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Old 09-29-2010, 06:24 PM
 
Location: Union County, NC
2,115 posts, read 6,443,150 times
Reputation: 1130

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Multiple bids submitted on multiple foreclosure properties all with the same listing agent. In one instance, the agent just began advertising the "new, reduced price" on a Fannie Mae property even though there's been no response on the multiple bids already in on this property, at least one in for a week that is only $1,500 less than the list price. In all instances the offer is above the dollar amount the bank foreclosed on. Each time offer rejected.

There are two Realtors - the one representing the buyer, these are cash transactions and interested in quick closing. Then there is the agent that these properties are listed with.

Some of these properties have been on the MLS six months or longer. Many abandoned a year or more ago. The listing agent maintains that the banks she is working with are holding out for their asking price - even in the instances where the listed price is several thousand dollars above what the bank foreclosed on and in instances where the listed price is quite a bit above local comps.

At this rate it begins to feel like the listing agent is holding out in order to increase her own profit. Suspicion is that the banks aren't even aware of the offers being made. Discussed w/others familiar with agent and the general thought is that it's a distinct possibility because the firm has a "reputation" of not always being on the up and up.

After a couple of months of this, E-mail request made to the agent for actual printed documentation of the bank's individual rejections and/or counteroffers, assuming this would also come with some sort of date time stamp. Agent insists that no such document exists since all communication is done through "portals" and of course, she says she is not able to share her bank contact.

So, for all of you in the know, is this true? How does one keep a Realtor honest? One has to go on their word alone that a bid has been rejected?

What would you do next?
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Old 09-29-2010, 06:46 PM
 
Location: Union County
5,783 posts, read 8,417,724 times
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I've had several rants over the years here about RE agents, but I have to admit that the banks are a major consideration... There's not much incentive for them to complete these transactions. There's government backed programs (i.e. TARP funds) that don't really make them care if they move them. They're backstopped from taking any losses. There's also a recent development on the legal side where there's questionable policy and possible fraud for the ones that did move.

Foreclosures face a serious setback

I don't know specifically what's happening in the Charlotte area, but I have seen foreclosure properties close off the MLS recently. I didn't notice who the listing agent was though. I tend to think the system is way too overloaded at this point. It's an issue on many levels... If you're in a position where you need to move, you really can't play with the distressed market and you'll take the "best price of the rest". Between the sellers who have taken their properties off the market knowing they can't get what they need and the zombie properties staying unoccupied, the longer it artificially will keep prices up.

In the end, I would think the agent should be driving the transaction to get closed so they can make money... Maybe the pay is so low doing it, they hope to just keep you as a lead for buying any property through them. Did you sign any sort of agreement with the agent?

I'd talk to other agents in the area and see what they think. There's several good agents who are regulars here.
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Old 09-29-2010, 07:11 PM
 
Location: Union County, NC
2,115 posts, read 6,443,150 times
Reputation: 1130
I'm not here to rant. Genuine concern/confusion/aggravation over the "process".

I'd submit bids on my own - if I could. Many properties require you to have a broker.

My complaint isn't even about the Realtor representing me. When I brought up what I was thinking to him, he finally admitted it's what he suspected all along.

This is not my residence so there isn't any urgency.

The pay IS low. My suspicion (and that's all it is at this point) is the listing agent (who seems to dominate the area I'm looking in) is holding out for someone signed with her so that she can have the entire commission. Or, at the least, she is trying to maximize her commission by insisting the banks won't even consider less than the listed price. Really? Even in instances where the listed price is considerably more than the amount the bank foreclosed on? Even when the LP is more than the area comps? What gives?

I'm not really talking prime properties per se. They're in marginal communities. Many have been abandoned in excess of a year. Quite a few have been vandalized. Stolen HVACS, appliances, plumbing, etc. How do neighborhoods recover? Become liveable again? Attractive? Safer? I thought the goal was to move these as quick as possible.

Keep in mind that these are cash transactions, and a quick closing is desired. I'm just really surprised to find out how this really works I guess.

And my real question remains, how does one keep a Realtor honest? Is there really no way to verify the bank is even getting the offers? Forgive me for my ignorance.

Thanks for the link. I hadn't seen that thread. Going to read it in a minute.
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Old 09-29-2010, 08:51 PM
 
25 posts, read 82,941 times
Reputation: 16
Doesn't make sense that your RE agent would holding out to increase her own profit. The #'s you are taking about are $50 or $100 in commission. Nobody in their right mind would sacrifice a deal to make an extra benjamin.

Last edited by lincoln24; 09-29-2010 at 08:52 PM.. Reason: didn't even know that was a no no word...
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Old 09-29-2010, 09:33 PM
 
Location: Charlotte, NC
2,193 posts, read 4,538,026 times
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I believe it's against the law for a real estate agent not to submit an offer to the seller. Plus, in this market, I think they would want to close the deal as quickly as possible. There are fewer buyers out there. What would the agent hold out for? It's not like there are a line of buyers for most houses.
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Old 09-30-2010, 06:11 AM
 
Location: Union County, NC
2,115 posts, read 6,443,150 times
Reputation: 1130
I'll say it again - it's NOT my Realtor. If this agent holds off until a buyer signs on with her, she gets the entire commission as opposed to splitting it. Or, she waits until someone offers full LP.

And while I think it's absurd too, are banks really holding out for the LP? Do they routinely reject offers that come in $1,500 under LP?

I thought my suspicions were far fetched. I'm the first one to admit that I don't have any evidence - which is why even though I have received multiple DMs inquiring as to who I'm referring to, I have declined to name this organization.

I'll also reiterate that when I expressed my concerns amongst a group of individuals well-versed in this market, this firm has developed a bit of a reputation.

Perhaps the real issue is lack of motivation to unload these properties at all - is it more complex than a conventional sale? Even though there's no financing?

Humor me - still no one has answered my question - when an RE says, "offer rejected" - is no documentation required? Do we always accept them on their word alone? If that's the case ... geesh. Fortunately, I didn't run into these issues with the sale or purchase of our other homes but this experience has certainly put a bad taste in my mouth.
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Old 09-30-2010, 06:53 AM
 
Location: Concord, NC
1,210 posts, read 1,936,511 times
Reputation: 804
Your real estate agent should know all these answers. If your real estate agent is not telling you then its time to get a new agent. They may not want to tattle on their own but they should be able to tell whats the law says and you can come to your own conclusions.
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Old 09-30-2010, 08:25 AM
 
168 posts, read 452,189 times
Reputation: 49
Saralee,

I am in a similar situation that you are describing, working with my own realtor but getting minimal response from the "queen of foreclosures" in the Charlotte area. Also offering cash and quick closing, your probably bidding against me, so quit it . I bet the offers that are not with her might "sit on the desk" a little longer, or maybe a T wasnt crossed so it is sent back SLOWLY. All kinds of little games like that. Its too bad but like you I am not sure what else can be done. Interested to see if any of the professionals have better advice.
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Old 09-30-2010, 10:30 AM
 
Location: Union County, NC
2,115 posts, read 6,443,150 times
Reputation: 1130
Quote:
Originally Posted by Sepulgeek View Post
Your real estate agent should know all these answers. If your real estate agent is not telling you then its time to get a new agent. They may not want to tattle on their own but they should be able to tell whats the law says and you can come to your own conclusions.
I chose my Realtor as a part of the USAA referral program. Seemed like a good idea at the time. I'll be honest, this is probably too much hassle, too little money for him too. I even told him, "Look, let's negate the contract, no harm, no foul" but he insisted that I had misinterpreted his enthusiasm and he wanted to continue to work with me. I've been in professional situations like this before but treated all my clients the same - especially in an industry where referrals and repeat business matter.

When he pressed this Realtor for "proof" and she replied that none existed, he in turn replied to me, "We're not going to get anything from her". And that was that. That was yesterday morning and as of this moment, I am still weighing my options. She took that opportunity to add, "The deal on xxxxxx is falling apart at this very moment, if your client wants to resubmit her offer, I'll be waiting!"

I get the impression my Realtor would like me to simply avoid this agent's listings, which is humorous since she seems to have the lion's share of the foreclosure market in that area.

I came here hoping to get more insight - to see if there is any way possible that there is no printed documentation or if one Realtor requested such information (like a bank contact) of another, they could be denied access. Of course, I understand that I may not be privy to such information and that is OK.
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Old 09-30-2010, 10:35 AM
 
Location: Union County, NC
2,115 posts, read 6,443,150 times
Reputation: 1130
Quote:
Originally Posted by BZEP View Post
Saralee,

I am in a similar situation that you are describing, working with my own realtor but getting minimal response from the "queen of foreclosures" in the Charlotte area. Also offering cash and quick closing, your probably bidding against me, so quit it . I bet the offers that are not with her might "sit on the desk" a little longer, or maybe a T wasnt crossed so it is sent back SLOWLY. All kinds of little games like that. Its too bad but like you I am not sure what else can be done. Interested to see if any of the professionals have better advice.
I actually wouldn't be shocked if we're dealing with the same woman. She certainly fancies herself the "queen of foreclosures".

Perhaps this is par for the course and that's why these homes sit empty for years.

DM me and I'll share a contact that eliminates the middle man. It's a much more seamless process and none of the nonsense. This outfit hasn't had what I'm looking for but I know plenty of other satisfied customers.

Good luck!
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