Listing Agents Not Welcome.

Because I have seen several recent post about OCWEN no longer taking on Listing Agents in CA. FL and, NV I decided to blog on a this recent trend of doing away with the Listing Agent. Now, before I get started in on this topic, let me make something very clear, I have no first hand knowledge on these situations I will be discussing. I am simply putting together what I have heard, read and understood about the REO industries changing dynamics and how it might effect me or you. Ok, so, OCWEN is no longer taking on Listing Agents for their properties in CA, FL and NV so, how is that possible? First off, you need to understand that many of these disposition companies are trying their hardest to figure out how they can grab more and more of the listing agent commissions on these properties. Many companies are notorious for reducing commission, attaching high split percentages or adding un-necessary fees due from the listing agent. The terribly sad part of all this is, many listing agents have folded to these claims on their commission in order to simply close the deal and make something vs. nothing. Well, these practices have led many companies to logically pursue these commission grabs to their conclusion by asking a simple but, dangerous question and that is, “How can we keep all the commission for ourselves?” The natural answer to this is to do away with the Listing Agent and keeping the 3% average commission on that side of the transaction. So how can they do this? Well, they aren’t really getting completely rid of the Listing Agent. You see, instead of having 50 agents to cover a particular county, they reduce their agents down to 3 and then offer them a job to act as their agent, with a steady income and benefits like, retirement, health, dental, vision, paid vacation and more. So how is this even possible, you may ask. I have one word for you and that is TECHNOLOGY! These companies invest lots of money in developing specific software that can almost manage the entire listing from birth to grave. This software is so highly developed that it can dramatically reduce the number of required agents to work the same, if not more workload than before. Many REO agents are already using some of this software when you log into your Asset Managers Back Office and input your forms, update your work flows, etc…. All the company has done is taking that software and perfected over the years of use that you as a REO agent helped with. Now, you’re thinking, “What kind of Realtor would do this?” Well, I can assure you, plenty of Realtors are out there that would give up their commission and work for a company just to do the same job but have, regular income and all the benefits. So….I know I probably just rained on your REO parade but, it’s important for you to know this industry is changing. REO will not be the same when we end 2009 as it was when we ended 2008. Good luck, stay safe and hopefully I will see ya on the flip side.
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Jesse Gonzalez is a highly accomplished and respected real estate professional with a wealth of experience in the industry. With a career over 15 years, Jesse has established himself as a leading real estate sales and marketing expert.

As a licensed real estate agent since 2005 and a broker since 2008, Jesse has a comprehensive understanding of the complexities of the market. In 2013, he founded his firm, Liberty House Realty, LLC demonstrating his entrepreneurial spirit and commitment to delivering exceptional service to his clients.

Jesse's expertise extends beyond traditional real estate transactions. He obtained his Registered Appraisal Trainee in 2019, providing him with valuable insights into property valuation and market analysis. Although he decided to focus primarily on sales, his appraisal background gives him a unique advantage in understanding the intricacies of property values and trends.

With a dedication to excellence, Jesse consistently achieves outstanding results for his clients. Last year alone, he closed over $20 million in sales and received the prestigious Sapphire Award from his local association, recognizing his exceptional achievements in the industry.

Beyond his successful career in real estate, Jesse is passionate about education and personal growth. He is completing his undergraduate degree in Forensic Psychology, with plans to attend Law School in the fall of 2024. Jesse's ambition is to become a real estate litigator, focusing on real estate consumer protection law and advocating for the rights and interests of homebuyers and sellers.

As the owner/operator of the nation's largest social network for REO professionals, <a href="http://www.REOProNetwork.com">www.REOProNetwork.com</a>, Jesse has positioned himself as a thought leader and industry influencer. Through this platform, he fosters collaboration and knowledge-sharing among REO agents, attorneys, asset management firms, and other professionals in the field.

With a commitment to professionalism, integrity, and providing a personalized experience for his clients, Jesse Gonzalez is a trusted advisor and a driving force in the real estate industry. Whether assisting clients with buying or selling properties, he consistently goes above and beyond to exceed expectations and ensure successful outcomes.

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Comments

  • Well, that's good information. Frankly, I've seen some pretty shoddy marketing from out of area agents who have listings several counties away from their office. They don't return calls, provide adequate pictures or information...just the basic most minimal information as required. They get what they deserve then.
  • Regina this is more of a question than a statement but if they are making the decision on the transaction they could be considered a THIRD PARTY unique to most transaction. Our Standard California Agency form may not be enought to satisfy the DRE. They have a role in the transaction unlike any I have known before. This is a question not statement of fact. If I run into such a transaction I will contact my attorney and the DRE to make sure I am making the proper disclosure. The Point being they may be doing more than just directing the client.
  • Jesse, thanks for posting, this is good info to know. I'm simply amazed that AHMSI has formed their own "real estate brokerage" and give themselves 1% of the commission as a "referral fee". That doesn't sound right! Do you have any info on this practice? It appears to be legal in CA.
  • Your so right Jesse this is all going to change. But I will tell you what will not change and that are the rules and regulations of the Department of Real Estate in our States and HUD. One thing I think will be a downfall is the "invisible third party" agents that are collecting money from the transactions. This could mean anyone that charges a REALTOR a fee to find or obtain a listing. I don't want to point fingers at any one group but the quid pro quo of you pay me and I will market you and get you a listing is a "third party brokerage". Some of these groups very closely word this but clearly there is an implied connection to payment and selection. One of these services is posting listings and not putting on the required Gov. Information like the equal housing opportunity logo and insisting that to be considered you have to do free work, including BPOS. You don't have to read to may of these professional blogs to know some people believe this is a Pay to Play and that is against the rules. One of these placement companies are trying to control Title and is most likely a HUD violation and also points to them controling aspects of the transaction "Brokerage" when they don't even have a Real Estate Lic. let alone an Ins. Licence. To sell, influence or dictate Ins. you better be an Ins. Company at least in my state. Anyhow this is a great post it makes us all think and share, clearly the Asset Managers and Servicers are looking at their business model , to stay in the business so must we.
  • I echo Addie's post. Lenders are leaving alot more than 3% on the table by using listing agents who are overloaded with listings and pricing significantly below market just to dump the property. Many of these agents are "out-of-area" agents who do not even belong to the local MLS, and the Banks property is not listed in the local MLS.
  • It's kind of hard to find the words that would convey how much emphasis I'd like to put on the fact that we, as Realtors, should not compromise, or allow, the services and value we provide, to be taken for granted. No technology can ever do a better job than a person can by actually marketing the propert to it's full potential the way can. Countless "mega" agents who have taken more listings than they can market propertly have made it possible, by provide substandard marketing services, for the type of technology you're talking about to SEEM adequate. When the fact of the matter is that most sellers leave money on the table by emplying this type of representation. The listing agents may be getting more, but the note holders are not. You can be sure of that.
    Great post, Jesse!
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