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My friend told me…

Oh, the words I really don’t like to hear from a buyer or a seller. You know the phrase “My friend told me…” Now, I was talking to a buyer on the phone the other day about a home they were looking at and about what was the best way to finance it in their situation.

I gave them the advice I had for them since they didn’t qualify for a traditional loan, that they really only had a few other choices. Those other choices were lease option, owner financing or just wait. There was one more and that was assume a loan, but that wasn’t an easy one since they didn’t qualify for a loan right now and you still have to get qualified for most assumptions of a mortgage.

Taking real estate advice from friends and family

They told me that they would talk about it and get back to me. The next day they called and said “We talked to our friend and she said lease options and owner financing are illegal” I said “That isn’t true, do you mind me asking where your friend got your information?” They said “She used to be a real estate agent.”

I said “Do you think there might be a reason she “USED” to be an agent? Lease options and owner financing are certainly aren’t illegal in fact they are done every day and do you think if they were illegal you could actually get the contracts at any store that sells contracts? I’m going to give you the number of two real estate attorneys and you make the call and ask them if they are illegal. I promise you are going to find out that you are hiring me for knowledge and I’m great at what I do. I don’t want to offend your friend, but it was mis-information like this that put a lot of agents out of the business the past couple years.”

These buyers have since put an offer in on a property using owner financing and are no longer taking advice from their friend. She later told me it was hard to correct her friend and had to basically tell her friend that she couldn’t trust her advice since she was as wrong on something as simple as owner financing or lease options. I told her there was nothing simple about owner financing or lease options, but there was a reason so many people left the business in the past few years.

Respect Realty LLC (Expect More)

 

At Respect Realty, LLC our agents believe in 100% dedication to client satisfaction.  We specialize in property and land acquisition around the Portland Metro and Vancouver, WA area. We delight in working with first time home buyers and sellers to guide them from start to finish. Our doors are always open and we are always happy to assist you with your real estate questions.

 

Reach out today, we look forward to talking with you!

 

Todd Clark and Seraina Aguayo (Owners of Respect Realty)

Respect Realty LLC (Expect More)

(503)564-3130

info@RespectRealtyNW.com

www.RespectRealtyNW.com

 

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Comment balloon 13 commentsRespect Realty LLC • January 16 2012 11:49AM

Comments

Todd:  Taking advice from a friend, or relative that is not currently licensed or working in the field the advice is needed is never a good idea.  But it seems real estate is one of those topics that anyone and everyone is an expert!  

Posted by Sidney Kutchuk - Realty Works Temecula Kutchuk - Realty Works Temecula, Realty Works Temecula (Realty Works Temecula) almost 7 years ago

Todd~ Like the way you handled the issue, and now you know that your clients know that you know what you are doing!! Just tried to throw in a little tongue teaser LOL!

Posted by Melissa McKinney, Realtor, www.LivingFayetteville.com (McKinney Realty Group) almost 7 years ago

Suggested and Amen!  I can so relate to "My friend told me..."  UGH.

Posted by John McCormack, CRS, Honesty, Integrity, Results, Experienced. HIRE Me! (Albuquerque Homes Realty) almost 7 years ago

Hi Todd -- I like the way you handled this.  Used to be(fill-in-the-blank) can certainly be a red flag.   

Posted by Michael Jacobs, Los Angeles Pasadena Area Real Estate 818.516.4393 (Coldwell Banker Residential Brokerage) almost 7 years ago

I can't remember the last time I saw an assumable loan. I think the last time I did see an assumable loan the bank had a points structure than after my clients paid the points involved they couldn't afford to pay the Seller's equity... 

Posted by Paul S. Henderson, REALTOR®, CRS, Tacoma Washington Agent/Broker & Market Authority! (RE/MAX Northwest.) almost 7 years ago

OBTW, I always pucker up when I hear "I was talking to a friend and

Posted by Paul S. Henderson, REALTOR®, CRS, Tacoma Washington Agent/Broker & Market Authority! (RE/MAX Northwest.) almost 7 years ago

Todd, love that it ended well. Friends are so "helpful". Not. LOL

Posted by Connie Harvey, Realtor - Nashville TN Real Estate (Pilkerton Realtors) almost 7 years ago

Hi Todd - God save me from well-meaning (but ignorant) friends!  Right now I'm working with buyers who are anxious to buy something and close soon, so I have been looking at non-short sales.  But I got a call today from my client who tells me that her friend just bought a short sale not long ago and it took no extra time. 

Her friend says that short sales don't take more time than equity sales any more.  I tried to explain why her friend might have lucked out with her timing and which lender her seller happened to be working with, and I'm not sure she believes me.  So now we are looking at short sales.  I think she'll have to experience it to believe it.

Posted by Susan Neal, Fair Oaks CA & Sacramento Area Real Estate Broker (RE/MAX Gold, Fair Oaks) almost 7 years ago

Todd,

Maybe I should keep quite? I  “USED” to be an agent.

That I know of, there is no place where informal assumptions are illegal, it's a violation of a civil contract, not a crime. But there are states that require specific disclosure forms. Then there is Arizona and a couple of others. Arizona's attorney general has prosecuted several people for conspiracy-to-hide such a transaction!

Check your state's laws!

Just one former agents opinion.

Bill

Posted by William J. Archambault, Jr. (The Real Estate Investment Institute ) almost 7 years ago

Oh, not again!!! I've heard it soo many times. It is amazing how people listen to anybody, but their realtor... You handled it well.

Tatyana.

Posted by Tatyana Makarov, Your Greater Hartford Area Realtor (Coldwell Banker Residential Brokerage) almost 7 years ago

Hi Todd....when I was young I sold life insurance, and third parties always killed our sale....Why, When you ask someone if you should do this or that, they'll say "no don't do it" fearing that if anything goes wrong you blame them.

Posted by Fred Carver Personal Real Estate Corporation, Accredited Real Estate Consultant (RE/MAX Camosun Victoria BC Real Estate) almost 7 years ago

Oh boy!  I cringe when I hear that, or my neighbor told me, etc.  Usually very wrong and misleading.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) almost 7 years ago

I'm glad to see everyone is sticking with their plans and I home now that we are about to go in to month 2 of 2012 that you still are sticking with it. Lana, can't wait to hear back after 6 months how it went.

 

Posted by Respect Realty LLC, Brokers - Oregon / SW Washington Real Estate (Respect Realty LLC) almost 7 years ago

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