Double Ending REO Sales in Milpitas CA
In many of my REO listings I am often approached by Buyers and asked if I would be willing to represent them in the sale of my REO listing. My answer to all of them is NO in Double Ending REO Sales in Milpitas CA. Here are the reasons why:
- Some buyers think they are doing the REO listing agent a favor income wise. They think that by double ending the REO sale the listing agent will double his/her income. Well that simply is not true (for the Banks and Asset Managers I represent anyway). If I double end my REO listing I will get a maximum 3% commission (which I get for listing the REO). The other 3% commission goes back to the Bank / Asset Management Company. So where is the incentive for me to double end an REO sale? In fact, when I recently asked a buyer what was in it for him if I were to represent him in the transaction, his response was, "so that I can get credit back from the bigger commission."
- There is just too much liability involved in double ending an REO. Should anything go wrong with the transaction, both Buyer and Seller can level charges at me. Double the risk but NOT double the reward. Besides, it is safer to be on the Seller side of REO sales simply because of the back up machinery these Banks and Asset Management Companies possess.
- It is NOT fair to the Buyer. In double ending property sales, an agent's feduciary responsibilities and loyalty should be equal to both Buyer and Seller. However, in the case of REO's, the Banks and Asset Management Companies are the ones who give an agent continuous listing assignments - as little as one (1) a month. The Buyer is a one hit wonder (if you are a good marketeer you can probable squeeze in a second sale after 7 years when they either move up or move down). So where would the REO listing agent's feduciary responsibilites and loyalty be under pressure? Of course with the Banks and Asset Management Companies.
- Let's give the Selling Agent a chance to earn his daily bread as well. Today's real estate market have driven out many real estate agents from practicing. Those who remain are the hardier ones with more experience and grit. They deserve to earn from REO sales. However, they also need to know and understand how to bring REO Sales to the closing table.
- My experience from double ending Regular Sales in the early 2000's has left me with a bad taste in my mouth. After I had agreed to double end one of my listings, the Buyer demanded that 1) I don't submit any other offer but his to the Seller 2) Keep the sales price at his offer price (which was $10,000.00 less than the list price) and 3) Credit Back to him 1% of my commission. Well that was the first and last time I ever tried to double end a sale.
The moral of the story. NO to Double Ending REO Sales in Milpitas CA. Buyers, sign up with a reputable and experienced agent when Buying REO's. One who can show you a record of actual REO sales and closings.
Let us know if we could assist you in purchasing an REO (bank owned property). We are experienced REO and Short Sale Listing Agents who have successfully managed countless REO Sales to the closing table. We are well versed in the criteria and analysis needed in valuation of REO's for accurate Broker Price Opinions (BPO). We have thorough knowledge and experience of the REO process, We know the timeliness of tasks and deadlines needed in REO transactions. We keep constant contact with all stakeholders in the sale and give "wow' customer service.
Call (408) 316-0793 or email (rpablaza@comcast.net). Let us help you manage your REO to the closing table.
For more information about Home Buying, check out my other blogs:
HOMEBUYERS - Take These Steps Before Making An Offer in Milpitas CA
The First Step To Buying A Home in Milpitas CA
You Secret Weapon in Milpitas CA
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