How do you deal with this?

Question

Hello, a few months ago, I met a realtor in his office who was a nice guy and also had a strong personality.  After the meeting, he was persistent and followed up every month or so.  Here's the problem; I'm not working with him because he's not mainly a reo agent.  So, doing more research I figured out who was a high producing reo agent and I gave him a call.  He said, to come to his office.  I thought this would be a great opportunity to to build rapport.  Well, come to find out this guy is right in the same Remax office as this other agent I rejected.  How do you handle this?  I don't want to hurt this other guy's feeling if I see him there.  Anyone have some advice here?  Thanks.

Aaron Mazzrillo · Answer

Smooth things over with agent #1. Tell him he can represent you as the buyer on any deals agent #2 hands you since agent #2 cannot represent both the seller (lender) and the buyer.

Besides, agents love interoffice commission splits. More money for the Broker too.

Andy M. · Answer

I've found that most of the time it is better to be tight with the REO agents secretary or another agent who is friends with them in the office. The big REO agents are busy and won't jeopardize their contract with the bank to help out another investor. What you want is someone close to them that will let you know when you need to act.

A perfect example of this was a deal I did earlier this year. An agent I buy from is close to a big REO agent, he tipped me off to a property that had a failed contract AND an authorized pricecreduction from the bank. I was the first offer in after it came active again and got it under contract before anyone else had time to notice. Turned out to be a sweet deal. Contract that failed was 112k (even though property was listed for 105k) bank authorized a 20k reduction before the contract had failed, once it did I offered 80k on their 85k active listing, they countered at 83k immediately and I accepted.  :D

Uryss Mitchell · Answer

I agree with Aaron, let agent #1 rep the buyer and agent #2 rep the seller. They'll get an interoffice commission split and the broker gets more money. Win win situation for everyone and it's business as usual.  Remember, everything leads to a deal if you study your situation.

Danny Day · Answer

Not sure I'd have an REO agent with the same listing represent me on the buy side.

Reason being is that they do not want to bring deals to the bank at a significant discount.

Every deal that comes my way where the bank is the seller, I get other agents to write the offer. Reason being is because buyers will nitpick for information on payoff.

I am not saying agents do not know payoff information, but with REO's or short sales, these offers have to be approved by numerous people in different departments.

If an agent has the listing, knows the payoff information, and submits an offer on the buy side to that same listing right at payoff amount, negotiations or banks will start to assume some type of fraud involved.

Most REO brokers / agents who have connections with asset managers do not want to tarnish that connection.

Just my 2 cents.

Good luck

Danny

Ali Shah · Answer

You do realize that REO agents donet have much insides for pricing or any thing...Most oif them dont even double end any more as they are fearful from banks.

Keep in mind Buying REOS, is dealing with a system that doesn't make sense, I have a few agents that bring me deals and they are big REO agents, they work off volume and not discounts, offer has to be sent to asset manager and that manager may or may not let go of that asset. Lots of politics with in that system that most agents have No influence on.

Greg P. · Answer

Actually, I let the selling agent choose whoever they want to give the commission to; including them self.  Sometimes they don't want to take the commissions because of their rules, but they are always happy to pass it onto one of their "friends."  This guy might not be friends with the other guy, but who knows.  I just want to do the right thing.  Thanks.

Greg P. · Answer

The issue is that the first guy is also a reo agent, but a medium size agent.  This guy I am planning on meeting is a monster when it comes to reos.

Karen Margrave · Answer

I'd call the first agent, tell him you hope there's no hard feelings, that you appreciate his tenacity, but you were looking for an agent specializing in REO's; and think the new agent has that experience. (then, don't get caught up in office politics and let them deal with any issues between them)