REO Agent Won't Respond.....Options ?

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REO Agent Won't Respond.....Options ?

Pamela LEE
Investor · LINCOLN, AL · Member since 2012 · 21 posts · 1 vote

I found an REO my 85 year old Mom wants to buy in lieu of getting a place in FL. It is closer. I finally got in touch with the listing agent and he said he could get me a good deal if I went with him. I was not comfortable with the dual agent thing for conflict of interest, so went with a buyer's agent. We submitted the first offer, no response, he resubmitted it, and got a counter with only a few dollars off, we submitted a 2nd offer, and the counter was higher than the last. At this point, I got confused. My agent tried to get in touch with the listing agent to find out what was going on, and could not reach him. He basically said he could not help me with this and for me to go to the listing agent and call him out on his offer. Talk of ethics was brought up and bypassing the agent to the seller, but he did not want to do anything to stand in the way of getting this house for my Mom. I finally reached the listing agent again, and he basically said there was another offer, and if I were to offer such and such, I would probably get it. I over bid just to be safe, and he was supposed to submit it that day, and call the seller at my request to say we were putting in a bid. I did not hear from him for days and days. He did not submit it that day, but 3 days later, and after my persistence, and more days passing, he emailed that a higher bid got it, and after further persistence, he said it got multiple offers. No more response from him. Found out all of that was untrue, and it has no offers on it right now. My question is how do I buy this house for my Mom ? Can I bypass him and go straight to the seller ? Noone will tell me the sellers name. Do I call his agency ? Since ResNet is a portal for agents, then he has control of the bids, rejecting, and so forth, right ? If the seller gave him directions to just get the highest bidder or whatever terms, then it's up to him, right ? I don't know how to do this. I would of walked a long time ago, but my Mom loves where this is, and I want to do it for her. She needs a peaceful place to enjoy. Please, if anyone has any advice or suggestions, it will be greatly appreciated.

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Patricia Steiner
Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
7y

The #1 thing you can do - right now, just you - is to stop making this one property a "gotta have at all cost" home.  When you do, you lose all negotiating power.   

The second thing you can do is to stop making this about the REO agent. You need to understand how that world works and the role of the REO agent: The REO agent prepares the property for market on behalf of the institution, completes the valuation and marketing of it. What he doesn't do is award bids. He's not the owner. He is not the decision maker. The financial institution (the owner) decides which bids are the best in terms of price, terms, and best chance of closing the quickest. It's an analytical process - not emotional. The institution counters and awards bids and communicates through the REO agent. Bottom line: The REO realtor cannot tell you what to bid or accept your bid. Stop dealing with him. You're wasting your time and energy.

So-o-o, what's the real problem here?  It may be your bid - or the terms, or the way it is written - or the lack of proof of funds/pre-qual, or a whole host of factors. It may be that there's been so much interest that the institution is willing to hold out a bit longer for a cash offer or higher one. You should also know that REO properties are a favorite with cash buyers and both local and out-of-state investors so the competition can be great.

What to do?  Get another realtor. Find a realtor who is a high producing buyer's realtor in your market.  Someone who knows how to win. The realtor will write the offer - provide supporting documentation proving you can close; you need to stay out of the way and let the realtor advocate and win this for you.  You should have no communication with the REO Agent or the institution.  None.

And, I simply cannot believe that this is the only house - on market or not - that is the only right one for Mom.  That's a lot to put on something that is simply brick and mortar.  

Your mother is blessed to have a daughter who so wants her to have what she wants when she wants it.  You can't win if you don't know how the game is played - and if you make it an emotional play.  I hope you'll find the right realtor to represent you and Mom - and let that person get it done for you.  




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  • Pamela LEE
    OP
    Investor · LINCOLN, AL · Member since 2012 · 21 posts · 1 vote
    7y

    You have all rallied around me to give me some great suggestions on how to handle this situation.  I am trying my best to listen and apply your wisdom.

    I dont think it's a coincidence that this listing agent is so difficult to reach. Like Steve said, he doesn't have any incentive. In my case, it actually works in our favor, because nobody else can reach him too, so we are clear to have a shot at it. What are the odds of that ?

    As the saying goes, location, location, location.....and Mom loves this place. I can not give up on it. If we can't get it, then so be it, but until then, I am going to try....for her. Obstacles do not phase me, I just keep trying other ways around them.

    If you were all my agents right now, what would be your plan of action ? Make a full price offer, cash, and quick closing ? What about the name, put the offer in a different name ? If it goes through ResNet, it still gets to the seller, and the listing agent has no say in it, or could they have given him that responsibility ?

    As a side note, the current realtor has sent me really bad pictures of the house as if she is trying to make me change my mind about putting an offer on it, so I think she wants it. I dont know why else she would be so personal about it. One more obstacle to jump over. If I have her put an offer in on it, and she tries to buy it herself, how will I ever know ? It was said, she couldn't do that, or get in trouble, but lots of people involved with this seem to not be following the rules.

    Let's turn this thing around, and bring in a victory.....for Mom !!!! I know we can do it !!!!

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  • Pamela LEE
    OP
    Investor · LINCOLN, AL · Member since 2012 · 21 posts · 1 vote
    7y

    In case you're wondering why I just won't give up, and where this "fortitude" comes from (thanks Ola)....where Mom is living now has become unsafe for her. Somebody broke in her window while she was standing inside the house watching the curtain move. I guess they sensed her or heard the TV or something and left, but they came back and stole her lawn mower. Mom is not the scardy cat type, but it freaks me out !!!! Thank God they left and my Mom was not hurt, but I want her safe.

    This house in question is up on a hill and private, and you can't even see the house unless you drive up the windy driveway. 

    She's independent and I want to help her stay that way.

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  • Irina Belkofer
    Real Estate Broker · Cleveland, OH · Member since 2017 · 719 posts · 658 votes
    7y
    Originally posted by @Pamela LEE:

    Just a few thousand off list, so are they waiting for list price  ?  Keep putting in offers until I get some feedback ? The last buyer's agent never did hear back from the listing agent, so we dont need to worry about that ? How will we get word, if he wont respond to us ?

    Most likely, they posted low price to attract the buyers but waiting for their specific number. Listing agent has nothing to do with the process, he just listed this house. It’s not 2009-2012 any more, it’s the sellers market, they can and they will get top price.

    Most houses go higher than asking price, sometimes ridiculously higher. Auction.com is notorious about that: there was a listing for $60K+ in an area with $200K, REO and in very decent shape. Obviously, there was bidding, however, the house was on the market for few months. I asked my client to check out how high needs to be a bid to at least get a counter offer - he got a counter only at $164K. House get sold for $185K.

    Minimum bid has nothing to do with the price they are willing to sell for. In this market every REOget sold for higher than asking price. Last house my client bought was $6K higher than asking $66K - almost 10%. Still was a good deal

    If this is an emotional purchase (and it sounds like the one) you have to keep rising the price until you meet some reaction from the seller. 
     

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  • Lydia S.
    Real Estate Agent · Albuquerque, NM · Member since 2015 · 542 posts · 193 votes
    7y

    You initially said:  We submitted the first offer, no response, he resubmitted it, and got a counter with only a few dollars off, we submitted a 2nd offer, and the counter was higher than the last.

    Why didn’t you accept that first counter offer?    

    And Why did you write a second offer instead of countering the first if it wasn’t acceptable to you?

    2Reply
  • Mike CumbieBusiness Member
    REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
    7y

    If I was your agent (and I am not).I would say "quit complicating it and make a bid". Nothing except what is on paper matters. They countered with what they would accept. They gave you the number. Everything else doesnt matter. You can never make them accept what you want to pay, but they told you what number less than asking they would take. If this is really "the one" then pay asking for it. Emotional decisions cost more than pure numbers.

    Good luck!

    2Reply
  • Pamela LEE
    OP
    Investor · LINCOLN, AL · Member since 2012 · 21 posts · 1 vote
    7y

    I thought I was making a counter offer to what they asked for. Maybe the realtor kicked it out of play. I was willing to go up higher. Didn't get any advice on what best to do. In the past, got one shot at highest and best and it was a done deal. This time it's just been nuts.

    Do I re-offer in my Mom's name ? Give them  list price ? Ready to get this thing done. If I could change my agent right now, I'd go with one of you guys/girls !!!!!

    Sorry to be such a bother.

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  • Sam Shueh
    Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
    7y

    Price FIXING is illegal anywhere. He is using your offer to bump up other offers. Suggest you turn him in through State Dept of Real Estate. Serious offenders are out of a license for good.

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  • Pamela LEE
    OP
    Investor · LINCOLN, AL · Member since 2012 · 21 posts · 1 vote
    7y

    OK, yes he is on my radar, and needs to answer for this chaos, but want to get the house first, then he can pay the piper.

    So what, call the seller, the agency, put in another bid, what ?

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    7y
    Originally posted by @Sam Shueh:

    Price FIXING is illegal anywhere. He is using your offer to bump up other offers. Suggest you turn him in through State Dept of Real Estate. Serious offenders are out of a license for good.

     That is not even close to what price fixing means. Agents are 1000% supposed to leverage offers into creating a higher sales price. Thats their job. If they are not doing that then they may be in fact breaking the law because then they would possibly have violated their fiduciary duty to their client.

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  • John Clark
    Member since 2018 · 1k+ posts · 1k+ votes
    7y

    "Can I bypass him and go straight to the seller ? No one will tell me the sellers name."

    -----------------------------------

    The county recorder of deeds will have the deed showing who has title.That's easy. You can submit your offer directly to the owner, but you probably will still see a commission charge, as the seller has an agreement with the agent. Don't think you can get away with offering less because the offer went directly to the seller. Make sure you let the seller know in a short, curteous, letter, that your prior offers were being ignored by his agent.

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  • Lydia S.
    Real Estate Agent · Albuquerque, NM · Member since 2015 · 542 posts · 193 votes
    7y

    @John Clark

    She states this is an REO, in which case there is no Mr. or Mrs. seller, it's a bank or institution. Buyers won't have any luck calling them up and asking to speak about this property when it's listed through an agent.

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  • John Clark
    Member since 2018 · 1k+ posts · 1k+ votes
    7y

    @Lydia S.

    "She states this is an REO, in which case there is no Mr. or Mrs. seller, it's a bank or institution. Buyers won't have any luck calling them up and asking to speak about this property when it's listed through an agent."

    ---------------------------------

    I've never had a problem calling a bank and asking for the REO manager's name and address. Telling that person that the agent is not passing on offers always got me a response from the bank. With any luck, the broker/agent got a kick in the arse as well.

    2Reply
  • Mike CumbieBusiness Member
    REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
    7y

    Price fixing is where we are at auction and I say "I won't bid on this one, you don't bid on that one". OR "We are the only two agents, lets charge 24% commission and not work weekends". 

    In this case though it sounds like it is just flowing through the process. Throw an offer in that is what they countered with. Most REO agents (at least the ones I know) do not know or care what the thing sells for. They just maintain the property and send out their handypersons to secure it. Actually the quicker it sells the less visits they have to pay someone to do. They gave you the number give it back to them attached to an offer.

    1Reply
  • Ron S.
    Paradise, CA · Member since 2015 · 1k+ posts · 871 votes
    7y

    It's painfully obvious this is an emotional purchase objective. There is a sense of desperation in the tone and language. That makes everything and everyone suspect and suspicious. It's a simple transaction, as many have pointed out. Even rookie agents know to tell their clients to detach themselves emotionally from the transaction or they will drive themselves crazy and surely end up disappointed. '

    If you've done as others have suggested which is, to make your highest and best offer, that's all you can do. No, you aren't going to be making an offer to the seller. No, you aren't going to be talking to the seller. Yes, you can complain all you want to that agent's broker, or that agents regulatory body at the local or state level but, I suspect your complaint will fall on deaf ears as it appears they aren't doing anything wrong. They might be horrible at customer service but based on what i read, not doing anything unethical or illegal. 

    1Reply
  • Pamela LEE
    OP
    Investor · LINCOLN, AL · Member since 2012 · 21 posts · 1 vote
    7y

    OK, so I have detached myself somewhat from this process, got someone looking into it for me, and going to try for last highest offer they countered with and hope for the best.

    The listing agent in question has been notoriously scooted from one agency to another, and "has his own way of doing things," and everyone knows he's difficult to do anything with.

    In my opinion, if he represents the broker, he should be accountable for his actions, or lack thereof, because it reflects back on them, hence all the shuffling around part.

    I was told the broker owns the listing, not the agent. Is that correct ?

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    7y
    Originally posted by @Pamela LEE:

    OK, so I have detached myself somewhat from this process, got someone looking into it for me, and going to try for last highest offer they countered with and hope for the best.

    The listing agent in question has been notoriously scooted from one agency to another, and "has his own way of doing things," and everyone knows he's difficult to do anything with.

    In my opinion, if he represents the broker, he should be accountable for his actions, or lack thereof, because it reflects back on them, hence all the shuffling around part.

    I was told the broker owns the listing, not the agent. Is that correct ?

     You are still missing a huge point here. On a resnet property you do not need to have any contact with the listing agent what so ever. Zero, zilch, nothing. Its an online portal submission process. You simply need an agent with a resnet account.

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  • Pamela LEE
    OP
    Investor · LINCOLN, AL · Member since 2012 · 21 posts · 1 vote
    7y

    I was simply giving everyone an update on what was going on so far, because everyone has been so super nice to give me advice. I really appreciate each and every one sharing your wisdom and expertise with me. Hoping it will work out. Will let you know.

    1Reply
  • Pamela LEE
    OP
    Investor · LINCOLN, AL · Member since 2012 · 21 posts · 1 vote
    7y

    I was advised to call the broker by the newest agent, because she was said to be easy to work with. She listened to my story of problems getting in touch with her agent and what he said to me when I did talk to him the 2 times, and listened to every word. She said she would find out what was going on. She said it was still active, there were no offers on the property now and they did accept financing with pre-approved letter, and copy of earnest deposit. 

    She called back and said the agent said it was cash only and they accepted an offer a week ago, and they were waiting for the paperwork to go through. OK, so this was what I thought would happen. She is taking up for him. I said why is it not pending online then ? She said she asked that, and he said he was waiting for paperwork. 

    If ResNet has it available, is it?

    I dont believe any of this. It's all a bad dream !!!! She never said she was sorry on behalf of her agency, or that she spoke with him about his behavior. 

    I requested proof of this from the seller and asked her to call them directly. 

    She changed the subject, and wanted to know what I was looking for......

    This is a crazy world !!!!

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