I had a very interesting meeting with a person today who attempted to refer an auction deal to me last year. It had been so long ago, I had totally forgotten about it.
Eventually, the conversation turned to this past referral try and I asked John what ultimately happened. He said that the property sold at auction for about $90,000. Interesting thing, he said. That's exactly what you told the seller she was going to get.
I asked him why the seller chose to work with someone else. We presented a good proposal, fee was about right, so were the expenses. So what was the problem?
The vendor that the seller chose told him that the property MIGHT be worth upwards of $120,000 vs. the property is PROBABLY worth $90,000.
So big deal. I was right. Didn't make me a dime. Is that seller going to remember that I told them the truth? No. They are going to remember that the other guy could not perform as promised, but he's got my fee in his pocket.
Ughhhhh.
Some days it doesn't pay to be the good guy.
Ughhhhh.
Do you have questions about distressed assets, receivership or bankruptcy sales, auctions? Email me at rfk@gryphonusa.com and I'll try to answer it in an upcoming post.
Richard F. Kruse is the President of Columbus, Ohio based Gryphon USA, Ltd. (www.gryphonusa.com). The Gryphon Organization includes Gryphon Asset Management providing receivership and consulting services in the distressed marketplace, United Country Gryphon Realty & Auction Group (www.ucohiorealty.com & www.ucohioauctions.com) providing real estate brokerage and auction services throughout Ohio and OnlineAuctionUSA.com (www.onlineauctionusa.com) providing commercial asset liquidations from the Midwest to East Coast.
United Country Gryphon Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17
Hi Rich, we are on the same page here Monika and I talk about this all the time. Agents buying listings.
I do disagree with Dave on this point. A few of the agents that have practiced this way have pretty poor reputations in our marketplace and they are no way dominant in their market.
When we go in and tell a seller the bad news that their house is not worth what they think, we tell them, "I would rather disappoint you now than have to come back later and ask for a price reduction and dissapoint you later.
If someone is making close to 2,000 a month mortgage payments and 500.00 per month for property taxes how much do you think they are paying in the long run after 10 months on the market?
Oh well, Go Buckeyes
Dave - In an auction scenario there is only one shot so, for me in that case, it was a choice between BS and no BS. Should I lie and maybe get paid or not lie and maybe not get paid?
The eternal question. I chose wrong. The liar got a fee, the upset sell felt lied to and paid a fee anyway and I got the "we should have listened".
I wish there was a fee paid every time somene says "I should have listened to you."
SK
Rich,
It always pays to be a good guy. Some times you have to wait for the remuneration!
You can make up the loss by shopping at Cosco.
Bill
Good Morning Rich-
I would also like to think that it pays to be the 'good guy' but it can be frustrating!
Too many people are WAY to gullible.
In an area that I live near there are 2 stellar examples: one listing 110k over priced, one about 45k over - that might not seem like a lot until you realize that the going price right now for those condos is ONLY 235,000! Those poor people were fed some major BS,
Rich - it is, at times, a struggle to hear what you heard and wonder if it wouldn't pay, just once, to not be the good guy..... It is frustrating to see the people who baffle folks with BS walk off with your pay check.
"Cream rises to the top" - stay there and it will pay off!!
Ann
Rich,
There's plenty to go around. You may not get them all but just look at this blog, David, Jay, Adam & Sharon, Mac, Ann, Jason, and please include me all think of you as a friend. How many bad guys can say as much?
As long as you've got the bills paid there is a lot to say about the intangible!
Bill
William J Archambault Jr
The Real Estate Investment Institute
http://www.reii.org
Thanks for the nice words Bill. By the way, I received another letter from you, but have not had a chance to look over it. I will have some time this weekend.
Thanks
Hey Rich,
Excellent post. You did the right thing, but yeah, it didn't make you a dime. It did however keep your integrity and reputation in tact, which I suppose is more than the other chap can say. Hang in there, the good guys do win!!
O your day will come when people understand the truth you are giving them. Great Job
Ben
Hi Rich,
I understand your pain. I have been "right" many times and not had the listing only to watch the other person ultimately sell it for less than what I originally suggested due to the fact the days on market had stigmatized the property. ugh. I feel your pain...a lot! I am going through it right now with my CMA saying $235 and the other two agents saying $269. No basis of fact on their part, but that is what the seller wants to hear. -Ken
That seller may refer to you because you were honest and gave good advice. Being the good guy always seems to pay off in the end. Keep up the good work.
Fran
I always feel good about the ones that got away when they list with someone else & then fire them or better yet go for 6 months then expire.
It's the ones that I turn down thinking I'm all so smart & know the market better than "the other guy" only to have them sell in 30 days or less that hurt!
Some days you're the windshield, some days the bug!!