Frustrations for Agents

13 Replies

@Neal Royal My partners and I exclusively sell multifamily apartments, so my answer will be in that context. I’d say one of my largest frustrations stems from clients who put a property under contract, conduct due diligence, and then retrade for reasons that were disclosed during the marketing process. An example would be someone coming back from a credit for an boiler replacement when they saw it during theIr tour, the age of the boiler was disclosed in the marketing materials, and there are no current issues with it. Sounds crazy, but it happens with new buyers a lot. Another thing that drives me crazy is when people give me general acquisition criteria, don’t follow up, and expect me to send them deals. If I had a dollar for everyone time someone told me they were looking for “value add apartments” in a “good area” for a “good price” and then never follow up with me, I would be rich. Thanks for posting a broker vent session :-)

Generally speaking, most agents I deal with today complain about limited inventory for their buyers to choose from, overbiddings (high competition), and lack of support system to assist them in increasing sales.

@Will Barnard   My wife has used a transaction coordinator for many years now.. this allows her to focus on what she does best and that is find and sell retail buyers their dream home.  the TC does all the paper work behind the scenes.

and for many of these folks looking to earn money so they can afford to be an investor this is a good way to make solid income learn the ropes and save some money.. and its a home based job.

@Troy Beebe   Yup you learn over the years to flush out the tire kickers.. but retrading is just part of it.. especially in certain folks from certain countries.. LOL

@Neal Royal one of my biggest frustrations is the client who doesn't want to put in any leg work to show me that they are serious about investing.

I work with mainly investors and the ones that I love working with ask educated questions, do their hw and are always learning!

@Neal Royal It's crazy clients, hands down.

I have a very large SFR for sale and because it's so big, it's been hard to sell - not to mention that it's a BK sale.

We had an offer.  I called the lender who assured me that the buyer was solid - good income, good credit and he had already verified bank statements, pay stubs, W2s and tax returns, so the pre-approval was real.

Fast forward - turns out that the buyer falsified her tax returns in order to qualify for the loan.  Once qualified, she restates her tax returns to avoid paying the extra taxes.  Lender finds out as we approach closing, denies the loan.  The buyer never notifies us.

I catch wind of it 40 days after the mortgage contingency expires.  The buyer wants their entire deposit back and is taking us to court over it.

Tax fraud + mortgage fraud + long expired mortgage contingency.  And she thinks she's entitled to a return of all deposit funds.

I don't throw the term "moron" around lightly...but what a moron.

Originally posted by @Neal Royal :

@Will Barnard Do you think that most agents are looking for more support from their brokers or larger firm in things like mentorship and development as an agent or is it more on resources and technology? 

 For the experienced agents/top sales agents, they are looking more for technology and resources from their brokers whereas the less experienced are looking for more help and training. The problem is, most brokers simply don’t have the time or resources to offer the full training newer agents need so they are forced to wing it until they learn it. This is one of many reasons why we see so many poor agents in the space, they simply lack the resources and education on how to do their job. This is the same in the real estate investment space, so many do it wrong because they are depsperate to get started and lack the proper education.

Originally posted by @Jordan Moorhead :

@Neal Royal one of my biggest frustrations is the client who doesn't want to put in any leg work to show me that they are serious about investing.

I work with mainly investors and the ones that I love working with ask educated questions, do their hw and are always learning!

 Are you telling me that the agent doesn’t do everything and the Investor has to do work to get the deal? Well that sucks, here I thought agents did all my work for me!

In all seriousness, I could not agree more, so many investors, mostly the rookies, lack the proper education and rely solely on the agent, that is just not how it gets done less your plan is failure.

What I look for in an investor who we may represent on a purchase is one that knows their numbers, knows their market, and can show me a legit proof of funds. From there, a proper relationship can form. Less than that, failure is likely in the future.

@Neal Royal not a lot but just a general understanding of what they're looking for. If someone's uncertain about something and asks I can always help too. I'm open to helping people learn how to find and analyze deals as long as they are willing!

I live in a very transient area...so one of my frustrations is when people who are not from here, or havent lived here that long have a hard time grasping the concept that the listing price needs to be ignored altogether.  You might have to pay $100k, $200k, over the list price in some instances because the property has been purposely under priced to drive traffic.  I had a guy a couple months ago who just couldnt wrap his mind around paying $100k over list on a property, even though to me that was clearly the value of the property, and thats what it did sell for.  

Originally posted by @Russell Brazil :

I live in a very transient area...so one of my frustrations is when people who are not from here, or havent lived here that long have a hard time grasping the concept that the listing price needs to be ignored altogether.  You might have to pay $100k, $200k, over the list price in some instances because the property has been purposely under priced to drive traffic.  I had a guy a couple months ago who just couldnt wrap his mind around paying $100k over list on a property, even though to me that was clearly the value of the property, and thats what it did sell for.  

 This is an excellent point by Russell. So often, I see RE agents and their clients make the mistake of listing too high and the property sits. Particularly in a seller's market, you simply can not price a property too low, the market will determine the price and by listing below or even well below, you drive interest, traffic, and the bidding wars ensue. In a buyer's market, you have to be a bit more exact and price it closer to what it is worth being careful not to chase the market down but stay ahead of it in price. By that, I mean if your property is not selling in a buyer's market and the prices are falling, you need to get ahead of the drop, say it was $10k, and drop your price $15k or more to keep ahead of the falling prices. Good agents know how to do this.

Here's another frustration.  Agents who make big mistakes in their listings.

I'm helping a really nice young couple to buy an owner occupied duplex.  We found one we like and put it under contract.  

The listing stated that there's no lease on Unit 1 and there is a lease on Unit 2.  We review rent rolls as part of due diligence and it turns out that both are leased for the next 10 months.

Luckily we were able to cancel the home inspection, so there were no out of pocket expenses, but I have two heartbroken clients.