Author: Doug Quance (page 3 of 4)

by Doug Quance

Associate Broker

Author website

Now I Know Why Nice Guys Finish Last

This isn’t the first time this has happened…

A potential listing client called me up several months ago to come out and talk to her about her property. She grilled me about what I would do to sell her property and how much I would charge her.

To be perfectly honest – I left there hoping I wouldn’t get the listing.

And I didn’t. Well, for the most part I didn’t.

For the last several months, I have received a call at least once a month from her – asking for my take on a variety of issues regarding the sale of her home. I finally had to ask her, “If you value my opinion so much – why didn’t you list with me?”

“Because [insert agent’s name here] is only charging me $500,” she blurted out.

And then it dawned on me. While I was thinking that maybe this potential client might have thought she made a mistake… and that she might become a real client… I was wrong. She was getting her home listed for practically nothing – and getting the advice of myself (and probably others) FOR FREE.

I could kick myself. Count another lesson learned.

The following video of writer Harlan Ellison pretty much sums up my rant. There is a great deal of similarity if you think about it. (Warning – Some Strong Language)

by Doug Quance

Associate Broker

Author website

Many Agents Choose To Be Less Than They Can Be

In an industry overflowing with too many agents chasing too few opportunities, one might think that this level of competition would cause an overall increase in the professionalism and dedication of its principals.

I submit to you – that’s not the case.

While there are many several agents like Greg Swann who pride themselves on taking their efforts to the extreme… there are far more who try to see how little they can do to get a paycheck.

The list of offenses is lengthy, and quite frankly – I don’t know where to start.

One that really chaps my rear is the failure of an agent to return a call. As a listing agent, you have a responsibility to return the calls of other agents regarding your listings. It’s not an optional burden.

A recent case in point involves a few listings I showed a few days ago. Of three of them, we got in to see one. Calls to each of the listing agents was made the previous day to ensure availability and ascertain any special showing instructions.

One of the agents had a full voicemail box, so I was unable to leave her a message – but I did attempt to reach her several other times… including while we were at the home unable to get into the combination lockbox, as there was NO combination given in the listing.

You would think that a listing that had been on the market for more than a week would have this discrepancy fixed – but alas, we can not reach the listing agent to inform her of such. And since this listing is getting stale, I’m willing to bet that her voicemail box has been full for quite a while. Angry clients, I suspect.

Neither of the other agents was kind enough to return my call. When we arrived at one of those other two listings, we discovered that the lockbox and sign had been removed… even though the listing is shown as active in the MLS.

This experience is common to many other agents

I hear about this kind of behavior Read more

by Doug Quance

Associate Broker

Author website

The lending roller coaster is just starting to roll

Most real estate professionals have to deal with an occasional unexpected consequence involving lenders… but not a string of them like this revelation.

A client of mine decided to be a generous friend. He’s not a wealthy man in the strictest sense of the word, but that doesn’t stop him from trying to help his fellow man – or woman, in this case.

Some of you might know a little about him, as he is Jack in my interview with noted investment real estate broker Jeff Brown on my website.

Jack has a friend who has been living in a drafty house owned by a slumlord. Although she didn’t live in a slum – the owner was treating the building as if it was. She was paying as much as $300 or more each month to heat her little place, as the cold wind blew through it like Swiss cheese.

While looking at other investment opportunities for Jack, he asked me to find a condo that he could buy for this friend – thus allowing her to get out of this awful place she was living in.

Remember – no good deed goes unpunished

My favorite mortgage broker found the perfect program with Countrywide – an 80/20 loan for non-owner occupancy… and I found a perfect condo that Jack’s friend really liked – and with a price that worked.

Our offer, though aggressive, was accepted. So far – so good.

Enter the lead aggregator LendingTree. Jack logged onto their website to look at doing a refi on his home. What Jack did NOT know is that LendingTree would give his info to a dozen lenders who would all pull Jack’s credit (not pulled once and shared with member lenders like you might believe).

So what difference does this make?

Plenty. While Jack was rearranging his finances and paying off debts – he was draining his cash reserves down. The refi was going to bring cash back into the picture for the rehab of his next real estate acquisition.

The trouble is that when all those LendingTree lenders pulled his credit – his credit Read more

by Doug Quance

Associate Broker

Author website

I submit to you – the time has come. In fact… it’s long overdue.

As someone who has received more referral money than I have paid out – it has been good for me on a personal level.

But I fear that is has become disastrous on an industry level. Relocation companies, REO Asset Management companies, and online entities like Yahoo! and HomeGain are draining a ton of money out of the system without adding much value to it.

In an era of transparency, perhaps we need to shed some light on this subject.

Is it not odd that no other business operates in such a fashion? Do you think other licensed professionals seek to refer their clients out to the highest bidder?

I think not.

Do you think our clients would appreciate knowing how we’ve “pimped them out”?

I think not.

Do you think a buyer or seller would think twice if – IN BIG PRINT – they were told that the agent that they were being referred to has agreed to pay 35% of his commission to the referring party… especially if it was some online entity like Yahoo! or HomeGain?

I bet some might.

And with the Yahoo! and their relationship with Prudential, the plot thickens. Prudential has a franchise fee of 8% on top of that referral fee… and with the split between broker and agent… you can see how the agent is getting squeezed here.
Some believe that it’s just an issue of disclosure. Disclose and everything is okay.

NONSENSE! Have you read some of these disclosures? They seem so innocent and innocuous… while obscuring the real meaning of what is going on.

Here’s a disclosure in our Georgia Purchase and Sale Agreement:

“Broker hereby discloses that Broker may receive a commission, rebate, or direct profit for procuring a mortgage loan, insurance, or other services on behalf of Buyer or Seller.”

That’s no disclosure! That’s a C-Y-A!

A disclosure would spell out what compensation the Broker received from what service provider – and would require that disclosure prior to the Broker referring the client to said provider… not at the last minute when they sign an offer.

I don’t accept fees such as Read more