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I rejected a listing that went to auction and the commission was 1.25%. Selling broker 1.25%. Buyer also pays auction fee of 5% if he is the winning bid. The auction had to be attended by all parties at the property.
Anyone else running into this in the reo business?
Why are banks being so dumb? Does it not matter that they will get less at auction or waste valuable marketing time?
The auction company states cash only terms and we have buyers wanting to buy with FHA203SK at a higher price.
Auction company said if I didn't want to do open houses they would get it reassigned. When auction did not get an acceptable bid I was told it would stay on auction until sold. The AMCs say they don't make the rules, so it's the banks.
This is another reason I turned down the listing when it went to public auction on site. It took time away from the side of business that was going to make me a living. I like doing REO's and it's now a part of selling. I don't like seeing buyers paying a fee, as high as $1500 right now for some sales. Guess the investor just add's that into his cost.
It gets even worse. I have a listing that is now in it's 3rd online auction. (2nd time with Auction.com) Chase is the seller.
This time Auction.com says the buyer's agent gets ZERO! I've told the asset manager at Precision that MLS will not allow a listing that does not offer unconditional compensation. (even if buyer is licensed). To further complicate the situation, Precision is losing the servicing and offer deadline is before end of bidding. We could have sold it and closed at a higher price by now if the auctions had not interfered. They wasted a lot of my time and blew a sale.
What area are you in that you received a altisource listing?
I recently had a short Sale executed contract with Ocwen the Lender. They would not accept and they made me go through their auction at Hubuz and allow altisource to negotiate the short sale with pretty much them selves since they are owned by Ocwen. Ocwen owns Altisource and Hubuz and LBS I believe it is a title company out in California all of whom you must use now in order to have a short sale accepted. You as the listing agent have to lose 1.5% to hubuz for using the auction site that you have to use. SO beware in the MLS they only pay 2% to Selling/buyers agent.
It is my opinion that accepting the job from the banks (the creators of the chaos with no ending and the one in control of the actual situation) depend on the type of work plan a particular broker or Realtor itself has. We the realtors, have created this situation, commencing for sending the work to third parties (Short Sale to give and example) saying that is too cumbersome and low paid. Until the individual Realtor do not understand its real roll in the industry and get educated to do real business he/her is going to be the same clown as it was before 1913. I thing you have a good point; there is always to be a realtor willing to even work for free out there either to a Bank or to a regular client from "The Public" . I rejected a low paid commission and a BPO order and the response I received from the AM was:" We have a lot of realtors willing to work for free...&#@% ..." I hope this help in your professional position and don't let the others dictate the value of your work.