anything wrong with this SFH in 92011 ?

[SD Realtor]

“Are you saying the listing broker does not have to show your offer to the bank even if your solid offer with little or no contingents is 50K more the one he or she submitted?”

That is an extreme example but this sort of stuff seems to be happening more and more. I have seen it not just with shorts but with REO sales as well. To me this is an extreme violation of the fiduciary obligation that a listing agent has. I have seen it take other forms, for instance for some properties that are priced aggressively as REO, the listing agent simply picks one offer and sends it in rather then countering everyone, (which may be a pain in the ass) but would yield a more competitive landscape and ultimately get the seller more money.

I had a recent client who submitted an all cash offer at list price for an reo with a 21 day escrow at list. The LA didn’t counter, didn’t call back and someone else got the property. My buyer was prepped to go up plenty more. When I asked the agent why they didn’t counter everyone at highest and best he even said, ” … well you know how it is, we are just trying to move properties as soon as we can so you should have submitted your highest and best offer off the bat. ” I commented that he had left money on the table for his client he said that my point was speculative at best.

So it goes…

Don’t expect the FDIC or any other entity to do anything about it. My client did send a letter to the lender selling the home but that will not do anything. A complaint to the DRE can be made and if you have a clearly documented case, like the example of a 50k differential above then yes some sort of disciplinary action would most likely be taken.

[urbanrealtor]

Comparing Reo’s to Shorts is comparing apples to bowling balls.

Also, the highest and best routine is now the rule for asset managers and reo agents.

Most asset managers have no interest in counters and are first interested in a speedy resolution and secondarily in maximizing value.

My least favorite reo agent explicitly states that they accept no phone calls and will not counter offer.

They also have the nickname “the slasher” for their low prices. Its pretty common to do business this way right now.

[urbanrealtor]

Comparing Reo’s to Shorts is comparing apples to bowling balls.

Also, the highest and best routine is now the rule for asset managers and reo agents.

Most asset managers have no interest in counters and are first interested in a speedy resolution and secondarily in maximizing value.

My least favorite reo agent explicitly states that they accept no phone calls and will not counter offer.

They also have the nickname “the slasher” for their low prices. Its pretty common to do business this way right now.

[urbanrealtor]

Comparing Reo’s to Shorts is comparing apples to bowling balls.

Also, the highest and best routine is now the rule for asset managers and reo agents.

Most asset managers have no interest in counters and are first interested in a speedy resolution and secondarily in maximizing value.

My least favorite reo agent explicitly states that they accept no phone calls and will not counter offer.

They also have the nickname “the slasher” for their low prices. Its pretty common to do business this way right now.

[urbanrealtor]

Comparing Reo’s to Shorts is comparing apples to bowling balls.

Also, the highest and best routine is now the rule for asset managers and reo agents.

Most asset managers have no interest in counters and are first interested in a speedy resolution and secondarily in maximizing value.

My least favorite reo agent explicitly states that they accept no phone calls and will not counter offer.

They also have the nickname “the slasher” for their low prices. Its pretty common to do business this way right now.

[urbanrealtor]

Comparing Reo’s to Shorts is comparing apples to bowling balls.

Also, the highest and best routine is now the rule for asset managers and reo agents.

Most asset managers have no interest in counters and are first interested in a speedy resolution and secondarily in maximizing value.

My least favorite reo agent explicitly states that they accept no phone calls and will not counter offer.

They also have the nickname “the slasher” for their low prices. Its pretty common to do business this way right now.

[sdrealtor]

Urbanrealtor,
The agent has both sides. I know this because it is my business to know these things in this area. It is very easy for an agent to underprice and bring a low offer to the bank of his/her own. Even if the bank turns it down, they stand a good chance of getting a rock bottom price to give to their buyer.

SD R,
The agents fiduciary responsibility is to the seller not the lender. It is often in sellers best interest to get the property sold as quickly as possible for whatever the bank will accept while agreeing to release them from deficiency judgements in the future. Countering a bunch a short sale offers creates harsh feelings among those that brought the offers and adds undue complications to the process. The best strategy IMO is to bring a well qualified offer at a market justiable price to the lender in order to obtain the approval. Once you have the approval, you can sort out who is still around, who still wants the house and who is offering the best price/terms. From that point a new approval is very easy if it is at or above the approved price. Short sales are a very different animal to manage as a listing agent.

sdr

[sdrealtor]

Urbanrealtor,
The agent has both sides. I know this because it is my business to know these things in this area. It is very easy for an agent to underprice and bring a low offer to the bank of his/her own. Even if the bank turns it down, they stand a good chance of getting a rock bottom price to give to their buyer.

SD R,
The agents fiduciary responsibility is to the seller not the lender. It is often in sellers best interest to get the property sold as quickly as possible for whatever the bank will accept while agreeing to release them from deficiency judgements in the future. Countering a bunch a short sale offers creates harsh feelings among those that brought the offers and adds undue complications to the process. The best strategy IMO is to bring a well qualified offer at a market justiable price to the lender in order to obtain the approval. Once you have the approval, you can sort out who is still around, who still wants the house and who is offering the best price/terms. From that point a new approval is very easy if it is at or above the approved price. Short sales are a very different animal to manage as a listing agent.

sdr

[sdrealtor]

Urbanrealtor,
The agent has both sides. I know this because it is my business to know these things in this area. It is very easy for an agent to underprice and bring a low offer to the bank of his/her own. Even if the bank turns it down, they stand a good chance of getting a rock bottom price to give to their buyer.

SD R,
The agents fiduciary responsibility is to the seller not the lender. It is often in sellers best interest to get the property sold as quickly as possible for whatever the bank will accept while agreeing to release them from deficiency judgements in the future. Countering a bunch a short sale offers creates harsh feelings among those that brought the offers and adds undue complications to the process. The best strategy IMO is to bring a well qualified offer at a market justiable price to the lender in order to obtain the approval. Once you have the approval, you can sort out who is still around, who still wants the house and who is offering the best price/terms. From that point a new approval is very easy if it is at or above the approved price. Short sales are a very different animal to manage as a listing agent.

sdr

[sdrealtor]

Urbanrealtor,
The agent has both sides. I know this because it is my business to know these things in this area. It is very easy for an agent to underprice and bring a low offer to the bank of his/her own. Even if the bank turns it down, they stand a good chance of getting a rock bottom price to give to their buyer.

SD R,
The agents fiduciary responsibility is to the seller not the lender. It is often in sellers best interest to get the property sold as quickly as possible for whatever the bank will accept while agreeing to release them from deficiency judgements in the future. Countering a bunch a short sale offers creates harsh feelings among those that brought the offers and adds undue complications to the process. The best strategy IMO is to bring a well qualified offer at a market justiable price to the lender in order to obtain the approval. Once you have the approval, you can sort out who is still around, who still wants the house and who is offering the best price/terms. From that point a new approval is very easy if it is at or above the approved price. Short sales are a very different animal to manage as a listing agent.

sdr

[sdrealtor]

Urbanrealtor,
The agent has both sides. I know this because it is my business to know these things in this area. It is very easy for an agent to underprice and bring a low offer to the bank of his/her own. Even if the bank turns it down, they stand a good chance of getting a rock bottom price to give to their buyer.

SD R,
The agents fiduciary responsibility is to the seller not the lender. It is often in sellers best interest to get the property sold as quickly as possible for whatever the bank will accept while agreeing to release them from deficiency judgements in the future. Countering a bunch a short sale offers creates harsh feelings among those that brought the offers and adds undue complications to the process. The best strategy IMO is to bring a well qualified offer at a market justiable price to the lender in order to obtain the approval. Once you have the approval, you can sort out who is still around, who still wants the house and who is offering the best price/terms. From that point a new approval is very easy if it is at or above the approved price. Short sales are a very different animal to manage as a listing agent.

sdr

[urbanrealtor]

[quote=sdrealtor]Urbanrealtor,
The agent has both sides. I know this because it is my business to know these things in this area. It is very easy for an agent to underprice and bring a low offer to the bank of his/her own. Even if the bank turns it down, they stand a good chance of getting a rock bottom price to give to their buyer.

[/quote]

Yeah. I have not experienced that at all.
However, your area may function a touch differently.

I have found that the bank does not differentiate whether or not the thing is double-ended.

How does the underpricing get a better number for their buyer if the lender turns it down?
(not to say it can’t but I don’t see the connection)
Perhaps you are implying that it lowers the expectations on the part of the lender?

Also, aren’t the approvals generally governed by BPO’s?
(that’s what I am seeing)

[urbanrealtor]

[quote=sdrealtor]Urbanrealtor,
The agent has both sides. I know this because it is my business to know these things in this area. It is very easy for an agent to underprice and bring a low offer to the bank of his/her own. Even if the bank turns it down, they stand a good chance of getting a rock bottom price to give to their buyer.

[/quote]

Yeah. I have not experienced that at all.
However, your area may function a touch differently.

I have found that the bank does not differentiate whether or not the thing is double-ended.

How does the underpricing get a better number for their buyer if the lender turns it down?
(not to say it can’t but I don’t see the connection)
Perhaps you are implying that it lowers the expectations on the part of the lender?

Also, aren’t the approvals generally governed by BPO’s?
(that’s what I am seeing)

[urbanrealtor]

[quote=sdrealtor]Urbanrealtor,
The agent has both sides. I know this because it is my business to know these things in this area. It is very easy for an agent to underprice and bring a low offer to the bank of his/her own. Even if the bank turns it down, they stand a good chance of getting a rock bottom price to give to their buyer.

[/quote]

Yeah. I have not experienced that at all.
However, your area may function a touch differently.

I have found that the bank does not differentiate whether or not the thing is double-ended.

How does the underpricing get a better number for their buyer if the lender turns it down?
(not to say it can’t but I don’t see the connection)
Perhaps you are implying that it lowers the expectations on the part of the lender?

Also, aren’t the approvals generally governed by BPO’s?
(that’s what I am seeing)

[urbanrealtor]

[quote=sdrealtor]Urbanrealtor,
The agent has both sides. I know this because it is my business to know these things in this area. It is very easy for an agent to underprice and bring a low offer to the bank of his/her own. Even if the bank turns it down, they stand a good chance of getting a rock bottom price to give to their buyer.

[/quote]

Yeah. I have not experienced that at all.
However, your area may function a touch differently.

I have found that the bank does not differentiate whether or not the thing is double-ended.

How does the underpricing get a better number for their buyer if the lender turns it down?
(not to say it can’t but I don’t see the connection)
Perhaps you are implying that it lowers the expectations on the part of the lender?

Also, aren’t the approvals generally governed by BPO’s?
(that’s what I am seeing)

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