Foreclosure in Crown Heights>Question Details

Artlee, Home Buyer in Crown Heights, Brook...

I am trying to buy a foreclosure in Crown Heights Brooklyn NY, the REO agent is also the broker, how do I know he has made a fair asessment?

Asked by Artlee, Crown Heights, Brooklyn, NY Sun Feb 13, 2011

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What you are talking about is called "Duel Agency" and it is not allowed in our court systems BUT it is in Real Estate. Goole it for risks, or simply click on my profile as I wrote a blog about it. If you are concerned about YOUR best interests in this transaction, simply get a buyers agent from a different brokerage to represent you.

Best of luck.
Spirit
1 vote Thank Flag Link Sun Feb 13, 2011
Just to divert a little we always tell people not to focus soley on REO or short sales for good deals.

Consider estate and guardianship sales as another silo of properties to explore. We have seen better deals with quicker close times than some REO and short sale transactions.

Bonnie Chernin and David Rogoff
Fillmore Real Estate Branch #19
2926 Avenue J
Brooklyn NY 11210
917-593-4068 (David’s Cell)
646-318-5031 (Bonnie’s Cell)
davidrogoff@fillmore.com
0 votes Thank Flag Link Fri Feb 25, 2011
REO deals can be tricky and time sometimes. If you are doubtful about your ability to negotiate the the best deal for yourself; you should get your own Realtor to represent you. REO can be more risky than a regular deal, you should be ready to assume a higher level of risk.

I also have 2 REO properties in Crown Heights, contact me if you want to check them out .
0 votes Thank Flag Link Wed Feb 16, 2011
If by assessment you mean asking price, the REO broker does not determine that price or any other price. The owner of the asset, the bank or investment company will instruct the REO listing broker on what price to list the property at and subsequent price reductions if necessary.
0 votes Thank Flag Link Tue Feb 15, 2011
The REO agents/Brokers do not make the call, their manager or their banker is the one who accepts all offers and then select the best offer.
And they have to get multiple offers.
Rgds,
Manu Kapoor
347-753-0400
0 votes Thank Flag Link Sun Feb 13, 2011
Artlee,

The seller’s agent is to get the best price FOR THE SELLER – not you. Get your own agent to represent YOUR interests. Your agent will help you determine the right price to offer for the property.
0 votes Thank Flag Link Sun Feb 13, 2011
Get your own realtor.

The list price is merely a starting point and it truly depends on what pricing strategy the listing broker uses and what his REO asset manager has directed him to do,.

Your realtor, on the other hand, should be well-versed with REO sales, market conditions, and also get as much information as he can on this foreclosed property (when it foreclosed, for how much, what its current value would be in a distressed market).

Don't go by what the listing broker's list price: sometimes, the listing agent may price the property artificially low to generate the most interest, or artificially high expecting that buyers wil submit low-ball offers.

Your best bet is to get your own representation --- an agent who is looking out for your best interests. And if you don't get this property at the price you're willing to pay, your agent can surely find other possibilities.

Good luck!
0 votes Thank Flag Link Sun Feb 13, 2011
Hi Artless, What we do in a case like this is ask the Buyer to go get their own Agent one with a great deal of experience in foreclosures, prehaps a broker or Broker Assoicate and at which point we would neg. with what would become your Agent for commissions based on the fact you saw the home with us. We would then have your own agent put in the offer and take it from there. It's hard when your both a buyers agent and a sellers agent, so much doubt and mistrust can come of it.
We're fairly certain that your fine and that the Broker is being honest and straight forward. An appraisel will determine this with certainty. We only suggest the other Agent because you seem to be worried enough to ask this question. Again we feel all is fine and that prehaps you just need alittle reassuring that it is.
A foreclosure has already had whats called a BPO so the bank knows the fair price of this property. What the Broker thinks it will sell for and most likely some prelimary inspections has also been done.

We hope this helps.

All the Best

Dave & Lisa
Web Reference: http://www.urhomerealty.net
0 votes Thank Flag Link Sun Feb 13, 2011
I might say its a worthwhile expense to hire an appraiser to value the property for you. You'll have an idea of what the price might be around and the benefit is you're paying him/her so you are the client.
0 votes Thank Flag Link Sun Feb 13, 2011
Dear Artlee:

It is not up to the broker to make the assessment, it is up to you. You need to do research and look at similar homes that have sold in the area during the past six months and also similar homes that are currently for sale. Once you do that you will have a better understanding of where the market values are at and feel more confident that you are getting a good deal.

Beauty is in the eyes of the beholder and everyone is entitled to their opinion. You can go on web sites like http://www.Trulia.com, http://www.Zillow.com and http://www.PropertyShark.com to do the research. You should also have a good attorney helping you out! If I can be of further assistance please let me know. Good luck!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Sun Feb 13, 2011
When referring to 'assessment' in regards to the list price, the broke/agent does not set the price, the seller (bank) does. But as stated before, obtaining your own representative, making sure to perform inspections, ect is very wise.
0 votes Thank Flag Link Sun Feb 13, 2011
Their is no way to know that. Most REOs are "AS IS" you just have to do your due diligent. Good luck!
0 votes Thank Flag Link Sun Feb 13, 2011
It depends on the agent .. If you have concerns obtain your own Realtor HOWEVER your lender will not allow you purchase a home overpriced

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Sun Feb 13, 2011
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