Preface
I wrote this blog post long before the kidnapping and murder of real estate agent Beverly Carter in Arkansas. Because of this tragedy, I thought I'd come back and type a preface to this article.
I generally don't follow crime stories, but this one in particular really bothered me. Not necessarily because I'm in the industry, but because I'll never forget her husband who sat on their couch, holding his wife's picture in his lap. The woman he was married to for 35 years was gone. The emptiness, despair and sadness in his eyes were gut wrenching to me.
I will not speculate on how she was lured to the home alone with this psychopath, I feel that would be disrespectful to her and her family after such a terrible tragedy. I will however, take a moment to point out why it's so important as agents to stick to a process of pre-qualifying prospective buyers.
I approach this subject as diplomatically as possible; however I remain firm on the process. Obviously the intent is to make sure I'm working with a qualified buyer who wants to purchase a home. It’s also to ensure I don't waste my time, my client's time, and that I remain safe. Callers who become offended, refuse to provide information about themselves, or demand I bend the rules are welcome to find another agent to work with. I will not run out the door to show a home, and neither should you. I also will not do open houses.
To buyers: If you'd like to buy a home, please be pre-qualified with a lender first. If you have not done this, I'm absolutely happy to help you with this step. When you come down to the office for our initial meet, please bring a photo ID as well. I can't show properties until I have a photo ID, and some sort of verification from a lender.
I've had people scoff at this, and guess what? They can hit the bricks. Perhaps I lost a client or two, but then again maybe not. Also, if a client can't respect my position on safety, then they aren't somebody I want to work for anyway. Overwhelmingly though, I've found most people are glad to accommodate me.
Realtors: We must work together as an industry to keep ourselves safe, and make sure this doesn't happen again. I know there is a lottery aspect to this business. I know at times we need money more than others. I understand the eagerness to work, close an escrow, to meet new people. It's a thrilling business. But we shouldn't allow these things to be our weakness for criminals to exploit.
I can not express how profoundly sad this story has made me. I will keep her family in my thoughts.
Who Wants to be a Millionaire? Fake POF Letters, and other Fabrications
As Realtors I'm sure we all have many stories we can share with one another. I haven't really compared notes with too many of my colleagues, but I seem to have had my fair share of oddities over the years. I never could quite figure out the angle on this one, but it was a whopper. A pretty impressive one at that.
For those not familiar with the process on our end, I'll give a brief overview. This isn't necessarily universal, but it has been my order of operations through the years. If I have a listing that a potential client would like to view, or somebody contacts me about a home they would like to see, one of the first things I do is establish their motivation. Are they looking to buy now? Just getting started? Have they been looking for a while? In a nutshell: Who are you, where have you been, where do you want to go, and how can I help you?
Second to that? How do they intend to purchase their new home? Are you a cash buyer? Are you already working with a lender? Have you started the loan process? If not, then this is where we should begin. There is no reason to put the cart in front of the horse. If they have already done this, they are free to email me or have their bank email me all relevant information. For some reason this can be awkward for agents, especially new ones. I've never felt this way. It’s simply the first step of the buying process for all parties involved.
Oddly, I have had some people become upset at this inquiry, regardless of how gentle my approach. I never really understood why this was anything to get upset or offended by. Either way, if you're not interested in providing me with something to validate your ability to purchase a property, I'm not going to allow you into my client's home to see it. As their Realtor, I owe them many things, and that is one of them. Other agents may jump out of their seat and drive people around all day; I’m not one of those agents.
One day I received an email from a woman. There were about half a dozen properties she wanted to view. Following my usual protocol, I asked how she would be purchasing her future home. Her answer: All cash.
In her next email she told me that she was looking for a simple home to purchase for her husband. She had terminal cancer, and wanted to make sure he was set up before she departed from the living. At this point there were no red flags. I had dealt with estates in trust, and family members who were selling properties for loved ones who had passed. To me, it just seemed like normal life stuff.
Soon we were talking on the phone and she told me her story. She had sued a former employer for discriminating against her FMLA rights after she was diagnosed with cancer. After a couple of years, it ended and she was left with a significant settlement. Being somewhat familiar with litigation (unfortunately) I slipped in questions as we spoke to gauge her answers. She was in tune with the process, the verbiage and nailed each answer. She had either been through a lawsuit or was a terrific liar. She reiterated that she had been awarded quite a bit of money, but was interested in a modest home, no more than $200,000, so her husband could live comfortably on the balance of their settlement.
An hour or so later I received an email from her with an attached bank statement for nearly a million dollars. My initial reaction was that this was incredibly high for a settlement amount, especially for an FMLA case (although I certainly am no expert.) What threw me off though was her insistence on purchasing a modest home with the money. She wasn't asking to preview high end homes. Of course too, her cancer story helped keep the red flag from fully being raised. My compassion was working against me. Looking back, I imagined this is what she intended. I also had no idea what her balance was prior to her settlement.
I talked to her again and asked her more questions. She had an answer for everything. She was good.
I couldn't stop thinking about the amount though. It wasn’t necessarily the amount in cash; it was how she claimed to have come into the cash. That year, nearly 25% of my buyers were all cash. Many buying your every day-garden-variety-middle class home. This was also a stark reminder to never judge a book by its cover. One previous client easily had a million in cash reserves alone, but drove a mid-level Toyota, lived in a 1700 square foot home and fought for every penny during their transaction(s.)
At this point, despite her great answers, I sent the POF letter over to my (previous) broker and asked him to take a look. See if he noticed anything unusual. Within 30 minutes or so he emailed back, "Looks great, take them out." Certainly, if there was anything odd about the statement, he would have caught it.
A few hours went by and I had this feeling in my gut. I just couldn't shake it. Something didn't feel right.
I looked carefully at the statement, examining the bank header, the dates, and the account number. It all seemed right at first glance. I opened my calculator and began to work through the beginning and closing balances. Soon I realized the math was off by ten dollars. I went through it again a few more times and the math was always off by ten bucks.
As it turned out, there was a branch of this particular bank only two miles from my office. So I decided to print the statement and take it down to verify it. I've had bank statements sent to me in the past as a POF letter. Some were sent directly from a representative of the bank, while others were sent from the client. Prior to this, if a potential client sent me the statement themselves I had rarely followed up with the bank to confirm it. That behavior became fortified too, since these people always ended up closing escrow.
It took me a few minutes to explain the situation and soon I was sitting at a desk with the branch manager. She typed the account number into her computer. Back and forth she looked: The computer, the paper, the computer, the paper. Then she slowly began to shake her head. "No, this is completely fabricated," she said with a slight frown.
You may be surprised to know that they faced no criminal charges, since the document was not used to obtain anything. Both the branch manager and a local detective confirmed there was really no recourse.
So what was her motive? I never could figure it out. Did she want to case houses? Was she bored? Crazy? Why did she go to all this trouble? I have no earthly idea.
After my visit to the bank, I never heard from her again though.