Why do you have a license if you're not going to be in the business?

By
Real Estate Agent with Starlink Realty
I currently have a bank owned property here in Orlando that caught the eye of an agent who quickly got interested in buying it. My problem, this licensed agent of 2 years that submitted the offer had absolutely no experience.  None...has not closed a deal, worked on one, even listed a property. So why the heck does she have a license? I gotta say I was pretty cool and collected, since she was the self represented buyer I had to walk her through the process just as I would if it was my own client.  I had to explain to her that she did not have to write an addendum that read "Subsequent to review by Broker". In the proces of submitting her counter offers she continued to add addendums that just didn't make sense, like Addendum 1 " $2000 towards buyers closing costs" .  Addendum 2  "6% to go towards buyers closing costs".  
I called her and asked her to repeat was she wanted to do because I could not believe it, not only was she going to receive a commission for 3% of the purchase price, she wanted $2000 + an additional 6% for closing costs which came to  a grand total of = $32,000+ back in her pocket. Yeah the bank was really going to go for that!  What kills me is that this person has a license to be a Real Estate Agent and yet she is acting like a late night TV informercial host who says "You can buy properties in foreclosure for pennies on the dollar".  
Lastly, and the kicker of it all after working and helping this agent with this deal on both sides she decides to withdraw her offer.  Thank you, thank you for wasting my time, energy, and knowledge!  

Don't get me wrong there are absolutely great deals in the foreclosure market today. What people fail to understand is that the banks have already lost on these propeties and they are selling below value in order to get these homes off their inventory.  So if you are an agent with a license and are looking to score a good deal for your clients be sensible. The best thing you can do is speak with the listing agent, they will give you the ground rules and at times also help you and your client reach an agreement wth the bank. I have helped buyers agents often through the process with just honest communication the transactions work smoothly and everyone is happy.  

Have a Listing Nightmare...share it with everyone on Activerain!  Trust me you'll sleep better at night!



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Rainer
67,383
Dana Couch-Davis
Kendall Haney Realty Group - Memphis, TN
CRS, GRI, ABR, SRES

Felix you have my sympathy.  It drives me up the walls literally when people come in with a license and don't know squat ... and then try to tell me how to do it!  Good luck!

Jul 29, 2008 03:33 PM #1
Rainmaker
300,475
Heather the Realtor Orlando, Lake Mary
LemonTree Realty - Orlando, FL
First Time Home Buyers, Bank Owned Homes

I feel your pain. At first I thought well some people dont always use their license or have no real intent until it comes to their own purchases, but then I read the rest of your blog and well if I was in your shoes I would be hitting my head against the wall.

Jul 29, 2008 03:34 PM #2
Rainer
406,420
Ken Cash
CB Select Real Estate at Lake Tahoe - 775.691.3855 - - Incline Village, NV
Lake Tahoe Lake Front Homes, Luxury Homes, Condomi

I agree...    Part of the problem in our industry is so many people have a license and no clue.  It's far too easy to get the license.  Agents are independent contractors and get a 1099 for tax purposes.  I always liked the IC concept.

But I have come to think the IRS might be right.  Every real estate licensee should become a employee of the compnay with full benefits.  Yep, full benefits including unemployment and minimum wages and a weekly salary.  The first thing that would happen tomorrow morning is half the agents in business today, would be gone tomorrow.  As a broker, I'd fire my half by close of business tomorrow and so would every other broker.  We would be better off as a profession with less agents, with more knowledge and professionalism. 

Jul 29, 2008 03:43 PM #3
Rainer
8,558
Andy Park
Weichert Realtors FH Realty - Forest Hills, NY

I'm sure this agent only got the license to take advantage of the commission when purchasing properties for her own investments.  Maybe, as I've seen before, one of those agents that think having a license automatically gets you business by just sitting around the office chatting all day.

Well, too bad the deal did not go thru.  Hope it sells.

Jul 29, 2008 04:12 PM #4
Rainer
179,731
Erik Hitzelberger
RE/MAX Alliance - Louisville REALTOR-Luxury Homes - Louisville, KY
Louisville - Middletown Real Estate

Perhaps the new 750 hour minimum requirement will drive some of these agents out of business.  If they are not practicing and can no longer deduct all of the 'expenses' that they are claiming, what's the point?

Jul 29, 2008 04:12 PM #5
Rainmaker
575,658
Terry & Bonnie Westbrook
Westbrook Realty Broker-Owner - Grand Rapids, MI
Westbrook Realty - Grand Rapids Forest Hills MI Re

It is difficult to imagine he maintaining her license and yet not doing anything with it other than messing up other agent lives.

Jul 29, 2008 04:22 PM #6
Rainer
3,051
Dennis Wilson
Century21 Access America - Bridgeport, CT
REALTOR, GRI, SRES, AHWD, e-PRO

I know how you feel people watch those late night shows on buying foreclosures and think that they can buy foreclosed property for little to no money if I had a dollar for every person that ask me to find them a house for a $1.00 or 200, 300 hundred dollars i'd be rich, I have to tell them if I see a deal like that i'm going to buying it lol.

Jul 29, 2008 04:42 PM #7
Rainmaker
310,458
Mike Wong
Keller Williams Realty Southwest - Sugar Land, TX
Realtor: Commercial, Residential, Leasing, Invest

I have encountered some agents and wondered the same things. Where did they learn anything? Do they have any clue what they just filled out? Do they have E&O insurance to protect thier clients?

I just took over a listing from another broker who did such a horrible job Im cleaning up potential litigation issues for the sellers. The broker brags he has been practicing over 30 years now and I dont have experience and knowledge like he does. Thankfully he is right. He almost convinced the clients to sell thier property for an offer he thought was good. I took over and got them a 175% higher offer! He had them sign 4 different contract offers without terminating any of them. Hello 4 seperate specific performance lawsuits? I felt like the brokers babysitter having to clean up his mess and explain to him what Im doing and why.  

Jul 29, 2008 05:31 PM #8
Rainer
11,679
Marvin Thomas
Allegiance Mortgage Corparation - Fayetteville, NC

Felix, the problem is two fold; 1. the Real estate brokerage she represent didn't properly train her 2. The agent has to know to get with someone who can train her, even if the brokerage don't do it.  Also, I think there are alot of part-timers in the business and just don't understand.

Aug 06, 2008 07:33 AM #9
Rainmaker
554,256
AJ Heidmann ~ CRS
McEnearney Associates, Inc. - Alexandria, VA
YOUR Alexandria & Arlington, VA Real Estate Expert

I think people stay in because of pride, they don't want to admit it wasn't for them, and they justify that if they sell one house a year the license is paid for.  Not terribly great thinking in my opinion, but it's probably close to the mark.

Aug 06, 2008 08:22 AM #10
Ambassador
2,139,523
Todd Clark
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

I have shared a few war stories here in the rain and you are so correct it really does make you feel better to get things off your chest.

Todd Clark, Helping Families Home - www.IFoundYourNewHome.com

Sep 04, 2008 05:28 PM #11
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Felix Gonzalez

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