Surviving the Winding Trail of REOs
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Working with other real estate practitioners in a market that has a glut of REO listings isn't always pretty. Or nice. Or even cordial. In fact I have noticed — and experienced — that it can be downright mean, dirty, and condescending.
Up here on the mountain (I live in Crestline, Calif.), there are a few real estate practitioners who have a thriving REO business. I have dealt with many of them, since the mountain is a target for investors looking to snag one of these deals right now. These agents have been overwhelmed with the foreclosures, but they still have the decency to call me back and provide information that I've requested, since we all know that we'll be doing business together again at some point in the future.
So I was surprised when a recent REO dealing didn't go smoothly. I had been working with an
investor that was seeking REO properties down the hill in Moreno Valley, Perris, and Ontario. The market in these areas is seeing multiple offers within hours of being on the MLS.
After all, NOW IS A GREAT TIME TO BUY IN OUR LOCAL MARKET, as I told someone at a wedding that I attended Saturday after overhearing him try to convince someone else otherwise (Note to self: carry business cards even to weddings!).
The investor I had been working with was trying to purchase income properties but each time we put in an offer in for an REO property we were 1 of 12 or 23 or anywhere in the void of non-acceptance. People are bidding on REO properties with either their heart or the eBay-mentality of shopping victoriously.
One day, I called an REO agent about an offer we placed on his listing on a Thursday. The agent said that there were about eight offers, and he would let me know after Tuesday. I didn't hear anything. So I called Wednesday morning.
He wasn't in the office, so I was sent to his assistant. Before even giving him the name of the client, myself, or the property, he said that the property was won by someone else (won?). I asked nicely how he knew that when I didn't give him my name or information. He said — and I somewhat quote — "Look, the other assistant already called the winner (winner again?) and you would have received a call if it had been you."
I was stunned into silence by the tone of his voice, as if I was keeping him from doing his job. I hung up.
Is this the first time an REO agent has treated me this way with this type of attitude? Yes. But unfortunately I have been talked down to several times while doing REO transactions — that is if I even get a response from the agent.
What has been your experience with REOs? How do you deal with difficult agents?
Amy Steele is a full-time REALTOR® with Bibby Realty in Crestline, Calif.



Comments
I have been selling real estate for 37 year. I have found that agents that handle REO properties and almost no other properties seem to be a little rude and its my way or the highway.I have tried to brake into the market but it seems like Freddie and Fannie have a few select agents and even as they go broke they will not permit new agents.B the way I have 10 years experience selling reo properties while with a different company.
Posted by: Ray Edwards | September 8, 2008 08:20 PM
I have been selling real estate for ten years and have met quite a few "bad" agents with no concern for ehtics especially in short sales they never call you up or inform you in any way we need to get rid of these so called agents. Any ideas?
Posted by: Eduardo Saavedra | March 29, 2009 11:16 PM
REO Agents have been smart enough to recognize where the future business was going to be early. Good for them for seeing the shift coming and positioning themselves to take advantage. However, I also have experienced some non-responsive Agents that have REO listings. I think it's sometimes being overwelmed and sometimes the Agent just doesn't meet, what I believe to be the minimum standard, in the way he or she treats other Agents.
Posted by: Greg Lanet | April 15, 2009 02:17 PM
I was the Executive Vice President of JPMorgan Chase and am sseing a huge disconnect between the banks and who and how they are assigming their listings. Bridging that gap through training on both sides is a personal goal of mine. Go to my website to offer tools, training and partnerships that will make successful REO transactions a vital part of your business today. www.LionsGateFN.com
Join me and my efforts.
Posted by: Deborah Leone | June 16, 2009 11:59 AM