Why would I want to list properties for Nationstar? They just listed a property in my local MLS, and are offering 1% to selling agent, list agent gets a whopping 1.75%, meanwhile they get 3% referral and get this, they charge a 5% premium of the purchase price to the winning buyer. Offering 1% to local realtors is not going over well, many pissed off realtors. Not only that, it despite what the BPO's said (at least mine and the listing agents) they underpriced the asset by at least 20,000. I say why not price it right and offer a commission that won't make agents hate you?
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All of the NS auction properties in Ohio are lower end assets. The 1% commission has a minimum here and that minimum is typically 400.00, So when NS list and even sells a typical lower priced property and the commission is 1 % They pay 400.00 min and Max. Another words a buyer's agent can not be paid more than the 400.00 even if they write more in the negotiations. If any asset sells for 50 K or more (which is a very rare occurrence in my area due to the quality and condition of the normal NS auction property) then the commission will be more than 400.00 of course. But of 23 listings offered to me in the past 10 months, the top selling price was 23000.00 1% would be 230.00 . So that would be when the 400.00 min comes in. Same for the listing agent. The commission is 1.75% with a 150.00 fee to be paid. For all 23 of those assignments mentioned above the highest price sold again was 23000.00 @ 1.75 % is 403.00 But the listing agent received 750.00 minus the 150.00 for a 600.00 commission. Since 23 of the assignments had very low sales prices the LA commission was a Max of 600.00. The auction company had a 5% buyer premium with a 1500.00 min and a fee of 250.00 typically as well. Auction companies are horrible and they are the next phase of abuse of the agents IMO. So Stephan I agree why make agent's hate you? I think this will prove to be a very loosing idea and in 2/3 years it will either be phased out all together or they won't have agents in the process at all or they will be forced to treat agents and buyers much better.
Michael, we have had this conversation before....you do not know me or how hard I work or even if I am really even your own local competition. Your experience is not the end all be all ONLY experience . ( it is not the typical REO experience most of us live with, I will admit.) Anyone can verify our experiences and the number of listings Realtors have currently , who they are owned by and almost anything else these days. Data available now shows and tells a lot. So to see if I "work hard" or "just whine "...just check the data before you make your bold declarations on me and you will see what I write about is absolutely correct, truthful and common in the REO industry. I have been a leading REO agent for many, many years and that can not happen with out doing a LOT OF VERY HARD WORK. I want agents to be aware of the REO world and what it really is today.
I have many associates and peers Nationwide and they all have the same experiences with REOs as I do. Even here on this form there are thousands of responses, complaints and a sharing of stories supporting and mirroring my experiences in the REO world. Few REO agents here support your stories of experiences you so boldly tout as great, well paying, easy peasy effortless REO assignments.
We are all glad you live in Narnia where candy rainbows appear and chocolate rivers flow but please with your local REO experience in your own area in your own state.... do not discount the real world of REO s that most of us live in. True life Experiences we have in what appears to be EVERYWHERE else (other than your world) ...as proven many times right here on this site by many of us in the REO trenches today and for years.
Now stop being so negative and troll like and let's just share our true experiences on this forum without slamming people we do not even know. If you do not like what I share don't read it but don't say it isn't true... just scroll on by!!
Michael,
You may have a different program offered in your state but in mine there is absolutely a 750.00 max to the listing agent after the mandatory 150.00 is paid to EQ and 400.00 max to the buyer's agent. The auction company did none of the work until they were assigned the listing as an auction. Then all of the paper work was sent to me to prepare and check. The work and expenses were endless and the idea of open houses in these listings (2 were required at least over the course of the auction time was a waste very non productive.) On top of that when these properties don't bring what they want they start the auction all over again, forget the highest bidder rule that most auctions use.... not so here.
You have no knowledge of my work ethics , abilities or commitment to my work and or life so please do not act like a heavenly glow appears when you show up to discount my experiences. Remember different states, areas and even properties are not alike. There can be a wide variance. In fact the very person who started this subject conversation has experiences much like mine and many others here.
You go girl....you tell it like it is.....thanks
LOL thank you Steve, We al need a little truth now and then and sometimes it has to be delivered with out sugar and candy coatings. That's where I come in, Better tactless than fact less. :)
Stephan,
Make sure you read the LA well. NS pays the LA 1.75 minus 150.00 EQ platform fee with a max commission of 600.00. The selling agent gets a flat 450.00. The LA has all the responsibility of any REO listing with these. There are typically more BPOs required and there is many times open houses required. Some are occupied as well and are sold that way with the buyer being responsible for the eviction after closing. 99% of the time the assignment will be sent over as a normal REO listing with normal (low ) REO commissions. After 2 to 4 months of working all the tasks NS will change it to the auction listing and lower the LA commission to 700.00 minus the 150.00 fee . I was sent 9 listings in one day by NS and knew the drill and turned them all down, I respect myself too much to work far below minimum wage in Real Estate.
JUST SAY NO.
These are not just Home search auctions. Many other Companies are selling these for NS. The buyer can not purchase with out an agent on these. NS has to use and agent and the buyer either uses the LA or their own agent but the do have to use an agent.
I would love MLS and NAR to prohibit these listings but I am waiting and don't see it happening in the near future. Some one at NAR is sleeping when it comes to REOs, Banks, Short sales and these really terrible auction deals. Consumer agencies are not watching either.
On all NS properties I have worked on or even turned down, I was expected to know as much about them if not more than the typical REO. All of the deeds I dealt with were insured. About 25% were occupied when first offered for auction.
i have a few of these listed right now. I don't mind it at all. Auction company takes care of ALL the paperwork and most buyers are cash buyers. In fact, I just sold one to investor that will have me lisst it after its fixed up.
Look at it this way; about 50% of my sale are REO. Its a nice blend and these are relatively low maintenance.
In this business, you take what you can get!
Well, at least to some extent it is still a free country. Possibly not for long? We still can work with who we choose.
I do see Corporate sellers doing "stupid things" all the time, and sometimes I am even involved. But we all have to work within our own "business plan" and a small piece of the action can be better than none.
I mostly list REO and that often involves discounted commissions and extra work, but a seller that has sent me 3-8 listings a year for the last 5 years may be worth it. Some of the properties are not profitable and others are. I had a friend who used to say, "we loose money on every deal, but make it up in volume."
I have a couple of investors that "write me in" when they bid on one of those auction properties so If they win the bid I get paid for providing them with general ongoing services and support..
Just sold one, buyer agent made 2% with an incentive we had for that particular auction. Sign of the times and I see more of it coming.
This seems to be an emerging pattern with a few companies lately. To be honest, I don't mind working with a buyer on an auction property because they are insanely simple. Most buyers that would buy at auction are investors/contractors and I've had many that don't even care to see the inside of the house. They drive by and peek in windows and I run a valuation assuming the property is in typical beaten up foreclosure condition... and then we put our bid in.
In the end, I make 1% for doing a CMA and entering bid info from a computer. Is it ideal? Not really... but is it easy enough for the little work I do? Sure.
I'd go after these all day when the buyer doesn't need to be babysat.
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