Banks, Leave the real estate business to Realtors!

By
Real Estate Broker/Owner with Coastal Realty Group

You know that old saying:  ‘Lead, follow are get out of the way.  Well the banks need to get out of the way.  Banks are slow, cumbersome and bureaucratic.  Banks are wasting time with the properties that are coming under their control.  They are using appraisals that are outdated by the time they do decide to use a Realtor.  Communications are difficult.  They have some good people but they are overwhelmed and they don't really have a handle on the situation.  Would you like some specifics?

My prospects show an interest in a neighborhood.  So being a good agent that likes to supply my clients with lots of good information, I let them know of the bank owned properties in the neighborhood - Mistake.  My prospects then contact the bank directly thinking they will get a better deal.  The bank later does list with another agent and immediately has it under contract with the people that found out about it from me.  Sure, I take some responsibility for not having things better under control and being more proactive and protective.  However, it is just another reason that some Realtors will avoid bank controlled properties.

Another bank has contacted me about listing their properties and they have me give them my input on one of these properties.  Well they do decide they want to list it with me, however at a price that is $121,000 higher than I recommended.  Their basis is an appraisal done by a very qualified appraiser, however it is 5 months old and the comparables are almost a year old and I totally disagree with the comparables.  The market is changing rapidly and 5 months ago is out of date. I have spent the last few hours building a case for my price and I hope that they will listen to reason.

Then the bank also has two houses that I feel certain that I can sell and I have showed the houses to three different clients this week.  However, they don't want to give me these listings until some repair work is done to them.  PLEASE, stop the delays, you are missing the boat.

I am an entrepreneur and I believe in getting the job done.  As an entrepreneur I am concerned about anything that affects my bottom line.  Unfortunately for Realtors dealing with banks and asset management people, we apparently are dealing with 40 hour a week people that are not that concerned about the bottom line.

For those people that are afraid of the banks getting into the real estate business, I say that you have nothing to fear.  These people can't get out of their own way.  They are lost in the maze - No wonder we have to bail them out.  They are only going to hurt themselves further.  I welcome them to the business, because we will run circles around them. 

Prices are way off on coastal properties at Cape San Blas, Florida and surrounding areas and some of our prospects feel that we have reached the bottom or close enough to the bottom that it is time to look at the foreclosures, short sales and REO or bank owned properties.  Now if the Sellers and lenders will get realistic and work with us, then we can move some of these properties.  We are independent, we are Realtors with a "can do" attitude and we can get the job done.  Banks, lenders, asset management - are you listening?

Comments (5)

Lorraine or Loretta Kratz
Crescent Moon Realty, Inc. & Land N Sea Auctions. - San Marcos, CA
Certified Negotiation Consultants

One of the things that I notice about bank owned properties that agents acquire ---is ----that they have a arrogance about them selves. Here locally I have been surprise at the lack of communication from the agents and the services that they wish to use, so the banks may need to improve on servicing --- so should the listing agents.

Feb 22, 2009 07:42 AM
Darren Revell
Keller Williams Realty Temecula Valley - Temecula, CA

Thanks for the post.  I had posted one earlier (couple day ago) where I have a property in pre-foreclosure... and the bank just did an appraisal and came back to me and told me that I have the property listed too low..   AHEM.... it has been on the market now for 4 months with no offers... I am trying to get a reduction to sell it before the bank has the foreclosure in full effect but doing so will negate any equity that the client has in it... so they would quit claim to the bank.  Quite interesting how some banks think... We have had an average of 4 showings per week on this property too... and they really think it is too low?   anyway, done ranting again.. lol..  thanks again for the post

Feb 22, 2009 08:06 AM
Samantha Nichols
ERA Belsito and Associates - Plymouth, MA
Massachusetts Real Estate Specialist

I have found the best course of action in dealing with fiancial institutions is to be prepared, provide documentation to reinforce your position and be a "squeaky wheel". The more you are on top of things, the faster they move through channels.

Feb 22, 2009 08:24 AM
Preston Russ
Coastal Realty Group - Cape San Blas, FL

Lorraine and Loretta:  Yes, communication is important for all parties. 

Darren:  I understand the ranting - That is pretty much what I was doing.  As for appraisals, I had a owner get an appraisal on his piece of vacant land and it came in at $430k which I knew was impossibly high.  I had a local appraiser look at the same property and appraise at $118k.  My group that wanted the property offered $150k and was rejected.  The 430k appraisal was really flawed but that is a whole nother RANT.

Feb 22, 2009 08:34 AM
Preston Russ
Coastal Realty Group - Cape San Blas, FL

Thanks Smantha.  I am squeaking, I am squeaking.

Feb 22, 2009 08:35 AM