So I’m about to get my real estate license in Georgia. I send direct mail with generic “I want to buy your house” type stuff. I’m not advertising to list properties. In fact, even if the customer wanted to list I would refer to another agent due to possibility of conflict of interest.
My question is: do I need to disclose my agency status or broker info on this type of yellow letter? This would not help the casual vibe of the letter.
I would certainly include my agency status on a purchase of sale agreement.
Ask your broker....my first thought is yes....if you are licensed, you need to disclose that, disclose it in your offers/contracts, and probably even include a statement about the difference in market value vs your offer/contract.
I think if you present it the right way, in the right tone of voice, in a friendly manner, with the right disclosure, you can still get contracts. I've seen disclosures that were pretty funny before...something in special provisions that says some to the effect of....in exchange for cash, no repairs, no showings, buyer paying all closing costs, and closing quickly, seller X agrees to sell Buyer Y, 123 main street at a massive and outrageous discount to the market price. Seller X understands, Buyer Y intends to resale the house at a later date for potentially massive and outrageous profits.
You have to think how it all looks if you ever get in front of a judge or jury. How does the jury look at you when the crying, poor, kids get in front of them and say you stole, grandma's house for $50,000 and sold it 4 months later for $150,000, you are licensed and grandma isn't. You are the evil realtor. If you have before and after pictures, receipts for all the time you spend, the expenses you had, maybe even a number for risk(no one prices that in), copies of your ads/marketing with your license number, and can even point out in the contract where the seller has agreed that your intention is to make massive profits and that was explained to them....it looks better, it smells better, and is fair to all concerned.
Ty for the input, Bruce. Your response seems completely reasonable. I will err on the side of caution.
As a absentee owner I get “I want to buy your house” ads from companies I know are owned by agents but have no agency disclosure. I guess they are just doing it wrong.
Be the standup guy....my broker often says...and I agree with them, if you have to ask the question...you probably know what the right answer is. Depends on how much risk you want to take on. Some people like to operate in the grey zone, some people never think about risk. There is plenty of money to be made doing the right thing.
I had investor client the other day ask me if he should pull permits on big rehab project including big plumbing, entire electric rewire, structural changes etc. He thought it was a hassle. Sure plenty of people do all this stuff and don't pull permits, but when the city shuts your project down and you get a 6 month delay for them to approve all your permits, and make you rework stuff to comply, you will have wished you pulled permits day 1.
@Kyle O'Donnell In Florida, we have to disclose, I am guessing Georgia will be the same. As @Bruce Lynn said, make it casual to stay with your casual letter. You could write, "Just so you know, I am a licensed real estate agent, but this isn't an attempt to solicit a listing." Having a license is a big bonus, just be careful to disclose that you have it. Good luck!
I'd agree with everyone, disclosure is definitely the better way to go! It sounds like your vibe is pretty casual on your yellow letters, so I'd err on the side of making it a pretty casual disclosure.
Something along the lines of "I'd love to buy your house. Believe it or not, I'm actually an agent myself! When was the last time an agent actually tried to buy your house instead of promising they'd find you a buyer?!"