No Realtor should deter a potential buyer from a home or an area of town, they should never steer a buyer. A realtor is to provide a service to the buyer that is best suited for that buyer, not what is best for the Realtor. A bank will hire an agent to list the property and handle the questions coming form potential buyers and buyers agents. That listing agent is there to help facilitate the transaction and should be used more effectively. It gets frustrating as the agents do not feel they are working with a seller (bank) that is interested at times to make a transaction come together and some banks have no knowledge of the local market to that particular property and the agents and buyers will jump thru more hoops than required for a traditional transaction. When the seller(bank) gives approval, the Buyer MUST PERFORM quickly, have inpections lined up, appraisal done right away, must have had all their paperwork into their lender prior to the bank approving the terms of teh contract, time is of the essence when the Bank says Yes to the purchase.

A good realtor advises and doesn't deter a client from looking at foreclosed homes. Some agents have a personal bias about certain types of listings including short sales and bank owned properties. These types of sales take longer and can be frustrating to both the agent and the client. It takes longer to get questions answered, sometimes additional paperwork is required, there also may be very little wiggle room for negotiation the terms of the sale, and lastly it usually takes much longer for an approval than a regular sale. A agent who deters a client from this type of sale is not only disabling the buyer but also robbing themselves of the opportunity to grow with the marke conditions.

You need another agent, one that is willing to do more of what you want.

There are many more potential problems with foreclosed properties and the process can be very time consuming.

Foreclosures can be very tricky and if not handled correctly an agent could put their license at risk. Consequently, many agents will involve a middleman who does the actual negotiating with the bank. These are real estate attorneys and their fees are paid by the bank. My company works with a couple of these folks and will call them in depending on the complexity of the transaction.

The transaction can be made more complex depending on the seller's situation. Are they also filing bankruptcy or does this possibility exist? Is there more than one mortgage on the property? Are these mortgages with different companies? The financial institution holding the mortgage can also make the transaction more complex as some are easier to deal with than others.

Foreclosures or short sales can be a great deal for the patient buyer who does not get too attached emotionally to the property. It can take 4 to 6 months to close the deal as the financial institution can receive multiple offers. Frequently, you can not predict whose offer will be chosen. This decision is made by investors or the financial institution. Sometimes all offers are rejected and in other situations, properties may sell for more than their list price.

Many agents are hesitant to get involved with these kind of transactions for the reasons stated above. They are more work than the "normal" sale and their commission could be determined by the financial institution. The government agencies have recommended that financial institutions honor a 6% commission, but not all do. I have a colleague who had her commission cut at the closing table. This occurred within the past month. If a middleman is used, the possibility of this happening is decreased.

Hope this helps. Oh, by the way, I have heard that some of the "trashing" may occur after the buyer has made their offer. Sellers can stay in the property until closing. Some of them remove stuff over time and the property could be gutted. One colleague had a situation where even the sheet rock was removed! The buyer ended up with a shell.

Let me know if you have any more questions. These kind of transactions are increasing and agents need to be prepared. There is now special training available in dealing with "distressed properties". Unfortunately, this training is not widespread yet. I believe Florida is leading the way in training folks on how to deal with these properties.

Deborah Francis, GRI, ePRO, GREEN
Beverly-Hanks and Associates
Asheville, NC 28801
cell: 828-553-9019

Seedimon,

I am a full time Realtor who has listings in Midlothian and have sold in Midlothian. I do show foreclosures and short sales and have sold foreclosure and short sales. Some Realtors do not want to show foreclosures or short sales because it can be a lengthy and frustrating process. If your friends are patient and not pressed for time, then a foreclosure or short sale can be a great deal for them. Have you friends contact me, ( if they are not happy with their Realtor or have not signed a buyer's agreement) at 708-533-0515 or email me at trulia@CarmensHomes.com. I am very good at getting the seller to pay the closing costs. If they are first time home buyers they will also qualify for the FREE $8000 if they buy their home before December 1st. Oh by the way, my services to buyers is FREE!

I look forward to hearing from your friends,

Carmen Keslin E-Pro
ReMax 10 In the Park
trulia@CarmensHomes.com
708-533-0515 cell

Seedimon, I cannot conceive of any competent, realistic realtor being closed-minded to anything right now, especially not foreclosures. Yes, many of them are trashed, some even have the heat pumps, appliances, etc. stolen and holes punched in the walls, and that makes me sad, but a larger percentage of foreclosures are in lovely shape, left very clean, showing the pride of ownership these people felt, and that makes me even sadder.

Regardless of all that, as a buyer's agent, I am ALL about foreclosures, in that they are quite often the best deals on the market, and it's my job to get my buyers the best house at the best price with the most favorable terms. Period. I can''t imagine that's not true everywhere right now. If a buyer's agent deters from showing foreclosures, I'd have to imagine they're not a good buyer's agent.

As far as the reason, yes, it's more work to do the deal; it has to be done faster and more furiously, with more attention to detail and dates, more attention on home condition; on commission, sometimes that's less than a regular market home, sometimes it's more! But the commission or labor-intensiveness of the potential purchase should NEVER enter into the equation. The job, the duty, the ethic, is to get the best house at the lowest price for the most favorable terms for the buyer. Period. Am I being redundant? I hope so. There's no argument to be made here. Get a new agent!

Homes may be Trashed.

Access may be difficult (getting the keys from the Bank).

More Paperwork

More Time.

Possibly less commission, hassle getting a commission, or no commission.



* * * However * * *

If a Buyer wants to look at or purchase Foreclosed Properties, then the Real Estate Agent needs to show that Buyer the Foreclosed Properties.

Otherwise the Buyer should find another agent.


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Best wishes,
Fred
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