Shady Agent Tactics Costing Investors Money!
Over the past couple of months I have been looking at foreclosure deals in my area and I found a couple that were great and made offers on them. It became evident to me very quickly that the LISTING agents were holding my offers and waiting to try and get one of their customers to contract. If a listing agent is also the selling agent they get the full commission.
This is a big problem when it comes to buying listed foreclosures the properties are usually less than 100k and the commission is not very big if they do not get both sides of the deal. My live in fiancée is a Realtor and she makes all of my offers and we can find the listings extra quick because we have the advantage of using the MLS.
I lost three homes in the first two months because the realtors said they had other offers already accepted by the sellers. I know it is bull because when they show up as sold in the MLS they show that all of these were homes listed and sold by the same agent.
I finally contracted on one this week and I had a headache from the start. My agent submitted the offer and right away and as with the other deals I have made offers on the realtor (someone acting while the listing agent was on vacation) said she had multiple offers. She said she sent them in at the same time and would know something soon.
She never called back and my agent had to call her and she said the seller REO wanted to know our best and final offer and they would make a decision because they had multiple offers. I gave them another offer because my first offer was low and I did not want to loose the property. She said she would take the verbal offer to the lender and get back with us soon.
Again she never calls back and now I am pissed. I call her back and make another offer of 3k over list.
This may sound crazy to some investors but the fact of the matter is I wanted the house because the FMV after very little repair is 89k and the list on the house was 47K Someone missed the boat when pricing this one. I offered the seller 50k and again never got a call back.
I then looked up the owner of record and began to try and find the seller myself. The MLS only said REO Owner of record. The court records showed Wells Fargo so I started by calling them. A few hours later I finally found out that Saxon held the paper and I got in touch with the right people. I told the lady on the phone my story and she asked me what my offer was and I told her 50K. She said she would look into it and let me know what she came up with.
In just a few minutes I my fiancée got a call from the actual listing agent and he said the house was mine.
My instincts tell me that the agent that was helping the listing agent held my offer and did not turn it in at all while the offers had to be accompanied by a pre approval letter and 1000 earnest money so I do not believe she got 3 offers at once. My offers went from 42k to 50K, which is still good for the property, but I think the agent ripped me for 8K. I also found it funny that the listing agent called me back instead of the agent whom we had dealt with from the beginning.
Has anyone had anyone encountered this before? Please share your views.
Yes I am afraid that this is the world we live in and the best way to handle is to go direct.
Let me explain. I am a Realtor etc. etc. When I make an offer either for myself or as an agent. I call the listing agent and I then run quickly over and meet with him or her or it. I present my offer and then ask the listing broker to call his client cause I am on my way over. I would prefer that the listing broker come, but if he does not I am off and running. If the owner is in some other part of the world, one of my confidents will be rewarded with a small bill in exchange for the contact telephone number, address whatever.
With an offer I utilize a method which is called "smacking" used to be called "Plotching" but that was too ethnic. You must get that offer in and right away. With the help of the Listing Broker but if he is not cooperative and you have noticed him you go direct, with or without him.
This is a method that is used in an up surge market and god knows we got one now.
I know the listing broker or salesperson may call you crude rude or whatever. But the offer must be noticed. With you is a counter offer form so that you can write it up if necessary. Also the check. This is waived on all offers. The method does not matter, counter clockwise whatever. Just get it out there. That check is the evidence that you mean business.
This is called "Aggressive Behavoir." It is one of the weapons you must use.
Cheers Lucius 8-) 8-)
Thank you, Agressive Behavoir is just my game I will try your approach next time.
[ Edited by kensinvest on Date 04/10/2004 ]