Ancient Realtor Secret..."misplacing" or hiding lock box?

Question

OK BP. I'd like your input in this matter.  I've been looking for a foreclosure to flip in Chicago, Currently, my agent and I are attempting to see a foreclosure right now. I'm noticing that whenever it is a really good deal or a hot REO property the agent does not answer, respond to messages, or if they do respond - we'll go view the property and the lock box is mysteriously "lost". But a few days (or a week) later there is a contract on the home. It seems to just be happening with REO in which the bank has hired an agent. I think some agents are holding out for their friends or business partners and is making it difficult for other investors to see and bid on the properties. So my question is...Has anyone experienced this? Where it seems the agent is shady or doing something shady so buyers cannot bid?

Ryan Murdock · Answer

More than once on a "hot" listing when the agent told me they hadn't installed a lockbox at the property yet I have actually driven to them (once at their office, once at a bar....) to retrieve the key and hang the box for them.

Chris Mason · Answer

Like most people, most real estate agents are good people, honest, etc.

However there are exceptions, and I have noticed a correlation between "REO" and "shady listing agent."

I think part of it is "moral license." No one feels bad about screwing a bank seller out of the highest & best offer... so, yes, there are probably times where an otherwise honest agent wouldn't have an issue screwing the seller over, when the seller is a big financial institution and not a person/family.

Jay Hinrichs · Answer

@Ryan Murdock  what we see in our market right now.. is  " Coming Soon Signs"  listing realtor puts a sign in the yard saying coming soon.. obvious so they can double end it..

each market is unique though.. and having done some stuff in Chicago.. we just don't have the same MASS of properties.. and especially what would be considered deals or props that can be bought and rehabbed.. its tough here.

Bob Floss II · Answer

@Sahana R.  You are not imagining it.  REO properties on the south side are notorious for keys going missing. I've rarely felt the listing agent kept the keys. The more common problem is when using a combo lockbox on a property being shown by multiple agents, its extremely hard to track how many people are showing the property and when.  Some agents don't want to be bothered and just give the combo to clients.  Either the agents or the buyers view the property and keep the keys in an effort to keep competition for getting access.  I've had listing agents tell me they replaced keys on a REO listing several times a week.

Jarrod Kohl · Answer

I used to see this a lot with rental agents. Sometimes it was an accident, but many times the key would go missing.  And I know that the lockbox had the key in it... really annoying and we would blacklist agents for it if they did it often.

Jay Hinrichs · Answer

not sure about hiding the lock box usually on the listing it gives the location of the lock box.. IE on the gas main  front door back door etc.. as for not putting one on.. that could happen it could get listed and take the agent a few days to get out and put it on there.. I know my wife will put them in the computer many times before she gets the lock box on .. but this is not to keep others from writing offers.  as 97% of our transactions in our market are Co broker.. so it would be counter productive to not let other agents and their buyers in.

Although to be fair we also don't have nearly the amount of distressed real estate as you folks do.. its all retail stuff..

Dale T. · Answer

Yes I have ran into this as well or you open the lockbox and the key is missing.   In my experience, the listing Realtor is trying to get both the listing and buyer broker fees and likely has a buyer lined up.

Nathan Gesner · Answer

I know crackheads aren't the smartest but wouldn't it be 10x easier to just break a window?

Blair Poelman · Answer

I never hide a lockbox - the location is ALWAYS in the listing - however, in a rougher neighborhood it's not exactly a wise decision to put the box right out in plain sight.  I've caught countless crackheads in my properties over the years - and often times sitting right next to them is a broken lockbox, and in their backpack is a pair of bolt cutters and a hacksaw.  I've probably confiscated 30 bolt cutters in the last 5 years.

Ancient Realtor Secret..."misplacing" or hiding lock box?

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