So many topics to cover since it was deja vu all over again, receiving a call to do BPOs from a lender who had been very good to me in the past, until my contact there was promoted and a licensed realtor took his place. A very good deal became zero without notice at all. I have fond memories of those days three years ago - the bounty dropped in my lap that at minimum paid my office bill with months of credit in advance and at maximum gave me a double dip no-effort sale and a listing that spawned at least a dozen closed deals beyond the listing itself, plus more opportunity. (I believe I could turn that experience into a "Pursuit of Happiness"-like movie, but I just don't have the time...)
Today, completely out of the blue, I received a call from the same lender, new contact. The rank and file had shifted again and was I interested in being an inventory agent for them in Washtenaw County? Yes!!!!!! (I said quietly.) First, let me say that this lender is not like others looking for inventory agents. They ask for the BPO at the first sign of trouble and don't require updates until the loan is going to sheriff's sale. They'll request a second BPO, pay again, plus let me list if they haven't decided to auction or dispose of it some other way. So different than what I have heard from other BPO realtors!
Well, that FSBO notation in the title relates to this tale, so bear with me. As a newbie in real estate 4 years ago, I took anyone who gave me a second glance and showed them property. No pre-approval? No problem! You want to be an investor? I want to be your best friend!
I learned about the no pre-approval thing quickly but the investor thing took a bit longer. I had one guy who had documents stating he was capable of purchasing several properties in a year's time; I spent inordinate amounts of time showing him property. When he finally bid on one, was countered high, bid back low, and was accepted, he responded, "Oh sh*t!". We went through the inspection process, which you have to know he did not sign off on. One of my superiors said, "Cut him off; he is wasting your time." She was right; I did. I met him once more months later for a coffee to see where he was (he wouldn't sign a buyer agency agreement with just one agent...) - he hadn't bought a thing.
I bring him up in this tale because one of the properties I showed him was a foreclosure where I opened the door before he arrived and decided not to enter. It was scary and I waited. I had no idea how many properties I would enter alone that were far, far worse in the years to come; at least this one was free of eau de confined pet. It had shag carpeting on the backs of the kitchen cabinets that faced the dining area - was that ever in Architectural Digest, ever?! It also had metallic silver wallpaper on many of the walls and all the trimmings you would expect to go with that. In the midst of it all was a warm and fuzzy brick fireplace. That is where the decorating scheme should have begun and ended, but alas, no.
Anyway, my "investor" wasn't interested, despite the price per square foot value. I had no one else to 
present it to despite the great deal - trust me. I was driving by some time later and a man was in the yard so I decided to stop and ask if he was the homeowner, saying I had seen it at its worst. He proudly showed me the interior and the work yet to be completed and said they would be listing it for resale soon. They had made some good changes but amateur efforts were evident, with staging successes straight from HGTV. No one was going to overlook the fact that they had opted for eliminating the dishwasher in a 3 bedroom family home to give more cabinet space - no one likes to handwash dishes!!! The pebbles in the bathroom sink are not going to make up for that! I left my card.
Well, to pull this ADD post into a coherent picture, I was one of three agents who interviewed to list that property and was ultimately told they were going to FSBO. I had left my marketing plan with them as the other agents probably had too. We gave away our strategies and then were left out in the cold. Payback came full circle today when my lending connection gave me two properties to BPO and one of them was theirs - not the flip, their primary residence. I was shocked but can see how the arrogant attitude led them to this point, if in fact that is what did it. They did not want professional opinions when doing their flip (and made some poor choices), they did not want professional representation when listing their property, and where are they now? Facing a mortgage dilemma...
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The DIY thing is so prevalent that many believe they can do anything themselves. Real estate is rarely a DIY thing, particularly in a buyer's market. There are legalities, knowledge of the market regarding buyers and stats, the unbiased view of the property from an outsider, not a friend, relative, or the seat of your pants. A FSBO I talked to today said he would offer realtors 2% - that is worse than what most banks will do! Plus I checked his stats when I got home and he is $25,000 over market besides! I'll still send him mailings with suggestions - that costs me little. I would like the listing in his nighborhood, but I want it on my terms - I won't work for nothing. Been there, done that. I am worth it.
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