Man, I get a bit crazy sometimes when a buyer agent refuses to control his clients and "keep them in the deal". REO process is slighlty different than straight residential and we give all the clues we're allowed to give by law and I'm amazed how a buyer's rep, maybe not experienced in REO, will disregard the "keys to the kingdom". We have experience and besides we represent the asset! I think my kids listen better (most of the time) :) I hope that agents representing those intending to buy/invest in REO will take the cue, and take the time, to please listen to the agent representing the REO asset. We can make the transaction smooth, get it done, and please our asset managers at the same time. That's the ultimate. Well this is today's rant, it's over, but I'm sure I'll have a new one tomorow!
However, I do also agree with Doris Katz....there are good agents and bad agents on both sides..... I thank the agents who make the deal go smooth, act professional and keep the excuses and never ending drama out of the deal. We need to just close and work together. Usually the problem agents have chronic problems closing deals so it becomes a warning sign when their name pops up with an offer. In other words, I communicate with the asset managers on those.... Most asset managers do listen as we become their eyes and ears on everything.
Oh my gosh.....I am soooo with you on that one. I cannot tell you the number of times I talk to the agent, put comments in the MLS and give them little subtle hints.....many times just ignored. They try to neotiate after all is signed, submit low ball offers with a multiple offer property and get mad when not accepted, and then do not follow MLS instructions when submitting. Does anyone evern read the MLS anymore? I get offers on a property that has been pending for a week or so.....One word of advice to buyers agents, read the CURRENT MlS before submitting and remember that you are dealing with an REO which is not the same as a private seller. Do not try to call the shots after contract.....it does not sit well with the asset managers and keep the drama out of the deal. One last bit of advice....a cash deal does not mean it is ok to submit a rediculous and extremely low offer....does not always hold the weight that the buyers think it does. They can and will still get rejected
As an exclusive buyers agent for REO I can relate to this and actually use this as a selling point to prospective investor/buyers. Use me because I know how the process works. I should post on Active Rain and tell Buyer's Agent's how it works which is plain and simple, If you want to purchase an REO it is the Bank's Way or the Highway!!! AS IS very simply means there are NO NEGOTIATIONS with the seller of the asset once you go under contract. Yes these naive agents treat it as a regular sale and ill advise their clients to negotiate and nickel and dime the seller/bank all the while 'pounding their chest' thinking the bank needs them more then they need the end buyer! I highly recommend Listing Agents sending out a 1 page summary of how the process works and what to expect. This is like setting the 'ground rules' as soon as they submit an offer so they can't come back and change or make up their own rules. I would invite others to author a 'ground rules to purchasing an reo' cheat sheet which can alleviate a lot of headaches later into the transaction. Objective is to educate the Buyer's Agent, End Buyer and Attorneys as to how this works and what AS - IS truly means!
Have to agree with Dorit in that there are problems on our side of the coin as well. There was a recent rant on one of the "traditional" real estate sites and oh, did the agents there get going on how we never communicate (#1 complaint) or keep them updated. I and a few other brave souls pointed out that buyer agents also could be to blame.
Mutual respect to both sides is the word of the day.
Oh, as far as pulling little stunts right before closing... one can keep the earnest money. And more and more asset companies are.
Well it proves we need to raise the bar ourselves. Maybe some of our efforts here will translate to a higher standard. Providing extra value should equal extra success. I know it has not always been seen that way, and assets may go to those without comittment. I think as the process of REO becomes more transparent it will be easier to determine wheat from chaff.
The real problem is letting people with 5th grade educations (even tho thay sumhow got gradiated frum lettus lefe hi!~ skool) acquire real estate licenses and consider themselves to be professionals. At least that's the way it seems to be in Indiana...and morals are really in a poor state. I had an agent (broker none the less) allow her husband to enter an REO offer thus forcing her "client" into a highest and best situation....OMG (Yes, perhaps he had a right to make an offer, but it was a lowball versus her client's sincere offer.)
And YES there are definitely lazy, good for nothing listing agents as well (AND they get the bulk of the REO business because they can do almost nothing VERY FAST and create a better scorecard than I can. I despise both.
Don't forget that there are agents who fit the other end of the spectrum. I've gotten a good numer of agents who thank me for helping them through the process because they have dealt with horrible REO agents in the area. Unfortunately, there are agents (on both sides) who make the process difficult.
I agree! I know we have had atleast 10 transactions fall apart within 2 weeks of closing because buyer's agents refuse to listen as to how things will and will not be done. Then they have a problem pop up that they were told about before they wrote the offer and then expect the bank to fix the problem they were told the bank will not fix, it is being sold AS-IS.
Sometimes I thing we need to all carry baseball bats to get our point across!
Comments
Mutual respect to both sides is the word of the day.
Oh, as far as pulling little stunts right before closing... one can keep the earnest money. And more and more asset companies are.
And YES there are definitely lazy, good for nothing listing agents as well (AND they get the bulk of the REO business because they can do almost nothing VERY FAST and create a better scorecard than I can. I despise both.
Ok, off my soap box..
Sometimes I thing we need to all carry baseball bats to get our point across!