The only time it is too late to do REI is when your heart stops.

I am in Houston, we flood frequently so this is an issue near to my heart.

Not the predatory part, he is soft-hearted and returns the move in fee.

One last thing...most heart attacks happen on Monday morning between the hours of 6am and 9am.

The last thing you want is for things to fall through during the heart of the winter (albeit, certain locations don't have to be as concerned during the winter months --here in Chicago, it can drop to -negative temps so vacant December rentals/new leases + move-ins are probably more of a concern than say in places like Miami or LA). 

Towards thee I roll, thou all-destroying but unconquering whale; to the last I grapple with thee; from hell's heart I stab at thee; for hate's sake I spit my last breath at thee.

REOs will break your heart.

The reason this matters is because (buyer rebates) are not legal in all states.So the broker/agent might actually be telling the truth to you depending on the state.The other item you are not thinking of is whether the listing rep is a head broker or just an associate broker or agent.If they are not the head broker then they have a split agreement with the head broker and do not receive that big commission as you state.The head broker even if the state allows rebates might have in their independant contractor agreement agents sign that they are not allowed to do rebates.Another fallacy is you think an REO broker gets 6% if they make both sides.This is not true.Most asset management companies and banks that assign REO listings to sell pay out 5% and make the listing broker stick 3% on the buyer agent side and 2% on the listing side.They also hit the listing agent with computer platform fees and maintaining BS designations that can run hundreds to almost 1,000 dollars a year for one company.All of that is taken out before even a broker split.So you are definitely misguided in your belief.The hard fact is that because the REO brokers list for so little price and the commission percent is low they need to double end to make coin.They won't say this publicly but it is true.This is why REO brokers have buyers list they notify when they have a property in pre-list that hasn't hit the market.Heck I am a head broker and I tell them they can have ALL the commission because I want the deal.So I think you are going about this all wrong and you will lose out on a lot of deals with your thought process.I hope you take what I say to heart as it will help you land more deals.Good Luck

Buyers seeking loans can get out of a deal in a heart beat, just tell the lender they refuse to pay the loan that they don't want the house, believe me, the lender will find some way to turn the deal down and the buyer walks!

And it's OK to have a heart, but you have to have a brain on top of it.