Friday, July 31, 2020

Old Realtors, Please Quit Bullying Young Realtors

     There are so many aggravations that occur in real estate that are unnecessary.  Many of these small irritations can only be described as old Realtors and listing agents telling new (young) Realtors how things have to be done.

     Learn what has to be done and why.  Zig Ziglar told a story about a young man that went to his family gathering.  His young wife asked her mother in law why she cut the end off the ham before she put it in the oven.  Her mother in law told her that was the way her mother always did it.  The new wife asked grandma why she cut the end off the ham before roasting it.  Grandma said her mom had taught her to do it that way  The new wife went in the other room and asked great grandma why she always cut the end off the ham.  Great Grandma told her it was because her roasting pan was too small.

     If you learn that some aggravation or chore is unnecessary, don't do it Don't suggest that your client aggravate himself complying with a nonsense rule.

     For instance, it states in the listing that, "cash offers must be be accompanied by a "proof of funds"  letter.  Who made that rule?  The seller or some Realtor that heard about this technique at a seminar?

     Would you advise your seller to accept this offer?  $300,000 price, $40,000 escrow deposit, no finance contingency, we close in ten days.  No accompanying "proof of funds".  Would you?  If you did, you would likely be sitting at the closing table ten days later.  OR you could suggest to the seller that we NOT accept this offer without a "proof of funds" letter.   

     Would you advise your  client to accept this offer as it is or would you demand a "proof of funds" letter?  I would advise my client to take the offer.  Ten days later, he will either be closed or he will get half of the forfeited deposit and I will get the other half.  With a $40,000 escrow deposit, this transaction will very likely go to closing.  If it doesn't close, we have wasted ten days.  Who cares?  I still have the listing.  I know that the seller will accept $300,000.  The seller has $20,000 in his pocket and so do I.  The buyer knew all along that he did not have the financial wherewithall to close.  Who is he mad at?  Only himself.

    The original purpose of a "proof of funds" letter was so the buyer's agent did not waste their time showing property to a buyer that did not have the ability to buy.  In many instances, it should be a concern to the seller that the buyer may be unable to close.  Not always.  Very few rules are always.

     What if the listing agents says, "We will not submit your offer without a "proof of funds" letter?  First, why would a listing agent say such a thing?  In Florida and almost all states, the law requires the listing agent to PRESENT ALL OFFERS to the seller unless they have written instructions to do otherwise.  Mr. Young Realtor, let Mr. Old Realtor know that if your offer is not presented to the seller, he should be prepared to defend himself to the Real Estate Commission investigator.  This may seem harsh.  When you deal with a bully, the bully needs to know that you don't like being bullied.

Quit putting up with bullies.  Call a prospect today. 

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