FNMA Agents Unresponsive. What do you think?

Question

Howdy,

Have you experience FNMA agents to be somewhat unresponsive?  I typically get a call within an hour from regular MLS listings, but it seems FNMA listing agents drag their feet a bit.

Can they do double agencies?

Frank

Brie Schmidt · Answer

Your welcome!

Brie Schmidt · Answer

It is against the law for her to accept any money from anyone other than her managing broker.

Also, here is the dual agent part the seller must approve.  I personally cross it off all my listing contracts as I would never let a seller sign it.

Frank S. · Answer

This helps tremendously to comprehend their attitudes.

Last night, I tried to sweet talk the listing agent of an REO in C+ area, and she was cold. She gave me the impression she couldn't' care less for my business. I offered cash once the property was released to investors.

Perhaps, I should offer a "listing agent bonus" and see if that resonates.  Will this create a fiduciary liability?  What do you think BPs?

Once again, thanks a lot, this forum is awesome.

Frank

Russell Brazil · Answer

The agents listing FNMA properties, as well as other REO's are doing so a very very steep discount.  Therefore, the buyers agent is essentially going to do 100% of the work in the transaction.  And FNMA does not allow their listing agents to represent a buyer even in states where it is legal to do so.

Frank S. · Answer

Outstanding, thank you very much for taking the time to explain. I have a much better understanding.

Frank

Brie Schmidt · Answer

REO listing agents get very little commission because it is very hands off and they do so much volume.  The buyers agents get more than usual a lot more work than a normal transaction.

I guess I don't really understand why you are fighting so much for a dual agent.  The contract with the seller is for a set amount of commission no matter who brings the buyer, so you aren't getting a discount on the price because the seller has to pay it if there are two agents involved or just one.

Secondly, using a buyer's agent is free, so why would you want to expose yourself to more risk for no reason?

As far as why we avoid being a dual agent, the reasons for avoiding it are endless.  In a normal transaction (as the buyer's agent) I can run the CMA for you, coach and strategize with you on the terms of the contract (price, earnest money, tax prorations, closing date, provisions) and explain and strategize any counter offer.  After the inspection I can advise and negotiate repair items or credits and offer advice along the way.  In a dual agent situation I can provide you with the CMA and then enter items on the contract/counter offer per your direction providing not a single piece of advice or direction.  Understand on the seller side I can also offer no advice or direction, and since my contract states a set commission no matter who brings the buyer, he is paying the same and getting less services.  Many sellers will indicate on the original contract that they will not allow it (they have to initial on the contract that they will or will not allow it prior to signing)

Even if I was a brick wall on all advice provided to both parties and did everything legally and ethically - my chances of a lawsuit increase dramatically because I was in a dual agent situation.  One party could come back and say they were wronged.  In a non dul agent situation that can't happen because I do not know personal details about the other side.

Frank S. · Answer

Great explanation,  Thanks for the feedback!

Frank S. · Answer

Well, I'm trying, buddy; I'm trying.   Thanks a lot for the feedback, I appreciate it.

Mike Cumbie · Answer

Hi @Frank Sanchez,

I think that would cause a liability. Essentially they have loyalty to the seller. Accepting any "extra money or compensation" from a different party could at best give the impression of something shady. I don't think many would want to be standing in front of a board "So when you accepted that $500 from a buyer, were you acting in the best interest of your client the seller?"

Just my thoughts, Good luck in your investing!

Frank S. · Answer

Thanks a bunch for the feedback. It seems FNMA is a pain, but yet I see a few agents listing recurrent FNMA properties, sometimes more than one at the time. The pay must be good if this is hands off operation.

I can see the liability for it can create fiduciary concerns, any other reasons why they shun upon double agent transactions?

thanks!

FNMA Agents Unresponsive. What do you think?

Most Popular Reply