Once upon a time there was a nice young couple who wanted a 2 bedroom Downtown Long Beach Condo to call home and to begin a future in. About 2 years ago this sweet young couple met a nice real estate agent while visiting open houses beyond their financial reach.
Knowing little about the Long Beach communities, nothing about real estate and very little about managing their finances; they wisely sought out professional assistance. They developed a working relationship with that agent, who helped them find the Downtown Long Beach Condo they were dreaming about and live in today.
The agent, not content with this sale, explained to this nice young couple that they could purchase a second condo in Downtown Long Beach, as an investment, and rent it out. While they would be upside down to the tune of about $1,000 per month, they should not worry about it because they could afford it and in two years she would sell it for them at a huge profit. Nice agent also assured this young couple that she would find them a tenant and check their credit etc¦ for the 2nd condo. She didnt.
Relying on the professional they went ahead with the 2nd condo purchase anticipating a large profit with which they could purchase a nice home with a yard in a couple of years. This nice agent also arranged for financing on both units, both loans were 2 year fixed, both of which are now adjusting massively. It was a financial plan-of sorts which is now a disaster.
2 years ago the hot sellers market was winding down, most agents knew what was developing in the Long Beach Real Estate market and were hoping for a mild downturn. This was not a new agent, she had to know the position she put this couple into.
Nice young couple had a hard time finding a tenant and the $1,000 a month became a bit more. They eventually found the tenant from hell, who wrecked their rental condo, annoyed the living crap out of all of the neighbors and took over 8 months to evict. Naturally the tenant did not pay rent for those 8 months and broke the bank.
Nice young couple is watching the market crashing around them while going through the eviction process and are beginning to freak out. They immediately arranged for a nice large heloc so they could cover the unexpected expenses. Nice lender must have been feeling very generous, gave them a very large line to draw freely from, and they did - they maxed it out trying to keep their heads above water.
Both units are now short sales.
Sidenote: If this couple had not purchased the 2nd condo they would not be in trouble today.
Nice agent who sold them the unit noticed the investment condo was on the market and called the young couple at home. She was quite upset that they listed with another agent. Didnt they know how good she is at what she does? She works with an investment firm now and has many investor/buyers for the condo. (Duh! Where are they? Where are the offers?)
- Why did you hire HER? You should have hired me.
- What is the agent you hired doing for you?
- Oh, you like her?
- Oh, she sells a lot of units in your complex?
- And in the area?
- Which Units?
- How much did she sell them for?
- Oh, she is doing a good job?
- What does she know about selling short sales? I sell a lot of short sales!
- Oh, you have multiple offers.
- How many?
- Tell me how much the offers are for, I will talk to my buyer and bring you in a better offer! (OMG-THE UNMITIGATED BRASS!)
It pays to educate your clients at the time of listing. My clients were prepared for agents trying to extract information and were prepared with the right answers. That didnt stop them from the shock of this particular phone conversation. Both husband and wife called me the next morning. The wife, who spoke to the agent assures me that she did not disclose the amounts of the offers.
I checked DRE records and the MLS, located the agents phone number and her brokers. I called the agent, no answer, did not leave a message, hung up. She called right back. I told her I was aware of the details of the conversation, discussed the business and professions codes she violated, the lack of ethics that she displayed. Asked her why, if she had a buyer, didnt she call me and write an offer. DUH! She was also informed that the couple was very displeased and didnt want her to call them anymore.
Are you ready for the comeback?
Well, we have known each other for years and are very close, I thought it was OK.
Hey - get a clue - they didnt hire you! You dont represent them!
AND
YOU KNOW WHAT YOU DID WAS UNTHINKABLE!!!
Did You Get Your Real Estate License in a Box of Cracker Jacks? Are you smoking crack?
This is really bad! Unprofessional and unethical behavior is turning up on an almost daily basis these days. I dont have time to turn all of these people in to a system that doesnt deal with them anyway. It is a disgrace.
It is illegal for an agent to disclose the terms of any offer prior to the close of escrow! All agents know this, it is part of basic training.
The term REALTOR was deliberately omitted from this post!
http://www.longbeachrealestatehome.com/00908F
Laurie Manny 
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