Posted by George Bellino on September 11, 2009 at 4:52pm
We received an email today from one of our clients and finally the banks are cracking down. Recent Chase field inspections revealed that 48% of the properties they inspected did not have active utilities and a great number didn't even have signs up.Now AM's will be checking on their properties and if they find any violations such as no utilities or signs (without prior permission) that agent will lose that listing and all of their other listings will immediately be reviewed for possible reassignment.I knew agents weren't doing all that they were supposed to be, but I didn't think that number was so high. I'm glad this is finally happening and it should open more doors for agents that do everything that they're supposed to be doing. It should finally start to weed out the agents that were just coasting with all their listings because they knew the right person or were just plain lazy & cheap. It should also help more established brokers get more listings because newer agents might not be financially able to handle all the costs of maintaining these REO's.I think there's going to be a pretty sizable consolidation of the numer of REO agents currently receiving listings. Green River Capital has already started as i'm sure others have. So all of you agents out there you better go put your signs up and get those utilities on or i'll be getting your listings!!!
Thank goodness! See my post about winterization/summerization. I personally turned in two LA's who singlehandedly were responsible for a loss of $50,000+ in value just because they did not keep the CAC on or put a dehumidifier in the below ground 100% finished basement that now has to be totally gutted due to mold. The property was 15 minutes from my house. It was 45+ minutes from the LA's. Go figure!
I am glad you are opening this topic. But I believe this is a wrong statement as it will help more established brokers to get more listing, because on my experience they are the one who are causing the problem. Honestly a new broker who just got a few new REO will do his/her best to optimize the property. You don't need a lot of money to have unitility and you can reduce the cost by passing often in the property by turning the light/heat/AC off behind your other fellows realtors. This is what you owe to your client the seller. Reducing the refrigerator is another one. In other hand, properties in poor shape are often in the hand of a well established REO agent or listed with an agent from another county far away. This makes sense and this is to demonstrate that bank/AM don't know what they are doing. Sometimes they are aware, but ignore the problem. What can you expect from an agent who has, let say 20 listings in his/her own territory by assigning another listing in another county which will requires a good 2hours driving to the subject property. If you don't understand, just go to my page/photos and you will see the result from a flood with mold. What can an AM expect from an agent with 30 listings and some of them at an average price range of $ 800,000 by assigning him/her another condo at 120K with 2% commission. This is just a common sense. I have contacted some of these agents for one of their listing for my buyer, and I am still waiting for their response so busy they are. Finally, experienced or not, established or not, I strongly believe that REO are not for everyone. This does not require only to be well connected with AM but requires marketing to sell the property as all agent know to do, but there are a lot of maintenance, technical, and surveillance issues... in other words this is property management. You represent a seller who is out of state with an vacant property. Some agents I know want to do REO, but they don't want to do property management and no experience in the matter.
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Enlighten us about the upcoming changes if your permitted to do so.