On The REO Offer, I Told The Bank They Must Pay My Business Costs

On The REO Offer, I Told The Bank They Must Pay My Business Costs

To be in the real estate business, such that I can work as an agent for my clients, I must pay for numerous items.

These items include:

• Fees for my real estate license,
• Dues for the multiple list service,
• Cost to belong to a real estate association,
• Cost for errors and omissions insurance,
• Cost for a program with contract forms,
• and so on and so on.

To recover these costs, I make sure that the Seller on REO properties understands that they need to pay these fees.

Okay, I am full of it.  I do not ask for these costs of mine to be paid by the bank, notwithstanding the expectation of a commission on contracts that go through closing.

However, this is exactly what some banks do.

A typical phrase that I will frequently see on bank owned properties is as follows:

"Buyers Agent is to pay a $150.00 offer management fee at closing of any accepted offer."

There is a cost to do business and this cost is yours, not mine.

Of course, you can still recoup this cost, but you do it by incorporating it into the price of the property.

Or, if you are a better bank, then you avoid this cost by doing a better job upfront when you decide to give a loan to someone so that it is less likely to go to foreclosure.