Akron Ohio Homes is Angry with Banks!

By
Real Estate Agent with Howard Hanna Real Estate Services


These days, I am sure most of you work with bank owned, short sales and foreclosed properties. It is bad enough that these homes are not fun to show, usually. They are cheap, usually. You finally make an offer and the bank does not respond within a reasonable time frame, say a month! You're laughing? It happened to me!

I showed 5 homes yesterday ranging from $40,000 to $109,000. All vacant, hot, smelly and walked the heck out of all of them with my clients. Going to make an offer and then I see that the commission on the peach $59,000 home is all of a whopping 2% !! I said to myself, self, are you kidding me??? Yes, it was indeed true. (I need to check these remarks before showing, I again say to myself.) But, of course, we need to show anything that fits our client's needs, but that is another post, right?

Seems like it is not enough to show these bank owned problems, but now we must pay out of our pocket for the privilege of buying these homes. What do we need to do, to convince these institutions that we are helping them? They almost never answer an offer in a reasonable amount of time, they never listen to us with our feedback, they argue about the price and now they have the nerve to cut agent's commissions in the negotiations.

It is so bad now, that the following new rule was posted on my MLS yesterday.

5.5 (a) It must be disclosed in the Agent remarks if the listing is subject to short sale approval. If applicable, the following language should be disclosed in the agent remarks: Lenders may reduce commissions in negotiating a short sale.

Are you kidding me? What are we going to do??????

Is this happening to you? Is this nationwide?

 

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Ambassador
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Jim Crawford
Maximum One Executive REALTORS® - Atlanta, GA
Jim Crawford Atlanta Best Listing Agents & REALTOR

That does not even cover the cost of the gas you used.

Jun 25, 2008 03:21 AM #1
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David M. Childress
Howard Hanna Real Estate Services - Akron, OH
I would love to be your Realtor® in Akron Ohio!

Hi Jim!! That's what I'm talking about, you got it!  Thank you.

Jun 25, 2008 03:27 AM #2
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Don Fabrizio-Garcia
Fab Real Estate - Danbury, CT
Owner/Broker/Trainer - Fab Real Estate

Hi David - Short sale properties are not bank-owned.  Consider them to be "pre-foreclosure" properties.

Yes, the banks will try to negotiate commissions.  Yes, as the buyer's agent, you generally have to accept what the bank will offer.  And, of course, the banks won't talk about commissions until they have a firm offer in hand.

The banks are trying to cut their losses.  Part of their way of doing so is to negotiate commissions.  It's part of the market we're in right now.

My short sale listings have commissions listed at $1 on the MLS.  The buyers' agent, when submitting an offer, will also sign an addendum from me stating that our firms will split 50/50 the commissions approved by the bank.

It's just an unfortunate part of our current market.  However, if you have a Buyer Broker Agreement in place that states a minimum commission you will accept, then it is the buyer's responsibility to pay the difference.  Be glad that your MLS has set up this new rule - many have not, and listing brokerages could then technically be liable for paying commissions promised in the MLS.

Jun 25, 2008 03:53 AM #3
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David M. Childress
Howard Hanna Real Estate Services - Akron, OH
I would love to be your Realtor® in Akron Ohio!

Don- Thank you and you are right. That does not mean I have to like it. Ha-Ha. Paying just 6% for all the work it takes to sell theses homes is a bargain for a bank in lieu of what foreclosure costs them.

Jun 25, 2008 04:04 AM #4
Rainmaker
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Don Fabrizio-Garcia
Fab Real Estate - Danbury, CT
Owner/Broker/Trainer - Fab Real Estate

David - No, we don't have to like it.  But, it is the unfortunate situation we're all in.  As I tell my clients:  It makes it more fun!  Otherwise, we'd be bored.

Jun 25, 2008 04:56 AM #5
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Respect Realty LLC
Respect Realty LLC - Milwaukie, OR
Brokers - Oregon / SW Washington Real Estate

Happened to two agents in my office, they were told at the closing table that they were not going to get a commission and they had the choice to say yes to no commission or telling their buyers that they weren't getting a paid a commission and that they weren't going to let them buy it.

Basically making the agent look like a jerk in front of the buyers. I've started to get my buyers that are looking at these properties agree to pay me at least 3% no matter what the bank is paying. If the bank is paying me 2%, they pay the additional 1%. So far it has worked pretty well for me as the buyers are realizing these homes are more work for us as agents.

Todd Clark, Helping Families Home - www.IFoundYourNewHome.com

Jul 01, 2008 05:50 PM #6
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David M. Childress
Howard Hanna Real Estate Services - Akron, OH
I would love to be your Realtor® in Akron Ohio!

Thanks Todd, that is something to consider. Since these clients typically are looking for these types of properties, we could inform them that this could happen to us and request them to make up the differance. I like it.

Jul 02, 2008 12:07 AM #7
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