Fountain SFH…, Other/Just Looking in Colorado Springs, CO

Is it better to make offers directly to listing agent when buying REOs? Does it give you an edge since he will get to double dip on the commission?

Asked by Fountain SFH investor, Colorado Springs, CO Sat Dec 18, 2010

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If you are an experienced buyer, then working dorectly with a listing agent that specializes in listing foreclosures can give you an edge. You can often get into foreclosures that are listed, but may not have a price yet or be cleaned out. it gives you time to see before they hit the market, do any inspections and assess what the home is worth to you. If you are not an experienced buyer, you may want a buyer broker that is expereinced in foreclsoures to guide you.

For a complete list of tips and advice for buying bank owned properties, please see my blog that is listed below.
1 vote Thank Flag Link Sat Dec 18, 2010
Phil is incorrect, a dual agent is not watching either buyers or sellers back more than the other and owes EQUALLY to both parties so you have an agent that is not looking out for the buyer anymore than the seller - Or that is the way it should be. Anything the buyer tells the dual agent can be shared with the seller and visa verse.

Scott is correct in that the listing agent often has several more bank owned homes on the horizon that will be listed sometime soon and so you can get an early look at homes about to be listed before your competition of buyers. A good experienced buyers agent and a decent first offer is a good combination to have.
1 vote Thank Flag Link Sun Dec 19, 2010
I dont believe there is any way around it. Maybe think of getting an agent?...
0 votes Thank Flag Link Mon Jan 10, 2011
you are always best using someone who is familiar with you and experienced in their job. You will not benefit from working with the listing broker, except that for a broker it is always easiest to work with yourself. Think of your broker as a trusted adviser. Find one you like and trust and can rely on. Ask for dedication and give it in return.
Web Reference: http://www.wendylucas.com
0 votes Thank Flag Link Wed Jan 5, 2011
No, I don't think so. REO agents represent the bank as listing agent, or as a dual agent if they represent both parties. You might want someone working on your behalf only, protecting you and your interests. We have listed and sold (brought buyers) to REO properties. There was no advantage to us as listing or buying agent with the REO transactions.
0 votes Thank Flag Link Wed Jan 5, 2011
Their are a number of reasons for having your own agent in buying a house. In answer to your question do you get an edge ~ I don't believe so. The REO agents fiduciary responsibility is to the seller for that listing. If you look at a house with them that is not their agent then they can be your agent but that takes away the edge for the two sided commission. My experience in working with buyers is that their negotiated price on an REO does not change based on the agent(s) involved.

Good luck!
0 votes Thank Flag Link Wed Jan 5, 2011
Whether the listing agent gets half or all the commission, the listing agent is representing the interest of the owner of record.
Who's watching your back?
Web Reference: http://www.321property.com
0 votes Thank Flag Link Sun Dec 19, 2010
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