I've got an idea today that I'm sure is going to be controversial. The Realtor Code of Ethics states that: "Realtors, in attempting to secure a listing, shall not deliberately mislead the owner as to market value. This is under Standard of Practice 1-3. We are all having a problem with high BPOs. In fact, I met one agent who told me she tries to turn in high BPOs. This is what her real estate trainer recommended. Kind of interesting that a trainer would recommend agents break the code of ethics.
What is your opinion on this? Do you think we should start to file ethics complaints if a BPO agent turns in a unrealistic, high value? Or, what about the bank's position, if the house is foreclosed upon and the bank loses more money as a result? What if these banks start taking legal action against the BPO agents?
I have a listing that a BPO agent turned in a 340k value on. I got a BPO from another REO agent and she said the house was worth 280k. Should I file a complaint against that guy? Or, what about the asset manager at a bank.
They get a BPO and turn down a short sale as a result. The short sale offer was 160k. The house sells for 145k as an REO. Do you think that asset manager should go after the agent's broker? Remember, brokers have E & O insurance. Kind of interesting to think about, isn't it? What about the former home owner? Didn't they suffer emotionally? What if they owe the bank more money as a result of the foreclosure?
In my opinion, standard of Practice 1-3 was written for a reason. However, short sale agents are afraid to use it. Why is that?
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Ben Curry The Short Sale Agent's Advocate
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