Do I have a bad realtor?

Buying & Selling Real Estate
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Do I have a bad realtor?

Jarrad Henry
Investor · Union City, CA · Member since 2015 · 34 posts · 8 votes

Hi guys,

Trying to determine if I should reevaluate the relationship with my realtor based on what I am considering some neglect and critically bad advice.

I just cancelled a contract on a property in Antioch. 3/2 baths with a granny flat/in law. The kitchen is a garage conversion and the in law units were done without permits. It also needs a new roof, electrical isn't to code, and there are some termites.

Even after her I discuss my planned to rent out the property I was told to not be concerned about the unpermitted kitchen because "everyone has unpermitted additions" in the Bay Area.

She also told me that it was not necessary to rate shop when selecting a mortgage loan and that she would "ask around". (found my own lender)

Lastly she wasn't aware of the zoning for my neighborhood but recommended I make the family room a studio apartment.

Would you recommend find a new realtor? Is this a pattern?

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Jeff Valentino
Residential Real Estate Broker · Winston Salem, NC · Member since 2011 · 345 posts · 120 votes
10y
Originally posted by @Shadonna N.:

Not bashing realtors but they have the easiest job in the real estate cycle.  The market is not helping, especially if it is a hot market.  They just have to sit back, eat popcorn, and watch the frenzy.  Not all realtors just the bad ones, they know who they are :)  

Don't forget we roll around in hundred dollar bills while eating the popcorn!

Anyway, yes you should get another agent. Did you spend much time with them before using them? It seems like some of this could've been found out in an interview. Consider it a good (and cheap) learning opportunity and move on.

Good luck!

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  • Jacqueline Carrington
    Investor · Corona, CA · Member since 2014 · 746 posts · 372 votes
    10y

    Sounds like bad advice. I'd find another.

    3Reply
  • Upen PatelPro Member
    Lender · Nationwide Lender · Member since 2015 · 1k+ posts · 814 votes
    10y
    @Jarrad Henry Fire her and report her to the local Realtor association. This is not just negligence, its malpractice. Its her job to look out for you. Instead she was only interested in the sale and the marketing $$$ she is likely getting from a mortgage banker.

    Don't even know what to think about ignoring the code violations. I would think a realtor would care about that.

    Upen Patel, Mortgage Banker

    Federal NMLS# 1374243

    [email protected]571-200-6180
    3Reply
  • Jarrad Henry
    OP
    Investor · Union City, CA · Member since 2015 · 34 posts · 8 votes
    10y

    Thanks @Upen Patel and @Jacqueline Carrington. I thought so. Just wasn't entirely sure.

    Im going to focus my energy in areas that I would live in. Oakland, Emeryville, Berkeley, El Cerrito, and surrounding.

    Let me know if anyone has any referrals for investor friendly and responsive realtors in the East Bay Area.

    1Reply
  • Jarrad Henry
    OP
    Investor · Union City, CA · Member since 2015 · 34 posts · 8 votes
    10y

    @Upen Patel In her defense she didn't want me to rate shop and incur hard inquires hits to my credit but bad advice nonetheless.

    0Reply
  • Jim Keller
    Investor · Riverside, CA · Member since 2014 · 351 posts · 220 votes
    10y
    Originally posted by @Jarrad Henry:

    Hi guys,

    Trying to determine if I should reevaluate the relationship with my realtor based on what I am considering some neglect and critically bad advice.

    I just cancelled a contract on a property in Antioch. 3/2 baths with a granny flat/in law. The kitchen is a garage conversion and the in law units were done without permits. It also needs a new roof, electrical isn't to code, and there are some termites.

    Even after her I discuss my planned to rent out the property I was told to not be concerned about the unpermitted kitchen because "everyone has unpermitted additions" in the Bay Area.

    She also told me that it was not necessary to rate shop when selecting a mortgage loan and that she would "ask around". (found my own lender)

    Lastly she wasn't aware of the zoning for my neighborhood but recommended I make the family room a studio apartment.

    Would you recommend find a new realtor? Is this a pattern?

    You already know the answer..... most people don't care for your money like you do.  I just know most agents just have no idea what most investors really need.  It takes years to develope the proper instinct to guide your company through the pitfalls that are out there.  Most of the service personal out there are only good at exactly what they do, NOTHING MORE.

    In my view your asking a person that may understand real estate offers,  contracts and simular services but aren't up to anything more until they prove it to you.  It's up to you to mold and train this person to really service you as an investor.  I'm dealing with this right now in my own business call me anytime and we will grow through this togather.

    The good news is on the other side of all of the growing pains you see success at levels you only dreamed of.  I'm inviting you to come along.

    Jim

    2Reply
  • Shadonna N.
    Developer · . · Member since 2014 · 520 posts · 162 votes
    10y

    Not bashing realtors but they have the easiest job in the real estate cycle.  The market is not helping, especially if it is a hot market.  They just have to sit back, eat popcorn, and watch the frenzy.  Not all realtors just the bad ones, they know who they are :)  

    1Reply
  • Doug N.
    Lynnwood, WA · Member since 2015 · 221 posts · 157 votes
    10y

    Run!

    1Reply
  • Marc M.
    Contractor · Rockville, MD · Member since 2014 · 423 posts · 135 votes
    10y

    If you have to ask, the answer is probably yes.  

    2Reply
  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    10y
    Originally posted by @Jarrad Henry:

    Hi guys,

    Trying to determine if I should reevaluate the relationship with my realtor based on what I am considering some neglect and critically bad advice.

    I just cancelled a contract on a property in Antioch. 3/2 baths with a granny flat/in law. The kitchen is a garage conversion and the in law units were done without permits. It also needs a new roof, electrical isn't to code, and there are some termites.

    Even after her I discuss my planned to rent out the property I was told to not be concerned about the unpermitted kitchen because "everyone has unpermitted additions" in the Bay Area.

    She also told me that it was not necessary to rate shop when selecting a mortgage loan and that she would "ask around". (found my own lender)

    Lastly she wasn't aware of the zoning for my neighborhood but recommended I make the family room a studio apartment.

    Would you recommend find a new realtor? Is this a pattern?

     Let me get this straight:

    1 - She wants you to be an accomplice to an illegal activity (code violations and no permit) 

    2 - She doesn't think that a lower monthly payment is important to an investor (don't rate shop...go ahead and have a higher monthly payment)

    3 - She is recommending you go ahead and make modifications to your property without checking to see if it is legal (garage to studio convert)...although based on #1, this shouldn't be surprising.

    I have a  question of my own,...LOL.

    "What was your question again?" 

    2Reply
  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    10y

    Fired! Next!

    And, don't be hooking up with solicitations in the forums, you certainly can in the marketplace. Now I have to shut off my BS meter! :)

    2Reply
  • Sai Nayagar
    Specialist · Seattle, WA · Member since 2015 · 1 post · 2 votes
    10y

    Hi @Jarrad Henry,

    I live in Berkeley and I work with a great investor friendly realtor @Mel Selvidge. She runs the Berkeley real estate meetup (Investor focused) and I'm sure she'll be able to help you out.

    2Reply
  • Jorge Rullan
    Real Estate · Lake Mary, FL · Member since 2015 · 62 posts · 16 votes
    10y

    Here is the bottom line; if you purchase that property she will get her commission and that's all she is required to do.  You however are stuck with the bad electrical, un-permitted addition/conversions and possibly bad zoning.  The city/county could force you to tear down anything that was not permitted.  They could also fine you which would increase your overall costs.  My recommendation, walk away from both the realtor and the property.  As an investment property, it doesn't sound like it is a good investment.  But that's my opinion without seeing the numbers.  Good Luck.

    1Reply
  • Gino BarbaroPro Member
    Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
    10y

    @Jarrad Henry@Jake Stenziano

    Hi Jarrad

    Realtors first objective is to sell property and earn a living. Unfortunately, like in all professions, there are a few bad ones.  You found one.  If the realtor knows that there is a violation in a property, her advice should be to have it cured before closing or else it passes to you.

    When you interview a broker, there are certain questions you ned to ask.  First, ask what types of assets do they sell.  If you are buying apartments, you don't want a residential broker, and vice versa.  Next, ask to see what they have sold or listed in the last year.  You should also make sure they are very knowledgable about the market.

    Good Luck!

    Podcast Guest on Show The “Conveyor Belt” System That’ll Build You a BIG Rental Portfolio Quickly
    2Reply
  • Jeff Valentino
    Residential Real Estate Broker · Winston Salem, NC · Member since 2011 · 345 posts · 120 votes
    10y
    Originally posted by @Shadonna N.:

    Not bashing realtors but they have the easiest job in the real estate cycle.  The market is not helping, especially if it is a hot market.  They just have to sit back, eat popcorn, and watch the frenzy.  Not all realtors just the bad ones, they know who they are :)  

    Don't forget we roll around in hundred dollar bills while eating the popcorn!

    Anyway, yes you should get another agent. Did you spend much time with them before using them? It seems like some of this could've been found out in an interview. Consider it a good (and cheap) learning opportunity and move on.

    Good luck!

    4Reply
  • Charlie Fitzgerald
    Lender · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
    10y

    I agree with @Upton.  This needs to be reported to the Div of Real Estate.  

    1Reply
  • Jo-Ann LapinPro Member
    Loan Officer · Tustin, CA · Member since 2015 · 3k+ posts · 713 votes
    10y

    You should find another realtor with ethics, scruples and knowledge. If you are going to pay the realtor then the realtor should earn his/her commission besides the fact that all realtors should be held to a certain standard just like the rest of us as humans and professionals. Go with your gut. Always check with building and safety on real estate and talk to neighbors.

    [email protected]
    1Reply
  • Jeff Tang
    Alameda, CA · Member since 2015 · 69 posts · 16 votes
    10y

    @Jarrad Henry if you're looking at Oakland and the surrounding areas, Farrah Wilder of Pacific Union can help you.  She's great, serves on the local RE Board, and is always on top of trends. Sent you her contact info.

    1Reply
  • Jarrad Henry
    OP
    Investor · Union City, CA · Member since 2015 · 34 posts · 8 votes
    10y

    Of all the online communities I have been apart of as a software engineer in Bay Area this has to be the most vibrant and helpful.

    Seriously thanks everyone. Consider it done.

    Now everyone lets head to @Jeff Valentino's place for some popcorn.

    2Reply
  • Jeff Valentino
    Residential Real Estate Broker · Winston Salem, NC · Member since 2011 · 345 posts · 120 votes
    10y
    Originally posted by @Jarrad Henry:

    Of all the online communities I have been apart of as a software engineer in Bay Area this has to be the most vibrant and helpful.

    Seriously thanks everyone. Consider it done.

    Now everyone lets head to @Jeff Valentino's place for some popcorn.

     Haha! I'll buy too. :)

    1Reply
  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    10y
    Originally posted by @Jarrad Henry:

    @Upen Patel In her defense she didn't want me to rate shop and incur hard inquires hits to my credit but bad advice nonetheless.

    She is not aware of changes in the credit reporting system. Multiple inquiries for mortgages in a close timeframe are now counted as ONE inquiry - it is considered rate shopping and the individual inquiries no longer add up. I don't know the exact timeframe, but they do all get lumped into one hard inquiry, so your credit is not negatively affected by shopping around for the best rate. 

    [email protected]Podcast Guest on Show #261
    BiggerPockets
    1Reply
  • Upen PatelPro Member
    Lender · Nationwide Lender · Member since 2015 · 1k+ posts · 814 votes
    10y
    Originally posted by @Mindy Jensen:
    Originally posted by @Jarrad Henry:

    @Upen Patel In her defense she didn't want me to rate shop and incur hard inquires hits to my credit but bad advice nonetheless.

    She is not aware of changes in the credit reporting system. Multiple inquiries for mortgages in a close timeframe are now counted as ONE inquiry - it is considered rate shopping and the individual inquiries no longer add up. I don't know the exact timeframe, but they do all get lumped into one hard inquiry, so your credit is not negatively affected by shopping around for the best rate. 

    Mindy, you could be right. But based on what Jarrad stated about the other aspects, I think it is something more sinister.

    With regards to credit pulls. Mortgage related credit pulls within a 30 day time frame are supposed to be counted as one.

    Upen Patel, Mortgage Banker

    Federal NMLS# 1374243

    [email protected]571-200-6180
    3Reply
  • Jyll Tooker
    Residential Real Estate Broker · Denver, CO · Member since 2015 · 10 posts · 4 votes
    10y

    Sadly, she sounds uninformed but there could be an explanation for her actions. Maybe you could try to talk to her about some of these issues, it could be miscommunication...you never know. 

    That said, lack of zoning knowledge and taking a lackadaisical attitude toward permitting indicates to me that she doesn't work with investors very often.  These are things that a typical residential buyers don't usually have great concern for if they intend to live in the home, whereas investors have a completely different set of priorities.

    You may need to find an agent who is well versed in investment properties.

    1Reply
  • Matt M.
    Realtor · Denver, CO · Member since 2013 · 2k+ posts · 1k+ votes
    10y
    Originally posted by @Shadonna N.:

    Not bashing realtors but they have the easiest job in the real estate cycle.  The market is not helping, especially if it is a hot market.  They just have to sit back, eat popcorn, and watch the frenzy.  Not all realtors just the bad ones, they know who they are :)  

     Strongly disagree with this statement. I've been busting me a** this summer in our hot market. Multiple offer scenarios, sellers not budging on inspection items, new loan rules. Even on the listing side, it has been a ride in this market. 

    2Reply
  • Ravi P.
    Boston, MA · Member since 2015 · 72 posts · 16 votes
    10y

    She's guilt of giving bad advice, but I think actual fraud could be argued either way. Don't feel bad letting her know you'll be choosing to find another realtor, it happens all the time and seasoned RE agent should have multiple clients at any given moment so she'll be fine without your business if she's good to begin with

    1Reply
  • Evan Roberts
    Contractor/Realtor/Property Manager · Baltimore, MD · Member since 2015 · 73 posts · 42 votes
    10y

    @Jarrad Henry this is definitely a case of a bad real estate agent. More than likely you are dealing with an agent who does not specialize in working with investors and there is a BIG difference. I'd suggest going to some of the meet-ups and networking there to find a realtor other investors have worked with. With so many realtors out there, you can afford to be choosey.

    1Reply
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