Not all REO listing agents are equal

pulling my hair out
Image by Heliotrop3 via Flickr

Having just completed two sales involving bank-owned property sales in the last week, from the buyer’s agent side the two transactions could not have been more different.

The first sale involved 2X the paperwork, threats by the listing agent such as “perform on time or else”, also reminders on each page do not ask for an extension they will not be granted,  if you are late it will cost you $100 per diem (per the original documentation), however, when we got the final addendum it read you will be charged the per diem rate by the week or $700!

Our problem was the gas was shut off at the property due to the listing office missing this point. It slowed up our inspections and ultimately slowed up the closing as the appraiser had to come out AGAIN to check the gas was on. Add to that the new borrower disclosure timelines are slowing down loan approval times. You’d think since the seller is a bank they would take that into consideration. I realize I am ranting at this point but has common sense gone out the window?

Somewhere along the line I recognized it was not necessarily the seller but the listing agent “team” pushing the militant ways. “Do it by this time or else no deal – We don’t care what your buyer has spent on inspections and appraisal.” This point became crystal clear when I asked for an few more days for PMI (private mortgage insurance) approval and the “team” person said NO way and then cut and pasted something from a week before that the seller/bank had sent. I could not believe the seller/bank would throw away our contract 2 days before we got formal loan approval and 10 days before close just to go back on the market in this crappy sales environment.

I doubted they presented my formal request (with full details for the reasons for the delay and why it was in their interest to stick with us) to the seller/bank. The listing agent “team” said “send over the cancellation”. I decided to add a sentence to my cancellation form stating – buyer is 2 days away from PMI approval and the seller refused to extend the contingency. What do you know the next day the seller/bank was willing to remain in contract and let us close. My suspicions were correct – the listing agent team was the militant stopper of the transaction.

The other bank-owned transaction was just about the same as a regular sale. We needed an extension and it was granted. Of course, I was always on the ball, quick to supply any requested documents and I kept in close communication with the listing agent. No problems here!

But I ask you WHY all the stress? Getting a sale complete is a team effort. We all want the same outcome.  I will consider long and hard before I forward any future offer to this listing agent “team”.

If you want good client representation give me a call.

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I heard short sales make up 75% of the market. Is that TRUE?

MIAMI - DECEMBER 22:  Real estate agents Izzy ...

That depends. If you read my last blog you will see it is correct in the single family homes under $300K for Santa Clara County.  However, the percentage changes dramatically as the price of the home increases.

Type of Sale under 300K 300k-500K   500-750K  
Regular Sale 10% 189 34% 411 70%
REO 15% 81 15% 48 8%
Short Sale 75% 279 50% 115 20%
Misc       11 2%
total   549   585  


So if you are a buyer not wanting to hassle the long wait for the short sale process you will probably need to get in the $500K+ range.

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