Are you the latest sucker to answer a text or phone call to sell your house? Find out if you are the victim of a scam. 

A few days ago I received the following message: 

Dear Cbus Agent, 

Recently, during what appeared to be a routine day, I received a phone call that drastically shifted the course of my afternoon. I answered because the number was from my local area code, however the caller, with an unsettlingly keen interest, inquired about my willingness to sell my home—a place into which I’ve invested not just significant financial resources but also countless hours of care and attention, molding it into the cherished haven it is today. 

The conversation quickly evolved from seemingly innocent queries to a point where I found myself on edge, a chill creeping up my spine as the caller pressed for information I was hesitant to share. In a moment that felt more like defiance than reason, I floated a price well above my home’s estimated value, fully expecting the caller to retract. However, the response I received was shockingly accommodating, leaving me to grapple with a mix of confusion and skepticism. Was this an unforeseen opportunity knocking at my door, or had I unwittingly stepped into a scenario far more intricate and potentially deceptive than I could imagine? Was the caller a Realtor or Scam? 

Thanks in advance. 

Jeff 

First off, thank you Jeff for reaching out and asking the questions. Phone calls like the one you received are becoming more common nowadays, and although many property owners have reported an increase on the number of similar phone calls, this should not be grounds to accept it as the new norm. So I will do my best to help you and other readers on how to handle the next phone call. 

As someone who has been of both sides of the fence, I know your feelings. Some of you might feel confused, lost, frustrated, annoyed or even angry. I know those feelings because before I started on the road of real estate, I was already receiving those phone calls, and they would send me on a rollercoaster of emotions.  

Back when it all started, I remember feeling in the dark for many years. I could not understand how these people had details about me and my home. I remember feeling vulnerable and thinking that someone has been researching me to the point of intruding in my personal life and my home.  

I remember asking myself, what the hell? Clearly, they have information about me. If they know so many details about the house where I live, what else do they know I am not aware of?  

The number of daily calls got so bad to the point of questioning if I was the sucker who became the target of some big scam.  

After a while, you become desensitised and come to accept it, but not without some level of annoyance. Also, I talked to several property owners, and they also shared their fair share of dealings with cold calls. 

One thing was certain. We all go through a mixed bag of emotions, but the emotion that stands out is that at one point or another, we felt an invasion of privacy. 

How to differentiate a friend from a foe? 

Just like in any speciality, unless you are exposed to it, it is not easy to spot the different shades of grey.  

So, how can you tell the difference between a realtor and a wholesaler if you have never spoken to one?  

Or maybe, you have been getting calls or text messages, but the truth is that they all sound the same to you.  

From your perspective, all you see is money-hungry people looking to make big cash at your expense. Yeap, I thought that too! 

Regardless of where you land in the spectrum, please know that I get it, you are not alone on this.  

It is true that it can be very confusing and upsetting at first, but once you get to understand how everything works, it could be you the one that has all the fun the next time you choose to answer one of these calls.  

But let’s not get ahead of ourselves yet. Hang on with me here because I am confident to say that right now, you are feeling beyond thrown off by the depth of their intrusive questions. I know, their answers are so superficial that it feels like they are simply not honest about their objectives. They feel wishy-washy. But man, they are pushy! Some of them are so good that before you know it, they have cornered you into divulging specific details about you, your home and your family, and committing you into some “too good to be true” type of deals.  

If this is your case, don’t feel bad. I have been there before. That is why I know that at this point you don’t know what to believe, or who to trust. Plain and simple, you have no clue what to think.  

Realtor, Wholesaler or Scammer? 

Although there are several ways of spotting the realtor from the wholesaler or scammer, I will share with you two easy ways to help you identify who is who. But more importantly, combined these two clues you will give the tools to become your own hero, and the master in the conversation.  

Believe it or not, the clues lay in plain sight and in two specific places, you just need to know how to spot them. You will find them in the greeting and, in the tone of the conversation. This is very true, and I will tell you why in a second. But first let me give you a quick background about how I know what I am about to tell.  

About wholesaling 

Well, the truth is that I started late in the path of real estate, and for many years except for hanging up on them, I did not know how to handle the cold callers. It was only after learning the different strategies of real estate investment and their applications, I was able to unmistakenly spot the wholesalers and their game.  

My new endeavor taught me what to do and what to say, because just like them, I also drank the Kool-Aid. Yes, I started my real estate investment journey as a wholesaler. 

The more I learned about real estate I learned other strategies that fit me better. Eventually, I went for my real estate license where I learned about the laws, rules, regulations, and ethical guidelines that govern the responsibilities and obligations of realtors. 

About realtors 

I will not deny that Realtors make cold calls to potential clients, we call them “Leads”. However, I will tell you that most real estate agents will not call you, instead they will send postcards or flyers in the mail. Yes, mail is delivered by the post office. And the reason is simple, cold calling is expensive and time-consuming. 

In truth, cold calling is old-school stuff, and the new generation of agents prefer social media over talking on the phone. Regardless, the old-school practices is still out there and some continue to use it. 

What do I mean by cold calling is expensive. It is expensive in terms of actual dollars and time value. First, the real estate agent must spend money to buy a list of leads from a Data company that sells lists of homeowners with their addresses, phone numbers, etc., and they are not cheap.  

Then, for those who can afford to buy the list, the window of opportunity to engage with that prospective client is super narrow and it might not open ever again. They must act quickly, or their list of leads will go stale to eventually be worthless. Unfortunately, most agents cannot afford a large team of people to delegate these tasks to. 

Before we continue let me ask you a question, have you ever spent time calling the bank or the cable company? You know that once you hang up the phone, you feel like you have lost your entire afternoon with the phone in your ear. Right? 

Now, imagine spending your morning cold-calling a list of strangers on a spreadsheet. So yes, cold calling takes an enormous amount of time and the only efficient way to do it is by hiring someone to make the calls for you. These phone calls are outsourced to Virtual Assistances or VAs for short. More about VAs later. 

Clue number 1 – The greeting: 

How to know if the caller is a realtor?  

A “Licensed Salesperson” (aka., Realtor or Real Estate Agent), knows that the law requires them to introduce themselves by disclosing who they are and what Real Estate Brokerage they work for.  

For example, I introduce myself like this: “Hi, my name is Daniel, and I am a realtor with Making Dreams Realty here in Columbus”.  

Just like that, right off the bat I told you my name, and I disclosed my role as a realtor and for whom I work. At the time of this writing, Making Dreams Realty is my employer. 

I will admit that sometimes, but especially in the beginning I forgot to mention that I was a realtor or which brokerage I represented.  

Brokerage for those that do not know, is the company or the firm the realtor works for. By law real estate agents are required to operate under the umbrella of a fully licensed Brokerage. Examples of well-known brokerages include Century 21, Keller Williams, REMAX, to name a few.  

Although those examples are for nationwide franchises, every city will also have local mom-and-pops type of brokerages dedicated to serve their community. The biggest difference between these types of brokerages is the name recognition, but they all follow the same real estate laws. 

How to know if the caller is a wholesaler?  

Unlike a brokerage, wholesalers do not need to be registered businesses to operate. Therefore, they can be local or out of state. Because of it, they can be small or big business with or without their own rules.  

As you can imagine, big businesses have been around for a while, and they have made their fortune by creating systems to manage a large volume of deals a month.  

Small operations range from the solo operator, or a young couple just starting their journey to a group of buddies joining their individual talents. Some of them will operate under an LLC, but that is for tax purposes. That has nothing to do with following the real estate law. 

Unlike real estate brokerages that must work under strict rules, there are no prerequisites and government laws to run a wholesaling business.  

Therefore, there are no rules or protocols to follow to hold them accountable.  

Bonus tip  

Since we know that people lie, next time you get one of these calls, ask the caller if they are a “Licensed Salesperson”. The answer to this question will give you a further clue to discern who you are dealing with, even if they are lying. 

For most people, when they hear the term salesperson, they at once think of a salesman, someone who sales stuff, and in most cases they will be correct. However, in the context of our phone conversation, we throw in the word Salesperson to separate the friends from the foes.  

In my experience, when I have asked this question, the typical reaction goes one or two ways. Either they get offended by it, or they try to reassure me that they are not selling me anything.  

Generally speaking, I get this reaction from wholesalers, because spammers don’t bother to explain themselves, so they just hang up. Although there are some knowledgeable wholesalers out there, the majority of them do not know what a Salesperson means in our context, especially if the caller is a VA. Do not be surprised if they trip on themselves with explanations. If this happens to you after you asked the question, then just smile and be gentle with them because you just brought down their veil and provoked an emotional reaction in them. Now you know you are dealing with a wholesaler. 

But what if the caller answered with a flat-out “Yes”, what then? How do I know if they lied? 

Do not worry that I’ve got you covered. I got the right follow-up question for you. The one clue that will put it all to rest within the first few seconds into the conversation.  

Before I continue, please, be smart and strategic when applying these hidden treasures. The last thing I want is to arm you with a set of special tools to win the big fight, but instead, they took your tools and used them against you simply because you got cocky and didn’t have the patients to apply them in a sequential order. 

You heard the saying, knowledge is power. In the next section, we will go a bit more in depth to expand your knowledge, and I will uncover more tools. My goal is to provide you with the knowledge and tools, and teach you how, when and where to use them. But the real application is up to you.  

So, go grab a drink, and when you come back buckle up because you are about to become a ninja. 

I really want to dive into the “follow up question”, but first you must learn to recognize the precise moment in which you can use it. You can only bring it out when you go for the kill. Otherwise, I am afraid it holds no power or meaning. What is worse, it is highly possible that you will not appreciate its value and a seasoned cold caller will have a field day with you. 

 Let’s start by explaining who a Salesperson is, and why this is important. 

Unlike the average wholesaler or spammer, a Salesperson knows that by law they cannot contact you unless they are licensed by their State in which they are doing business.  

In other words, a real estate agent will know exactly what it means to be a “Licensed Salesperson”. They should not be offended or try to explain themselves.  

Why? Because that is the official title given by the State. The State official records do not say “Realtor” or “Real Estate Agent”.  

Instead, the official designation is much less glamorous. The designation for this type of license is called “Real Estate Salesperson”. It is true, look it up if you don’t believe me. 

Since I am licensed in the State of Ohio, I cannot speak about what is true in other states, but to my knowledge the same applies throughout the country. 

You already heard me say that real estate agents must follow a set of rules, and they cannot contact you unless they are licensed. So, what does it mean to be licensed and why do they have to greet you in a certain way? 

Let’s talk about that right now. 

The Division of Real Estate and Professional Licensing (REPL) is part of the Ohio Department of Commerce, and it “is responsible for licensing Ohio’s real estate brokers, salespeople, appraisers and foreign real estate dealers and salespeople” (About REPL). 

Did you know (at least in Ohio) every Salesperson must follow “The Ohio Code of Ethics” also known as the “Canon of Ethics”?  This is a guide issued by the Ohio Real Estate Commission, outlining the standards and guidelines that agents are required to adhere to.  

In broad terms, the real estate industry is regulated under the Ohio Department of Commerce. 

What is more, if the Salesperson identifies themselves as Realtors that means that they have agreed to adhere to an additional set of ethical rules outlined by the National Association of Realtors (NAR). According to NAR, “the term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics.”  

The follow-up question. 

If in fact you were talking on the phone with a real estate agent, then at any point in the conversation you have the right to ask them to provide you with their real estate license number. 

The conversation could go something like this: 

• Caller: Hi, is this Jessica? 
• You: Speaking. 
• Caller: Are you interested in selling your property at …..? 
• You: What? Who are you? 
• Caller: I am Steve from XYZ Solutions 
• You: Are you a salesperson? 
• Caller: Sure! Are you the homeowner? I would like to talk to you about your property… and. 
• You: I need to interrupt you right here. Did you just say “Yes” that you are a salesperson?  

Ok, in that case, can you please provide your license number? 

• Caller:  

• (If it is a real estate agent) Of course. Just to be clear, are you asking for my real estate license?  
• (If it is a wholesaler) I am sorry, What? I am calling about your property. 

Why would I do that, you may ask? 

Simple, once they read it out to you, you can go to the Ohio Department of Commerce to look up and verify the license in the estate’s database. Click here to look up the real estate license. 

By now, a true salesperson would have disclosed their brokerage, and you have on hand their license number. And guess what? Once you look it up, you will see if the license is active, and the results will also show you the brokerage they work for. And Boom. Liars will have no clue that you just outsmarted them. 

Below are examples screenshot of what you should expect to see once you look up the license. 

This is what an “Active” license looks like: 

Keep in mind though, most agents, including myself, do not memorize or carry around our certificate with the license number on it. It would be kinda silly if that were the case.  

So, do not judge the agent right away because it might take them a few minutes to find the number before they can provide it to you. But one thing is for sure, if the caller is an actual realtor, they will provide you with the license number. 

Both the Brokerage license number, and Realtor’s license number start with three (3) letters, followed by ten (10) digit number. However though, if you ask for the license, expect to receive only the numbers.  

A brokerage license will look like this: REC.2001XXXXXX, where as the Salesperson looks like this: SAL.2001XXXXXX 

REC is the abbreviation for Real Estate Company, and SAL is for the individual Salesperson. 

A wholesaler will not be able to provide a license number because they do not have one. The truth is that they do not need one to be in business. If by any chance the individual is able to provide you with a license number and you verified it as valid. Then, I am afraid this person is not following the code of ethics and their license would be at risk. Not because they are doing something illegal, but because they must be honest about their role. 

Clue number 2 – The tone of the conversation: 

Whether the caller passed the greeting text or not, the tone of the conversation can be the next clue that will alert your mind between friend or foe. 

For some people, discerning the tone of the conversation can be intuitive, for others not so much. For that reason, I will try to help you spot the clues so you can tell the difference.  

Scammers go for the low-hanging fruit in the shortest time possible. They invest a substantial number of resources covering their tracks. The last thing they want is to be exposed to getting caught. So, they will not wait for you to make up your mind about making a deal. They will not put their name on any document, or ask you to sign a contract, let alone enforce it. They will not give you their contact details, and if they do, the phone number or email address will stop working within days.  

What they want is your banking information as quickly as possible, your credit card, or for you to transfer money.  

Personal information such as date of birth, social security number, driver’s license number, etc. are the jackpot for them. If you give them any of those details, they might also want to know if you have other phone numbers, email addresses, your favourite colour, your daughter’s name, even your pet’s name.  

Why? Well, because as humans we create passwords with numbers, names and phrases we remember. So, if they know your bank account, they might use a combination of your numbers from your birthday and your dog’s name to guess your password. 

No Real Estate Agent or honest wholesaler will ever ask you for those details. For sure they will ask questions about your property such as the number of bedrooms, and bathrooms, age of the roof and windows. They will want to know if you have a mortgage, and the balance on it. Are there any leans, and who is in the title? Is there any major damage? Have you completed any renovations or improvements, or does it need any? How long have you lived at this address or how long have you owned it? How much do you think your property is worth, and how much do you want for it?  

These are examples of legitimate questions you should expect. However, they are all in one way or another related to the property itself.  These questions about your property will help the caller identify if there is a deal to be made. The difference between the Realtor and the Wholesaler is that the realtor’s focus is on you, whereas the wholesaler is the property. 

So, who hires VAs?  

Yes, some realtors will hire VA to make the initial call, but in my experience, they are more common in the Commercial side. Regardless though, the reality is that the VA has to be properly trained to handle the calls in accordance with the requirements imposed by the State and the NAR (if they are members of it). Proper training and legal paperwork take time and money that realtors in most cases do not have.  

On the other hand, the use of VAs is a standard practice in the wholesaling industry, and because wholesaling is not a regulated, the lack of training is clear when an unskilled VA is on the other side of the line.  

Although the majority of VAs reside in the Philippines, Bangladesh, Thailand, India, to name a few, it is possible to answer a caller with American or Canadian accent.  

Unless the caller is the owner or member of the company they represent, you will find that the conversation is very mechanical and transactional. That is because it is highly possible that the caller is a VA reading from a script to fill out a questionnaire. You can tell if they are VAs because they will not have depth knowledge about the transaction or the answer to any question outside the script.  

Unfortunately, due to cultural differences, they come across as rude, pushy, disrespectful and so on. But you also have to understand that they don’t get paid to build a long-lasting relationship or making friends with you, they are paid by the numbers. They need to fill out as much information as possible so they can move to the next line on their spreadsheet. 

There are virtually zero repercussions if the VA offends you, says something wrong or makes false promises.  

One word of advice: Do not judge someone with an accent right away. I personally know lots of honest and hard-working real estate professionals who have accents. The best thing to do is to ask questions and the answer will reveal itself. 

Relationships: 

Having said all that. I would be dishonest if I didn’t tell you that not all wholesalers are bad.  

Wholesaling is supposed to be an honest and legitimate way of doing business. Think of a win-win type of situation where the two parties might not get everything they want, but no one loses either.  

The problem is that the field is very saturated, so what ends up happening is that many of them resort to borderline deceiving tactics or questionable ethics just to score the next deal.  

Although there are a lot of bad apples out there, there are also reputable wholesalers who make honest and legitimate transactions by being fully transparent. You can tell the difference by their win-win approach, and they are a delight to do business with.  

If you ask them questions, they will give honest and thorough answers. They will even educate you. And although not technically their job, they will be happy to go the extra mile to help you. Better yet, they have no problem telling you that they are wholesalers looking to do business with you.  

I have spoken with dozens of wholesalers in my life, some good, some bad. But the best ones have been straight shooters and flat out told me that they would rather not make a deal because there was not enough meat on the bone for me. And instead, they provided other options for me to consider even though there was nothing there for them. 

Depending on your situation and level of comfort, a wholesale deal might be right for you.  

Although not entirely accurate, think of a realtor and a wholesaler as selling your car through a dealership or selling it on your own by posting it online.  

One is structured and government regulated. Prices are set and the transaction involves specific set of paperwork, management fees, finances, even calculating taxes, etc. In other words, someone with expertise helps you putting together everything you need so all you have to do is sign the papers if you agree to the terms.  

In contrast, by selling it on your own you remove the red tape by doing all the negotiation on your own, hoping that nothing will go wrong. There is no legal form, advise or price suggestion. Since you are not paying for knowledge and experience, you must be savvy enough to understand that you will not lose your shirt as you sign your own death sentence. 

I know it is a bit dramatic but the point is that unlike the dealership or real estate brokerage, there is no one you can go back and complain to or finger to point at when you are doing it all on your own. 

Do you remember that in order for call calling be efficient was to hire someone?  

Well, there you go. A realtor (in this case, the real person) would be calling you because he or she wants to represent you. To a realtor, your business means relationship.  

As realtors, we are looking to establish a relationship with you because the truth is, we are part of your community. We might even live nearby, and our children might go to the same schools. For that reason alone, we value your time, your business, your friendship, etc.  

Our job in a nutshell is not your property, our job is to lookout for you and your best interest. The fact that you have this or that property in mind, should be irrelevant to the realtor, but since these types of transactions involve real estate, as you might imaging, the realtor’s number one responsibility will have to lookout for your best interest regarding the property.  

Let me repeat it, the Realtor’s job is to look out for you and your best interest, and that is the very reality of our business. 

To look out for your and your best interest the realtor has to care about you and your family, including your pets. They don’t need to become your best friend, but they have to care and be honest with you. In plain and simple terms, they have to trust you and you have to trust them.  

In order to get there, realtor must form a relationship with you.  

Relationships are the backbone of this industry. So, if you receive a call where the person is dry, rude, transactional, pushy, asks tons of questions about your property, then most likely that person doesn’t care about you. Right there you got your next clue that this person is not a real estate agent.  

In case you didn’t know, we depend and treasure your referrals. Plus, like I said, we are local to you, meaning we are located within a few miles of your home or community. We don’t want to burn those bridges over one phone call. 

As we navigate the ever-evolving landscape of real estate, the journey from homeowner to a savvy participant in the market is fraught with calls and offers, each promising a different path. It’s essential to remember that amidst the sea of voices vying for your attention, your empowerment lies in knowledge and discernment. Whether you’re dealing with realtors, wholesalers, or facing down potential scammers, the ability to distinguish between them empowers you to make informed decisions about your property and future. 

Understanding the nuances of each call, from the initial greeting to the tone of the conversation, equips you with the tools to protect your interests and engage with genuine opportunities. Remember, legitimate professionals will respect your questions and offer transparency about their intentions and affiliations. On the other hand, those with less honest motives will likely falter under scrutiny. 

As “The Cbus Agent,” my mission is to guide you through these interactions, ensuring you have the confidence and knowledge to respond effectively. I invite you to join me in demystifying the real estate process, one call at a time. 

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Are you ready to elevate your real estate journey? Let’s continue this conversation.

Whether you have questions, stories to share, or are seeking personalized advice, I’m here to help. Reach out for a free consultation, and together, we’ll navigate the path to your real estate goals. Your home is more than a property—it’s a cornerstone of your life. Let’s protect and maximize its value, together. 

Stay informed, stay empowered, and let’s turn those unsolicited calls into opportunities for growth and success. 

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