Home > Blogs > Ken Montville > The MD Suburbs of DC

REO Listing Agents...Let me in!!

By Ken Montville

Real Estate Agent with RE/MAX United Real Estate

December 06, 2008 02:12 PM

No, I don't want to take your business. I don't want to horn in on your REO relationship with "the bank". I just want to get into the house you're trying to sell on behalf of "the bank".

I don't like the short sale/foreclosure niche, even though it's a huge niche. I prefer to deal with Sellers who have equity and don't need "third party approval" either from the buyer's side or the seller's side. However, if I have a client who doesn't mind the foreclosure that needs lots of work in exchange for a decent neighborhood and good price, I would willingly work to make it happen for them.

Today, I tried to show a "bank owned" property with a combination lock on the front door. The showing service had the combo so I thought I was good. No such luck. The combo didn't work and I didn't have a computer "randomizer" to give me every possible combination of four digits in order to try to get in.

I called the Listing Agent -- voice mail. Not only that, voice mail that says they're only open M-F, 9-5. How cushy is that??? I called the receptionist for this particular agent's RE/MAX office. The woman tried to help but couldn't. She gave me the number of another "team member" who called me back long after I left the property with the buyer's (highly motivated and financially qualified) in tow.

I understand that REO listing agents have gazillions of listings and don't want to mess around with agents calling all the time. Hey, that's fine with me! I don't want to call you either. I'll download your addenda and disclosures from your website and fax you. if I never speak to you or see your face, I'm OK with that!

Just let me into the freakin' house!

Re-Blog

Comments(20)

Comment

Show All Comments

Sort:

geri wehry

RE/MAX Select R.E. - Covington, WA

your agent for life

Yep, gotta love banked owned stuff. My husband I made an offer on a bank owned house. They were asking @237,000 less 3% in closing costs which was a net to them of @230,000. We did not take the help of closing costs since we are paying cash and they are minimal, but the bank countered back at $234,000. I called the agent to see if it was a typo - since they essentially raised the price. He said to me, "what was the list price". Ummm, it's YOUR listing! Then I said it referenced two addendums in their counter offer and we only got one. What is the other one. He said, "I don't know I sent you everything I have." I said can you find out for me and he said not really - I just put your offer in the computer and give you what comes back to me. Just counter the counter and put a note in there that you didn't get everything. Hmm.... we walked away - not like there aren't others to chose from. I have done some bank owned deals that the agents have been great - but it is sure not always the case. Glad to know it is not just me! Have a great day! ....geri

Dec 06, 2008 03:10 PM

Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

Doesn't it just make you want to scream??

As I've said many times, "Banks do not know how to sell real estate."

Dec 06, 2008 09:33 PM

Ken Montville

RE/MAX United Real Estate - College Park, MD

The MD Suburbs of DC

Geri...and Lenn -- a big reason I try my darndest to stay away from the short sale and REO niche is exactly because of all the hassle. I believe there are, in fact, many "plain vanilla" sales to be had out there. Banks sure don't know how to sell real estate (an to think they wanted to own the real estate industry. Ha!) and what's worse is that the REO agents seem more concerned about cultivating the relationship with "the bank" to get the gazillion listingd rather than service the listings properly.

Dec 06, 2008 11:11 PM

Robin Rogers

Robin Rogers, Silverbridge Realty, San Antonio, Texas - San Antonio, TX

CRS, TRC, MRP - Real Estate Investment Adviser

Dealing with banks, and their listing agents, is the least fun thing about selling real estate. (Second-worst are relocation companies.) My legs get tired from jumping through hoops, my eyes get tired from reading through reams of addenda, and my fingers get tired from dialing phone numbers over and over trying to get an answer.

Cheers,

Robin

Dec 07, 2008 02:28 AM

Ken Montville

RE/MAX United Real Estate - College Park, MD

The MD Suburbs of DC

Robin -- Amen is all I can say to that. You would think that Listing Agents would be willing to make it a little easier to crank through their portfolio of REO properties but I guess they really don't care. It's just a numbers game to them.

Dec 07, 2008 02:32 AM

Alan Gross

PrimeLending, A PlainsCapital Company, Equal Housing Lender - Bethesda, MD

Loan Consultant

I was surprised to read all the problems you are having with REO's and the listing agents. Unless things have changed, no one gets paid until things are completed at the settlement table. Maybe to many listing agents (like sellers) got spoiled by the easy times and haven't adjusted to the new reality of the market. We are in a ""SERVICE" industry.

Hey Ken - "9 to 5" would be nice. I guess they don't realize their potential clients work "9 to 5" and shop for real estate when their off work.

Dec 07, 2008 03:11 AM

Ken Montville

RE/MAX United Real Estate - College Park, MD

The MD Suburbs of DC

Alan - Yeah, it amazed me that absolutely no one was available. I've always heard that REO listing agents only work the same hours their banker clients work. Since the properties are vacant and they've been winterized it's time to sit back and relax until an offer comes in. But no one will write an offer on a house they can't see on the inside. Especially anything "bank owned".

Dec 07, 2008 03:51 AM

Rich Mielke

REMAX Results, Frederick MD - Frederick, MD

REALTOR, Frederick Maryland Real Estate

I almost think that the REO listing agents have very little "in the game" based on the level of service they provide on a listing, just my observation.

Dec 07, 2008 06:22 AM

Patricia Kennedy

RLAH@properties - Washington, DC

Home in the Capital

Ken, like you, I hate to deal with some of the REO agents. But I've noticed that some of them are actually doing a decent job!

Dec 07, 2008 01:42 PM

Ken Montville

RE/MAX United Real Estate - College Park, MD

The MD Suburbs of DC

Rich -- I'm sure it's just a matter of cranking through the numbers. They do minimal property management (e.g., "winterizing" the home) and watch the utilities but you would think that they would want to get them off their books and the bank's books ASAP since there are plenty more behind them. Who Knows?

Pat - When I first started in real estate I worked in the same office as the great George Hughes who was something of an REO king at the time (and I thing still is). He would bend over backwards to help selling agents get the deal done by providing whatever addenda was needed and making sure the houses were accessible. I know the total commission was small because of the volume but he always provided a fair co-op and took a smaller portion for the listing side. He understood his job was to move the REOs off the books.

Dec 07, 2008 10:35 PM

Teri Deane

RE/MAX 100 - Columbia, MD

Realtor, ABR, CRS, SFR - The Deane Team

No guarantee even if you had the combo for the lockbox that there would be a key inside . . which is what happened to me at the 2nd visit to an REO (first visit same as you, wrong combo and no one around to answer my call).

Dec 08, 2008 05:16 AM

Ken Montville

RE/MAX United Real Estate - College Park, MD

The MD Suburbs of DC

Teri -- I actually heard a key rattling around in the box (at least I think it was a key) and when I provided feedback through CSS that I couldn't get in and why, the listing agent e-mailed me back telling me the combo was right. Maybe so. But I sure couldn't get the lockbox to open and my client even tried his hand at it. No luck.

Dec 08, 2008 12:12 PM

Teri Deane

RE/MAX 100 - Columbia, MD

Realtor, ABR, CRS, SFR - The Deane Team

I had one like that on a non-REO home, could hear the key inside and was sure the combo was wrong. Called CSS, called the LA, finally got my WD-40 out of the trunk, gave the lockbox a squirt and voila - open lock! I hate combo locks!

Dec 08, 2008 01:14 PM

Teri Deane

RE/MAX 100 - Columbia, MD

Realtor, ABR, CRS, SFR - The Deane Team

Dec 08, 2008 01:17 PM

Ken Montville

RE/MAX United Real Estate - College Park, MD

The MD Suburbs of DC

Teri - this was a newish lockbox but, hey, I'll start carrying around some WD-40, just in case, from now on. There was another lockbox on another property that the tumblers were a little stuck. I finally got them to work, though. You're right. Combination lockboxes are no fun.

Dec 08, 2008 10:18 PM

Teri Deane

RE/MAX 100 - Columbia, MD

Realtor, ABR, CRS, SFR - The Deane Team

Combo locks are also not secure. . .so many times I find them closed but with the combo already in place -- anyone could come along and open it! Some agents don't even bother to have different combos. . .all their listings have the same combo!

Dec 09, 2008 10:18 PM

Regina P. Brown

MBA Broker Consultants - Carlsbad, CA

M.B.A., Broker, Instructor

Ken, one of our local Realtor associations just implemented a new rule that ALL lockboxes must be the type from our local assn. and NOT the combo type, it was getting to be a big mess with so many REO properties.

Join my NEW group for professionals who work from their home office at http://activerain.com/groups/virtualoffice

Regina P. Brown
Allison James Estates & Homes

Dec 10, 2008 05:49 PM

Ken Montville

RE/MAX United Real Estate - College Park, MD

The MD Suburbs of DC

Teri -- I agree. I hope that once the Sentrilock conversion is completed in all the neighboring Associations and everyone is on the same page we can get rid of the combos. Of course, they are a lot cheaper than the electronic boxes and REO agents have tons of listings so that could run into some serious money.

Regina -- I wish they could implement something like that here but there are too many overlapping Associations. I'm afraid it wouldn't happen.

Dec 11, 2008 11:14 AM

James Downing - Metro DC Houses Team REALTORS®, CRS, GRI, ABR,MRP, MilRes

Real Living | At Home - Washington, DC

When Looking to Buy or Sell - Make the Right Move

Ken - I SOOOO hear you! I think we all have the same problem sometimes. It's just crazy.

Dec 15, 2008 10:01 AM

Janet Fetterman

Royal Shell Real Estate Inc - Ocala, FL

Selling Luxury Lifestyles...

I'm a 10+ year REO Veteran and I'm always amazed at the perception that agents have of my life.

The agent described here may have hours that the phone is answered but I assure you that I haven't ever known one REO agent who didn't work a minium of 10-12 hour days and usually 6-7 day work weeks as the norm, especially during these times.

We do property management and real estate and we do the property management .....in essence for free for Fortune 500 companies. We pay the utility bills, mow the lawn, pay hoa fees, past due bills with no mark up for the use of our money...we wait 60-90-120 days to get reimbursed. This requires that we have staff: bookkeeper; assistant; property preservation/road runner...quantity depends on how many listings you have, if you are going to meet the clients requirements which are:

a) weekly inspections w/photos b) monthly marketing report/mini cma c)BPO every 90 days; d) interum price reductions uploading mls & forms; e) evictions f) rekeys g) occupancy checks w/in 24 hours...and if you miss deadlines, they move the listing If you don't submit your invoices on time or within a window of time...you don't get paid. The paperwork is highly intensive.

Many banks charge us per invoice to submit these bills for reimbursement to upload them on their ems systems that we also have to pay for. We pay for the network and we pay a transaction fee and a referral fee usually around 30% of the commission to an outsourcer, that in some cases, is actually owned by the bank itself. We are not paid for the use of our money that is outstanding for property management, and right now I have $50k in receiveables.

The cobroke agents get paid full commissions and sometimes even a bonus.

I solve the problem of keys and lockboxes by using www.reolockbox.com which requires that cobroke agents sign in online with their real estate license that is verified. This insures that an licensed real estate agent is actually getting the code and then I am being notified and have a record of who is going into that lock box. Now if agents would kindly not take the keys, or would spin the dials when they return the keys, or would not steal the box so that I wouldn't have to rekey the property....3 so far this month! They wouldn't inconvenience the other co-broke agents who come behind them due to missing keys or missing boxes. This service is 24/7 online and agents don't want to be bothered to do this...so you see, you can't please everybody.

Some other misperceptions are:

1) The REO Agent doesn't SET THE PRICE! An independent appraisal and possibly even a 3rd bpo was sent independently to the bank and no they will not and do not share it with us.

2) Yes, the bank knows what condition the property is in. We have filled out property condition reports and often taken know less than 35-45 photos and uploaded them online. We have submitted 2 bids for repairs so they know an "as is" value and and "as repaired" value...talk to me (by email please) and I'll be glad to tell you what I thought the repairs came in at. The banks don't always list it where I think it should be and when they don't, every 30 days I have to "sell" them on reducing the price. The only way I can do that is by submitting offers.

3) You can't fight city hall....We have to do it their way...there is no other way. If your buyer doesn't want to listen to what I am telling you to do, please, take him elsewhere, we can't change the system. I suggest that you write into your offers that you want in writing copies of all negotiations to be sure that your offer is submitted and countered and rejected because it is done online, email or fax and we have records of all of it. Since you can't be face to face with the seller, I believe you owe it to your Buyer to prove that your offer was submitted on a timely basis.

The reason that all of you were venting here...and no other REO agent has responded is they are at their computers doing bpos, mmr's and working. My office is automated and staffed because I'm trying to have a life beyond real estate. I apologize for your bad experiences, but I can also tell you, that unless you walk a mile in another's mocassins....you may not have the whole picture....now you have the rest of the story- now that you've heard it...I'm sure that you agree, it is far from cushy:)

Wishing you sunshine,

Janet Fetterman, Broker Associate/Owner

http://www.linkedin.com/in/janetfetterman

386-299-6393

Jan 16, 2009 02:39 PM