What is it about the rain that brings the mischievous out to play?
Real Estate sales is the type of racket that leads one to bump bellies with all manner of folk. Over my years in the industry to date, you might say I’ve been sheltered. For all of the horror stories that float about a brokerage regarding the customer from hell, or the underhanded agent that shafts a fellow colleague out of a deserved paycheck, the instances in which I have encountered such REALTOR kryptonite have been few and far enough between to defy instant recollection. Challenges and difficulties, to be sure, but no readily recounted tale of woe regarding a true American consumer psycho. Either the good people of Scottsdale, AZ are simply of good stock, or my conscious decision not to hand out business cards at the dog track every Saturday afternoon as a central component of new client acquisition was prescient.
When the downturn in the market that first became evident in 2007 gave way to a full-fledged nosedive, however, a bunch of loose cargo in the back of our plane and overhead storage bins unloosed itself. Ending up in the aisles and on the laps of well-behaved passengers, we find ourselves wading through the cretinous stowaways in attempt to pull the decent home buyers and sellers from the acrid wreckage. Wouldn’t you know those oily ne’er do wells always seem to reach the emergency exits first; whooping it up as they slide to safety wearing a stolen oxygen mask. Don’t worry about granny in seat 46C. She can hold her breath for up to 18 seconds at a stretch.
To answer a few of the more “creative” questions I have fielded recently, I figured I’d simply draft a response to which all such future inquiries may be pointed.
No, I will not help you tie up a property with a straw buyer until such time that you can amass your down payment and/or financing. It’s a fraudulent offer, and one made in bad faith.
No, I will not write offers on 15 short sale properties at once for the same buyer. Short sales are frustrating, but it’s not just a numbers game. I will not grease the wheels to a seller's foreclosure by tying their property up with an offer you have no real intention of seeing to fruition.
No, I will not give you a guestimate on how long you can live in your house rent-free before your mortgagor initiates foreclosure proceedings. There are more than enough homeowners in need of loan modification or short sale assistance. I cannot in good conscience help you game the system and further bog the process down for those in true need of help.
No, I will not help you buy a property as a primary residence if I know that you have no intention of ever occupying it. There will be many dubious, and potentially fraudulent purchases made in the rush for the tax credit, but I won’t be a part of any of them.
No, I won’t secure a tenant for the property upon which you have stopped paying your mortgage. That “free money” that goes in your pocket until the bank forecloses and boots the unsuspecting tenant out carries a steep price.
No, I will not be party to any side agreement pay-out in a Real Estate transaction that does not appear on the settlement statement.
Rationalize such schemes all you like, but a treacherous climate does not excuse treachery. Not only does potential harm fall on specific parties, but on the greater good as well. Don't look to me to make my own biological contribution to the cesspool we’ve been forced to bathe in for many moons now. Moral and ethical constraints aside, for no deal is it worth ruining a hard-earned reputation and future livelihood. This is how I feed my family.
Your shenanigans are not worth my license.
Now, if you would kindly hurry up and slide into the waiting arms of the authorities below, there are good people on this plane who need my help.
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There are too many people who think it is okay to benefit from situations like these. Good for you for having the strength and the ethics to say NO.
I've known too many agents, good agents, that serve as cautionary tales, Brenda. Easy to adopt the "everybody is doing it" mentality to give in to an isolated break from one's standards and find yourself in a whole heap of trouble. My motives are less altruistic than self-serving, but ethics never go out of style.
Well said my friend. Like you, I will not compromise my license for anyone or any amount of money.
Human nature. It is what it is, but kudos for upholding a higher standard.
A new agent told a broker I know, "I want to sell real estate because I LOVE people!". The broker replied "You'll get over it." Good job for holding fast to what you believe in. We get to deal with some crazy people.
It is human nature to try to "game the system". It is also human nature to rise above the fray to do the right thing. It is never worth it to do something unethical. The consequences can be terrible for many people, including yourself.
Great post and so very true. I find myself thinking "Are you serious?" more than I'd like to these days. There is always someone who will try to benefit from the misfortune of others. Good for you for having the integrity to walk away.
I couldn't agree more. We take legal and ethics courses for a reason. It's not just an excuse for agents to get together and socialize. You cannot let the allure of a commission check cloud your judgement. Nothing is worth sacrificing my license. If I want to risk it, I may as well get out of the business and save myself the trouble (and potential jail time). I'll take the ethical route aka "the high road" - thank you very much!
I couldn't agree more. We take legal and ethics courses for a reason. It's not just an excuse for agents to get together and socialize. You cannot let the allure of a commission check cloud your judgement. Nothing is worth sacrificing my license. If I want to risk it, I may as well get out of the business and save myself the trouble (and potential jail time). I'll take the ethical route aka "the high road" - thank you very much!
Paul:
I agree wholeheartedly with alomost all of this post, except the part about the "rent free" estimation.
While I don't think it's right to help a client "game" the system, I do think we are morally and ethically bound to our clients' needs first and foremost, as stated in the Code of Ethics.
Paul, very good post and enjoyed reading...loved the last sentence...Your shenanigans are not worth my license. SO TRUE!!!!
Great thoughts - some agents struggling for business think the way to end of the tunnel will be easier if they'd just set aside a few morals that they think are weighing them down. I'm with you. Not going to risk my livelyhood to help a client game the system (as Millie said).
I like your writing, and your standards. There are many temptations in Real Estate to make money. I once had a potential client offer to buy me and my family a house, pay me a salary, and have power of attorney on all the transactions. I could make more than she was offering to pay me by selling houses. It just wasn't worth it!
Aaron - The code of ethics places a distant second to the law. Landlords who do not pay their mortgages run afoul of the Arizona Association of Realtors contract, as well as the Landlord Tenant Act. If a client's conduct or aim is to run afoul of contract or state law, we most assuredly are not bound to assist said client in such an endeavor. Further, if I turn down the business for any reason whatsoever, that landlord is not my client. Hard to violate an ethical duty to a party with whom I have no contractual agreement.
I've had contacts for every single example you cited.
The world has gone mad.
I can't say that these callers are presenting anything new. It's just the percentage of them in my daily e-mail or phone calls that amazes me.
I've had the occasional harebrained scheme lobbed my way over the years, Lenn, but nothing even close to the deluge of legal nightmare scenarios of the past two to three months. The irony for those on the buying side is that the values are already so lucrative. Rather than accepting a good value in a depressed market, some can't help themselves from taking it that next step and a half across the line to further exploit current circumstances. Pigs get fat, hogs get slaughtered. We'd all (agents and consumers alike) do well to remember that.
Hi Paul. I am fortunate that I haven't experienced all that you have described. It's great to have standards. I thought you were going to describe some wolves at AR LOL
Wow, sounds like things are really, really tough in Scottsdale. I had a friend who lived there (moved about a year ago) that said that market conditions are bad, but I had thought that perhaps things had begun to recover there...
Paul you and I know all to well the stuff that people have tried to pull. I just got another phone call today about somebody wanting some crazy scheme. What part of NO aren't you getting!!! NO. No I won't break the laws because everyone else is doing it or looking the other way. No.
You're post kind of puts a cap on the situtions we've had to deal with well over 2 years now.
With that being said - there are a LOT of good honorable folks here as well - those are the folks we do business with as I"m very certain is true for you.
As a lender, it is very refreshing to hear so many agents subscribe to this level of ethics. In my 35 years of experience, this hasn't always been the case. Bravo! to all of you. Call me any time.
Here here Paul--I totally agree. This business offer plenty of opportunity to make extra money "outside" our ethical code. To me it is not worth it. If you plan to be in this business for the long haul, integrity and a stong ethical anchor is needed to keep you on course. It is jut not worth risking your reputation, license and more to make a few extra bucks doing something that is not right.
Vickie - Things have been very tough in Scottsdale, but we are on the upswing. Actually, this is the most active the market has been since 2005, if my own anecdotal experience is to make for a reasonable marketwide extrapolation. With conditions beginning to improve, it almost feels as if some see the train leaving the station and desperately trying to jump on the savings cart by any means necessary.
Anna - I've learned more in the last two years than in my previous nine combined. That pertains to not only the market and transactional nuance, but even more pertinently, to people. I've never really had to weed out the less than scrupulous types all that much in the past, as they just refrained from darkening my office door with any degree of regularity. Nowadays, one must cut through the chaff with much more incisiveness to get to those who truly warrant our assistance, and will keep us in good standing within the industry.
Bad times brings out bad things in people. It's very sad that it has come to this. I too have been approached by a few of these characters- thanks but no thanks!
We work way too hard to get and keep our licenses. Why would anybody jeopardize that? Seems crazy to me.
Paul, I haven't run into any of the unethical requests that you mentioned(I am new to the business) so it is good to know about. I am working on my first short sale but I have the buyer so it is simply a waiting game. Thanks for the view of what might be out there!
As far as the peripatetic repositioned overhead airline luggage and the real estate market:
SHIfT HAPPENS !!!!
Paul, good common sense post.
It's nice to see people stand on principal rather than bad ethics. Kudos to you!
but what about all the money that you could make with all of those dubious deals? isnt your soul worth a few extra bucks?
but what about all the money that you could make with all of those dubious deals? isnt your soul worth a few extra bucks?
Paul, nor are their shenanigans worth your ethics. Good job.
Paul: In addition to all that you mention, this market also brings out the best and the worst in some of our colleagues throughout the nation.
Great post. Thanks for sharing!
Amen to that. Along with the investor attempting to purchase as an owner occupant, you must add a special clause for HUD properties that are not made available to investors in the first round of bidding. Um, nope I won't do it.
What is the world coming to?
I came across your blog, because I am a new agent (less than 30-days old)... and sadly, I have not been getting much positive feedback from "more seasoned" agents out there to whom I'm interested in looking up to for some professional guidance. I will admit, I was almost ready to call it quits, but I'm standing my ground that there ARE good, positive role models out there, so thank you for showing me that there is a beacon of ethical light in this business after all.
Enjoyed your post. Think these are situations that most of us have faced over the last 2 years. Kudos to those of us who do not fall into that trap. There will always be those that want us to compromise our values in good times and in hard times.
Too funny. There always seems to be someone with "an angle" who is out trying to cut a deal. It amazes me when I run across that stuff. The favorite in our area right now is buyers looking to get into a new home before they let their current home foreclose. In this financial environment, many buyers aren't scared off by the ole' F word. Some are seeing a foreclosure as a badge of honor as long as they made it into a newer bigger better home.
Paul absolutley - it was never an issue in my 23 years (one every 5 or 6 years at most and easy to spot) but now............certainly has been a challenge and an opportunity to play a different game.
Things in real estate sure are different now...... I like the "old days better, back to the 80's.....real estate was fun, profitable and I enjoyed it. It's a horse of a different color these days thats for sure.
Patricia/Seacoast NH
I have never had a problem holding up high ethical standards, and I have to say I'm glad it's been a while since I've been asked outright to do something hinkey.
I haven't seen any of that in my travels yet. Maybe my market hasn't crashed as much yet.
Well said. I had a negotiator ask me "all of the other agents are getting creative, why can't you?" Because it's not worth my broker's license, stupid.
No, I will not short sell your home to your parents so you can keep living there.
Just thought I would add one I have heard a few times lately...
Keep the professional standards. You will be rewarded in the end and your business will grow.
I am so done with the "loose cargo" and I sell real estate in Jersey! I now inform prospects what I'm not going to do and if they need a scheister-agent, go down the street.
I recently had an investor call asking for specifics about some neighborhoods and solds - when I asked him a few questions.....
He only writes offers with listing agents on bank owned homes because they tell him what the other offers are.
I told him that I was not his huckleberry.
And it's a wonder some people still have a license.
Andrew (#45) used the word before I could....scheister. We've got a few in my market. It's interesting to see that they've bought very expensive new luxury cars in recent months while the ethical real estate professionals are tightening their belts and buying provisions and gas at Costco.
Another home run, my friend! I've heard many similar laments from local REALTORS, and it isn't easy to give them the ol' pep talk about sticking with the high road. Now I can just send them this link!
You are a keen observer - wise beyond your tender years - and a gifted writer. In this little essay, you tackled a touchy subject with aplomb, rare insight and just the right dash of humor. The many kudos are richly deserved, and the personal experiences you inspired all these other AR members to share have enriched all of us! BRAVO!
Paul, thanks for this excellent post. I, like Robert Bass, will also send this link to other Realtors© who are tempted to take the low road. In fact, since you have the Re-Blog button available on this post, I will use it.
It's too bad that the ethically challenged can't see themselves...all they ever see is their immediate need or want, and are willing to sacrifice everything in the name of instantaneous gratification, and are rather aghast when others don't share their worldview.
Thank God there are still agents like us with integrity...
Reminds me sometimes of the old country song, what part of no do you not understand?
Paul...thanks for saying it so well.
I loved your well-turned phrases! Handing out business cards at the dog track--haha! And you are so right--we have to adhere to ethics! I don't know how those unscrupulous people sleep at night.
Thank you all for chiming in, folks. I've been a terrible host due to a flood of real world commitments (this market is ALIVE!), but I've read each and every comment. I did want to address a lament common to many comments; that being of the disdain for the unscrupulous agent who bends his/her ethics to fit whatever a situation calls for at the time. While there will never be any shortage of shylocks in any profession, I do think that ours often leads agents astray in noble intention as much as greed. New and seasoned agents alike are not only tempted by dollars, but by an ingrained willingness, or duty really, to help. Sounds hackneyed, I know, but the people-pleasing do-gooder in most of us will lead to creative thinking and exploration of avenues that can help our clients and consumers out of rough spots. Or to help them secure the best values that a market will yield. There is a razor thin line between innovation and illegality. With it taking but the slightest pirouette to find oneself on the wrong side of that line, I won't dance that close to the judges' table. I want to put whatever measly gray matter resides within this cranium to full use in helping clients achieve their goals, but everything outside of my skull stays black and white. For those who wish to push the envelope past my comfort zone, as Andrew suggests, go find yourself another letter carrier.
Holy diction, Batman! How many metaphors can I mix in one paragraph? ;)
PS - Good to see you, Robert. I appreciate you circulating this, and the kind words attached. Many thanks.
Hi Paul...You refuse to be involved with these "shenanigans" for three reasons.
The third reason is all about you and that's why you are my boy.
Kate
P.S. Fortunately I have not encountered any of these rascals. They better stay far away from me!
Wow. I love it! Very eloquently put, and straight to the point. Now if only more agents would work this way, we'd get rid of all the dishonest types overnight!
Oh your use of the word "shenanigans" definitely earned you that gold star! I love how you will not put your license on the line for "shenanigans". It makes you very sexy!
And... No, I will not try to sell your house without an exclusive listing, while you parade around town as a Realtor whore! Amen, Preach it Brother!