Mike Curley, Broker (36 years), Richmond VA
I spoke to a prominent listing broker here in CA recently and he was very helpful, but in his listing, he still had the disclaimer that HOA docs, delinquency rates, etc were the responsibility of the buyer and the buyer's agent to research. He shared how the process goes and where to register to be able to show HUD homes. With that said, he was definitely the most proactive HUD listing agent I've ever spoken to.
I am hoping a HUD listing broker reads my post, or a HUD listing agent.
The overall process has changed, if the process changes should parties involved in the process think things should stay the same and they should not handle their role in the process differently.
I think the new process is just way too new to be addressing it right now. But I'm annoyed that the listing agent is contacting me to find out when the thing will close (so he can get his commission,) That is of course my speculation on why he's needing to know that.
I apologize to any gentle readers if my directness and terseness over this seems over the top. I just get a little impassioned over fairness and duty. Thanks!
Like I said, I agree with you...but I don't see that happening unless the HUD vendor pushes the issue here. I understand your question and the way you put it. but doesn't change how I think things will happen. Unless it is a graded item, MOST of these listing agents don't really care. Just because they get 3% doesn't mean they'll do the work. I agree - they should but I don't think they will. That was the point I was making.
I disagree for a couple reasons. Yes I know a HUD home is a government foreclosure and is for the most part the same as a bank foreclosure. They are the same, however. Here's where I bring issue.
The Status Quo for how listing agents of HUD properties up until this month made sense, listing agents were (as far as it has been explained to me in the past) paid a flat fee for listing HUD homes. I have purchased HUD homes and represent Buyers purchasing HUD homes. I've gone through the process and understood it enough to know that listing agents with the old process basically place it in the MLS and get a hud knob lock on it. I was fine with that. I can also be fine with the new process where the listing agent doesn't usally lift a finger to help the buyer's agent collect HOA docs and essentially manage/field questions from the buyer/buyer's agent. I agree they may paint or do other things to make sure property shows well. But that's that.
Now this month, this process has now changed, one way it's changed is HMBI no longer is the liason between the buyer/buyer's agent and HUD. Now the liason is a new vendor, in fact several new vendors. Not only has the vendor/liason officially changed but(and I don't know the exact new guidelines) the commission paid to both the buyer's agent and listing agent has also changed. Now the listing agent and buyer's agent split a standard 6% commission. Before the buyers agent got 5% and the listing agent zero %. Now with this new commission split, although it could still be compared to a bank foreclosure where the listing agent does very little once the buyer/buyer's agent submits the offer, I still think HUD listing agents do owe more of a duty to assist on the listing side of a HUD foreclosure because they are now splitting a standard 6% commission.
The only problem with my personal opinion is that the process has changed but does HUD now require it's listing agents to provide a higher level of service because they are getting a normal commission. I don't know. My gut feeling is HUD listing agents likely still want to treat the process like the old way, and I just don't think that is the way it should be handled. IMHO that is all.
My originial question was based on this information should listing agents of HUD homes feel more obligated with the new process. I the buyer's agent is doing all the work, my 5% commission has been reduced to 3% and the listing agent is getting 3% for what? listing the HUD home?
I am looking for input from realtors that have represented buyers in the old HUD process and are starting to go through the new HUD process.
The settlement attorney that is handling all the HUD transactions in my area is not even aware of the new process and how things have changed, and as I go through the new process I have been having to explain the process to the HUD settlement attorney.
If I bring an offer for a HUD home I expect the HUD listing agent to give me more duty because they are getting the same amount of commission I am.
Others thoughts on this?
A HUD home is still a foreclosed one. You'll get the same treatment for HOA docs or asking questions. Should they do more? I think so...will they? Nope. It's not an item on their grading scale so it's not something they spend too much time worrying about.
I understand what you are saying about investors having to wait, it's an entirely subjective point of view, HUD believes that if someone is going to live there then no matter the condition of the property, owner/occupants should be given a shot first. Investors have usually always had to wait a month before bidding. That is understandable.
Ryan, I know what you are talking about with out of town agents but to be honest I list properties out of my area all the time, I belong to multiple MLS systems throughout Virginia, and know areas outside of my area, I list them because I have the connections and know how to get them sold even though I live 2 hours away.
Although I am talking about HUD homes here both of you did not address the question I proposed. I am looking to discuss the new HUD process and determine if listing agents of these HUD homes should start taking on more responsibility on the listing side than they did before the new process was put in place at the beginning of December.
I do wish there was a section on Trulia they separated Government Foreclosures from Bank Foreclosures. That would be a good start.
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
What are everyone else's thoughts.