Hi, good information. Of course, although is seems as if all asset managers take this or similar routes, I have found that state law where you work make some of these actions or rules by the seller (Bank) illegal. My advice, is never agree to any action or stipulation that violates your states laws and MLS rules that they agreed to in order to put the listing on the MLS. They feel they do not have to follow the rules. In fact, I have complained to our local MLS about rules violations, such as not honoring commissions and the listing agent was fined for the conduct.

That being said, they will try to enforce it anyway. For instance, #6 commissions: I have seen them list a 3% commission in the listing and after they have a buyer on the hook, reduce the commission to as much as 1.75% (Illegal in Washingtn State) and refuse to close if the buyer's agent refuses.

I have also had instances where we made an offer which they rejected. Then a week later they call with a much lower offer (Never in contract form but sometimes just an email) which your client accepts and then when you submit the paperwork, they come back with a counter offer much higher than the first. We always reject it. So don't start any actions that would be detrimental to your client. One thing this artical doen't mention is that it is a buyers market just about everywhere. There are plenty of homes still for sale that are not short sales or bank owned. YOU AND YOUR CLIENT HAVE THE UPPER HAND. (the banks have not caught on to this yet)

Also, you will never get a signed around contract with them until near closing (sometimes the day of closing) because they are still trying to sell the property while bringing you down the garden path. In fact, your buyer client could honor all of their requests, deposit earnest money, get the loan finalized, only to have them notify you that they have a 'better' buyer and kill your deal. In Washington State, loan officers will not even start the paperwork until a signed around contract has been given them, thus making it almost impossible to finance a reo property.

There is nothing much you can do about it except don't bring your buyer to be brutilized by the asset manager. They don't do it on purpose, they are just doing things the way they have always done, and until they realize they are not selling any properties, they might wake up and decided to be more buyer friendly.

I now require any offer submitted on behalf of my client to include wordage that all offers have to be in writing and signed by the seller in order for the purchase to go forward. Most times you won't get it, but if enough deals are lost because of this, they might smarten up. I have also had listing agents tell me that my offer did not meet their requirements so he was not even going to submit it. In Washington State, all written offers have to be presented, regardless of whether or not they meet the sellers requirments.

By standing my ground for my client, I have sold two REO properties in the last year, out of 15 offers. It's not a good percentage, but all of my buyers have purchased homes, but not from banks. Always consider the needs and wants of your client, and never let a seller beat them up for no good reason.

Just my opinion,

Mike Eakins - Keller Williams - Greater Seattle