| Welcome to my world. The rough and tumble bubble | | | | break has allowed me the time to sign up a few |
| of real estate sales. I know there are a lot of folks | | | | "easy" (please note my sarcasm here) deals. My |
| out there who feel we are overpaid for our services, | | | | phone bills are caught up, and I'm ready to start the |
| however, I'd love to walk you through a recent | | | | New Year off with a bang. Famous last words. The |
| scenario, to hopefully shed a little light on what we | | | | buyers on the other end of our rent to own are |
| actually experience on an all too regular basis. | | | | backing out of the deal. The sellers' are livid. 45 |
| Clients have already purchased their new home, out | | | | minute phone calls suddenly turn into 90 minute |
| of province, (no pay day here) and the sale is | | | | phone calls. Lawyers, who originally drew up the deal, |
| pending the sale of their existing home. The market | | | | are calling. Deposits are to be returned. Deposits are |
| is strong, so even though they are under the gun to | | | | NOT to be returned. Fax me copies of this. Fax me |
| sell, human nature takes its toll and they go on the | | | | copies of that. The buyer's agent is writing letters. |
| market $15,000 higher than my recommended asking | | | | The buyer's agent's broker is sending faxes. Happy |
| price, confident the market will support the price. | | | | New Year! And still no pay day. |
| Never mind the circumstances, the fact they need to | | | | YEAR 2; Seller's are desperate to get someone into |
| get a serious purchaser before they are able to close | | | | their house. The listing goes back on the market in |
| on their new one. They are confident...no house | | | | the coldest winter to date in 50 years. The tenants |
| presently on the market offers what theirs does. | | | | have left the property in a mess, and sellers must |
| Within 24 hours they go live on the multiple listing | | | | return to get the property back to its original state. |
| service. Bring on the buyers. | | | | Three visits and photographs to record the mess and |
| Day two; first nervous call from seller. Not only has | | | | assist with the legal side of things. I've now opened a |
| their neighbor checked out their listing and decides to | | | | credit line specifically for these clients! My commission |
| list his own home, but he has a little more sense as | | | | went south with the buyers, and now I have a |
| well, and realizes that with a lower asking price, his | | | | property that doesn't compare to its original state, |
| home, which more than compares, will sell first. Seller | | | | and still priced the same. Desperate for a happy |
| is already putting the pressure on. I recommend a | | | | ending, I offer to seek out a tenant, to at least keep |
| reduced price to better compete, especially since the | | | | the payments covered for the rest of the winter. |
| new comparable listing is actually superior to her own. | | | | More ads, more web site submissions, more costs, |
| A hard pill to swallow and one that most sellers will | | | | but finally, a potential tenant approaches. A few |
| take personally. | | | | emails back and forth to determine worthiness, and |
| Week Two; still no price reduction and the neighbors | | | | then contact is made directly with the seller. I provide |
| house is under offer. Seller calls upset, wondering if | | | | lease agreements, paperwork, etc. Another poor tree |
| those purchasers even looked at hers. Considering | | | | dies, and still no pay day. |
| the asking price was $10,000 less, there's a good | | | | Almost Year 3; Owners have been quiet over the |
| chance that those purchasers didn't have the buying | | | | past 9 months, but the calls have started again. |
| power to look. There's a simple rule in real estate...the | | | | Tenant has purchased another property and would |
| higher the price, the lower volume of buyers to | | | | like to move ASAP. We've got to get this house |
| market to. It's another 45minute phone call, and the | | | | listed and on the market. Blah! I'm thinking a match |
| price remains unchanged. | | | | looks pretty good at this point, but I get through the |
| Week Three; Owner has been alerted to another | | | | phone call (only an hour this time). Back to the |
| offer on the property they want to purchase and | | | | drawing board with paperwork, photos, web site, and |
| has been issued 48hrs to either procure financing or | | | | advertising. Cha-ching! Cha-ching! Cha-ching! |
| back out of the deal. Desperate not to lose the | | | | Throughout all of this I have somehow managed to |
| home, they decide to refinance the property they | | | | keep my other clients happy, but the Mrs. Doesn't |
| already own in order to get their deal, increasing the | | | | take too kindly to when I have to put her off |
| monies owed...and increasing the asking price to | | | | because she has interrupted the offering I am writing |
| compensate for it. So now... an even higher priced | | | | on another listing. I feel her animosity, but can't |
| listing, and still no payday. In the three weeks since | | | | believe that after all I've done she would resent the |
| listing there has been a web site designed (my cost) | | | | fact I have other clients. Despite my insistence on |
| two classified ads in the local paper (my cost) a for | | | | calling her back, she informs me that having the |
| sale sign installed on the property (my cost) and an | | | | property for sale is hindering her chances of finding a |
| ad run in the full color glossy magazine dedicated to | | | | tenant, and that she would like to take the rent to |
| home buyers (my cost) | | | | own option. (Did they miss the lesson on the first |
| Month 2 and 3; Lookers have been numerous, but | | | | occasion?) I explain that that wouldn't be a problem, |
| offers have been non-existent. By the grace of god, | | | | and we'd get the signs down. I also tell her that if |
| a co-operating brokerage brings us an offer, just | | | | she does find someone worthwhile, I'd be happy to |
| barely enough to cover costs and fees. Already | | | | show the house to them, and look into their |
| settled into their new home, sellers finally agree to | | | | references and credit to be sure they have a solid |
| accept, after reminding them that this offer is | | | | history. Caught up in another busy day and thinking |
| actually on the higher end of my original projections. | | | | I've got her handled, I make plans to call her the |
| My payday will automatically be cut in half in order to | | | | following day. |
| compensate the buyer's agent, but it will hopefully | | | | Closer to Year 3; She beats me to it. My phone |
| get the house sold. Ads (at my cost) are still running, | | | | starts ringing at 8:59am she wants an official |
| and my phone bill for the out of province calls now | | | | cancellation of our listing contract. She doesn't know |
| rivals my mortgage payment. After much emailing | | | | what she's doing and she needs help. I don't want to |
| and faxing, the paperwork is finally signed and in | | | | help her so she wants to find someone who will. I am |
| order, and the buyer has 10 business days to satisfy | | | | absolutely 100% floored by the remark. I am floored |
| his conditions. On the 10th day, we receive notice | | | | at the nerve! I am also floored by my response and |
| that he has been unable to procure financing, and my | | | | the language that flies out of my mouth. Very |
| sellers are even more frustrated...and back on the | | | | unprofessional, but at the same time much needed. I |
| market. More ads, more showings, both at my cost. | | | | am not sorry to see them go. I am sorry about the |
| Month 4; the market is slowing and prices are falling. | | | | time and the extra effort I put in. I am so very sorry |
| What was once a slightly overpriced listing has | | | | that we humans have to make it somebody else's |
| become an even harder sell. Phone bills and | | | | fault when we do something we know isn't right or |
| advertising fees are eating up the commissions on | | | | fair. I worked my behind off for these people, but at |
| my other deals. And now the sellers are frustrated | | | | the end of the day it didn't matter. I didn't charge |
| with me, because I'm obviously not working hard | | | | them anything for the services I provided in regards |
| enough! I know they are frustrated and the financial | | | | to the rentals, leases, etc. which are over and above |
| burden of carrying two homes isn't helping. I have | | | | what most agents would have done. At the end of it |
| sympathy for their situation, however, if they had | | | | all, I ended up with nothing, other than the terrible |
| have followed my original advice they could have | | | | feeling that comes when I am forced to |
| avoided it. Now winter's coming on, and my contract | | | | confrontation. |
| is getting close to expiring. I am still spending money, | | | | Year 3; another year and another round of buyers |
| with no payday on the horizon. | | | | and sellers ready to fight to the deaths for the best |
| Month 5; Praise the Lord! On the same day we get | | | | deal out there. After over ten years in this business, |
| our first snowfall of the season, we receive another | | | | I still can't believe how many Saints I've seen turned |
| acceptable offer on the property. Once again it is | | | | to Sinners for the sake of a dollar. If you doubt the |
| faxing, emailing, phoning...but maybe this one will stick! | | | | worth of a good real estate agent, I urge you to |
| Again, the offer comes from a cooperating | | | | consider this story. Throughout this entire ordeal, my |
| brokerage, but the closing date will happen in time for | | | | main function was so far beyond your average real |
| me to get my phone bill caught up. It's a little lower | | | | estate agent, and my only goal for this year is to |
| than the first, but it still works, and if I shave a hair | | | | make sure I don't let experiences like this one |
| or two off my share of the commission, we can get | | | | destroy my faith in people and alter the way I do |
| it done. Eight days into the conditions, it's another | | | | business. |
| repeat. Buyers have been rejected for financing. I | | | | I don't resent the fact I didn't get my payday. I do |
| remind the other agent that she told us they were | | | | resent the fact that it had to end this way. As we all |
| preapproved...but I guess it wasn't official. Desperate | | | | know, the greatest human want is nothing more than |
| to keep the deal together, the agent approaches us | | | | appreciation, and I'm no different. If you would like to |
| with a rent to own option and a substantial deposit. | | | | get to know a team who thinks real estate is more |
| Considering it will keep the mortgage paid for my | | | | about people than it is money...feel free to visit us |
| sellers over the winter, I can't blame them for taking | | | | here: |
| the deal, but it leaves me waiting six months for my | | | | At the end of the day, even if you do consider us |
| payday. | | | | overpaid, you're only going to pay us if we get the |
| Month 12; It's been a quiet few months, and the | | | | job done. |