Mike’s Real Estate Show

Lender’s who are marketing their foreclosed properties need to remember that it is a BUYER’S market!! I can’t believe the listing agents who have tons of REO’s and think THEY are doing us a favor in working with our meager buyers! Here are some of the remarks the agents see from these listing agents:

“Submit on CAR form with 1% deposit and a pre approval letter. Owner reserves the right to choose Title Company AS IS”

“submit offers on CAR form with 1% earnest deposit, title company sellers choice, pre-approval letter must be submitted with offer and AS IS no inspections or reports.”

“Write all offers on CAR Residential Purchase Contract. Please contact Listing agent regarding Seller Addendum prior to writing offer. Allow 2 business days for seller response. Buyers to be pre-qualified by XXXXXXX,Property to be sold as-is. Seller reserves choice of services. Fax offers to XXXX or email to XXXX”

“Submit all offers on CAR form with copy of deposit check and pre-approval letter from lender. Seller reserves choice of title and escrow, Disclosures will be provided upon acceptance do not send with offer. There are no reports on file. Offer As Is. No offers contingent upon selling or closing a property”

“Submit all offers on CAR form w/proof of funds for cash offers or pre approval letter from direct endorsement lender and copy of deposit check (3% of PP).”

Now if you’ve worked in the business for a while you’d swear that was the language we got when we had to submit multiple offers and the agent could care less if they co-operated with us because they are were “double-ending” the deal! I think someone needs to publish a full page ad entitled, “An Open Letter to All Lender and Realtors Selling REO’s!” . Put it in the Wall Street Journal, New York or LA times, stating they need to be more responsive, realistic with their pricing and a touch more cooperative!
  I dread working with REO’s and I know most of the folks in my area doing them. I’m also aware of how a REO gets to the market and the huge “loss” the lender is facing by now having to market this taken back property.  But Lenders should really get hip to what’s happening in the marketplace. One Realtor I know who sells REO’s did it years ago and is now easing back into the fray. He is offering 3.5% to the Selling agent and also a $2,500.00 bonus. Now That’s understanding the market and wanting to make a deal. The others don’t wish to kill the goose laying the Golden Eggs. Can’t say I blame them as they have the market cornered. However, their arrogance, both the lender and Realtor/Licensee is enough to make you swear off working with Lenders ever!