Do you have any horror stories on working with realtors?
Joshua D.Pro Member
BiggerPockets Founder · HI · Member since 2008 · 16k+ posts · 5k+ votesI was wondering if anyone has a horror story or two they'd like to share about working with a realtor (that includes stories from other realtors).
Lets hear them!
I wouldn't say I have had any HORROR stories. I just like to get creative in my offers sometimes, and it's tough to find a realtor who understands the creative side of investing.
Personally, I prefer to find my deals independent of realtors, I get better deals because the seller isn't paying a RE fee.
Where to begin!
Back when we had been married less than a year we were looking for a "move-up" house. Found a place, got the price right (it looked and smelled like and in fact was a divorce), and made our offer contingent on the (conventional) loan being assumable, without escalating the rate.
The loan had originated in '78 with builder buy down, this was '80 and rates were climbing toward 11% IIRC. When the agent brought the final docs to my office she had one that we would go with the deal even if the rate went to 12%!
Nope, not signing I said.
Don't worry, just a formality she said.
Then no need to do it I said.
She left to take the docs to my wife's office for signature and I called her to warn her not to sign that one. The agent tried even harder to get her to sign, but she didn't know my girl!
About a month later (remember, this was 1980, things took longer) I called the listing agent to ask how things were going.
All good she says, let's see, YOUR LOAN IS ESCALATING TO 11.5%!
No way I said, the deal is OFF.
No, she said, you signed that you'd still do it!
No, we didn't, you better bring (fax machine was still a few years off) a copy over so we can look at the signatures, because they can't be right.
Twenty minutes later, she called me and said not to bother, she could tell the signatures weren't ours just by comparing with the signatures on the offer sheet.
Long story short, selling agent got canned, her broker begged us not to sue. We ended up buying the house for less, and the seller netted MORE because the listing agent (who then became our neighbor) did the whole deal for about $1500 commission, instead of 6% ($4500).
There's plenty more but you know I can't write a SHORT story and more than I can tell one!
all cash
I am of the opinion that most Realtors screw up more deals than they make. I just recently let my RE license go since I only sell my own property these days. I could probably tell 100 stories but I'll start with the most recent.
A friend who we built a house for called two days ago to ask me a question. He had listed his home in Houston with a Realtor and placed a contract on a home in Lufkin (maybe two hours away). The contract on the Lufkin home was contingent on the sale of his Houston home. Then, an opportunity to came up for him to stay in Houston and make more money than the move offered so he changed his mind.
He called me to ask how to save his earnest money on the Lufkin deal. He had already called the Realtor (Lufkin) and told her his situation. She had faxed him an earnest money release to sign to release his $1000 to the Seller in Lufkin to get out of his contract. WTF!
Since he hadn't violated the contract he didn't' have to lose his money. I told him to fax me the contract on the Lufkin home and the listing agreement on the Houston home and I'd give him some free advice. I wondered when I never heard from him but I was too busy to call and bug him so I could give free advice.
This morning I was meeting with my brother/partner and asked him about our friend.
He laughed and said, "Oh yeah man that is a great story. He called and told me what was going on so I just told him to call the Realtor and tell her that he talked to an attorney and that the attorney said that it sounded like the Realtor had abused her relationship and that she could be liable for telling him that he owed money for a contract that he hadn't violated. Then I told him to tell her that he would have to communicate with her in writing in the future because his atty asked him to keep a record of every correspondence."
The Realtor hung up and faxed an EM release for him to sign canceling the contract and sending him the money back. I'd have been able to get it done for him but the ******** methods of my redneck bro seem to have gotten a quicker response.