Seller taking an offer before it hits MLS
We are seeing a lot of agents pre selling their own own listings that are short sales before putting them on MLS. I know we have a fiduciary duty to the seller not to the bank but this act of not exposing the property to the market to try to get the best offer drives me crazy. It not only potentially hurts the seller but drives down the comps in the neighborhood. I know some of you will say "I only had 2 days to get an offer to hold of the foreclosure" and in this case it can make some sense but usually it's a listing agent either representing both sides or trying to sell it to a colleague in their office.
I recently put on a short sale and got 11 offers after waiting the week to expose it to try to get the best offer for the seller. It sold for $43k over asking. I could have recommended that the seller take the first all cash offer at asking price or double ended it over and over for a lot less money but I felt an obligation to the seller to try to get the best one. Not exposing it to the market would have not only hurt the seller but also affect the comps in the neighborhood. I also thinks it's our job to try and get the highest price for the bank.
I am curious if anyone can tell me why banks with short sales don't require agents to expose the property for a period of time like REO's do?
I think we should have a standard of care not only to our clients but to the neighborhood and to the bank in some regards.
What do you think?
Replies to This Discussion
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Permalink Reply by Smitty on
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I'm wondering if you are talking to me? I've closed more than ONE this way. I crossed out and modified a section that we needed to be compliant with. When it's modified and signed I am then compliant with any form I am signing.
Also, per my attorney, any affidavits, addendums, ALTS that we don't agree with and we sign, initial and change and it gets kicked back from the lender, I get a statement from the lender that they will not agree to approve the sale with the affidavit the way it is. Meaning, I was "forced" to sign a contract that I wanted to modify. Once I have that in writing we proceed with the sale.
"Although a quick database run at the request of law enforcement could probably yield hundreds of hinky deals worth researching - certainly a couple of those agents have a legitimate reason for doing that, others, well..." WOW this is awesome and yet only ONE case of short sale fraud has ever been tried and convicted. I'm changing my career to law enforcement because I can chase down all these HINKY deals with unethical, fraudulent real estate agents. JOB SECURITY!!!
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Permalink Reply by Mark on
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Good luck with your "I was forced" defense, should you need it.
Just because law enforcement is behind the times doesn't mean they'll never catch up.
The B of A addendum was no doubt modified as they began to spot trends -
Just as the "arm's length transaction" addenda was added after agents abused the system.
The language is clear enough that even a 3rd grader could understand it, and no doubt they'll let a few hundred deals close, then have a "roundup" for the 6 o'clock news, cooing & clucking about the "massive fraud-rings" they broke up, right before cutting to the newest transgressions of Lindsay Lohan.
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Permalink Reply by Jeff Payne on
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Mark, here you go with assumptions again. It is obvious that you are one of those people that is always disagreeable based on your limited experience in the short sale arena.
When was the last time that you sat down and talked with Bank of America about this addenda and their arms length transaction document? What did they tell you? Which VP did you talk to?
Interesting to hear this one from you.
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Well Mark, I expected you to answer a question with a question. I meet minimum 4 times per year with VPs from BofA and communciate regularly with them. They think enough of me as an agent that I have my own escalation contact that I go to if I run into issues.
I am meeting in person on Sunday in Orlando again with BofA, Wells, Citi, Chase and Fannie Mae.
You are the only one assuming that these properties are being sold for nickles. Well you, George and Stephen. George and Stephen work together and I tend to suspect you know them too :)
Oh, while I am tooting my own horn, the State of Florida has asked me to be on a short sale task force that includes VP's from all of the major lenders, servicers and investors. That could be because I actually understand the short sale process and closed a very high percentage of them.
Mark, how many short sales have you closed? How many listings do you normally carry?
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I do work with George but I have never met Mark. He actually seems like a really smart guy and has added a very thoughtful perspective here. And I totally agree with him that there are some bad agents out there that pre-sell their listings without any regard for their seller, the bank or their community. To know how many would be tough to know for sure but it seems reasonable to me to have some sort of small marketing period, if possible to insure the best outcome for everyone involved not just the double ending agent.
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Mark, I can understand the addendum. Just like a purchase contract I didn't agree to the terms (not that the lender is party to the contract) - So UNDER the advisement of my attorneys I was told to cross and modify.
Yes my legal team gave their Lindsay Lohan advice and I followed it.
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Smitty, actually that is the exact same thing that Bank of America advises, cross out and sign it.
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Looks like Mark took his toys and left when he started getting questioned about being an agent. I just asked a simple question, How many short sales have you closed? How many listings do you carry?
You call me a troll? You post a fake name and fake email and I am the troll?
Look me up anytime :)
Jeff Payne, Keller Williams Success Realty
[email protected]
850-890-0132 CellHow bout you super secret agent Mark?
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Ummm...Jeff, I have a fake name...well semi fake, but I've been around here a while and like to think I participate in a fair manner. Unlike Mark who admitted in a previous thread that he is a "small time investor", and seems to know nothing about the seller's perspective from a short sale as he admitted he's a buyer also in previous threads.
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Just for grins I checked our MLS.
2801 short sales closed in the last 6 months
17 were on the market 1 day or less
85 were on the market 2-5 days
208 were on the market for 5-10 days
That leaves the rest on the market for over 10 days. Not a big deal in my opinion. . . . certainly not worth all this.
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But Smitty, I know exactly who you are :) You are a top contributor here and I know your identity but I have kept it our secret. The Moderator knows trolls from contributors!
I was just messing with Mark, in reality, his perspective is something that we need to see and address. I just think that he needs to listen more and pay more attention to facts and not opinion but that is just my opinion. I know that the banks address it in our meetings, Funny part is going to be that the lenders are reading this blog and it will be interesting to hear their thoughts on it.
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