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Realtor Advocates becoming a disturbing trend. Legal opinions aren`t for you to decide!

I guess it had to come to this! Realtors who are involved with Short Sales,Foreclosures and REO`s are convinced they should be able to render legal opinion quoting make believe law.

Recently, I`ve seen Realtors place insane prices on homes justifying what they`re doing by saying they can convince the lenders to agree to a sales price, assist in negotiating the sale,and advise their clients to offer commissions that the lenders would never agree to!

When offers are sent to some Realtors they seem to decide for themselves which offer is worthy for the seller, not quite understanding "Present all offers"..

We sent in a cash offer on a condo located in Sunrise,Florida the other day. The offer was $10K below the asking price. The agent called us telling us the offer won`t fly for the lender, why? Because the Realtor not the lender said so!

Upon further questioning I realized this Realtor was way over their head in rendering any opinion.

The Conversation is as Follows:

Realtor Advocate: The offer you sent us isn`t going to fly!?!

Me: Really, why is that? The property has been listed for a year.

Realtor Advocate: I`m assuming the bank will reject this offer, so why waste time?

Me: Waste time? Weren`t you ever told to "Present all offers"?

Realtor Advocate: That doesn`t matter anymore.Either increase your offer or i will not send it!

Me: It`s an all cash offer. If you don`t send this in the next 20 minutes I will lodge a complaint to your board.

Realtor Advocate: I`m doing nothing wrong. I`m protecting my client from losing more money!

Me: You and your client haven`t a clue. What`s your Brokers name?

With that I immediately notified the agents Broker informing them of the misdeeds of this insane Agent`s rendering legal opinion.

All rules an regulations were not adhered too, nor did this Realtor seem to grasp what they were doing.

The offer was sent to the lender. We`ll see what happens now!

www.browardbesthomes.com

Posted by Scott Daniels Florida Real Estate 2.0. Agents Earn 100% Commission. on 02/12/2009 06:17 AM

Comments (5)

Understanding Short Sales and Foreclosures in Broward County Florida in the ActiveRain Channel

understanding a short sale in broward county florida real estate

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5 Comments on Realtor Advocates becoming a disturbing trend. Legal opinions aren`t for you to decide!

FEB

Not knowing the price of the home .. here is a guess... the $10,000 less would not be much when one considers another 12 months on the market with NO buyers.. or Unqualified buyers. That realtor should be reminded about a BIRD IN THE HAND. Present the offer is his/her job. Not to determine what is enough to the seller. Especially a bank who would like to have these vacant homes off their books.

In Washington State the legislature has taken the ball and run with it. Now agents are subject to 100K fines and more for portraying themselves as being able to help with a foreclosure or preforeclosure... more complicated than that but you get the jist. I know a majority of agents that thanks to the law now refuse to handle preforeclosure type or short sale transactions.

You know what SCott. I will tell you yo are wasting your tim and paper with this low ball offer. BUT I will present and urge my client to counter. Complain but do what is required is a good way to look at this

FEB

They have to present it to their customer, the home owner but unless the home owner accepts it, they are under no obligation to send it to the bank or even notify the bank an offer came in. I'm not saying this Realtor® knew what they were doing but very often the listing Realtor® has been in contact with the bank, knows what the acceptable write off percentage is for the bank, etc. Yes, those factors can change but taking in a very low offer that is out of whack and forwarding it to the bank can render the file to the bottom. In the meantime, the customers home is locked up.

So, present it to the homeowner? Of course. That's a given. Explaining to the homeowner all the different senarios of what may transpire according to your experience? Allowed and not legal advice. From there, it's up to the homeowner.

FEB

Scott I hope the Lender accepts your Offer. Clearly the Realtor should present all offers to the Client.

Where I see a legal grey area is with the Lender in a short sale. Where are they in the Broker-Client relationship in a short sale? If they are not yet the owner of record and are making decisions like making counter offers that sounds like practicing real estate, which requires a license.

Am I missing something here? It's clear when a foreclosure has progressed and the Lender purchases the house at auction and lists the house that the Lender is the Client, but in a short sale it's all usually verbal and I'm not so sure. What do you think?

Kent Davis

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