Altisource 1%

I hope this is not a new thing that other companies will continue to use. I receive this email from Altisource today and they are taking the listing agent out of the transaction and having the buyer's agent submit offer directly to them.
Here is the email, happy readings:

"Altisource Portfolio Solutions, Inc. (“Altisource”) is continually searching for new ways to innovate, improve and accelerate the REO disposition process through the leveraging of automation and by providing enhanced services to its clients, customers and trade partners.  
 2010 will kick off several new Altisource initiatives, including:
Significant enhancements to the Altisourcehomes.com website that incorporate upgraded search capability, functionality and the introduction of time limit sales. 
The development of a nationwide network of vendors, managed by the Altisource Property Preservation and Inspection team (“PPI”) to administer the property management process.  
 Due to this innovation several changes to our REO sales process have occurred:
All offers must be submitted directly by the Buyer or Buyer’s Agent via the Altisourcehomes.com website.  
Communication of offer acceptance or counter offer(s) will be delivered electronically via the online portal.  
Contract submission and processing will be handled electronically via direct support of the Altisource operations team.  
Coordination of additional closing duties will be performed by our title services team.    
Rehabilitation, management and maintenance duties will now be completed by our PPI team.  These include: 
Cash for relocation negotiation (cash for keys) 
Eviction oversight 
Lockbox installation (independent of MLS lockbox) 
Repair management 
Supervision of routine maintenance 
If you are interested in assisting Altisource with REO preservation duties you will need to apply for PPI vendor status by registering on www.realtrans.com
 The transfer of property management and other tasks from the listing agent to Altisource has necessitated an adjustment of the listing commission structure, which will be reflected in new listing agreements beginning March 1, 2010.   The listing commission, net of referral arrangement fees payable by the listing agent to the referring licensed brokerage companies, will be a flat fee of $800 for properties with a sale price less than $80,000 and 1% of sales price for all other properties.  These changes will not impact the commission payable to any buyer’s agents.   There will no longer be a property management fee paid to listing agents.  These changes will not alter any properties currently under contract or on the market pursuant to previously executed listing agreements.  
 Altisource would like to thank you for your continued hard work and effort.  We look forward to an ongoing, successful business relationship.  Attached you will find FAQ’s to provide detailed answers to your questions.  If you have additional questions or concerns, please email RLA@altisource.com.
 Thank you.
 AltisourceHomes"

You need to be a member of REO Pro Network to add comments!

Join REO Pro Network

Email me when people reply –

Replies

  • I like yourself went through those times. Lifes not easy in the land of OZ.
  • Ocwen evolved to Altisource, and is gradually eroding the listing agent's incentive to do REO. I guess, if an Altisource agent gets 50 signs out there, and is making $800/deal when their bank REO listing sells, then as long as there are some sign calls that turn into real business, then they're winning. That's the only way they can look at it.

    I started out doing BPO's for them, and gradually got a few listings in 2005-6; and then they started coming in droves, only to fall off dramatically in 2009. It would be nice to get the listings again, but I don't see that happening. Now, I'm happy working my sphere and finding those "diamonds in the rough" to fix, wholesale, and flip. It's better working for yourself, anyway.

    As far as their work ethic with other buyer agents goes, it will most likely deteriorate. There will be no incentive for them to be professional and treat them the way they'd like to be treated.

    Hey, after all, it's all about $$$, and the one who controls the $$$ will get most of the $$$.

    And that's the way it is.
  • Reply to Sally - The program was not instituted by "The Broker" it was instituted by the seller in an effort to capture more of the money from the sale of the property. I am a "Broker" and it hurts me to settle with a listing agent these paltry sums. The upside to the transaction is that the selling agent gets a much higher settlement. So..Sell them and make more money, list them and barely exist..
    • Edward, it does not matter who instituted it. Facts remains agents are getting screw one way or another. Soon we will have companies coming into our state and hire just one or two agents to handle 500 listings for $800 each, while some of us go into unemployment. You as a broker may get affected. I don't believe you and other professional brokers are willing to take that chance?

      I don't believe the government in each state care to have a bunch of real estate agents to go into unemployment, if some of these companies going to change the real estate industry. The DRE probably don't know what is happening to us. They really need to wake up and save our industry, if they want more fees from us and don't let us go to unemployment.
  • I am just wondering what NAR (National Association of Realtors) or CAR (California Association of Realtors) are doing about this? They should really start looking into this. I don't think the Department of Real Estate know what is happening or is this acceptable. There really should be some control on the fees the companies give us, which are split between the broker and agents.

    Lillian, that is a pretty big cut. I believe if the broker does not do anything for you to get the 50%, you should move on to another Broker. It is just too much work for less pay. If you really think about it, the income will be below minumin wage with all the work involved. You don't even have enough to pay your income tax.

    The thing is the broker should hire more people, if he wants to meet a certain income level. ... Not take a big split in today's market because you need to survive also. If he/she does not, then they should not be in real estate.

    I think the DRE need to start getting Brokers/companies to get some experiences in Real Estate before they jump in and start cutting fees with agents they hire. They really need to know how much detailed work is involved to sell a property, and be tested before they start hiring agents. I bet they have not thought about the required education, memberships, marketing effort, fees and expenses we have to put in to be a real estate agent. These have to be added to our traditional expenses such as personal expenses like a mortgage, food on the table for our family, income tax, insurances ... etc. We are not like most people who do not have to think about real estate expenses and income tax. We don't even get reimburse like an employee with a corporation.
    It really needs to be regulated in some shape or form so that real estate agent will have enough to survive.
    corporation.it
    This domain may be for sale!
  • Well I'll tell you, it's been like that for over a year in Vegas. All the Ocwen agents were let go and one ended up with ALL the listing...like around 500. There are lots of complaints about his service, but the bottom line is that Altisource nets more on EVERY property. Aparently it IS catching on because it sounds like they are doing it in more places now. Like you said Jesse, it WILL work because there's always someone out there that will do it. Heck I'd do it! Our business is all about volume anyway.
    From what I understand, there is another company that has hired an agent in Phoenix, put her on salary and is funneling all their listings through her license, just what I've heard. I hope this isn't the future of REO....I don't think it is, but you never know...
    • I'm in the middle of a listing assignment right now, I have 2, this will be the last. The listing agreement I signed did not say 1%. I had to do an extensive CMA not a quicky BPO and it took me awhile. I would love to know the name of one of those programs that do the BPO's & CMA's for you. That could turn me into Ocwen Lady too. To put a sign up and take down cost me $60. So . . .my broker gives me half of that 1% or $800 and I do more than put it on MLS, but it's all good... maybe I'll try rentals!
  • There are plenty of those "low-cost, no-service" brokerages out there that will jump all over this as this is exactly their business model. But most of these brokerages have already bitten the dust as it's hard to stay in business if you don't make a profit!
  • OK....call me soft headed but I'm having a difficult time getting the full jest of responsible parties here, I’ve read this over a couple of times and I’m. What I’m getting out of this is:

    The listing agent gets $800 or 1%....for what? A BPO and putting it in the MLS?

    PPI co. does all start ups and maintenance so agent doesn’t need to be involved in the property hardly at all? And are they recruiting agents to do piece work as preservation as the comment about interest in sign up suggest?

    All offers must be submitted directly by the Buyer or Buyer’s Agent via the Altisourcehomes.com website. Communication of offer acceptance or counter offer(s) will be delivered electronically via the online portal. Sooo…does this mean the listing agent is no longer involved in contracts or negotiations?

    Now the problem I’m having with this set up is the responsibility, If the Altisource operations team is receiving and negotiating contracts and by passing the Licensed listing agent I would think NAR and all the local and state boards would take serious issue with this. If it were my file it would basically have a listing agreement and a BPO….not a good file to take to court if a problem arises…..I wonder what my E&O company would think of this arrangement??? Kinda like Stevie wonder getting a drivers license and insurance to drive a car….then turning him loose on the freeway, yep…bound to be an accident somewhere down the road, and you can believe there’s going to be a lot of finger pointing.

    Does any member actually do business with Altisource that can explain this a little better? I say if a BPO and entry into the MLS is the extent of my responsibility well then give me a thousand of them, I’ll be a BPO and MLS entering fool. But if I'm to be held responsible and accountable for what I am licensed to do....get the newbies to do them.
This reply was deleted.