Special offer

What are we becoming?

By
Real Estate Agent with Transaction Realty 500 Reno, Nv.

Short sales are interesting.  Because the seller cannot collect any money, they are listing houses at ridiculous prices in order to get action.  So we have phony listings.

I recently did an interior bpo.  The agent met me at the property and handed me a copy of the offer.  She told me it was a low offer but it was good for her because it made the bank start the process and she would get an idea of what price the bank would accept.   The property was listed at $220,000.  The offer was $140,000.  The buyer was putting $100 down.  The bank was to pay all expenses.  So we have phony offers.     

Phony listings, phony offers, what's next?  What are we becoming?

Comments (14)

Chip Jefferson
Gibbs Realty and Auction Company - Columbia, SC

My market doesn't really have that much of this. Some but not much. This seems to be a problem in alot of the harder hit areas.

May 26, 2008 03:03 AM
Michael Shankman
Award Realty - Las Vegas, NV
Selling Las Vegas 702-498-3383

good post..the bank will probably counter the low offer plus these sales can take 3-5 months,,,just sell the bank repos..much easier..

May 26, 2008 03:05 AM
Chuck Carstensen
RE/MAX Results - Elk River, MN
Minnesota/Wisconsin Real Estate Expert

Wow, that one is phoney and probablya waste of time.

May 26, 2008 03:07 AM
Shaun Wren
AGENTFORLIFE - Lakeland, FL

You may be surprised. Some people do get these deals.

May 26, 2008 03:17 AM
Lisa Friedman
Alliance Realtors - Bedminster, NJ
Central New Jersey Real Estate

I love this business, however things like this take all the fun out of it.

May 26, 2008 03:21 AM
Vickie Nagy
Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen

That stinks! It seems like collusion for the agent to meet you at the property with a low offer when you are doing a BPO. It sounds like trying to sway the appraiser (illegal).

May 26, 2008 03:40 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Matt:  Sadly, that listing agent could have countered the offer and didn't.  Short sale listing agents drive me nuts.  They forget one of the fundamentals of why they were hired.  To negotiate on their clients behalf, in this case the sellers.  Why not counter a low ball offer?  Makes more sense than throwing a super low ball offer at the bank that is going to tie up the negotiators and increase response time....which we in turn, complain about here on Active Rain.  We need to get a grip and see how WE, as Realtors, can help alleviate this problem.  Counter offering BEFORE submitting to the bank is a phenomenal first step.

May 26, 2008 04:00 AM
Michael S. Mackey
CENTURY 21 All Islands - Mililani, HI
REALTOR ABR, CRS, GRI, RSPS

What a waste of everyones time. Countering the offer would be my second choice. My first choice would be to advise the seller to reject such an unrealistic offer, and ask that if the buyers are serious to present an offer that the bank would be willing to work with.

May 26, 2008 04:23 AM
Matt Kofsky
Transaction Realty 500 Reno, Nv. - Reno, NV

Does anyone think that the real estate agent had a friend write the offer so that the short sale company would start the process?

May 26, 2008 04:27 AM
Mary Strang
Viroqua, WI

What we have is a season with low numbers of home sales. I think it is a good time to take it easy, cut back on expenses and wait it out a little. I am playing more golf lately :)

May 26, 2008 04:45 AM
Aida Pinto
Independent Real Estate Broker - Los Angeles, CA
Real Estate Broker (562) 884-6196

Matt:  You might be right!  But I've heard that family member are doing that!

Mary:  good for you--that's what I'm doing--my choice is Tennis!

Reading this post and comments reaffirms my decision to refuse short-sale listings!  I'd rather be playing tennis than listing homes that might never sell!

May 26, 2008 09:27 AM
Karen Hurst
RICOASTALLIVING.COM - Warwick, RI
Rhode Island Waterfront!

Yeah Mary!!! I am boating (or should I say, sitting at the dock on my boat:) until gas prices drop.

Unfortunately, Matt, this scenario does not sound too off base from what I have seen around here. And that $140 is not that far off!! Of course, RI market is one of the top 8 hardest hit and the backlash is pretty hard to miss.

May 28, 2008 01:40 AM
Dawn Maloney
RE/MAX Trinity Northeast Ohio Real Estate Specialist - Hudson, OH
330-990-4236 Hudson & Northeastern Ohio

I didn't know listing agents could counter the short-sale offer, and I have listed short-sale properties! I have never heard of a phony offer on a property (in this context) - although I have seen a lot of idiotic offers - usually people here will really perform if the bank would say yes!!

May 28, 2008 01:44 AM
Sandra Carlisle (Ayers)
Berkshire Hathaway California Properties - Newport Beach, CA
Real Estate Marketing & Sales

Backwards.  We are running in reverse.  The whole process would move faster if the banks would order a BPO the moment the sellers mention selling when they owe more than the property is worth.  (If the seller catches up with payments and no longer sells they can reimburse the bank for the cost of the BPO as part of curing the default.)  Unfortunately, we have to wait, usually many months for anything to get going here in SoCal. 

The process goes nowhere until that first offer is submitted.   Phony or not, it gets the ball rolling. 

Greater pain, but greater gain for the buyer. 

May 29, 2008 02:23 PM