I had and have many buyers looking to purchase REO Homes in San Jose. These buyers want to take advantage of my offer to share my commission with them.
The problem is that it is too difficult to purchase REO Homes in San Jose Area. Most of these homes will be so much in high demand that I have to write 10-15 offers before one is accepted.
I had tens of buyers who gave up after writing three or more offers each and went back to their rentals. These people have high income and easily could afford the homes they were biding on. I know for fact that these buyers did not purchase with any other Realtors as they see $5000 to $20,000 Commission rebate they receive from my on great value.
Also smarter buyers see 5 to 10 properties a day and put 3 or more offers each time to increase their chances to purchase one of these REOs. This in turn will cause problem for the bank that will have buyers who will not go through the purchase.
I always tell people who interview agents for listing their home to ask a simple question from the listing agent to weed out dishonest agents. The question is how many percent of the homes is sold by the listing agent's firm and how many percent is sold by cooperating broker?
If the listing agent sell more than 10-20% of his/her listings themselves, you have to avoid that listing agent. Still some of assets manger and banks are not smart enough to weed out these agents. What is the difference for the Bank, you might ask?
I had recently a listing in San Jose area, the previous listing agents tried to force the owner to sell at $760,000 to her own buyer, while cooperating broker came with much stronger offer at much higher price. Then the previous listing agent was fired through her broker, afraid of DRE to get involved and the owner list the property with I.
Most assets manager do not care about these practice of packet listings and the REO listing agents are doing a good job to hide information about asset managers, so nobody can send the a request for investigation.
About a year ago I sent a very strong offer to a broker for $320,000 for a distressed property. A few days later the property was sold for $260,000. He made some excuses that it was asset manager that made a mistake I am very busy and do not have time to investigate the issue.
Last week I submitted another very strong offer to the same broker. He has came up with some excuses that my the offer I send was rejected by assets manger because of scan quality. At the end I was too tired to bickering and delivered the original offer printed with laser printer on high quality paper to personally to his office. We went through the contact in his office and everything was there.
Now I got an email from his office that some pages all missing. During this time he continue to submit offers and show the property.
I have a personality who believe in goodness of people, buy the buyer told me yesterday when I visit him, that this guy is playing game.
What is the solution to this mess? One thing that banks and assets manager can do to distribute the REOs through an automated system and offer them to all brokers. Each broker should be allowed only one listing and until it is sold he is not allowed to get another one.
This way the Brokers will have an intensive to cooperate to other brokers to sell the REOs instead of playing games. With current technology managing many offers from many Broker should not be a problem and the system will clean itself like some of the modern kitchen appliances
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