I would like to know one asset manager who would continue to do business with a person who never thanked them for their business.
The story in my area and I have experienced it is we don't even get a thank you. I have had buyers tell me that Realtors won't show REO's in our area because of how their treated. I'm about to follow suit.
Last REO I closed I did all the work. Let them know who the utility companies were. Had to run out to house the 3 times to make sure the water was on and confirm the electric was on. Where was the REO staff? Isn't it their job to make sure the home has the utilities on and that it's safe to turn on the utilities?
After they receive the contract they don't know you anymore. Buyer's agents manage everything with the title company or should I say the real important part so the file gets closed. How do they keep the asset manager informed when they don't even know what's going on. I guess they just hope it closes and not even a thank you.
I put a contract in on an REO, cash offer, over the price on the MLS and my offer was not accepted. The listing closed and the buyer asked why did the property sell for less than I offered. I know the listing agent got my contract and was submitting offers.
I have an offer in now on an REO and the agent won't submit the offer because he wants the local bank to tell him that USDA funds are still available. I told him that the bank assured me they can apply for the funds. He has to have a separate letter from the bank stating that the bank can still apply for USDA funds. Will I show this REO Teams properties again? No way.
I think asset managers should start sending out surveys to the buyer's agents after these properties close. Price isn't the only thing that sells a home or keeps business coming back.
Comments
1. If a listing agent submits an offer to the Asset Manager for negotiation that does not meet the requirements set forth in the listing agreement, it will affect the listing agent's score with the company and ability to procure future business. Submitting an offer with a USDA loan without a letter confirming that there are funds to close the loan is the same as submitting a cash offer without proof of funds--just bad business and against the listing agreement.
2. The listing agent works for the bank--not your buyer, not the contract, not the public in general. Yes, they should do their best to keep market values strong by pricing well. The truth is, however, unless you specifically request in your contract that the property have power, gas and water on and that the home be de-winterized prior to your inspections or appraisal, the buyer is simply not entitled to it. If you know that your buyer needs these things and the seller has signed a contract promising them then, yes, it is the listing agent's responsibility. If you did not write them in the contract, no, it is not the seller's problem that you need power to close your buyer's loan or complete their inspections. Frequently, the bank will not reimburse an agent for any costs incurred that are not written into the contract. Some banks choose to not pay for utilities.
3. In most cases, the listing agent is getting paid significantly less than you. If it doesn't show on the commission instructions, you are probably not seeing the referral agreement that will happen after the fact. That is not your problem, I understand, but for point of view reference. . . for LESS money than you, the listing agent has:
a. Negotiated the occupancy of the property--frequently conducting tireless eviction efforts that continue up to 160+ days, conducted weekly property checks, worked with local law enforcement to evict squatters, previous tenants and occupants, hired moving companies and paid to have personal property moved and stored while constantly being at both the bank's and the occupant's beck and call to make the property vacant.
b. Paid out of pocket for a trash out and submitted for expenses to be reimbursed - a process that can take up to 120 days. Paid out of pocket for any repairs or sales clean that the bank has requested as part of the listing agreement.
c. Conducted several market analysis on the property and submitted them through a portal system
d. Rekeyed the property out of pocket, conducted weekly inspections to insure the safety of the property and paid contractors to make the property marketable while waiting for expense reimbursement.
e. Worked with seller to clear sewer liens, HOA liens and foreclosures, title clouds and dealt with less than happy neighbors during the process.
f. The listing agent still must manage the same escrow process as you but for their seller--not your buyer. They must forward contractual documents, procure signatures on escrow documents and manage a closing with a corporation of representatives instead of the real deal.
While it is a lot of work, we love what we do and would not trade it for the world. That is why we let you do your job and take care of our own. The truth is that you are the exception to the rule. Frequently, buyers' agents believe that their job ends the day they write a contract. In order to make the same income as a traditional agent, an REO agent must close twice the homes. With the volume that the nature of our job requires, we do tend to be a little busy to sweat the small stuff--usually a much deserved compliment for an agent who has gone above and beyond but TRUST ME, we know which agents close on time without calling all day and night. We know when you have performed a miracle. At the end of the day, we would feel no more compelled to thank you for doing your job than you have felt to call or email us and thank us for doing ours. Your paycheck should be thanks enough, but deep down inside, please know that next time you email in an offer, we will use the 50 character "notes" box in the bottom of the offer submission page to let the A.M. know that you rock our world and that you are a proven closer. It is not a card, but it IS a genuine thank you.
Yes, it is overwhelming to be an REO agent at times but a "gift" too! Steve's blog is so true regarding the phone calls & not enough hours. It is important as an REO agent to build a team to handle the utilities, billing, property checks, etc. I know when I have been overwhelmed with the calls, I have put a very detailed message on my phone to hopefully answer the questions and then say if your question was not answered please leave a message....it cuts down on many of the messages and allows me time to return the calls.
I think a survey would be a very good idea as well.....there are many REO agents out there who are doing a bad job and making the rest of us REO agents look bad:( Accountability is key.
Too bad that some agents get 100s of listings while others get nothing, there is no even distribution. I am just saying that the whole system is not designed for such a huge influx of REOs and nobody seems to care.
And if the agent is working directly with a major lender, they may be getting their listings in batches of 30/40/50+ at a time. My last batch from BOA was 37 at one time. The next one coming is over 90. I either take them all when the bank is ready or I don't get any......ever again. It can make for some long days, but I would rather get the listings like that then not get any at all as I do not know when the next batch is coming.
Steve, so why do they take on 100s of listings if they cannot serve them properly? Wouldn't 20, 30 or 50 at a time be enough? After all, by taking on more then they are able to handle they do disservice to everybody: lenders, asset managers, buyer agents, buyers and finally themselves
Most of these requirements to submit an offer were created because either the lender/owner requires them as part of the offer package or because of a deal gone bad in the past. Most of the REO listing agents are working on volume and not margins per sale, many handling 100's of listings. Not taking up for them, but it can be overwhelming at times. Please read my blog here at: http://reopro.ning.com/profiles/blogs/i-finally-understand. Sometimes there are just not enough hours in the day to get the job done like you want.
I use to think exactly like you until last year when the situation in that blog happened. Now I feel sorry for many of the REO listing agents. It is something that's really hard to understand until you are in the middle of it. Also keep in mind that the listing agents are working to protect their clients also and to try and reduce their losses the best they can.
But the real problem is often not the agent but the owner/lender of the property. They are almost always on a salary, not commissions, work 9 to 5 and don't get over-time pay. Few have had real experience with real estate and they are always in a different state then the property. Your time-lines will never matter to them, nor your priorities to the transaction. And few actually understand contracts, especially from all the different states they do business in. Add in all the federal programs that keep changing the whole procedure sometimes, only to be scraped in about 6 months for a new “better” program.
These are tough times for all parties, things change almost daily and I don't expect it to get any easier for sometime. Hang in there, keep working it and look after your client's best interests...even if it means you have to do someone else job sometimes. And trust me, I've got an extensive blog's worth of stuff about buyer's agents. One I'm in the middle of now that will probably result in additional requirements to submit offers.
First off, I love the survey idea.....love it! In fact, I am going to go ahead and start doing that for my own local business so I can get a procedure and process down so we can begin doing that with REOProNetwork.net.
You are right, too many listing agents out there just aren't doing the job they signed up for however, it Realtors like yourself who do everything for them that keep them in business.
My point, you are part of the problem. If you would step back, take care of your side of the transaction and only your side, then these bad Agents would have no choice but to do their job.
Now, I say all that but, I also know that it is almost impossible to do what I am recommending. I understand that you want the transaction to go through, in some cases, more so than the listing agent however, I don't really see any other answer or, for that matter, an easier answer to the situation.
I challenge you, instead of not selling this particular agents home, in your next transaction with this agent, just do your part or even better yet, if this agent is neglectful in their duties, let someone know.