK.

Sep 14, 2016 10:24 PM
John Meussner

It's tough though --- what if a lender says "Oh yes, we can close in 2 weeks!" and then 2 weeks passes, and you hit delay after delay, resulting in the 45 day close?  That happens all the time.....when speaking with listing agents, honesty can unfairly be used against you.  Until that changes, the relationship can never be one of complete trust and open communication.

Sep 15, 2016 06:51 AM
Debbie Gartner
The Flooring Girl - White Plains, NY
The Flooring Girl & Blog Stylist -Dynamo Marketers

Oh yes, this is a good approach and so is that line.   It works both for the immediate transation and future relationships.

Sep 14, 2016 10:28 PM
John Meussner

Thanks Debbie, appreciate that.  I've always thought "If I divulge all of this information, woudl you ever refer a buyer to me in the future?".  The answer is no, or at least it shoudl be.

Sep 15, 2016 06:50 AM
Harry F. D'Elia III
WEDO Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

People do not respect the chain of command.

Sep 14, 2016 11:05 PM
John Meussner

In our industry, the chain of command can slow things down, and we all know patience is a quality of the past!

Sep 15, 2016 06:49 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning John Meussner ,

I certainly like to respect the loan officers relationships but I like Michael Jacobs always call the lender for exactly the same reasons " do they answer the phone or return a call promptly as well as their demeanor.  Are they helpful?  Are they responsive?  Do they seem knowledgeable?  It's not a science nor an interrogation." I expect an weekly update on the loan and sometimes have used a lender for one of my buyers because of their superior level of service.    

Sep 14, 2016 11:15 PM
John Meussner

Amen to that, Dorrie.  No issues with finding out if an LO is worth their salt!

Sep 15, 2016 06:49 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Many people are good at telling others exactly what they want to hear. Me, I keep score by results which even if they are whispered talk louder than anything

Sep 14, 2016 11:56 PM
John Meussner

Actions speak louder than words, for sure.  While nobody's perfect, I maintain a pretty solid track record, which I let speak for itself.

Sep 15, 2016 06:49 AM
Debb Janes
Nature As Neighbors - Camas, WA
Put My Love of Nature At Work for You

I think we have a responsbility to ensure a buyer can perform when they make an offer. I always talk to the loan officer about the buyer's ability to perform and if they are pre-approved, or just pre-qualified. I too expect updates from the lender regarding the progress of the loan, or a heads up if there are any issues raised. I agree though, we work as a team and don't cross the line, regardless of who we represent. 

Sep 15, 2016 12:07 AM
John Meussner

I agree you should be confident things will move to closing if put into contract, that's perfectly fair.  I don't have time to give the same info to you, the buyer, and the buyer's agent, though --- I update my client and their representation, and leave further communication amongst them and the listing agent.  That said, I DO update the listing agent regularly on normal progress, but I'm not going to divulge things like "what are the underwriting conditions?" because it can lead to an unnecessary wormhole of wasted time.

Sep 15, 2016 06:48 AM
Mike Reyman
eXp Realty - Media, PA
Delaware County Real Estate

Congrats John Meussner  on the featured post!  I think this is VERY appropriate as the ethical conduct of some Realtors seems to be slipping.  I think your response is right on target and if an agent continues to push, you have every right to take a tougher stance.  "Treat people as you wish to be treated" is a good motto that folks in our industry should remember more often. 

Sep 15, 2016 12:07 AM
John Meussner

Thanks Mike, couldn't agree more!

Sep 15, 2016 06:46 AM
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

John Meussner 

Earlier it was a seller market. Loan agents were proactively contacting lisitng agent to give them a strong buyer signal  and promise on time closing.  The out of town agents/banks with unknown loan agents offers are thrown out to ascertain the loan will be executed in a timely manner. Reputation of the loan officer counts here.  Same with buyer agents.  Condition softens a bit lately but same scienario applies.

Sep 15, 2016 12:19 AM
John Meussner

An unknown loan officer could be the best on you've ever worked with, though - it could be a disadvantage to turn them away, too.  Asking how a pre-approval is done, or vetting their buyers offers are 2 ways to see how good an LO is, whether near or far

Sep 15, 2016 06:46 AM
Jeanne Gregory
RE/MAX Southwest - Sugar Land, TX
The most important home I sell is YOURS!

Loan officers have my respect.  However as the listing agent, sometimes we are kept in the dark. Right now I have a listing that should have closed 2 weeks ago.  Now they are saying next Wednesday.  The loan officer won't talk to the buyer's agent because he is mad at her.  I sent an email yesterday just politely asking if we could get an anticipated close date we could count on, as my sellers are purchasing another home.  Crickets.... At the beginning of this transaction, I was told  (without asking) by the loan officer that everything was "good to go".  Now, I'm hearing, "this was a marginal loan to begin with". I'm a big girl.  I can take bad news, but don't lie or disappear when problems start.  I have a client to represent and I will always do my best to do just that!

Sep 15, 2016 02:11 AM
John Meussner

Could of things here:  Re: the "The loan officer won't talk to the buyer's agent because he is mad at her" --- I thought we had to be 18 years old or older to work in this industry - that's just childish if all communication is dropped from all parties.  Although, I've had listing agents and buyers agents become inappropriately aggressive in following up, and I've cut off communication for that reason, until of course there was an update, at which point everyone gets filled in.


 


It's tough out there --- if you're a listing agent calling, what is an LO supposed to say?  "Oh you have a multiple offer situation?  Well, our borrower is broke and pretty marginal but we may be able to get the deal done!" ---- we'd be out of business pretty quickly.  This is why a listing agent calling the lender is pretty unnecessary - a better option would be to have a lending partner vetting offers.


 


I don't ever lie, but I also don't divulge things to listing agents that could create issues for my buyers.

Sep 15, 2016 06:45 AM
Mike Bjork
Evolve Bank & Trust - Redondo Beach, CA

Great post, John.  Yes, this occurs from time to time.  I usually defer the question to the Buyer's Agent, and let them decide what information is to be divulged.  I would simply inform the listing agent that the borrower is qualified to purchase the subject property.  As for conditions, I don't usually receive these types of questions.  I think it usually occurs when the listing agent hasn't received any updates in awhile and wants to be sure everything is on track, and make sure there aren't any "funky" conditions added that can derail a transaction, which I think many agents have experienced this at one point or another in a transaction.  Definitely a great read and a great forum to gather thoughts on this topic.

Sep 15, 2016 02:37 AM
John Meussner

Thanks Mike, appreciate you stopping by!

Sep 15, 2016 06:42 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

It has never ocurred to me to me to call another agent's buyer's lender. I hadn't realized this was an issue you might be dealing with regularly, John.

Sep 15, 2016 03:36 AM
John Meussner

Usually I'll reach out to the listing agent - in some of these cases it's people just trying to help their seller, in other cases, they're slimy.  I think at the current moment I'm dealing with some slimy folks on the selling side.

Sep 15, 2016 06:42 AM
Will Nesbitt
Nesbitt Realty at Condo Alexandria - Alexandria, VA
Nesbitt Realty is a family-run brokerage.

(949) 247-7530 into phone and get speaking with John Meussner at Costa Mesa, CA.

Sep 15, 2016 03:39 AM
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

John Meussner ~ after working with you directly, I know firsthand you respect your relationships, especially your clients and their agents. I also know that you are not afraid to do the right thing, so I am not surprised by your response and actions. If I had it my way - all of my buyers would be working with you

Sep 15, 2016 03:43 AM
John Meussner

Thank you Jon, greatly appreciate the vote of confidence!

Sep 15, 2016 06:41 AM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Once again I'll write that it is all about the contract, and the language provided.  In our Sales Agreement, the Buyer/s allow the listing agent and the selling agent to contact the loan officer.  They can ask "nonconfidential" questions.  This is what the contract stipulates.  

Sep 15, 2016 05:49 AM
John Meussner

Agreed - however "how much does the buyer have in the bank" is pretty confidential, along with anything else that could damage the buyer's position, IMO.

Sep 15, 2016 06:41 AM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

Those are very thoughtful words, John.  Especially these: "When everyone is on the same team, communicating, and working toward the same goal, things just go better, and business is much more pleasant than when one party is trying to steal the show or is hostile toward other sides."

Sep 15, 2016 11:33 AM
Pam Orzan Broker, Owner
Coastal Living South Florida Real Estate - Delray Beach, FL
Selling Delray, Boca Raton, & Boynton Beach

I had something similar happen when I had the buyer, and the loan officer wouldn't speak to me and kept calling the listing agent. At least the listing agent was ethical and knew this was wrong. She wastold over and over by my buyers to stop it, and wouldn't. We all have to have the customer's best interest in mind at all times! Great post!

Sep 15, 2016 11:32 PM
John Meussner

Thanks Pam!

Sep 16, 2016 09:41 AM
Eve Alexander
Buyers Broker of Florida - Tampa, FL
Exclusively Representing ONLY Tampa Home Buyers

The reason that listing agents ask confidential questions is the same reason that I( buyers agent) dig deep asking the listing agent about their seller...

...because most of the time they will blab and tell me everthing I want to know.

The reality is that you are all NOT on the same team...buyers and selers have opposing interests, and everything about your borrower should fall under priveledged information.  I only deal with lenders that know which side they are on and keep their lips sealed.

Eve

Sep 16, 2016 04:16 AM
John Meussner

I'll clarify - AFTER the contract is accepted, we're all ont he same team - seller wants to sell, buyer wants to buy, terms are in place - ready, set , go!

Sep 16, 2016 09:40 AM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

I had a seller that put it in the contract that they could call the lender and check on status. It was unusual but the seller had been burned and didn't want to be mislead again.

Sep 21, 2016 12:04 AM
Donna Foerster
HomeSmart Realty Group - Parker, CO
Metro Denver Real Estate Assistant

Well said John. There are questions that are relevant and acceptable, then there are those that are just plain "none of your business"!

Oct 08, 2016 07:47 AM