Are You Accepting Short Sale Referrals Like This? Maybe You Shouldn't

By
Real Estate Agent with RE/MAX Select

Real estate can't get any easier than someone from out of state handing you a new listing and the buyer for it, right?  A referral inquiry comes in and not only is the referring agent handing you a listing, but is handing you the buyer as well.  Here is a copy of the latest email I received.

"We have a client that has a home in your area that he needs to sell, short sale. We also have a buyer (investor) lined up...he is aware of the time involved in a short sale, and is purchasing another one of our client's homes here in my home state. Would you be interested in the referral? We would ask for 25% each side. Let us know what you think."

Would you take it?  As for me, I turned it down.  I do list and sell short sales, but this type is not what I choose to risk my license for as it just oozes implications of fraud.  Lately, I have noticed an increase of referring agents from other states calling me with this same or similar scenerio.  What do you think ActiveRain? Do you accept referrals like this one?

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the pants to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
ActiveRain Community
Groups:
Certified Distressed Property Expert
RE/MAX Active Rain Bloggers
Short Sale REALTORS®
Tags:
short sale referrals

Comments 7 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the umbrella to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainer
69,685
James K Barath, CMPS
FICO Pro, Certified Military Housing Specialist
LeaderOne Financial Corp.

The word no can be very empowering in business and in life. Understanding your niche definitely brings clarity to a question such as this.

November 04, 2009 06:47 PM
Rainer
70,659
Teresa Cox King
Fairhope, Daphne, Spanish Fort, Mobile
RE/MAX Select

James- I am noticing that many local agents are taking these listings as they are not aware of the potential for fraud.

November 04, 2009 06:52 PM
Rainer
89,164
David Salvato
David Home Inspection Service Home Inspector San Bernardino

Teresa I hope everyone is reading this! Good information...

November 04, 2009 07:14 PM
Rainmaker
652,546
Bob & Carolin Benjamin
East Phoenix Arizona Homes
Benjamin Realty LLC

We would turn it down as well -- some things are not worth taking.

November 04, 2009 07:26 PM
Rainer
70,659
Teresa Cox King
Fairhope, Daphne, Spanish Fort, Mobile
RE/MAX Select

David- Thanks for your comment.  On the surface it sounds great, but in reality...not so wonderful.

Bob and Carolin-  I've been watching a few local agents participate in this sort of thing and frankly, I can't participate in a deal where a third party puts my seller and my buyer together, sets the price and then lays it out for my license and E&O to handle.  Have they not heard of the "Affidavit of Arm's Length Transaction" all parties must sign?

November 04, 2009 09:25 PM
Rainmaker
477,913
Robert L. Brown
Grand Rapids Real Estate Bellabay Realty, West Michigan
www.mrbrownsellsgr.com

Not worth the time and hassle. But then again some people would jump at the chance to do the deal.

November 04, 2009 10:14 PM
Rainmaker
331,601
Thesa Chambers
Principal Broker - Licensed in Oregon
Alpine Real Estate

I have not seen anything of the sort - but we are not seeing investors buying - I would certainly have a ton of questions - "Arms Length" and I certainly would not want to participate in dual agency (although allowed in Oregon) on a short sale..... If is smells bad it usually is not worth putting in your mouth - because when it hits your stomach you will regret it same goes in Real Estate - if it smells bad - better to trust your gut to a better meal.

November 22, 2009 12:57 AM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the balloons to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainer
70,659

Teresa Cox King

Fairhope, Daphne, Spanish Fort, Mobile
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the leaf to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase: