Hey Asset Manager!

By
Real Estate Agent with Keller Williams

Did you know:

That some of your listing brokers charge fees - sometimes $500+ - to the buyers that often is coming out of your net? Other buyers and brokers do not like paying for, or arguing on your brokers behalf, to try to get these fees paid. The implied or actual threat is that the offer will not be submitted unless you cough up the money. Therefore, they do not show your properties for sale.

Some of your brokers are advising you to pay for unnecessary repairs? Just recently looked at an REO that had wood rot in the ceiling over the porch. A worker was being paid to fix the holes in the ceiling. Any buyer would just rip the entire section down and replace it. It is beyond repair. They were also fixing damage to floors and walls in a bath. A complete waste of money. I have seen french glass doors put into an exterior storage area on the carport of a home in an iffy area. I see this waste all the time. Are they using their cousin's construction company and keeping the spread?

How about those properties in the wrong MLS?  I will see your property on the EMS/OMS, but not in the MLS. I look in the mls for the area on the other side of the county - not there either. I look in the one 50 miles away - ah - there it is.

And how 'bout those wonderful photos. Yes, the ones from google maps. Or, the ones that are from the MLS - 4 years ago - when the house was pink, and not its current beige.  Oh, and that beautiful landscaping? The worst freeze in a hundred years took care of that. So no - your property looks nothing like the photo.

The broker you picked from Orlando?  He really worked some magic on that BPO.  A 3/2/2 in poor condition that I think should go for 110K, is listed for 270K. When you use comps that have land value worth double the subject, that can happen.

Sign in the yard?  You so funny!

Your jaw would drop if you knew what was really going on out here.

 

 

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Ambassador
379,494
Karen Hurst
RICOASTALLIVING.COM - Warwick, RI
Rhode Island Waterfront!

Amazing, isnt it?  The things that have been going on never cease to amaze me!  Kind of makes you wonder how you can survive against all this "competition" trying to make a buck at any cost. I think the Asset Managers would be very angry. 

Jan 22, 2010 11:19 AM #1
Rainer
44,193
Mark Ruda
Mark A Ruda - Fox River Grove, IL

Phil:

Outrageous behavior! However, the asset managers I've dealt with as a listing agent always get a 2nd BPO, which not only should keep everyone honest, but make someone think twice about turning in a high-ball price opinion.

The asset managers handling the listings you're referring to should be angry. But it's easy enough now to check on MLS listings. If they had a 2nd BPO, they'd see the glamour shots submitted by the listing agent are bogus. And why some insist on doing repairs, when they're going to be selling the property as-is anyway, is questionable to me. Even in a good market, the cost of repairs may not be recouped, especially considering the mortgage the lender -- and mutual client -- is eating. If it's a health and safety issue, so be it. Otherwise, "repairs" are a waste of the clients' money.

If they do more than put lipstick on the pig and try to price it as if it were a normal non-distress sale, the asset managers can still expect to take a beating on price because it's no secret the property is a foreclosure.  Better off for them, and their client, to do minimal repairs, price it to sell, and move on. That may not be what some listing agents' friends and families want to hear, though.

 

Jan 23, 2010 02:27 PM #2
Rainer
44,193
Mark Ruda
Mark A Ruda - Fox River Grove, IL

Phil:

Outrageous behavior! However, the asset managers I've dealt with as a listing agent always get a 2nd BPO, which not only should keep everyone honest, but make someone think twice about turning in a high-ball price opinion.

The asset managers handling the listings you're referring to should be angry. But it's easy enough now to check on MLS listings. If they had a 2nd BPO, they'd see the glamour shots submitted by the listing agent are bogus. And why some insist on doing repairs, when they're going to be selling the property as-is anyway, is questionable to me. Even in a good market, the cost of repairs may not be recouped, especially considering the mortgage the lender -- and mutual client -- is eating. If it's a health and safety issue, so be it. Otherwise, "repairs" are a waste of the clients' money.

If they do more than put lipstick on the pig and try to price it as if it were a normal non-distress sale, the asset managers can still expect to take a beating on price because it's no secret the property is a foreclosure.  Better off for them, and their client, to do minimal repairs, price it to sell, and move on. That may not be what some listing agents' friends and families want to hear, though.

 

Jan 23, 2010 02:30 PM #3
Rainmaker
373,329
Julie A. Black
KAUAI DREAMS REALTY Kauai Real Property Specialist - Kapaa, HI
CLHMS, CRS, GRI, Realtor, Broker

My occasional outrageously priced REO is often due to a bad appraisal or secondary BPO. Don't blame the REO brokers for all the mistakes. Some of us work really hard to do things right. To bad not in your area. Aloha

Jan 23, 2010 04:18 PM #4
Rainmaker
54,901
Phil Hanner
Keller Williams - Daytona Beach, FL
Phil at http://www.findahomeinportorange.com/

Thanks all for the comments. Let me clarify. I have listed and sold dozens of reo's, so I am well aware of the back up BPOs. Just very aggravating when the back up BPO agent has no clue about your market area - or how to do a BPO.

Yes - I agree that most REO brokers work very hard and most do it right. But those very few that do it wrong really can gum up the works.

Phil

 

 

Jan 25, 2010 04:03 AM #5
Rainmaker
107,673
Matt Kofsky
Transaction Realty 500 Reno, Nv. - Reno, NV

I was recently asked to defend my price on a listing.  I was $30,000 under the other bpo.  The house has 2 bedrooms, 1 bath.  The bpo said it was 3 bedrooms, 2 baths.  The bpo said that the house need $1,000 for carpet cleaning.  It is entirely hardwood floors with tile in the kitchen and bathrooms.  

Jan 29, 2010 05:50 PM #6
Rainmaker
54,901
Phil Hanner
Keller Williams - Daytona Beach, FL
Phil at http://www.findahomeinportorange.com/

Matt,

Everytime I had to justify my price - it sold for almost exactly what I predicted.

Recently I tried to get an offer in on an REO. I had a suspicion my offer had not been submitted. I was in contact with this asset manager on another issue and he confirmed my offer was not submitted and yanked the listing from that broker and gave it to a different one. The next broker that got the listing DID NOT submit my offer either!  This broker also said that if my buyer would not pay her a $300 fee,  that I would have to pay her - what a crock!

Jan 30, 2010 05:52 AM #7
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Rainmaker
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Phil Hanner

Phil at http://www.findahomeinportorange.com/
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