Agents react to ‘outing of REO listing’ practices
As in any indusry, there are unwritten rules in the real estate community … not to be broken. But Alexis Moore snapped a few and said what needed to be said. There ain’t a kitchen area in a brokerage where agents haven’t grumbled over crumbled muffins suspecting their buyer’s offer had conveniently slipped off the listing agent’s desk
–– Miki
Dear Miki:
In response to Alexis Moore’s comments regarding whether or not an REO (bank-owned property) listing agent submits all offers to the bank, I can only speak for myself, and our team does submit all offers on available properties. As long as the offer has been submitted correctly by the buyer’s agent, we not only submit every offer, but we send fax or email confirmation once an offer has been submitted. We continue to communicate with the buyer’s agents or parties regarding status of their offer, whether it has been accepted, rejected, or countered. We take pride in the fact that we do communicate through the offer process and have been complimented by other agents that we do so.
Our feeling is that many times we are on the flip side of this business, representing a buyer, so we look for the same courtesy from the listing agent. Let’s face it, our real estate community is small, and we will work with each other again so it is important to maintain a good working relationship with our colleagues whether we are in a foreclosure market or “normal” market.
There are cases, depending on the bank, when they want us only to submit the top three offers. Others want us to submit all offers, regardless of price and terms. Bottom line is…what is going to net the bank the most? They not only look at price, but the terms, cash or financing, close in 10 days, etc. It is what’s going to get the bank the maximum dollar.
When purchasing an REO property, I always advise the buyer and their agents to submit their highest and best offer from the beginning, especially in a multiple offer situation.
If you are a buyer and working with your agent, I recommend the following steps prior to writing an offer if you want the best chance of getting your offer accepted:
· Always do your research on the house.
· Check the specific offer instructions for the property that appears in the MLS listing remarks. This is vital to your offer being submitted. If your agent doesn’t follow the requirements, the listing agent cannot submit your offer. (In regard to a buyer knowing if the listing agent has submitted their offer or not and it being a “crapshoot,” sometimes the buyer’s agent hasn’t followed specific offer instructions from the start, therefore the listing agent cannot submit the offer due to the bank’s requirements).
· Submit your highest and best offer from the start as the bank doesn’t always counter.
· Ask your buyer’s agent to make your offer as clean as possible. For example, don’t ask for the moon in terms of inspections and repairs, as most bank properties are being sold “as is.”
In response to an agent meeting the very “stringent” criteria the banks require for listing their properties, it is true that we are pre-screened and held to the bank’s high standards. Listing REO properties requires that we are not only experienced real estate professionals, but that we have the staff to manage the properties, that we have reputable contractors, gardeners, etc., to maintain the properties, that we carry the required business insurance, and, in most cases, we are asked to cover the property expenses while the property is listed. In many cases, those expenses are not reimbursed for up to 90 days with certain banks.
As far as Alexis’ comment, “real estate sales professionals also having to improve their business practices,” it’s time for agents to dust off their real estate licenses and polish up their sales skills. Today’s market isn’t the 2005 boom where anyone and everyone had a real estate license. This is an entirely different market that requires agents to use their training and experience and also learn what it takes to successfully represent their buyer in a REO transaction. In turn, buyers need to do their part by doing their research and aligning themselves with a professional Realtor.
Tyler Smith
Dear Tyler:
Thanks for your advice to buyers and agents.
While it is true the majority of real estate agents adhere to an honor system, there are bad, big boys and girls that just can’t resist the cookie jar. Anyone thinking otherwise was born way before yesterday.
All around the mulberry bush, the columnist chased the weasel… To read the previous colunm from Alexis Moore please visit Local real estate pro outs REO listing agent, bank practices
