BiggerPockets

This post is created for 3 purposes. One is to vent, two is to identify if this is an isolated occurrance or Nationwide, and three to have all of us join together to do something about it.

Here is the problem/situation: I am working the short sale and REO markets here in So Cal (and other areas) and have come across a perplexing problem. I located a short sale, contacted the listing agent, and had him write up an offer (he would get to double dip the commission!). It was all cash (real cash) with no contingenices other than a 14 day inspection period and close in 21 days. He never presented the offer to the bank (& probably not to the seller), but I have no physical evidence to prove it or I would go after his license. At any rate, what would possibly poses a RE agent to not want to push this deal through. He gets a double dip commission and a quick close. I also informed him I would be doing all the work/negotiations with the bank.
Again, last week on another property I found, I contacted the list agent and she had her broker meet me there the next day to show it. We talked and he had all the right answers. Informed me he had been an investor previously, was very good at negotiations with the banks, had no problem with me doing that part, and was impressed with my knowledge and experience. I instructed him to write up the offer the very next day with my figires and criteria. (Same scenario again, all cash, no contingencies). Day goes by, no phone call or offer to sign. Weekend passes, no call. Monday I call and leave 3 messages throughout the day. Wednesday I visit his office and of course, he is not there. Instruct office secretary to leave written message that if I don't hear from him by end of day, I am done with him and that I don't appreciate people wasting my time. I am a serious buyer looking for serious people to work with. Did I get a call? Of course not. Called the listing agent the next day three times and left 2 messages and again today. Still no response.

Here is my question (after all of that): What could possibly be going through these poeple's minds to not get back to me. They have an all cash offer, the promise of many more to come, and the ability of a real investor to buy many of their listings. Not to mention the opportunity to double dip commissions on several occasions. Are these agents really that stupid, lazy, or is it just me? Perhaps I am not a likeable guy? Perhaps I should have pulled up in a Ferrarri? What could I possibly be doing wrong to these agents?

So now I have vented and am asking if any other active investors in the distressed RE market have had these types of problems/occurances?

Next, (as I am sure this is NOT an isolated incident), lets ban together and get NAR to do something about it or perhaps our State Legislators, governors, etc. There should be adequate resources for us to report this type of unprofessional behavior as none of these morons should be licensed to live, let alone sell RE!
Are you with me?!? :help:

ANSWER YOUR PHONE!!!!!!!!!

Thank you Harrison! You are absolutely correct. The thought that a person should actually answer their own phone is a certain sign that the real estate investing fad is over (and maybe that the end of the world is near)! All the hype of the past few years that said that everything should be done for you (including having your phone answered by a machine) is over. We're back to basics and back to reality!!!

Nationwide,

I agree that many agents are idiots and are just plain lazy. On the other hand, you have a BANK involved if your'e doing a short sale and in my experience, banks are the ultimate idiots. They have so much bureaucracy that they move at a snail's pace. Could it be that she did submit the offer and the bank is waiting for all the correct paperwork to be submitted by the seller.

In addition, in a short sale, the seller is usually not very motivated. They aren't getting any money at closing and they often have a large dose of denial. Therefore, they are often not hugely motivated to do anything.

I tried a few short sales in the past and found them to be very frustrating. I never was able to get one to go through.

MIke

Real Simple Nationwide~ Call the agents broker. By the agent not submitting the offer, the agent prevented the broker from making money. Regardles of how you want to categorize agents, employees, sub contractors, people that wast my toner, they did not follow through and cost the broker money. Rag hard on the broker, let him know what a lazy agent she is and how much time and money she cost you, ask if all his agents are like that, or do you have one that will complete the transaction. The broker is stressed out enough right now. He has all the bills, and would like to see production go up. If you take the time to talk direct, you will get results. My best production weeks happen when I fire an agent at the weekly office meeting. We do not hold their license for their pleasure, I hold it to make money.

Harrison,
Every offer has to be submitted to the seller. If you are not happy with the answers you get, take it to the next level. Excepting this, is not exceptable. It is only adding to the bad rap good Realtors have to deal with. REO agents are the worst, and greediest. The next level for them is the bank. Do you think they are happy offers are not being sent in.

1- Every offer should be submitted to seller ASAP- and seller should acknowledge receipt (at worst, the agent submitting the offer should have signed a date/time submitted acknowledgement and provided you (buyer) a copy.
2- If agent persists in ignoring you- contact principal broker and insist that you be updated in a timely manner.
3- If no response, contact licensing office and local association of Realtors and file a written complaint. Be specific, provide copies of docs and overview of the facts.

Try not to be emotionally involved.. My experience is that most agents try to do a good job... but like any occupation, the few slobs generate the "news". Kind of like shark investors whose tactics resulted in these "anti-predatory" laws that don't stop the predators, but does make everyone else's activities become "suspect". Not fair, but that's life.

I am just an investor that hold a brokers license and deals in the real world.

The best long term strategy is to kill them with kindness. Many of these guys have on big weakness.....Their EGO!

Feed it........It can eventually get you where you want to go. From a business standpoint, complaining to the board is about as effective as watching paint dry, and can mark you as a trouble maker.

Right or wrong, that is just the facts........

Let me take a look at Bill's points:

1. Everybody should know the rules.....all offers should be submitted even if they are written on a roll of toilet paper........However, we all know that it does not happen.

Brokers hide behind that fact that a seller/bank has no obligation to respond to an offer. So the date & time scenario is not feasible. (At least not in my state). A Broker can just tell you that the bank chose not to respond. Since there is this thing called "agency", there is no way to bypass the agent and take it further with the seller/bank.

2. Usually: Poor agents = Poor Managed Office. If that is not the case, than many times the PB is in cahoots on the system.

3. As pointed out above, there is little documentation to prove your case. You submitted an offer, and there is no actual law that it has to be responded to. (Again, I am going by the laws of my state, yours could be different). There is also no law that a person has to call you back. The listing agents are smart enough to know that Buyer's Agent has little to stand on.

This is why we have what looks to be a nationwide (no pun intended Will) problem!!!

To answer your question Will, there is a famous comedian who had a TV special titled: "You Can't FIx Stupid"

Words to live by!!! :lol:

That is classic......good for him!

Seriously...I'm a wedding photographer and I can't count the number of times I've returned a call and the bride was shocked. Some are even surprised when I answer the phone as soon as it rings.

Thanks for your support Mike. It is difficult, but thjen again, if it were easy, everyone would do it!

Will

It's simple, when you're busing tables you are not allowed to answer your phone.

I have an update: My partner called the broker and he was actually there and picked up. My partner asked if the property was available and so on and then asked if he remebered Will Barnard. Broker says yes, and partner begins to ask why he never returned any of my many phone calls and the office visit in person. He states "I thought it was handled"
Give me a break! Does this guy think I just got off the boat yesterday? If you "thought it was handled" and then get a message the next day and the next day and the next day, OBVIOUSLY it has not been "Handled".
What an idiot!

I wouldn't do biz with this guy if he offered me the properties free!
OK I would take them for free, but point is, he lost a very very good client and the potential to make thousands, if not hundreds of thousands of dollars over the next year or two with me alone!
Sucker!