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I inquired about a local property for sale. A buyer's agent contacted me and said he had been referred by the selling agent, who claimed she didn't work with buyers. This is new to me, so I'm guessing it has to do with the fact that the house is a foreclosure. Anyone care to educate me how the foreclosure buying process is different than any other in regards to agents? Is it standard procedure that the listing agent doesn't deal with the buyer, who has to hire a buyer's agent?
In many cases, listing agents who represent foreclosure properties are not allowed to represent the buyer (as a client or customer) in the transaction. The bank sees this as further liability. In most cases, the sticker in the window of a foreclosure property will simply say "Contact your agent for more details and showings."
There is not a single home buying situation in the world, where I would recommend going at it without a buyer agent.
Hi,
We are looking for a house and I when I look online, I sometimes see foreclosures that are for sale for $1500 or $2000 even though the estimated value of the houses is over $200.000. What is the deal with those? Is it like an auction and you have to ask them what the highest bid is?
Hi,
We are looking for a house and I when I look online, I sometimes see foreclosures that are for sale for $1500 or $2000 even though the estimated value of the houses is over $200.000. What is the deal with those? Is it like an auction and you have to ask them what the highest bid is?
If they are houses listed with that low of an asking price they are auctions with a minimum starting bid. Some are absolute auctions with no minimum above the starting bid, while others have a reserve that must be met before the sale is accepted. The biggest drop I've seen on asking price for a non-auction foreclosure has been about 50%. Lots can be a different story. A very reliable source has told me that in some parts of the NC mtns some lots once valued at $250,000 are now selling for $1000.
Not sure I would say it was 'standard procedure' but every situation is different and would be based on the listing agent's business practices and types of agency offered by their brokerage.
Depending on company policy a brokerage may offer single agency - either work for and represent buyers or sellers exclusively. "Representation" is spelled out in the buyer contract including fees which often times come out of the transaction.
Hiring an agent to work for you in purchasing an REO property is not a bad idea as previously mentioned. IMHO if the listing agent doesn't work with buyers then you should have no worries. Just hire a buyer agent of your choosing to work for you and protect your interests.
The listing agent works for the seller. In order for them to work with a buyer a dual agency form has to be agreed to by both parties. The buyer and the seller. The realtor you hire should give you the brochure and explain it at first contact. There is a reasonable explanation for all of this and your realtor will be able to help you. It's all about representation.
I'd like to locate an agent who knows more about the $1,000 lots (formerly $250K) in the NC mountains. If you have reliable information, please dm me. Thanks.
I'd like to locate an agent who knows more about the $1,000 lots (formerly $250K) in the NC mountains. If you have reliable information, please dm me. Thanks.
It might take me a few days to get the info. Possibly tomorrow.
Last edited by daveatgso; 01-20-2011 at 08:23 PM..
Thanks for the effort, Dave! I really appreciate it.
I also have some land to sell you in Florida!...if you believe that too?
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dual agency
