View From Purcell, Oklahoma: Cut Rate REO fees: My Rant

Cut Rate REO fees: My Rant

There are several REO companies that are really sticking it to the agents.

Got one the other day from a company I had never worked with (actually confused it with one I work with all the time, names are EXTREMELY similar), anyway, took the listing.

  • Drive-by to confirm vacancy
  • Vacant: but it hasn't even completed the Sheriff's sale (Really, you didn't know that as the REO company?)
  • Wait 2 weeks while they complete the sale and complete 2 more weekly inspection reports
  • Numerous emails trying to explain the condition of the yard and shrubbery
  • Sheriff sale completed
  • Lock change and inspection of trashed house (immediate shower needed)
  • Listing BPO ordered and completed
  • Structure worth just a little more than a vacant lot in the area
  • Numerous emails concerning the condition of the house: missing shingles, ceiling falling in, entire exterior has flaking paint and rotted wood work, so much trash you can't see the floors, exposed wires
  • Explain again why utilities CANNOT be turned on (LOOK at the PICTURES that you required me to submit!)
  • YES! Another form: HOLD HARMLESS WAIVER must be signed before someone can show or look at property
  • Two days later weekly Driveby BPO must be submitted (Really? The Listing BPO doesn't confirm the house is still empty and still there?)
  • Get listing documents: $750 commission to listing side and $1500 to selling side (WHAT?)

    Commissions are broken down as followed:

               List Price $0-$50,000 – List Agent: $750 / Selling Agent: $1500

               $50,001 - $1,000,000 – 2.5% per side

              $1,000,000 & up – List Agent: 1.6%  /  Selling Agent: 2.5% (HA! Not around here!)

 

  • New interior BPO required every 25 days
  • Drive by with picture due every week
  • Required to provide two LEGITIMATE leads to the foreclosures mortgage company EACH month (Shouldn't I get a referral for those, since I am doing your work for you. If I don't I might not get anymore listing from them. Talk about a useless threat!)
  • Condition of property will make it ONLY applicable to investors (so no loan referrals, DARN) and you are looking at a sales price 50% of what they listed for (Doesn't a referral imply I am getting paid something? Oh yeah, more listings! SWEET!)

The only good, relatively speaking, thing about this property is it is located in town and close to my office. I live in a rural area and it isn't unusual for an REO property to be 20 miles from the office one way. I have had many that are 30-40 miles one way. The REO companies like to use "as the crow flies" mileage for how close a listing is, which works great in a city, but you can go miles around here without hitting an open section line, so trips get very round-about.

Will be first and last taken from this management company/lender. Not sure who is driving the fee changes, but the requirements are ridiculous. AND NO listing an REO is not SOOOOOO much easier than an owner occupied.

Licensed to SELL - Dedicated - Experienced - Honest - Than Maynard - Purcell, OK

Head shot

Than Maynard
REALTOR, CRB, Certified Short Sale agent, Certified Foreclosure Agent, Accredited REO Agent
Coldwell Banker Heart of Oklahoma Real Estate
1726 N Green Avenue, Purcell, OK 73080
CELL: (405) 990-8862
OFFICE: (405) 527-3012
www.cbheart.com

 

 

We never stop moving 3d

Comment balloon 4 commentsThan Maynard • June 21 2011 04:30PM

Comments

I think I might have said find someone else. That story is outrageous. We have to stand up to these guys or we will be screwed

Posted by Charlie Ragonesi, Homes - Big Canoe, Jasper, North Georgia Pros (AllMountainRealty.com) over 8 years ago

As long as they find a broker who will do it, they will try that stuff.  Not for me.

 

Posted by Marge Piwowarski, Phoenix AZ Horse Property, LLC (Phoenix AZ Horse Property) over 8 years ago

I'm sorry your job is so hard for so little pay. Why didn't you just turn it down?

Posted by Consumer over 8 years ago

All Mountain Realty: Yes, I agree.. Honestly felt I had done enough work before the fee was disclosed to not pass it up.

Marge: Exactly right. Won't be for me again from this company.

Consumer: Had already put too much into it. The agent they would have assigned it too would get all the benefit of my work without having to do anything.

 

The other company with the One letter different name pays a nice minimum commission on junk like this one and fair commission for everything else. I don't mind getting a little less when I do get repeat business from them, but there are times you spend a lot of time and money rehabbing a property for them and you do not get any benefit. Yes a higher sales price, but you spent 30 days or more getting bids, inspecting contractor work and PAYING the bills. Then 30-45 days later you get reimbursed. Basically, I become a General Contractor for free. And REO company wonder why so many agents just say "Sell it AS-IS!"

 

Posted by Than Maynard, Broker - Licensed to List & Sell - 405-990-8862 (Coldwell Banker Heart of Oklahoma) over 8 years ago

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