A hypothetical duck-alignment.

By
Real Estate Agent with Coldwell Banker Residential

Seriously... it's hypothetical, it's not about me... I promise!

Alan is a great agent, stellar, in fact... but two years ago, Mrs. Alan lost her job, due to health problems, she'd been in and out of her doctor's offices, and had a couple of surgeries.  The bills have piled up, and there are a lot of medical bills. 

Due to the loss of her job, they're been surviving on Alan's income alone for the last two years, due in large part, to Alan's juggling of lots of ducks.  Fortunately, Alan planned well, and did what any good real estate agent would do.  He set aside a full third of his income, year after year, and had plenty of money set aside for a down market.

Unfortunately, nobody expected this down market to last quite as long as it has, and for Mrs. Alan's medical problems to coincide perfectly with the down market.

To top things off, this is the year, that Mr. and Mrs. Alan's older daughter began college, and while it's not Harvard, it's also not cheap. And yet, due to Alan's smart planning, and lining ducks in a row, they've managed.

Mrs. Alan is on the mend, and almost ready to return to work.. but not quite yet.

They're paying off the medical bills as quickly as possible, but credit cards have been maxed out, and while there are no actual 30-day-late fees, their credit score has plummeted from what it once was, based on their credit card ratios, and a handful of slow-pays.

In an interview with a potential buyer, they have asked to see his credit report.  And upon viewing that credit report they've determined that he's not "fiscally responsible" enough to handle their transaction.

Lesser agents who'd not planned as well, might have fallen by the wayside.  But, no, not Alan.  His superior financial planning has allowed Mr. and Mrs. Alan to stay afloat, and in fact remain financially viable.  It's amazing.  And yet, his credit report tells a different story.

- 4

Posted by

 ALAN MAY, Realtor®
Specializing in Evanston Real Estate and North Shore Real Estate

Coldwell Banker Residential Real Estate, 2929 Central Street, Evanston, IL 60201
847.425.3779      Cell: 847.924.3313      Email: Almay@aol.com

Evanston Real Estate & North Shore Real Estate
Licensed in Illinois

   

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Rainmaker
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Kathy Clulow
RE/MAX All-Stars Realty Inc. Brokerage - Uxbridge, ON
CNE - ASP - SRES .... Uxbridge Ontario Real Estate

Alan -  there are a lot of people who read between the lines and one could very easily read you into this post ..... in between the lines ..... we are or become what we post about in the eyes of those who read between the lines

Feb 06, 2012 11:45 PM #12
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Gayle Rich-Boxman Fishhawk Lake Realtor (503)755-2905
Vernonia Realty - Vernonia, OR
"Your Gateway to the Lake" Birkenfeld Oregon

Whew~oops, didn't know that hypothetical part--gosh, well I win for most gullible...Gullible Gayle, uh yup, that's ME.

Feb 07, 2012 12:50 AM #13
Rainmaker
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Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

I agreed with your previous post, I could come up with plenty of situations where someone has a poor credit report but still fiscally responsible. You've story sounds like a viable situation Alan.

Feb 07, 2012 02:40 AM #14
Rainmaker
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Gabe Sanders
the BlueWater Realty team specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

So I guess the part time agent with a spouse that's a millionaire that knows nothing about the market, has never written an offer or taken a listing but has a great credit score would be a great choice for an agent.

Feb 07, 2012 06:25 AM #15
Rainmaker
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Wayne and Jean Marie Zuhl
Hallmark Realtors - Clark, NJ
The Last Names You'll Ever Need in Real Estate

Are we within our rights to therefore ask for health reports from our physicians - after all, they're advising us about our health? Or perhaps an eye doctor who wears glasses would be a bad choice? I'm baffled by this logic.

Feb 07, 2012 06:55 AM #16
Rainmaker
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Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Alan.  I think I would have told anyone looking to see my credit report to go suck polluted pond water.

Feb 07, 2012 07:46 AM #17
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Alan May
Coldwell Banker Residential - Evanston, IL
Evanston & Northshore of Chicago real estate

Kathy - it ain't me, babe.  No, no, no, it ain't me, babe.

Gayle - did you know that it says "gullible" on the bottom of your computer keyboard?

Tom - I thought so, too.

Gabe - excellent counter point!!  I hadn't thought of that aspect.

Wayne & Jean - and health advice from a 350 lb. doctor would be ill-advised?

Conrad - an interesting proposal.

Feb 07, 2012 08:34 AM #18
Rainmaker
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Christine Smith
Buyers Brokers Only LLC - www.BuyersBrokersOnly.com - Canton, MA
Exclusive Buyer Agent & Attorney, Canton, MA

Alan...this story is a great way to make your point.  A credit report does not tell the entire story.  And it is no one's busienss except someone who is going to lend you money.

Feb 07, 2012 09:44 AM #19
Rainmaker
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Donna Harris
Donna Homes, PLR - Austin, TX
Realtor, CDPE & ASP - Hill Country Lakeway Austin

There are too many things wrong with this hypothetical. I went through college on financial aid. Is there a problem with having your daughter file for financial aid to help the home situation?  Is there a problem with anyone filing for financial aid for college? It's there for a reason. And if you haven't had any 30 day lates, your score isn't going to suffer "that" much. The ratios of what you can borrow and what you are borrowing might be higher, but as long as bills are being paid, not an issue... and woudn't most of this reflect on your wife's credit, and not yours?

I don't think this scenerio applies to your original post.  Your original post talked about the agent not having a great year because of the market. My response on that was if the agent couldn't make it in this market, how great of an agent are they?

Feb 07, 2012 10:24 AM #20
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Alan May
Coldwell Banker Residential - Evanston, IL
Evanston & Northshore of Chicago real estate

Christine - and that's just the point.. isn't it?

Donna - my original post talked about the credit report having no bearing, no relevance as to whether or not they are a good agent and able to successfully represent the client.

But if you want to go into the details of this 'hypothetical', just as an example, my daughter got financial aid in college... but that still left tens of thousands to be paid to the college on top of financial aid.  And yes, even without 30-day-lates, if your debt/credit ratio is high, your credit would indeed suffer "that" much.   And no, it wouldn't reflect solely on the wife's credit if you're married... you have joint debt.

And nowhere in my original post did I say "the agent couldn't make it"... what I said was: "I know several agents, who've had a really tough few years, whose credit scores might not have survived unscathed, who are truly excellent Realtors and know their stuff.  Their current credit scores have more to do with children in college, and the temperamental real estate market, than with their knowledge and expertise.

I think that, perhaps, it's you who refuses to see the other side. Simply having a great credit score doesn't make you a great Realtor, any more than having a bad credit score makes you a bad Realtor.

Feb 07, 2012 11:15 AM #21
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Debb Janes
The Carl Group, LLC - Camas, WA
REALTOR®, EcoBroker Camas, Washington

Okay, I was confused and jumped into the same boat with my good pal Gayle - ( it's easy to do with that Lake talk of hers). Now, I finally get it too. Interesting post and my thoughts align with what you explained in comment #21.  A poor credit score doesn't always reflect the true circumstances. 

Feb 07, 2012 12:06 PM #22
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Alan May
Coldwell Banker Residential - Evanston, IL
Evanston & Northshore of Chicago real estate

Debb - that's quite a boat.

Feb 07, 2012 12:19 PM #23
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Gayle Rich-Boxman Fishhawk Lake Realtor (503)755-2905
Vernonia Realty - Vernonia, OR
"Your Gateway to the Lake" Birkenfeld Oregon

Oh, Mr. A~Seems I got my GF Debb, caught in my Net of Gullibility. We Gullibles have each other's backs.

(Is Gullible really on the bottom of my computer?  I thought it was on my forehead.  There must be a mirror down there).

Feb 07, 2012 12:21 PM #24
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Alan May
Coldwell Banker Residential - Evanston, IL
Evanston & Northshore of Chicago real estate

Gayle - it's also on the bottom of your Starbuck coffee cup.

Feb 07, 2012 01:00 PM #25
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Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise in NE Philadelphia & Bucks County

Alan,, what a fantastic response   Give someone (potential buyer ) my credit report???   He is the one applying for credit not me ..  Ones credit report has nothing to do with being a good agent

Now a criminal background check  a different story ..LOL

Feb 07, 2012 03:38 PM #26
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Alan May
Coldwell Banker Residential - Evanston, IL
Evanston & Northshore of Chicago real estate

Hannah - as a relocation certified agent, I've had to pass the criminal background check.

Feb 07, 2012 03:51 PM #27
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Randi Brammer
Randi Brammer, Acctg. - Hinckley, MN
Accountant & Tax Preparer

I have had clients ask some very personal questions.   I just tell them that they are not relevent to what they are trying to do.

Feb 07, 2012 06:20 PM #28
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Alan May
Coldwell Banker Residential - Evanston, IL
Evanston & Northshore of Chicago real estate

Randi - hopefully they understand that.

Feb 07, 2012 07:55 PM #29
Rainmaker
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Vern Eaton
Askov, MN
Realtor 320-630-6995

Very enjoyable and very palusible.  I like the humor you injected also.  Makes a person think.

Feb 09, 2012 04:22 PM #30
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Alan May
Coldwell Banker Residential - Evanston, IL
Evanston & Northshore of Chicago real estate

Vern - I've been called many things, and humorous is one of them.  As long as there's no pointing and laughing, I'm okay with that.

Feb 09, 2012 04:55 PM #31
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