whats with rude real estate agents

19 Replies

Ok everyone, please answer this for me. Im in the process of purchasing a property and getting the purchase and sale agreement done. I did this with my first deal and had the same problem. My partner and I use our own forms/contract and write up our offer with contingencies and send it to the agent. The agents keep making a stink over our contract documents and try to get us to not use our documents and use their "official MLS ones" or "state friendly ones." Also they keep trying to mess with our inspection dates trying to get them very short when we need them a certain amount so we can fin

Quite simply, I'd tell you to shove your contract, but wouldn't be rude about it, just matter of fact...we all know why you want to use it, don't we?. There's a reason why those contracts are 9 pages, and yours is two, and I'm sure there are equal protections for the seller as well as the buyer in your contract, right? Also, agents are generally required to use the state approved forms, by the real estate commission, their E&O insurance, etc. I wouldn't give you more than 7-10 days inspection either...again, we know why you want a longer one. Get used to using the standard agreement on MLS properties. The problem is with you, not the agents.

The "state friendly" forms are "realtor friendly" forms.  If you read them, they are all about protecting agents and brokers, not their clients. 

They probably dont really know that, though, I doubt many of them have read the things word for word.  They probably just think you're trying to do their job without their extensive training (two weeks in GA) and experience.  I'm licensed, by the way, but there are plenty of lousy agents out there, the barriers to entry are awful low.

They have to present every offer, though, so just keep on keeping on if its working.  

If you're going to make offers through agents, use their contracts.  You can use your own contracts if you're directly to owners.  Agents are also not going to be particularly cooperative with you trying to wholesale deals that you get under contract.  You need to have buyer's lined up and ready to go so you don't need a long "inspection" period to give you time to find buyers.

IMHO, you're fighting an uphill battle to wholesale off the MLS. Anyone can already see those properties. So, unless you're making tons of lowball offers, which agents do not like, you're not going to get a deal that you can mark up and still be below what it was listed for on the MLS. Do your own marketing to find sellers.

Jon Holdman, Flying Phoenix LLC

Account Closed

 Well, I don't know how your contract and contingencies read so it is hard to say, but if I had to guess it would be due to the following. 

1. The MLS or State contract as you put it, has probably been vetted by board of realtor attorneys and offers protections for both the buyer and seller and conforms to state and federal law.

2. There are likely a number of contingencies offered in the MLS contract, financing contingency, appraisal contingency and inspection contingencies. If you are adding many extra contingencies this can make the offer not as appealing.

3. I would assume your contract favors you, which is understandable, but the agent has a duty to protect the interest of the seller, not you. 

4. The agent would be signing your contract, and obligating themselves and their buyer to a contract and are not attorneys, they may need to verify that the items in your contract and ensure things are in the contract that may need to be due to their duty as agents. 

5. Inspection time frames - basically they and the seller are trying to sell the house, the time frame is short to speed the process up, if you aren't going to buy, they can quickly get the house back on the market instead of leaving it tied up for an extended time period for inspections. 

Again, without seeing it, that is just my guess.

Account Closed 

Hi Jason. It is understandably frustrating to submit offers and have an agent request that you use one of their standard forms. Whether or not you find this rude is a mute point. Rather, this is an education opportunity for the agent to learn that there are no rules governing the use of contracts to submit an offer to purchase.  It may be a good idea to ask the agent if they have any questions about your offer before the offer is present it to their client. 

If you are a real estate licensee, ask the agent to let you present your offer to their client if they feel uncomfortable about explaining your offer. The agent can be present during your presentation.  It is the duty of an agent to present all offers to their client.  Requesting a change of form is unnecessary and clearly demonstrates a lack of professionalism or ignorance about contracts on the part of the agent. 

Hope this helps. 

@Victoria Winters

 Perhaps in general, but I promise you I am likely less ignorant than you when it comes to the traps and implications of contract language, whether in real estate or contracting.  The much touted "an agent must present all offers" is also over blown, as it has restrictions....as per our listing agreements, offers Must be on state approved forms, I also have parameters agreed to by the seller where certain types of offers(can you say wholesalers?) need not be presented.  I'm perfectly comfortable with any risks I may run, doing what I know is best for my clients. 

I wholesaled a duplex that I was buying from a realtor. When we first signed the contract it was my standard 1 page deal. She signed it. The next day she asked to use her contract which was 19 pages I told her I would but I would sign my name with and or assigned. It was fine and we closed the deal in 9 days. However I had a buyer ready to go and he waived the inspection period. 

What's wrong with "state-friendly ones?" The standard GA purchase & sale agreement is seven pages long but it's easy to understand and actually protects the Buyer (me) more so than the Seller.

If you want to use one of the guru contracts or something short from the Fileplace, be prepared to have more than just agents criticize it. An attorney or knowledgeable seller might have a few objections also.

First off I'd like to apologize if I offended anyone on here. I should have titled this differently and thought out my words better. Im new to investing and am  just overwealmed with all of the different methods. Im working with a veteran who is guiding me through my first few deals and I unfortunately have to fwd my questions to him once the realtor asks me questions on the how and whys. Again, Im sorry for coming off how I did.

Originally posted by Account Closed:

First off I'd like to apologize if I offended anyone on here. I should have titled this differently and thought out my words better. Im new to investing and am  just overwealmed with all of the different methods. Im working with a veteran who is guiding me through my first few deals and I unfortunately have to fwd my questions to him once the realtor asks me questions on the how and whys. Again, Im sorry for coming off how I did.

 You were taken, by a guru-type who told you that this was easy, and that any business will be viewed as a legit business.  I really hope you are not paying that "veteran" anything. 

Just learn from it, and you'll be fine.

The purpose of an inspection contingency is to allow the buyer to complete an inspection, looking for hidden defects in the property.  It is not to allow a wholesaler to run around trying to sell the house, while having a way out of the contract if he fails to do so.

In my area, 7 days is a pretty standard length of time for an inspection contingency.

I strongly suggest getting a license.  There is very little reason not to, and many reasons to do so.

Jason,

I'm a little worried that you have to talk to your mentor every time the realtor sends you more questions.

It sounds like you are missing some component of being able to conduct this deal, whether it is a game plan that you've developed or a lack of education or knowledge.

I recognize the power of taking action, but taking action without understanding the consequences of what you are doing could be very destructive to your future endeavors.

Medium logo640x400Troy Fisher, Lanika Home Inspections | [email protected] | http://www.lanikahis.com

The Realtor Contracts are typically aimed at protecting the Buyer.  All you need to do is add a few lines to the Additional Terms and your all set to Purchase and/or Wholesale.  There is no reason to use the sketchy contract that your Guru said you need.

Medium topendlogo gold med2Phil Z., TOP END Properties | 203‑936‑7776 | http://www.rehabhousesinct.com

I must be tired.  I read the thread title as asking about real estate agents not wearing any clothes.

My experience with real estate agents is that those forms are basically mandatory. I think a lot of them see real estate as fitting in the real estate agent box and don't really get investors and how we do things.

Medium apartment logoAndrew Syrios, Stewardship Investments | http://www.StewardshipProperties.com | Podcast Guest on Show #121

We have an nonconformist attorney client who insists on writing his own purchase agreements.

We recently submitted a full price cash offer (with a few contingencies) to the listing agent who presented the contract to his sellers.

However, the sellers are balking and we are having a hard time getting the property under contract because they think the buyer is up to something underhanded.  All this because the buyer can't be bothered to get it onto our state approved forms in which all other parties are more confident for their protections.

I don't think you're doing yourself any favors trying to buck the system, particularly with so little experience.  State approved forms are court tested and very flexible if you know how to use them.

Thanks everyone for your input I really appreciate it!

Account Closed

My first couple of deals I used a "guru" contract.  Then I tossed it out and learned to read & understand the Texas Real Estate Commission's (TREC) promulgated contract, which everyone in Texas is familiar with, if they have ever purchased a property.  I also learned, that if I'm doing my job correctly, I don't need any contingency other that what is already accounted for in the TREC contract, under the Section 23 Cancellation Option.  I write in 1...that's right...1 additional contingency, which is a right to show the property.  I have no contingency about partners or financing, or anything else.

With that said, the first contract I wrote, I had to explain the TREC rules to my agent, who was trying to tell me he couldn't submit a non-TREC contract.  The reality is, TREC says an agent or broker cannot introduce a non-TREC contract.  However, I, as a principal to the transaction, can use any contract I wish.

Once I fully understood what was going on, I CHOSE to leave all the weasel clauses and almost all contingencies on the cutting room floor, instead going with a contract that is fair to everyone and protects both sides.

One note: some listings state "offers must be presented on x form of contract". If so, I do wonder if an agent has any duty to submit an offer if written on a different contract. I see no reason not to comform and use state approved contracts. They generally protect the buyer, seller, and brokerage. They are pretty decent when covering all the bases. There are also addendums that can be added as well as space on the contract to write in additional terms if necessary. As far as inspection period, I encourage my buyers to ask for ten days. The last property I purchased for myself had a 3 day inspection period per the contract. I paid for the inspection, liked the results, and informed the seller I was ready to proceed to closing. The people that ask for 30-60 days for inspections are often "buyers" that have no intention of buying, misleading the seller, and dealing dishonestly. I would never allow any of my selling clients to agree to a 30 day or longer inspection. If you can't figure it out within 10 days, find a new adventure.

No company avatar mediumJohn Thedford, John Thedford | 239‑200‑5600 | http://www.capehomebuyers.com