My fellow agents, Time has come for us to recognize the battle that has been waged on us. Battle, we didn’t ask for, Battle, we did nothing to deserve, yet it is here and the battle we must fight not only for us and our future but also for our clients.REOPROs that have been around for a while know what I speak of. A Few months ago, I started to see some articles from auctioneers in reo magazines (DSNEWS), active advertisements by more and more companies, blog posts, and active memberships on most platforms used by lenders to hire agents to sell assets. Today, I hear from my AM friend with major bank, telling me that direct approach like never before to the entire REO division of most major banks is under way. You wouldn't believe how many companies are jumping on this bandwagon. This ghost has come out of its dark corners and if we don’t prepare ourselves for it. I dare not say the words what I fear.In my experience and with some feed back from some AMs, auctions have very little effect. If these companies advertise thousands of listings they only sell hundreds that day and many are at the fire sale prices. At that time the bank gives in and accepts a price that was well below the reserve price. What’s' worse is that this listing was with an agent before. It was cancelled only 30 days after it was listed. Oh by the way, the agent in this case got this listing after nasty eviction, got the property in marketable condition with shelling out his own money, waiting to be reimbursed. This type of process hurts.I am deeply troubled to hear these auction companies bash brokers and say auctions are the way of the future. I am confident after what they charge (10%), and prices they sell asset for, they even come close to what we can get for the asset if proper marketing time would be given. I am anxious to hear from everybody reading this blog if auctioneers net more than we do. If we do then why more and more listings are being taken away from agents and some sold at the auctions at the fire sale prices. This is crazy.We the Professional REO Agents do more each and everyday from occupancy check to evictions to weekly reports to maintenance to negotiate sale for less than any entity on this earth. We protect that asset as it was ours. I now make a point to tell this to all my AM contacts. I believe it’s in their interest to know that we do more for less and get them the best deal possible.
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