Agent2Agent in 07876>Question Details

Bill, Real Estate Pro in 07876

Dealing with a real estate tester...

Asked by Bill, 07876 Fri Nov 7, 2008

I think I am currently dealing with a tester. I have found out recently that the NFHA refunds any money to people they have spent while testing an agent. I am dealing with a buyer that has been chasing down a foreclosure in very bad shape, while applying for an FHA loan. Now, this person has spent money on inspections and mortgage fee's. The bank is not going to fix any of the problems with this house and it is going to be expensive to fix them. I have kept advising this person to walk away from this house because of the money they would have had to pay to fix them, and they have said I want to keep going. A couple of days ago I forward over 3 listings of houses in much better shape, for less money, in the same area(all 3 less than 3 miles away). This person informs me that they do not want to look at those houses and they tell me now they don't want to live in the area. But they still want to go after the original house that is in foreclosure.What do I do?

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9
Thanks Emily,

I posted a response to the originator of this thread at his level.
I usually do not respond as such, but in this case he needed to be put in his place.

Thanks for keeping Trulia in good form.
1 vote Thank Flag Link Sat Nov 8, 2008
Did I miss something in the thread?

Lori
0 votes Thank Flag Link Sat Nov 8, 2008
Gina,

Thank you for your response. And emily, I do respect the trulia community, but it annoys me when certain people post comments that lack intelligence. A sales persons job is to make sure they never let their clients go into a bad situation. I can see the problems that my client is going to run into and I am trying to help my client avoid this situation. If they end up closing on this house and they have to spend a lot more money to fix the problems, I have not done my job as their agent. They will be annoyed and have an negative perception of what they have gotten involved with. The problem with that is that the agent they dealt with will also be included in those negative thoughts. This is a business that depends on referrals. Do you think that someone will refer me if I let them close on a something that will cost them time, money and aggravation? This is the reason why agents have a bad reputation. Instead of telling people what they are facing, agents will push their clients into a bad situation just to get a commission check. I'm sorry but professional sales people don't work that way, and I am one of them. If I have to sacrifice a commission check to keep my clients from making a huge mistake, then so be it. In my heart i know I will have done the proper thing. Can all agents say the same thing? I have handled several people this way, and they are all very grateful that I said what I did. When you handle clients properly, you develop a relationship that can never be broken!!! Emily, my post in response to john was me expressing my opinion. It was not harassment, stalking, inappropriate self promotion or whatever you want to call it. You mentioned free speech in your post. That is exactly what I did, I expressed my opinion. That's what freedom of speech is all about. Now if we can get back to my original post that would be appreciated.
0 votes Thank Flag Link Fri Nov 7, 2008
Hi Everyone,

Just a reminder that posts that contain insults won't be permitted to remain on our site. Please be sure to keep the tone of your answers respectful and that you abide by our Community Guidelines.

RESPECT THE Trulia Voices COMMUNITY
Every member is entitled to share his or her opinion on Trulia Voices. Do not insult other members because you strongly disagree with their views or for any other reason. Do not engage in hateful discussions, venting or ranting or use inappropriate language. We respect everyone's right to free speech but do not tolerate stalking, threats, harassment or inappropriate self promotion.

Thank you,

Emily Gibson
Community Moderator
0 votes Thank Flag Link Fri Nov 7, 2008
Bill,


I agree with you regarding your analysis of the $180,000 vs. $190,000 and agree with providing them and educating them on the risks involved in making a choice between properties,etc. but after all is said and done I also agree with John in that its not our choice or decision to make but the buyers' decision after they've been provided with our knowledge. Then if they still want to proceed you can make a choice as to working with them or not. Despite what many people think, we do get to choose who we want to work with.

After reading your comments to me, if they cannot afford to fix the necessary repairs to fund the loan then there is no point in working with them further on this property. Correct? Affordability is a big factor in our world so if its unaffordable for them then the entire point is moot. I do find it amazing that they would sink all this money into the inspections of the house while stating they cannot afford to fix it. Legally I'm not sure if you can ask if they are a tester or not but accusations of such may not be in your best interest as if they are not testers - I cannot see them remaining your clients either. Possibly ask one of the attorneys you handle transactions with if it's legal without crossing the line.


As we all have done at one time or another is wasted time, gas, etc. on a deal that was going nowhere but perhaps at the time didn't realize that but in this case ...you also need to ask the buyers if they cannot afford to fix this house - what's the point?

Good luck and keep me posted. I'm very interested.

-Gina
0 votes Thank Flag Link Fri Nov 7, 2008
Gina,

Yes, the foreclosure is in the same area as these other three.All 3 are just over 3 miles away with the same school district. This person has told me that they do not have the money to fix the problems with the house. And with the fha loan, the problems would have to be fixed before the loan could get funded. The other 3 houses I found are all bigger, updated and in much better shape. 2 of them are practically lakefront with very nice views of the lake. The foreclosure is on a main road. The way I look at it is this, Why spend 190k and money to fix a house with major problems when you can spend less than 180k and not have to fix anything. This person does not listen to my advice. They now have to pay for a termite company, structural engineer, septic test, and the bank refuses to turn on the utilities so we can make sure those are working. The house also has busted pipes that have to be replaced. If I told you more info about this person, which for obvious reasons I do not want to post that on a public forum, you would understand why I believe this person is a tester. Legally, do you think I could ask this person if they are a tester, just to see what their reaction is. In this business time is money, and the house is a 30 minute drive from where I work. Spending money on gas to go out there is a waste if this is not going anywhere. I am going to try and have any contact with this person through email from now on so I can document the responses.

Thanks for the responses gina and scott.
0 votes Thank Flag Link Fri Nov 7, 2008
Hi Bill,

You seem intent on not letting your buyer purchase the house that they want. Tester or not, it sounds as though this person wants a particular house for whatever reason.. and you can't or won't get it done for them.

You do what your clients want you to do.

Are you also buying this house with them? If not, then help this person buy the house. period.
0 votes Thank Flag Link Fri Nov 7, 2008
That is a tough question... If they want that one house you need to just focus on that one house. Cover yourself by having evrything in writing and dont miss a step. I have had customers so focussed on property it doesnt seem right, but i gave up guessing a long time ago. You need to assess wher you are at in the deal. Then determine if it is worth sticking it out or cut them loose. Either way good luck working it out.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Fri Nov 7, 2008
Bill,

This person informs me that they do not want to look at those houses and they tell me now they don't want to live in the area.
*********************

Isn't the house in foreclosure in the same area? If so, then obviously that statement does not make sense. As far as they buyers still wanting to proceed on the foreclosure - from my own experience I have learned that most buyers that are interested in short sales or foreclosures are ONLY interested in those types of properties. I've spent countless hours on end explaining that those type of homes are not always the best deals, the estimated costs involved, etc. and while there are many homes on the market that offer better value - they will not expand the scope of their search to include such homes. Some buyers hear the word foreclosure and automatically believe it is the best deal when in reality it is not.

As far as being a tester - I did not think testers go as far as inspections, etc. but if what you've said is true -- then I guess there is a possibility. I've heard many agents have come across a tester at an open house but was not aware of any testers coming forward during a transaction. You should keep very detailed notes of all conversations, emails, etc. in the event this comes back to haunt you. What makes you really believe they are testers and not just buyers who think foreclosures are the way to go in the market?

In the event that they are not a tester, do you foresee this going to closing? If yes, then stick it out but if you think they are wasting your time then I would cut them loose. Our time is too valuable to spend with unmotivated buyers.

Good luck and please let us know the outcome.

Gina Chirico, Sales Associate
Prudential New Jersey Properties
973-715-1158 cell
973-992-6363 ext 116
GinaChirico@PruNewJersey.com
0 votes Thank Flag Link Fri Nov 7, 2008
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