I always wonder how I became lucky enough to get that first REO property over 10 years ago. Definitely a different market than what we have right now.
Now I watch agents send out stacks of resumes, do BPOs for less than $45 and they are getting the business. Sometimes I question whether or not the banks, asset managers and investors realize exactly what they've gotten?
I tend to think not, particularly when I have a new REO agent in my office stated the following: "I don't spend a lot of time on those BPOs, I just pull up comps in the neighborhood and use the 3 lowest recent sales -- I don't want to do the banks any favors." All I could do was look the agent in the face and say "Wow." All the while reminding myself about the code of ethics and how I would want to be treated if I were that agents client. Although our clients are large financial institutions that may not have a face, they deserve fair treatment, and not the "just give 'em the three lowest comps -- don't wanna do 'em any favors" treatment. I thought to myself, I've been in some of those lowest comps in the neighborhood you used for that last BPO, no wonder the last REO listing you had in my neighborhood was listed so low and an offer came in within hours of placing it in the MLS and guess who sold it too.
This upsets me not only as an agent, but as a customer of these financial institutions and a tax payer that has contributed, and will continue to contribute to the bailouts.
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I feel the lenders have no respect for the experience we've earned. Its not that I'm better than the next guy who just received a listing I did the bpo for.... but when I started, he wasnt even licensed.
There were very few realtors working as "foreclosure" specialists. In my neck of the world... we all started as INVESTORS-selling hud and working for the local banks. We knew each other... we bought from each other and ran into each other in the hud homes...... (we worked in areas that I would keep a fresh bottle of mace in my pocket for...)
In order to keep my clients happy, I had to fax out "foreclosure list"s every week I had to know the cost of the repairs for the house(s) I decided to push. . This is how our area trained its reo realtors. 12-15 yrs ago. It was a dirty job and still is sometimes.
The lenders don't care... they hire whoever will pay and knows the "lingo" therefore, they get crappy work and don't know it. I know who's who in my market. I respect them, they are still big players in this..... but they deserve it. The other 80% are as a result of the lenders not really understanding what we do, they are NOT realtors, they use lawyers to set up protocols, not realtors.They dont ask our opinion at all.........so,
I now do shortsales, "normal" realestate sales (lol) and reo work. Diversity in my clientele has kept me afloat!!........... whew... my soapbox is about to break--- ouch.......lolol
I agree that in this market code of ethics and standards of practice are out the window!! It's all about luck and who do you know that counts..but isn't that how it is in most businesses. There are alot of good REO agents out there but the bulk of them are a joke!! I feel if the banks really had time to police some of these rogue REO agents they probably wouldn't be giving them there business.
It's wrong when I have one of my buyers call the REO listing agent to check availability and there told that if they go with me (the listing agent) they will get your offer accepted. BIG TIME CODE OF ETHICS VIOLATION. But for now we have to just deal with them until this market changes. My advice is go out and knock on the doors of the homeowners, that are in default, and get them to short sale before they go REO. Short Sales are the next REO market.
Good Luck...and peace out.
Scott Gold