Now Gena!  How could you ever be shocked that an agent won't return your calls???

I'm shocked and amazed when one actually calls back!

Cameron Novak
The Homefinding Center
Corona, California

Chat with me about real estate

This very poor business practice. Returning phone calls should be a no brainer. I love it when agents are shocked when I call thim back. It tells me there are alot of agents who are not doing their job or maybe they are too busy trying to contact the loss mitagation person.

Gena...sometimes sellers just have no clue if their agent is working for them or not. Emailed the offer??? How cheap.

I'm wondering what kind of mess you would have gotten into if the seller had accepted your offer. Can you imagine the road to closing?? Makes me shudder to think about it!

We don't do seller net sheets here in Ann Arbor before we have an offer. But, I always find out what they owe on their mortgages, if they have one or two. This is weird, and I do see many sellers in MI bringing in money to close.

LOL, the fact is that there are a lot of bad agents out there.  I say sometimes that is good news for you and me - it makes us shine.  In the meantime, we can certainly learn and be reminded about what to do and what not to do.  A lot of these types of agents, in my opinion, will not be agents a year or two from now which is also good news for us.

On a side note, it is probably better that your deal did not get accepted for if it did, it sounds like their would be a high chance that the deal would blow up if the seller could not clear title.  Congrats on finding them another home !

Chris Somers   www.thesomersteam.com

Gena as I have said so many times in the past the barriers to enter the Real Estate field are way to easy. This is a perfect example. I mean we are only talking about Real Estate 101 here! Nothing ever surprises me anymore.

Gena, I have put an Excel spread sheet together that I email to my seller.  They can then play with the numbers and see where they are at.  When there is the possibility of them being upside down  we can find that break even point. Now does it surprise me that there are agents out there not using a seller's spread sheet; NO it does not. 

On the buyer's agent side I was amazed to find there are agents that don't run comparisons on the house they are making an offer on.  YIKES!!

Gena -- Unbelievable!  I'm amazed that the seller relisted with the same agent. 

Cameron, in the previous market I found that agents were more professional in calling back however, in this market that's not the case. It doesn't seem to matter if it's a regular sale, a Short Sale or an REO. And what's sad is that there are quite a few agents that take on the personification of the BANK and simply ignore. 

These same agents had best change their attitudes if they would like to stay in the business and receive offers throughout their career.

Scott, glad to hear that you have good business skills and ethics. I wonder if any of these non-returners were ever trained. Maybe if they loose a few deals, they'll get the message. 

As far as being shocked that one returns my call, I'm just the opposite I expect to receive a return call and shocked when it's not.

Linda, I'm with you. I can't imagine an escrow under those circumstances. I can't believe why anyone would hire an agent who performed like this much less rehire them. WOW...I never am ceased to be amazed.  Thank heavens we found another house.

Missy, how come you guys don't do net sheets when you list? With a worse case scenario...it's merely an approximation and gives the Seller a good example of what they might net with their asking price should they get it. I find that many Sellers find it helpful seeing how much escrow would be as well as all the other costs involved. Is there some reason they aren't used in Ann Arbor when you take the listing?

Christopher and Stephanie, although I understand where you are coming from about these agents eventually falling by the wayside...I must tell you that it saddens me a great deal since clients are not being properly represented and this only provides another nail in the coffin of the real estate profession.

This particular agent has been in business for a year and obviously needs some training but with a "broker in name only," this is very likely not to happen.

I do agree with you that we are most lucky to have found a different house and not have been accepted. That potential escrow would have been possibly the deal from hell, I'm afraid.

Bill, you are a better person than I because it still shocks me when I find agents that have never been properly trained. With the advent of the Internet I find that more and more people are getting away from that personal touch called, RETURN PHONE CALLS.  It is only good manners and actually has nothing to do with real estate per se but has a lot to do with common courtesy.

I don't think some of these folks have any idea how many things could go wrong just from not responding with a return phone call. We were taught to call and give a heads-up to the other agent that we were faxing...never know if the number is a misprint, not working etc. And the receiving agent although many faxes indicate receipt of fax, would call and let the other agent know they had received the offer.  So much can go wrong but it appears that we have a bunch of unknowing, uncaring and unprofessional agents out there that have no clue.

Still I am amazed. It's times like this that I want to open up a school where they can learn what should be done.  Just a little passionate, here.

Marchel, yep I'm sure there are agents that don't provide comparative market sales to their buyers prior to writing an offer, too. Just makes you wonder why in the world that got into this business...it certainly wasn't with the clients in mind! 

Do you suppose they don't know any better and have no idea that these things MUST be done?

Lori, you and me both! That poor seller. She obviously has no idea what she should be getting and expecting from her agent. It's really sad.

Gina, I don't do a seller net sheet either.  We use attorney and while I might advise a seller about some of the things to consider I don't do an actual net sheet.

I've been waiting for over 5 months now for an agent to return my numerous phone calls regarding pictures - putting at least one lousy picture in the MLS, so I could have my buyer look at it BEFORE we go see the home.

I'm also waiting on another agent to return my phone call so I can sell the lot he has listed (it's his own and he's facing a short sale).

I do Net Sheets for all properties, no matter how big or small the price. I give them three prices, usually being the lower and higher end of reasonable price range and then also the middle. When an offer comes in, they receive a new net sheet showing them how much they will realize out of the sale IF they do accept the offer. My job is to enable my seller to make sound financial decisions and they can't do that without a Net Sheet.

we do return phone calls. and always remember agents who don't.

seller net sheet up here usually comes from title company upon acceptance of offer. we find out mortgage particulars before we meet them to list.

best

I have also found when I have clients thinking about writing an offer on a bank owned, I always ask if there is also a 2nd mortgage.  I have seen it more difficult to get these to the closing table when there is a 2nd and they are upside down on the 1st.

I provide a net sheet on excel with a 92%, 95% and 97% and if we change the list price I try to remember to send a new one with the new numbers in it.  I always put a place holder in for repairs, usually 1% of the list price and always put in a home warranty because they are asked for a lot here.  Our office requires the seller to sign off on this document as part of our listing packet.

I always use the Sellers Net sheet but I am amuzed that most of the agents in my office don't.  They say that's the lenders responsibility.  AMAZING!

We have a 92% 95% 97% excel sheet too, Cindy.  But I like your idea about adding the 1% for home repairs.  We add the transfer tax for our county because that seems to catch some people by surprise.

I am working on setting up a system using the spreadsheet feature of Google docs which tech savvy clients can access and play with if they want to.

Even in an attorney state (whatever that means) like NY, a net sheet has to occur in order to know the status of the mortgage. Additionally, at the listing, it's incumbent on the listing agent to receive permission from the seller to call the lender monthly, in order to view the current loan balance. If it isn't being done, there are going to be many buyers shocked to discover that they're involved in a short sale, without that knowledge being provided up front. Heaven forbid they aren't told until AFTER they've paid for an inspection...

Makes you wonder what yhe seller saw in this agent.  It couldn't possibly have been a track record of closed transactions.

Not unusual.  I know buyers agents who have been in the busines for years and years and can't do a Buyers Estimated Closing Costs.  They rely on the mortgage loan officer to do this. 

I'm not completely sure but are net sheets required for taking the real estate exam? 

Aw shucks, the exam is multiple choice isn't it???

Gena,  I am not shocked at all.  It because of that type of service that the discount brokerages were born.  If an agent is not going to earn their commission then some people just get so turned off that they try to do it themselves.

No, most of us are not shocked to hear this. It really is amazing the number of agents who do not return phone calls. And I agree with you, always provide your clients with a net sheet. They will thank you for it, and you can get those referrals from them if you are doing your job correctly.

In this market, that is a common practice.  I want my sellers to have an Estimate of Proceeds at time of listing and when an offer is presented.  I also make sure I generate an Estimate of Buyers Costs for my buyers.  How can anyone make an informed decision without the right information?

Gena It is sad that people don't call back. The fact that they rejected your offer then to turn around and higher the listing price is just crazy. What was she thinking??

good post..I always do that..you need to do this so the sellers knows how much he is gong to get back

I have an excel spreadsheet that I work with that allows me to provide different scenarios for sellers as we talk about listing their home.  When we get an offer in I rework the net sheet to show them what the apx bottom line is. Unless we are surprised by a different payoff or odd taxes I'm usually within $1000 of their net at closing.

Not to know if a seller is upside down, or could be depending on the offer, is hard to understand, but I think more commonplace than we would like to believe. The issues of not returning calls goes on and on. THere are agents who are great about this, and those who are terrible. And so many NEVER answer their pohone when you ring. We all get busy and don;t answer the phone when with clients, but it seems many agents just let calls go to VM all the time.

Jeff

Gena, great post and very timely, especially in the "now market" we have.

WOW. How do these people stay in business? How can you represent someone if you don't know the most important information about them? I am just shocked.

We give net examples to our clients based on selling at list price. We also get them an example HUD 1. We do not put a payoff in...we tell them to subtract what they owe and this should be approx what they will receive back or owe.

I usually just ask them at listing what they owe.  I do a net sheet and them call them when we get an offer.  I do exactly what it says....tell them what they net.  They know what they are paying me, they know the buyer asked for home warranty. At the end of the day, all they care about it what they NET!

Gena~

Makes total sense to me. This is a tool I'd like to see in each listing broker's tool box. Thanks for the reminder.

Wow, I can't imagine someone doing that.  I am not a realtor but always do a sworn construction statement so they know what to expect.

wow Gena this whole thing was preventable...

We ask at the listing what their mortgage payoff is so we can do a more accurate net proceeds - the Listing Agreement in IN  requires you to disclose up front any upside down situation!

These days it is more important than ever to clearly know the situation - we also run prelim title-work asap after the listing is signed to avoid any surprises!

Sincerely,

Grace

Gena, the lack responsibility, poor communication, negligence in fulfilling basic requirements of a listing agreement are mind-boggling to me!  Even our brand new agents know better than this.  Something doesseem amok here.  Since every aspect of the real estate process is performance-based, the experience that you had with the listing agent is all the more disturbing. Wow!

I do not understand how a seller could allow their property to be listed without knowing their net.  Both of them are at fault.

Hi Gena,

"Find out how much your seller owes on their loans and the terms of their loans prior to listing their house..." is ABSOLUTELY ESSENTIAL! 

Sorry to say I feel a little like Bill, very little amazes me today when it comes to r.e. As for figuing a net sheet, yep can-do, even the old fashioned way, without the use of a computer program. I can give a seller a "ball-park" idea (which I do) sitting right in front of them at the table. Yet I prefer to have our escrow company do an estimated seller's proceeds statement in writing.

Congrats on the feature!

Hi Gena,  Substandard levels of service are common place in any market.  Until the business can establish some enforceable standards of acceptable performance we will see many posts like yours.

Wholly Toledo, that is embarassing. I am so for higher licensing standards and actual experience for renewal. If we want the public to take us seriously again we need to upgrade our image and fast.

I absolutely do a seller net sheet... I took are form from the office and created an excel sheet. I give 3 scenarios at the very beginning including a 1% estimate for repairs. I usually assume that the seller will be paying for a home warranty and that they will need to pay some cca for the buyer. I dont want any surprises... Most surprises in this business are bad!  =)

I do seller net sheets with my lowest price I think the house will sell for and the highest.  My clients always get a range.  I include them with my CMA.

Wow, how do agents like this actually make a living? Probably working real estate part time and not doing well at that.

Providing the seller with a proceeds sheet is too easy!!  As a seller, I would want to know all of the out-of-pocket expenses I am responsible for.

I cannot believe how arrogant some listing agents have been in this "buyer's market".  One insisted that my buyer put the offer on a different form to her liking -- my buyer's refused -- she has made things difficult ever since!  Now is that working in the seller's best interest?

I'm a mortgage broker in Florida, and we give seller net sheets to realtors on FHA files all the time.  Most don't know what they are.

Lately, nothing surprises me.  I've seen things in this environment that  truly shock me.

What can be worse is when a listing agent gets permission to reduce the price of a property and does not create a new sellers net sheet. I see it happen all the time. There have been times when I had a premonition of future drops so I went ahead and did several sellers net sheets for various prices and got them signed. The seller could always refer to them before reducing a price and could not say they had never seen one. PS I also underline about three times that these are ESTIMATED SELLERS COSTS. Hard to believe it, but there are millionaires out there who will fight over a $5 difference in one of the fees.

Gena - I do net sheets for the seller - one cash, one for a loan with seller paying some buyer closing costs usually based on a 90 % price, as we are in a declining market.  I do another based on the offer and the terms.  I also do a buyer cost sheet with any offer.  I am surprised when agents tell me it is not their job.

Good lord...all heck brock loose while I was showing property!  Wow, a feature and lots of comments. Let's see if I can manage to read and answer everyone before it's time to work, again.

Miriam, just so that you can find me again someday, my name is spelled GENA. As far as you not doing net sheets and using attorneys...I'm at a quandary. Do the attorneys give the seller a net sheet before list a house? Net sheets are really very important especially in this real estate market for most sellers. However, I would never consider not doing one in any market. Maybe, you could expand on what the attorney actually does vs your duties and responsibilities to the seller. I'd be curious.

Andrea, I so very much agree that a seller can NOT make a valid informed decision without a net sheet.

As far as the agent not returning your call about the photos, I think if I were you, I'd go take some of my own and send them to your buyer. The other agent may have left the brokerage or my other assumption is that he is in the hospital. I find it so hard to believe that any agent would take a listing and not return a phone call. Is he hoping to double end it someday??? So very unprofessional!

Gary, glad to hear you return phone calls and take notes on those that don't. It's time some of these turkeys realize that we have excellent memories!

As far as the Title Company providing the net sheet at close, all you need to do is ask them to provide you with one for your computer and you can provide it for your clients during the listing, and when you receive offers.  They'll be more than happy to give you one on disc.

Cindy, I too have the seller's sign off on my copy of the net sheet, as well.

With regard to a short sale and there being a first and a second, do you have access to the tax records like we do as part of our MLS system? It makes it quite nice.

Last year, I found that very few if any short sales ever closed but there has been a change here in CA, at least where the banks are beginning to realize that it is cheaper to accept a short sale than to go through with the expense of a foreclosure and possible break-ins.

At the moment I have written about 6 short sale offers and have heard back from 2 of them that we have an informal acceptance. Hope to get the paperwork in the next 3 weeks or so.

With so many more about to hit, it is so important to move these short sales and foreclosures off the books.

Tracy, wow the lender's responsibility? I wonder if they even know what one consists of. I can't believe any lender would even do a net sheet. Glad to hear that you handle your fiduciary responsibility to your client...maybe it will wear off on the others in your office or maybe you will be the one who gets all the business!

Regina, before you go to all that work you might want to check with your Ttile Company and get a copy of theirs which you can usually download to your own computer. Not sure where you are from and if your Title companies do that but here in CA they do.   Just a suggestion...

Options Realty, very good points. I try not to get involved in the workings of other States but it does seem as though it is a waiting time bomb. Can't imagine anyone not using a net sheet several times during the course of the listing and presentation of offers. Mind boggling!

Kathy, I ask myself that question all the time. Wish I could tell ya but it escapes me!

Lenn, that's the second time I've read where agents depend upon the lender to do a net sheet. The lender isn't even involved when the agent takes the listing so they obviously aren't providing this information at the beginning.

I assume that you are indicating that the lender provides a net sheet for each of the offers that the seller receives. How strange. I'm having a real hard time wrapping my arms around that one.

No, net sheets are not on the exam just as filling out the TDS etc is not on it either. But, the Broker's have a responsibility to be educating the agents working for them and when I hear a Broker say, that they are "just the Broker in name only," my stomach boils.

We need to have the assoications hold the Brokers to a stronger hold or else require agents to attend classes where they actually get some hands on learning and experience of what the "REAL" real  estate world is all about.

Larry, not sure that a discount brokerage would be any better. I suppose there may be some very qualified people out there but I have yet to met one in a discount brokerage firm.

I do feel sorry for any seller or buyer who is working with a "part-timer" and full time agent who doesn't take the time to be properly trained and/or mentored.

Terri,I guess I'm just a dyhart...they still continue to amaze me and I think they always will. Truly, I can't imagine taking a listing and not bothering to answer their phone.

I know I am a little controlling when it comes to my business, but when I was in Mexico and in Hawaii I answered my phone. In fact on the beach in Maui, I took call and made notes in the sand until I was off the phone and could jot them down on paper.

So, yes I am amazed! And very glad to hear that you provide net sheets to your clients.

Property Connections, "How can anyone make an informed decision without the right information?" ABSOLUTELY!!!  They can't. My point exactly. Good for you!!!

Jeannette, she's NOT. It's mind boggling, isn't it?

Michael, that is usually something that sellers love to know. Most sellers have no idea what all the costs are and it's important they be informed. Plus, can you imagine in the real estate market not doing a net sheet only to find out that your seller is upside down due to the terms of their loan let alone who much they owe?

Makes you wonder how some stay in business, doesn't it?

Cindy, good for you. I'm thrilled that you are one who takes care of your clients and doesn't leave them in the dark or relies on the lender to do it for you. It is part of our duty and responsibility to our clients to give them the best representation that we can possibly give them. It looks like you are doing just that.

Jeff, I don't mind voice mail as long as you answer my call within the same day and as late as the next day. But, when I leave a message saying that I have an offer for you, by god I think you should return that call immediately. I don't think many sellers would be happy to hear that their agents don't bother to call back when their is an offer pending.

If I were a seller, I would have a contract with the agent that I hire that stipulates, they will return all calls within 24 hours or less or I'd fire their A@@. Perhaps, a few sellers need to do just that.

Sheila, thank you. Hope it helped.

Mana, well get in line girl. I feel the same way. This agent has been in the business for 1 year and is a full time agent...believe it or not. Very sweet on the phone when you ever get her but unless she changes her ways of doing business I can't see her staying in business much longer.

In fact, I was pondering how in the world she would have managed a few years ago when we received multiple offers where there was an 1 hour time line for answering. She would have been dust!

Team DiMuria, the important thing is that you provide them with an approximation...good for you. Another example of a responsible Realtor. Love it.

Gena,

The agent you desribed is what I call Realtor NFL (Not For Long!) not CRS, GRI or ABR!  Especially in this marketplace.

Gina,  I am so sorry you had to experience that.  The good news, you and your unsuspecting Buyers didn't have to wait till close of escrow to find out the bad news.

 I would never even dream of taking a listing without doing a Net Sheet AND Preliminary Title.  Can we really afford to end up in a situation where we have spent a small fortune on marketing and advertising just to find out the Seller's owe too much to be able to close?

ALSO, if we truly represent our Seller, isn't it our fiduciary responsibility to advise them of their closing costs and proceeds if and when we secure an acceptable offer?

Pam

I can believe it!!! :)  Some people are just toooo scared to actually really do what this job requires of them!!!  They don't really want to be as pathetic as they are....they just are.

We are required to give a seller net sheet (we call it Estimated Closing Costs though) with every listing in our office - it will not be approved for going on the MLS without having that in the file, signed by the seller.

We always tell the seller that it's just an estimate and it's based on the sales price being the full listing price, naturally the net proceeds will be different with the actual sale.  I would then give them an updated amount with an offer, if they need it.

I thought it was state law to provide this, but it actually could just be our office policy...I don't know.  It's just one of those things that I always, always, do, along with the contract, seller's disclosure, and consumer notice.

This does not suprise me.  I am a realtor in Florida.  I just made an offer on a home and the realtor knew I was making the offer that night and when I called him and told him that I just emailed it to him.  (the sellers live out of town)  I never heard back from him.  The seller ended up calling me the next day because her son saw that I had been at the home that night.  I told her I wrote an offer and had emailed it to her realtor.  She said he has not called me.  We went for 2 days before we got a response.  In addition to this, I get to pay a refferral fee, he spoke with my buyers once on the phone and the sellers happen to be at the home one day cutting the grass and my buyers drove  past it and they talked and the sellers let them in the home.  So now guess what, I get to pay a referral fee.  Nothing suprises me.

Did they sign an agreement with him?  I doubt it.  Talk to your broker.  I would not pay the fee and I would protest it.  He would have to prove he had procuring cause.  The SELLERS let them in the home, NOT HIM.

Do talk to your broker about this!

Katie, yes sellers care about their net and buyers care about their expenditures.  We owe them that much!

Ashville's Green Land, yes I agree it should be in everyone's tool box in order to help their clients realize what they are to net at the end of the day and what their expenditures are.

Greg, good for you. And that's the way it should be no matter what your profession is...people want to have a break-down of costs and see where their $'s are going.

Grace, glad to hear you also do net sheets. Surprises...no one needs when it comes to money especially when it's so easy to make sure that one aspect is covered. You are absolutely right, now more than