Equity Is Optional / Liquidity Is Mandatory

By
Services for Real Estate Pros with The Real Estate Investment Institute 1retiredsage

 Real Estate 102

I'm appalled at the sorry state of many real estate agents, and I use the term "agent" very loosely. Maybe the time has come to install taxi type meters in agents cars and bill by the hour and mile. $5.00 for dropping the flag (letting the buyers into your car) $20.00 if you actually have a car with a comfortable back seat. $1.30 per mile. $0.17 per minute waiting time. $10.00 per door opened with key box. $20.00 for para-legal services, filling out a sales agreement. $1.00 per page for faxing said sales agreement to listing agent. $1.35 per page for incoming fax.

Absurd! Of course! Few are worth that much!

Agent. "agent >noun 1 a person who provides a particular service, typically liaising between two other parties. 2 a spy. 3 a person or thing that takes an active role or produces a specified effect."From my WordPerfect program dictionary.

"1 a person who provides a particular service"Some still do drive their buyers to the listings, some. All most all use the key box to open the houses. Most will write in the address and the buyers offer on the 16 to 23 page form that disclaims all for liability both statutory and presumed. Most "present" the offer by fax.

"liaising between two other parties" For most this is a real creative stretch of the imagination! 

"2 a spy" Well most will check the address on a map. Few will take the time to check the public record, about the property or seller.

"3 a person or thing that takes an active role or produces a specified effect." If you consider being ambulatory active.

How does the "agent" justify their fees beyond what I've listed if they don't council the buyers?

How? What set me off? Consider the following:

"whomever sold her that house should have advised her to meet with a financial planner"

"Sometimes we are counselors but venturing into the mortgage process may bite you. You can recommend without crossing lines but when venturing into unlicensed territory the liability gator can bite you. I offer my thoughts but rarely do I get involved with the financing side".

"We need to take caution so as not to overstep out limits of expertise"

"She should have been advised somewhere along the line to speak with a financial planner"

"As a REALTOR I seldom get into financial discussions with my clients"

These "agents" were all making excuses for not counseling a home buyer about the down payment and loan on a house. While some advice seeking financial planning advice, the practical matter is that few people will. The REALTOR and the Mortgage Originator are the only financial people most buyers have access to! If the buyer is pre-qualified or pre-approved then the duty is on them, but if they come to the lender with an O & A that is contingent upon a 50% loan the client is obligated to buy if that loan is available to them!

There is a great quot attributed to a 17th century Member of the English Parliament to the affect that an agent/representative of the people owes his people his wisdom. Why would your people deserve less?

If you can't advise your buyers some thing as simple as "Equity Is Optional / Liquidity Is Mandatory" what justifies your fees or license? The question applies equally to real estate and mortgage people! A mortgage person who can't or refuses to counsel their buyers is worth $200.00 to $300.00 for clerical services no more!

Remember you don't have to know all the answers, but you must know the questions! And, ask them!

Bill

William J Archambault Jr

The Real Estate Investment Institute 

10 Suggestions!

With out his advice even Mosses would have had little value.

He didn't know the answers, but he knew the questions and where to get the answers!

To extreme? Maybe.

 

Posted by

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org      Cell 832-259-7078,      Houston 832-582-8415,       Las vegas 702-516-1569

     http://www.reii.org  Back Cover One House At A Time http:www//reii.orghttp://www.flippingforfunandprofit.info/ http://www.billarchambault.com   

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

http://www.reii.org

©William J Archambault Jr   ©The Real Estate Investment Institute   ©REII

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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Well, it don't take no Rhodes Scholar to get a real estate license. 

However, what it takes to counsel buyers about negotiating, financing, inspections, contract terms and conditions, etc., is experience. 

Experience doesn't come with the license.  It comes from many, many transactions from which, even now after thousands of transactions, I still learn something on each one.

 

Aug 04, 2008 02:58 PM #1
Rainmaker
591,130
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Lenn,

The good ones are always learning!

That's one of the reasons we read the blogs we do!

Bill

 

Aug 04, 2008 04:19 PM #2
Rainmaker
1,089,830
Bryant Tutas
Bryant Tutas-Tutas Towne Realty, Inc - Poinciana, FL
Broker/REALTOR, Tutas Towne Realty, Inc

Bill, Now that was fun wasn't it? I think it goes beyond having the knowledge to counsel someone properly it also requires the confidence to do so.

Aug 04, 2008 04:28 PM #3
Rainmaker
591,130
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Bryant,

Fun? I'm not so sure, but it did feel good when I finished.

Lenn talks about experience, you site knowledge, I only ask them to know the questions!

Do you know how to fly? When learning to fly, you fly with an instructor until you have enough experience/knowledge to go solo, and this is after you've passed the written exam. Perhaps this is what we need for new real estate and mortgage people.

Regardless it's good to hear from you.

Bill

Aug 04, 2008 04:46 PM #4
Rainmaker
591,130
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Readers,

This morning I heard a new use a REALTOR add sponsored by our local Board (Las Vegas) it sounded like an NAR production. This new add promoted a REALTORS financial knowledge and help in selecting the right type of mortgage!

It seems that the NAR belives as I do.

Bill

Aug 06, 2008 05:51 PM #5
Rainer
19,166
Josh Holt
RE/MAX Coast To Coast~ Dedicated to You! - Berwick, ME
Southern Maine and NH Real Estate - Your Source of Info on the Berwicks

Bill-

Another good post. I would say the same goes for incompetent Attorneys that fill in the blanks, accountants that are not honest, and financial planners that are peddlers of things they do not know or believe in, as well.

I am absolutely horrified at times over the amount of incompetence and lack of basic care that is given to people now a days.

Thanks Bill

josh

Aug 12, 2008 02:28 PM #6
Rainer
69,662
Bill Nazur
Corona, CA

Mr. Bill.....

I love it when you impart your knowledge on the masses! While I do not get much time to troll around here these days, I still follow you and a few others on a regular basis.

Hope all is well, my friend.

Aug 12, 2008 02:45 PM #7
Rainer
69,662
Bill Nazur
Corona, CA

I have to add this as a secondary opinion...this should be a public posting if for no other reason, than to let the public know that not all realtors, financiers, banks, etc are created equal. The public should know who they are dealing with so they do not fall victim to the 'smoothest' person out there.

Aug 12, 2008 02:48 PM #8
Rainmaker
591,130
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Josh,

Your welcom!

Bill

Aug 12, 2008 03:04 PM #9
Rainmaker
591,130
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Bill N,

Thank you!

It's members only because as bad as these quotations are, they are from goop people, and friends of our's! I'd rather have the public dealing with them than most, regardless. All I can try to do is improve a few attitudes.

Bill

 

Aug 12, 2008 03:10 PM #10
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Rainmaker
591,130

William J. Archambault, Jr.

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