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Why would I want to list properties for Nationstar? They just listed a property in my local MLS, and are offering 1% to selling agent, list agent gets a whopping 1.75%, meanwhile they get 3% referral and get this, they charge a 5% premium of the purchase price to the winning buyer. Offering 1% to local realtors is not going over well, many pissed off realtors. Not only that, it despite what the BPO's said (at least mine and the listing agents) they underpriced the asset by at least 20,000. I say why not price it right and offer a commission that won't make agents hate you?
This all sounds like an Auction Property?
This is a HomeSearch.com Auction. The Buyers can purchase without you. Investors love it. The ads for this Website are all over the Internet. Some MLS will not allow them to be listed on their sites. The MLS listing price, the auction reserve price and the opening Bid Price are all different. The SELL!
Nationstar listing agents do not have any information about the property or related issues like unpaid fees, hoa dues, liens, etc. Auction sites sell these listings to so-called investors for ridiculous amounts based on no information provided, most of the properties are occupied and buyers don't get clear title. I would never represent a buyer in this type of transaction. These listings break MLS rules and MLS board should not allow them at all. You should not be able to list a property and not allow access to it or not allow offers to be submitted other than during the auction period and with additional fees. This practice is very deceptive and misleading to buyers and unfair to agents.
Violetta - It sounds like you've been mis-informed. I've listed Nationstar properties for 6 years. Listing agents are required to obtain HOA fees & delinquency on behalf of the seller. Nationstar has a title company perform a title search at closing. If a lien or encumbrance is found, seller has the right to attempt to cure it or not. Buyer has the right to walk if not. Out of 60+ Nationstar properties I've sold, I believe 3 or 4 were found to have liens during title search and they were resolved/paid by Nationstar.
Some properties that are occupied with personal property may be going through a pp eviction and the eviction needs to abide by local laws; that is one reason no one can access the home. Or, perhaps people still live there. Buyers can bid and/or purchase at their own risk. It's totally up to the buyer and there are lots of buyers who are fine with that. That's not illegal, people also bid on unseen contents of storage units all the time.
Not only are pre-auction offers accepted, but I'm required to place verbiage in MLS remarks stating 'send pre & post auction offers to homesearch.com.' I bet all Nationstar list agents have that in their remarks, because Nationstar requires us to send copy for their review. Thus, fully disclosed. Why is selling ahead of the auction unfair? Ebay sellers do that with their 'buy it now' option.
The Terms & Conditions and a sample purchase agreement is available to view before your buyer begins bidding. You should familiarize yourself with that before you say it is 'deceptive' and 'misleading'.
This seems to be an emerging pattern with a few companies lately. To be honest, I don't mind working with a buyer on an auction property because they are insanely simple. Most buyers that would buy at auction are investors/contractors and I've had many that don't even care to see the inside of the house. They drive by and peek in windows and I run a valuation assuming the property is in typical beaten up foreclosure condition... and then we put our bid in.
In the end, I make 1% for doing a CMA and entering bid info from a computer. Is it ideal? Not really... but is it easy enough for the little work I do? Sure.
I'd go after these all day when the buyer doesn't need to be babysat.
I can tell you I have had many of these assigned to me. The work load is extreme and never worth the small paycheck. You have to send registered letters show proof contact occupants negotiate CFKs , Do checks every 3 days and so much more. When you do the heavy lifting for them and waste a lot of gas and expenses then they turn it over to an auction listing and a 600.00 max commission to the LA. There is no way these are a good addition to anyone's Real Estate business. Sorry my experiences have been long and much different than yours evidently. I would just say agents beware!!
I agree . Having a buyer who is experienced and low maintenance for an auction property makes the whole thing easy for the most part and fairly easy, decent pay checks too.
To be clear having a buyer for any REO property is so much different and so much easier than listing one (most of the time) and much better paying. For everyone on this and all conversations, blogs and forms on REOS please note my opinions on listing REOS are very accurate for listing agents. On buyer's agents for any REO property the experience is really different than the LA has. For buyer's agents there are no referral fee, no platform fee.. most get to 2.5 to 3 % commission paid and even selling incentives at times. The work load is so far less for the buyer's agent on REOs. So agents selling REOs do get paid pretty well for their work. Depending on the buyer these can be good and profitable properties to work with... again,,,most of the time.
So for all of the agents here who do not list REOs but do sell them.... congratulations !!! you have found the last area in the REO world that remains somewhat profitable. BUT times are changing again in the REO world even for the buyers agent. As we see through these REO auction properties they are now finding a way to even make the buyer's agent earn less, do more and the buyer pay fees and have responsibilities that would normally be the sellers. So before the "good side" of the buyers agent REO deal is gone , sell them while you can.
Oh... I don't disagree. I list REOs as well. I'm sitting on a manufactured one in a 55+ development that needs about $30,000 worth of work. I've practically lived in this thing for the past 90 days. I've had to justify to the bank 1000 times that it's not a valuation issue, it's a marketing issue. Not many retirees looking for full trailer flips. ;-)
I've got a feeling this will end up in an auction or with another agent as the average DOM for a manufactured home in this condition is 280 and the bank is extending the listing agreement every 30 days.
Regardless, I plug away. It's what we do in the REO world. :-)
All for 2%... actually, 1.5% after that referral fee...
Good Lord, Seth, list some real property and get 7%, I never take REO's too much work for too little $$
my time is valuable.
Just sold one, buyer agent made 2% with an incentive we had for that particular auction. Sign of the times and I see more of it coming.
Well, at least to some extent it is still a free country. Possibly not for long? We still can work with who we choose.
I do see Corporate sellers doing "stupid things" all the time, and sometimes I am even involved. But we all have to work within our own "business plan" and a small piece of the action can be better than none.
I mostly list REO and that often involves discounted commissions and extra work, but a seller that has sent me 3-8 listings a year for the last 5 years may be worth it. Some of the properties are not profitable and others are. I had a friend who used to say, "we loose money on every deal, but make it up in volume."
I have a couple of investors that "write me in" when they bid on one of those auction properties so If they win the bid I get paid for providing them with general ongoing services and support..
It's a really old joke Barbara. (:-)