Something I'm noticing in agent-only remarks on bank owned properties:
"No commission if Buyer is a real estate agent."
"No commission if real estate agent is related to Buyer."
And my favorite, "No offers considered if Buyer is the real estate agent or related to agent."
Some REO companies have a cover sheet with the question, "Are you an investor?"
I appreciate these disclosures. Knowing it ahead of time is more appreciated, since from first-hand experience - this information is often disclosed after the fact.
Discussing this with an REO agent/friend, he told me that certain banks decided to develop this "rule" or policy because of a variety of reasons. Banks he has worked with often do not want investors to buy the properties; don't want real estate professionals to buy because of the high likelihood the intent is to "fix and flip"; others simply don't want to pay the commission because they feel the agent or their relatives are already getting enough, i.e., the property.
It is what it is. But is it OK? And ... what to do - what to do ...!
Do you NOT show your Buyer properties because you won't get a penny for your effort? Or do you go ahead and work the transaction with no commission because it's a great property for your Buyer? Or, do you refer your clients to someone else and possibly lose future business from that client down the road?
Realtors® and their relatives are not a protected class under the Fair Housing Act. By definition, banks then can do this and it is not discrimination.
So what is it?
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