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I have been inspecting a property weekly, waiting for the deed in lieu to be recorded for over 6 months. During that period I was asked to do a driveby BPO , then rekey and do an initial interior BPO , and then later did an "updated" BPO Then I was asked to send a full set of inspection photos weekly. I turned all the utilities on, researched the HOA dues. Now, its FINALLY time to list the property. I get the listing agreement and it is for 30 days !!!!!!!!!! Is this normal? In 15 years I have never been sent a listing for only 30 days.
I haven't had an Old Republic listing in years, but I think they were the one REO company I worked with that had the 30 day listing period. I don't remember having any problem with extensions, but the properties were always priced right for a quick sale - "back in the day"....
Nothing's 'normal' about REO anymore.
There are a number of REO management systems that use the 30 day listing, but they renew automatically, or on completion of your monthly report. The problem with ORDS is what they do in 90 days. So if you are overpriced, be aggressive with them about reductions. The clock is ticking..
If their $50.00 Second BPO came in too high, and they listed considerably over market (and your valuation), you will probably loose the listing after 90 days and can write off weekly inspections for 9-13 months. You may very well only get 90 days on market, at the inflated list price with nominal reductions.
I dislike a number of REO policies by a number of REO management entities:. Net commissions under 2.25%, 30 day listing periods, Weekly inspections with date stamped photos, and overpriced listings. Often multiple negative policies can be found clustered together into the same listing.
When dealing with these discount vendors only wanting to pay 5% commish and some with additional referral fee's, I don't usually give them everything they want. they can take what I dish or they can scram. Bottomline, these companies get what they pay for it works both ways not 1 way. They are not going to get an A1 performing agent at an A1 performing monkey commission...AT LEAST NOT FROM ME. I don't care if I even get another listing from any bank or vendor when they want to pay scrappy fee's.
3 months is a normal listing period when dealing with standard sales and REO's. If your talking short sales, then a minimum of 6 months is needed being that it generally takes up to 2-3 months just to get an acceptance from these banks to go into escrow.
That's because they used 2/3 of the normal listing period time having you do all the work. Should never do anything other than the initial BPO required. Everything you did is part of already having the sign agreement first hand. This is just a lesson learned. I work with a vendor now who kept sending me tasks on an expired listing that I never signed and agreed to an extension of the listing. In the meantime all tasks became "PAST DUE" one by one and they didn't seem to be bothered by it. I had sent them a letter telling that I no longer wanted the listing and to reassign it which they did. Still the tasks kept coming to me and when I would click on them it would show the other listing office info It took several nice emails thereafter asking them to remove all those past due tasks completely from my profile and kept getting ignored. Until I finally got NASTY AND DEMANDED THEY DO IT and finally they did. Now there is another one that just expired and they are starting to do the same again but only this time I did not get an extension and want me to do tasks still...AS IF RIGHT? So, I won't be putting it back on the MLS until they send me the extension to either accept or decline and I won't to anymore tasks which will all become past due again...LOL Anyway, I think more and more these 3rd party vendor asset managers are getting STUPIDER and looking for ways to not be totally commited so they can change out "at will" (sounds like a reg employer) or even possibly steal your client's offer. We all have to watch our backs now, where as some of these vendors do have inhouse realtors and won't disclose it to you and you are doing all the work for them for free as they may already have it in escrow. Therefore, you need to be very careful anymore to make sure it is clear that the client is yours , keep up with them everyday to get the signed contract so they have acknowledged it or your screwed. I would even go a step further and follow up to make sure it hadn't closed escrow during that time when you were performing work for them to become the listing agent as they represented would happen. If you find it did sell, then you may be able to collect a commission on it. You need to go back to them and tell them you don't accept the terms and won't do anything else at this point unless they revise the listing to at least 90 days.