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I've been keeping an eye out on low end distressed properties ($50,000 and under). Of the three I've called the listing agent on, I've never received a call back. Since the commission is so low, I would think the listing agent would be excited about getting the full commission and having a cash buyer. There must be something obvious I'm missing. What is it? Why wouldn't a listing agent return a call and/or email? None of these properties were short sales or foreclosure, just really rundown. They won't qualify for conventional financing.
I'm surprised you aren't getting a call back from the listing agent if these aren't foreclosures? The big REO guys are kind of notorious for not dealing with buyers due to the quantity of listings they have.
Your best bet is to find a buyer's agent. There are plenty of agents out there who are happy to get a commission, even a small one. I'm helping one of my contractors with a $13,000 lot right now. I was laughing with him that the $351 commission should cover beer and burgers the next time we go out to lunch.
That has been an age old question of mine. I called two agents about showing me a house listed at $389,900 and both of them did not return my call. A sure thing commission for them and blew it off.
I too have called on places in the price range you mentioned with the same result. Why do some REA's not want commissions?
Find a young new buyer's agent to show you these properties. You can help them learn something about this market.
Some listing agents don't want to deal with buyers... Most calls are not serious buyers, serious buyers have an agent and they just follow the instructions and go look. Most calls are tire kickers. I have turned such calls into serious buyers, but they never buy the property they're calling about. The call just starts the relationship and the learning so I can help them get ready and find what they really want. That takes someone who wants to spend the time and energy to be a good buyer's agent. And yes, I'll do it for the right buyers on foreclosures and distressed properties, if they know what they're getting into and they are prepared.
I would guess the properties you're calling on ARE in fact bank owned foreclosures, even if the listing description doesn't say so. Because that's how run-down places get on the market. Negligent absentee owners don't often take the step of listing them. Most that I see, are bank owned or owned by someone who picked them up cheap at auction. Sometimes an estate.
Thanks for the insights. I looked up the owner via property tax records and found out it was an LLC. I googled them and came up with a name and googled him and found a number. He called me back today and I apologized for contacting him directly but explained I had tried multiple times/ways of contacting the listing agent. I had a call from another agent associated with the listing agent within two minutes of getting off the phone with the owner. I have a showing tomorrow.
Curious... Is there some reason you want to avoid having an agent who clearly represents you?
The listing agent in this case may well have referred it to someone unrelated and arms-length in their office who may serve you well... on the other hand, it may be someone who works for the listing agent who clearly represents the seller. As a buyer, I would want the paperwork and the negotiations to be handled by someone who is working for ME. There's really no reason I can think of NOT to.
An LLC, probably someone who bought it at foreclosure auction.
I can't find an agent who will represent for the possible commission. They want additional money on top of the commission. I'd rather work just with the selling agent as the properties I'm looking at are all "as is" and I have a general contractor who is a good friend who can do the inspections for me. Additionally, I have not had good experiences with brokers/agents.
As to the LLC, you may be correct as to how they procured it. I just never noticed it as a foreclosure on Zillow/Redfin/etc. Perhaps some/most foreclosures don't end up on those sites? The last sale is showing 10 years ago and the property taxes are based on that sale price from what I can tell due to how much they are.
I've represented numerous buyers on properties in this price range - and less. - some with homes, many just vacant land & similar price and commission. I don't think I'm that unusual.
You're not saving anything by having the seller be the only one represented here. The commission is set by the listing agreement. That you don't recognize the value of a good buyer's agent might explain why you've had bad experiences in the past. The agents involved aren't working for you... unless they are.
Just saying...
Last edited by Diana Holbrook; 03-05-2017 at 03:22 PM..
I've represented numerous buyers on properties in this price range - and less. - some with homes, many just vacant land & similar price and commission. I don't think I'm that unusual.
You're not saving anything by having the seller be the only one represented here. The commission is set by the listing agreement. That you don't recognize the value of a good buyer's agent might explain why you've had bad experiences in the past. The agents involved aren't working for you... unless they are.
Just saying...
I don't think that you understand what the OP said. In his area the realtors that represent the buyers want a guaranteed amount of money for representing the buyer that is MORE than the commission that this sale will offer. So the OP would have to pay the agent out of his pocket to make up the difference.
I once moved to an area like that. The buyers realtors wanted either $100 per house that one was shown plus the commission from the house one bought, with a sole representation for the buyer for a whole year. Or the alternative deal they offered was that they had a guaranteed commission of XXX, which think was $10 k but I may not remember that correctly and the buyer had to pay any difference between the sales commission and the buyer's agreement commission. That too was for a year...and with that deal I was warned it would be very hard to get the realtor to show one the houses.
So to avoid that mess, I bought a house right outside the msl boundary and got normal realtors with normal deals---from the listing agreement commission level. And it was a major sellers market to start with, so many buyers never did get a house.
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