Home Buying in Cypress Hills>Question Details

maurits, Home Buyer in International Falls,...

if a property last sale was 150k reposessed and now sells at 350k, are estate agents pocketing 200k? Or am I missing something?

Asked by maurits, International Falls, MN Mon Oct 29, 2012

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You are assuming that agents are purchasing the repossessed properties and reselling them.

First of all, repossessed properties are usually stripped down and destroyed by angry owners who are losing their home or burglars looking for vacated properties.

REO buyers are usually contractors/builders who have the wherewithall to repair and reconstruct and are then putting the properties back on the market at retail in reconstructed condition.

We Realtors work for a living, not steal.
2 votes Thank Flag Link Mon Oct 29, 2012
Keep in mind that agents don't own the property, therefore no money can be pocketed; agents get paid a negotiated commission...was the property upgraded....
1 vote Thank Flag Link Mon Oct 29, 2012
Yes, you're missing something.

You're missing the fact that it's the bank that's selling the property. If it repossessed when $150,000 was owed and is now selling at $350,000, it's the bank that set the price and will "pocket" any profit.

The agent will get a couple of percent of the sales price for his/her services.
1 vote Thank Flag Link Mon Oct 29, 2012
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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Where do you get that Real Estate Agents pocketed anything?
Were they the OWNER at any point?
Why are you automatically jumping on Real Estate Agents?
Banks own property!
YES! you are obviously missing a LOT!
1 vote Thank Flag Link Mon Oct 29, 2012
trying to understand how the system works as a non US resident. Who owns, buys such properties, at what point would the banks still want their part of the proceeds, if they haven't written their bit off. Who carries risk, etc.
In other words, what happens in between a low sale price during repossession and a sale at market value. As it stands, things are how I see it. Something obviously happens in between. So when I ask "Am I missing something" I'm asking "WHAT am I missing?"
Try show a pit of patience next time.
Flag Tue Oct 30, 2012
Dear maurits:

I am having a hard time understanding exactly what you are asking. When you say estate agent, are you referring to a real estate agent? If so that is not the case. Real estate agents usually work on a commission basis but I have never witnessed an agent get a 57% commission! I think you need to rephrase and clarify your question and then we will be able to give you better answers.

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 Tue Oct 30, 2012
Thanks Mitchell,

I suppose it's difficult to ask all the questions properly as one question depends on the answer of the last. I was basically wondering how a house sells for 150k as the records show to sell again at 350k. what happens in between? Obviously a factor is that it was repossessed. Maybe the house I saw was an extreme example and each case is different. Probably too complicated to answer without describing the entire US housing market. Thanks for the help though. Regards
Flag Tue Oct 30, 2012
Depends on who owns the property and
If comparables are going for that amount well you made a good investment.
0 votes Thank Flag Link Mon Oct 29, 2012
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