America's Largest Social Network for Default Real Estate Professionals
The other day i received an email stating this company found me online and wanted me to list an REO home in the area. Of course i said yes and went and did the occupancy check as it was due in 24 hours.
While on my way there I get a second email from the Asset Manager introducing herself and stating my commission would be 6%. I'm thinking OK, that is great until i read the break down. 1% goes to them (which is illegal because they do not hold a real estate license), 3% to the selling agent and 2% to me.
Really??? I do the marketing, pay the utility bills with my own account which drys up that money until they reimburse me, I have to do Monthly Status updates, showings, meet contractors out there, order the trash out, take updated pics and the list goes on...as I am sure you are aware.
How the HELL do they get off treating us like we are just useless...that someone who drives up, opens up the combo and lets in a buyer deserves to get paid more than me (who also has to pay for marketing.)
I told her I will split the 5% commission with the selling agent 50/50 and she says....she has the BALLS to say to me....are you ready....
There are thousands of you out there....take it or leave it!
Really...because our team's marketing budget is 3 times over in the Six Figure range....we sell the most homes in the region and I have successfully closed over 250 REO homes in the past 3 years.
Where the hell do banks find these low class, useless, money hungry jackasses to manage there assets? Why dont they just cut them out and hire us directly...To be honest it would be easier for me to come into work every day knowing i have control and dont have to deal with these asset managers who are on a power trip!
I received an email regarding Listing a REO a couple of weeks ago with the same terms. I returned the email saying "Thank you but No thanks; I'm a real estate professional not a "gopher".
Ha! Just got a new REO listing from National Default Servicing.
List price is $42,500
Commission to selling agent: 3% or $1,500 Minimum
Commission to me: 2% or $1,500 Minimum BUT i also have to pay them $750 referral fee and a $125 admin fee. So after splits with my company and a full price offer i will get a check for $470.
What a cock of sh*t
Ryan - What is your definition of a "standard agent". Your opinion of other agents is disconcerting. Every agent has the right to do business as they choose even if it is unwise. They will learn their lessons just as you have learned yours.
Standard Agent: The agents who stick a sign in the yard and wait for it to sell. There are WAY more of those than of agents who understand the business and marketing.
NAR reports in 2013 the average agent sold 8 homes...that average agent.
The average agent makes less than $25,000 in GCI....that average agent
The average agent spends less than $1,000 a year in marketing...that average agent.
What's even better is my latest situation. Getting assigned the REO's and then they go to Auction.com. I hold the open house, market the property. Auction.com collects 5% and I get 1%. Seriously. They use the photos and bpo's I provide them to upload to an online auction page... and they get 5%. Granted, I don't have to fill out the contracts for the buyers, but I'll gladly take that and 5%, they can do the 10 hours of open houses and get the 1%.
Thank you Chase. Great system.
Been there done that. And they hound you for updates!
Unfortunately, she is right. There are thousands of agents out there that take the listings, hope to spend little time on the listing and let someone else sell them if they are not local. I have had the same discussions with Asset Managers many times about these properties. I don't see how these companies can best represent the seller's properties but it has become part of the landscape.
I share the frustration. The buyers agents always get 3%, we do all the work, carry the costs, always been backwards in my opinion.
Ryan, nobody cares if you do a good job anymore. I was that broker that would check every property at least once a week, winterized, secure, meet all deadlines, and actually spend money marketing the properties. With one client I went from 3-4 listings a month at 6% with no referral fee to 3-4 a year, at 5%, with a $115 per listing fee after paying $400 to take their training to stay in their network. With another I went from 20-30 a year at 6% with a 25% referral fee to 1 or 2 a year with a 33% referral fee, $300 a year for their portal, $75 at closing for a "technology fee" and $5 per invoice to get my own money back.
They've figured out that they can get agents willing to pay ever increasing fees and take lower and lower commissions. Instead of having two good agents in a city get 25-30 listing a year they find 30 agents willing to pay hundreds a year just for the possibilty of business and they give them each 1 or 2 a year.
I used to have a negative opinion of the agents that "just stuck a sign in the yard and waited for it to sell" but I don't blame them for what these companies want to pay these days. I think the only way you can make money in REO anymore is to get as much volume as you can, at what ever they are willing to pay, and then do the least amount of work as you can get away with. Sad but that's how it is.
NO, I agree with you 100%. I told this AM that they will be getting 2% service and she really did not seem to really care or even ask what 2% service was.
2% would be fine with me if I did not have to pay the utilities, order all the trash outs, pay them and do the stupid Monthly status reports and updated BPO's. Take all that out and Ill list for 2%, stick a sign in the yard with the "Foreclosure" rider and collect the check!
Not sure why I even bother with BPO's for the REO assets. My report says $150,000 and they list it for $200,000 and we sell it 6 months later for $145,000.
I guess someone from across the country knows more about my market area than I do....