Are REO Brokers too busy?

Question

So after the past 2 days of calling, emailing, telepathy, smoke signals etc.... I still have not managed to get written offers to the listing agents on the 4 or 5 houses I want to offer on.

One of them is a FULL PRICE offer that I know I can re-sell within weeks for immediate profit.

I have cash, POF is a bank statement, can close yesterday.  I just need a call back, an emailed contract and someone to do the work over on the other side.

Are REO listing agents too busy to facilitate transactions?  What gives?

Ron H · Answer

As an REO agent myself, we have implemented systems that allow us to work more efficiently.  REO work is extremely involved and when an investor (I'm one too) comes in and does something that conflicts with the system,or IOW, submits an offer using an option contract or something similar, then it rocks the boat and brings us out of our element.

Andy D. · Answer

Man, I'm sorry to see that you're having these kind of problems.  As an REO broker myself, I can tell you that my team responds to ALL offers within an hour or two of receipt, just to acknowledge the offer if nothing else.  If an investor submits an offer to us and it's not in the correct format, for instance not on approved forms, we will prepare the offer with the same terms but on the proper forms and send it back to them.  It's our JOB to get these offers in for our sellers.

My guess is that if you're not getting a response, then those listing agents are working within their own network of investors and they are trying to make sure that THEIR people get the accepted offers.  That's highly unethical of course, but there are some people in our business that view ethics as optional obviously.

I do agree that having a relationship with the RIGHT buyer's agent would solve a lot of these problems.  I'm all for people getting their license if they feel it will help their business but please keep in mind that many banks will not pay a commission to a buyer acting as their own agent.

Hope this helps...

J Scott · Answer

Hey Jimmy,

First, this has nothing to do with anything you're doing.  Some listing agents are really busy or really lazy and aren't very professional.

This is one of the big reasons I recommend either using a buyer's agent or getting your license.  Too often, REO listing agents don't have the bandwidth (or the inclination) to deal with buyers, despite the fact that they'll make double commission.  In fact, I know many REO listing agents that won't accept an offer from a buyer without an agent representing him.

That said, even with representation on your side, some listing agents are VERY difficult to get in touch with.  One recommendation is to try to get the contact info of one of the agents who works under the REO broker and build a relationship with him or her.  In the future, if you want to submit an offer to that office, you can submit it through that agent, and they can make sure it gets into the hands of the agent who has the listing.

There are a couple REO offices where we know a single agent very well, and it makes all interactions with that office much, much easier.

Roman Sahakov · Answer

I am full of confident that they are really very busy people. However it doesn't mean that they must abuse the patience of their clients'  and do their job without any sense of responsibility. 
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Steve Babiak · Answer

REO brokers all use the state Realtor contract, so don't bother finding/drafting a contract and printing lots of paper (or electronic pages) to make an offer.

Supply them with a one or two page offer summary form, on which you state that if agreeable the terms of the offer will be incorporated into the state's Realtor contract.  Basically, they want to know purchase price, earnest money, closing date, offer expiration date, and other specifics (inspection or financing contingencies, for example).  You will always end up using the realtor contract for REO, with the bank's addendum accompanying that contract.

Jake Kucheck · Answer

Jimmy-

The best way to get on an REO broker's radar?  Close on one of their properties.

I don't know how much cash you're playing with or volume you're doing, but if it is the relationship you seek, pick one of their low-end, inexpensive properties with a high DOM and write a full price offer.

Ask for closing costs, repairs, etc to let them know you're not a total pushover, but close on it.  Now you are a known entity, you have what is probably a mediocre rental, but you now have that agents ear forever.

Think about it... if you were the REO broker, you'd want the smoking deals to go to someone you knew, right?  So why not be someone they know?

Jimmy C. · Answer

Yeah I sense that from a lot of the listing agents I have managed to talk to.

I can tell this going to take patience.  But I am going to continue trying to develop a working relationship with some of the top listing agents in our farm area.

Hopefully I can do that before February, but if not by then I will be licensed anyway.  If you cant beat em, join em!

Leah Henderson · Answer

Jimmy,
  Many times it is easier to have your agent push things through for you.  Professional to professional many times works easier and faster.  It's just the way it is.  Realtor's will answer the phone and or return the call of one of their peers much faster then they will a member of the general public.  I know it isn't a popular position.  However, I have seen it happen time and time again.

Good luck.

Joseph M. · Answer

This is definitely a frustrating situation. It seems also listing agents assume if you don't have a buyer's agent you are inexperienced and going to be difficult to work with . You would think they would jump at double commission, but I guess not.

Joel , that is an interesting point that you mention as I have noticed that oftentimes a property shows up as active, but they actually have an accepted offer on it.

It would save buyer's a lot of time if active truly meant active and there was more of a "real time" update to the MLS.

Jimmy C. · Answer

I have an as is farbar, just gotta get the disclosures they require for this bank and I am good to go.  Trouble is that I dont know which disclosures each bank will want yet.

Are REO Brokers too busy?

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