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REO etiquette. There WILL be a test!

I am furious! I just came from my weekly inspection of my local REO listings, and found one unsecured. I mean the lock-box was left on the code, and none of the doors were locked. There have been several other agents showing that property this week, so I will probably never be able to figure out who did it, but here are a few thoughts on how to show another agent's listing, especially if it's REO.

First, even if the MLS says show anytime, no appointment needed, whatever, it's always a good idea to call and let the agent know when you will be there. If nothing else, they should tell you if it is still available or if someone else is showing it so times can be rearranged a bit to avoid the awkwardness of being there when other agents and buyers are there.

Second, if there is a lock-box in place, get the code. Do NOT give the code out to buyers or anyone else. When you open the lock-box, if there is no key, call the listing agent right away and let them know. If there is a key, open the door and then put the key back inside the lock-box, make sure itis closed, and turn the dials or push the reset button, then check and make sure it is not going to pop open.

Third, if there is a sign-in sheet, sign in. That isn't so difficult. If there's not, leave your card on the kitchen counter or some other obvious place. I always write the date and time I was there on the back. If there is some other custom in your area, please follow it.

Fourth, and believe it or not, this happens; do NOT remove anything from the property. I have had stoves, light fixtures, towel racks, etc removed from my foreclosure listings. This is theft and most banks will prosecute. Also, if there are signs saying the property is winterized, don't turn on breakers, close taps, etc. These things are done to protect the property and you can be held liable for damage caused by not following directions.

Fifth, when leaving the property, make sure you turn off any lights or appliances that you turned on. Make sure all doors are locked and garage/outbuilding doors are closed. It takes a few seconds to double-check everything, and if it were your listing, you would want that done.

Last, but not least, if there are any problems noticed- water in basement, door pried open, door unlocked when you got there, vandalism, etc, PLEASE call the listing agent and let them know about it. It is also good to give them some feedback from the buyers. That helps the banks know when to reduce prices, etc.

Folks, it's really a pretty simple thing: imagine this is YOUR listing and that you are responsible for it, then treat it the way you hope other agents would treat your listings. A little common-sense and respect go a long way, especially in an industry where there is so much liability.

Posted by Amber Bourland on 11/02/2007 04:06 PM

Comments (23)

reo, foreclosure, lockbox, sceure

Post is included in group: Christianity and Real Estate

23 Comments on REO etiquette. There WILL be a test!

NOV

2007

Hi Amber sorry to hear this happened to you. Here in central florida we are not allowed to combo boxes but with the glut of listings here I am finding them more and more. However my question is the few dollars you save not buying an electronic lockbox really worth it. Plus even if the agent doesnt bother to call which I know I have done from time to time everythign is recorded and all I do is log in and see who showed my property and what time.

Amber - Wow, I'm glad that nothing was stolen! Every now and then we come across someone irresponsible and the cost could end up in someone else's hands. Thanks for the informative post, and best of luck to you in your sale!

Dan

Here, nobody uses electronic boxes. I have had the lock-boxes themselves stolen from my listings, and I guess that is pretty common for this area. I do NOT use the MLS combination for those reasons, and always put on the MLS to "call for code before showing." I periodically change the boxes from one house to another, too. I have gone to show other agents REO listings to find buyers there, without an agent, because the listing agent gave them the code to let themselves in.

Heather, you may be seeing more combo boxes that are being placed by the Property Preservation contractors. Some are required to place boxes with a specific code for the banks, and if they aren't left there, the agent gets reprimanded...

When in doubt use a supra lock box... yes they do cost just over $100.00 but atleast you have definate tracking ability of exactly who is in your listings and when... combo locks just don't provide enough security...

As far as agents taking things out of REO properties or giving codes to customers... that's simply insane...

Scott- I cannot be sure that agents were the ones who took the stuff. As I said, I know of at least one agent who has given codes out to buyers. BUT, if I give someone access to a property and THEY steal, isn't part of the responsibility mine?

How do those Supra boxes work? Are they the kind some MLS use where every agent has to have a card to swipe? If so, that won't work for me because nobody else would have the cards. If you are speaking of another kind, please let me know where to find them!

Amber, great post, info that needs to be shared from time to time. Supra boxes use a keypad that each agent has and then you can check online to see which agent has opened the properties supra box. www.supraekey.com click on brochures and images on the right side it will show you the different types.

Amber, that is hard to believe..giving codes to buyers.

Our MLS is on Supra. Everyone is logged in to a computer every time they enter a house. No one can access a box without the key. We pay a monthly fee for them.

Ginger

It is important that Real Estate professionals really think about being good to each other and to clients. This means taking care of each piece of property as if it were your own listing or home. I am constantly mortified when I hear of things like this or see them.

NOV

2007

I understand what you're saying, we have similar problems. The suggestion to just put a Supra lock on all of them does make the most sense.

Unfortunately it sounds like you are in an almost no-win situation. Using the combo boxes means that you don't have any way of tracking who comes and goes. Using Supra key combo boxes limits the access to just those who have Supra keys -- anyone else needing to get in (appraisers, inspectors, etc.) would need to be met at the property to let them in.

One possible solution -- have a Supra key on the front door where it is really obvious for anyone coming to see the property. Also install a combo box somewhere else 'hidden' on the property. Anyone in the real estate field would use their Supra key and anyone else needing to access the property could be specifically told where the combo box was hidden and what the combo was.

It would require 2 boxes on site but it may be worth it in 'hassle' reduction.

Amber,

I once had a large estate home on 90 acres where an agent left a patio door open. Cows got into the home. Luckily the damage was confined tyo an atrium area. These new lockboxes are great history tools.

Great post, Amber.....

treat others the way You would want to be treated...the Golden Rule.....

Such a great way to do business!!

=-)

You really need a supra lockbox which shows everyone who has entered the property. The combo lockboxes are bad! I think lots of agents use combos because if the property is 50 miles away, they can give the combo to a potential buyer and not have to drive there to show. In my opinion, if the house is too far away to show easily, it should be declined as a listing.

We typically use the supra boxes, but some of the REOs require specific monitoring so they use lockboxes. I do use lockboxes when the house may be a little further out of town and shown by agents who are not members of our MLS.

But to give a code to a buyer directly, that is insane!

NOV

2007

I've had the same problem recently, even though I had my own electronic lockbox installed! The other agent had enabled a series of inspectors access, which resulted in multiple times the doors were left open, and the lockbox without the key put back!! It's SO frustrating, and irresponsible!

Always put a MLS lockbox on the door. Make a key and put that key in your lockbox.

Put the Field Service Lockbox on a side or backdoor and require the agents to log in or call in for appointments. Even on a vacant property it shows that you are watching the house and know who was there and when.

Amber, what seems like good sense and common courtesy to most will get lost in others attitudes who simply do not care and unfortunately they're out there amongst us.

NOV

2007

Amber - I agree wholeheartedly but I do have a question. Why is it that so many REO listings are on a combination lockbox? I would think an ekey would be much more efficient and you would be able to keep track of who entered the property and when.

In my case, I've shown REO properties with garbage left in the home, water in the property, "critters" living inside, and the worst, someone who had used the property and left a little "present" in the powder room when the home had been winterized!! That was disgusting and after calling the agent (I had previewed it to show potential clients and was planning to take them back out the next day), she said, "Oops, my bad." When I took then out the next day, it was STILL THERE - stench and all!!!

So while I'm sure you're doing your job and being respectful of your colleagues on the other side of the transaction, it's not always the case of the listing agent in these cases. Especially in my area - they appear to be in over their heads.

Irene,

Part of the reason so many REOproperties are on combinaion lockboxes is because the banks use specific contractors to perform all services, and they, obviously, would not be able to use a Board's electronic boxes. Most banks who do this have their own codes and that is part of our listing agreement, that we will keep the bank's box on the door at all times.

I COULD get a second box, but again, our MLSs do not use the electronic boxes, so nobody would have the card or key- whatever, to access it. As to some REO agents being in over their heads, I totally agree! Too many agents jump into this niche because the rising foreclosure rates, but they are not informed of all the requirements, or really don't care to follow the bank's rules. Hence buyers being given the codes, things being stolen, damage being done. I have had 2 REO listings reassigned from the same agent where they had never even had the trash removed or the yards mowed in months, yet when I submitted photos to show this, the bank said she had billed out for reimbursements for those jobs. What is REALLY bad, is they still send her listings!

Paul, I have put sign-in sheets in my listings, had notes in the MLS that agents MUST sign in, yet there will be 20 cards on the counter and 1 agent signed in. It doesn't work around here. One bank requires I have no trespassing signs that state "unauthorized entry will be prosecuted as trespassing." I guess I need to have an agent prosecuted before they all take notice... Yeah, I can see how they would cooperate then!

Amber - thanks for the clarification. Never having listed an REO or short sale, I wasn't sure what the reasoning was. Not having anyone use an electronic lockbox is also foreign to me. That's why AR is so great. It helps us all see things from all other agents' perspectives as it reflects their markets.

I recently went to an REO where the listing agent had both a combo and an electronic lockbox. I accessed the electronic lockbox to find the code taped inside. It seemed brilliant to me but now I understand why the combo lockbox was required. I didn't realize the bank demanded it.

NOV

2007

Amber - You said that your MLS DOSEN'T use Supra boxes??!

That's a surprise- I would never, for any reason, use a code box.

Does your MLS plan on supporting the Supra boxes in the near future??

Marc- As far as I know, there is no plan to move to the Supra boxes on either of our Boards. In this area, there isn't a huge number of foreclosures or agents who use lockboxes, so it would probably not be cost effective for every agent to have to pay a fee for the key when odds are, they won't need them much.

I do try to shuffle the boxes around some, to force agents to call me. that way I can make a note of who called for the code and when, and hopefully narrow down when there are any problems. I received a complaint from one board about not using the board's standard code. When I explained to the secretary how buyers have been given the codes and can access any property with board boxes on them, and I feel that would be violating my contract, she said make sure I always note to call before showing, and she would relay the reason to the complainant.Shortly thereafter, the board changed the code and sent out notices about not giving them out, etc. I don't know if it really worked, but I don't take that chance!

I have actually found a lockbox at a yard sale that was on the house when the people bought it. they changed all the knobs/locks, so they had this thing they couldn't open and sold it to me for $1. they said "good luck trying to break the code," so I punched in the first major bank's code i thought of, and that was it! Got me a cheap box and thoroughly enjoyed the shock on their faces! of course, the point to that is that, once an agent deals with a few codes, they can probably open most lockboxes.

MAR

Sad that it has to be explained, right!?

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