How can I deal directly with the bank instead of going through a agent to buy a house?

Asked by Ed, Texas Sat Mar 8, 2008

Help the community by answering this question:

+ web reference
Web reference:

Answers

15
T.E. & Naima…, Agent, Dallas, TX
Fri Oct 24, 2008
Jim and Bruce both have good points. Another factor is that legal liability is often avoided by having licensed professionals performing tasks. The bank, not wanting to find itself the defendant in a lawsuit, will most likely force you to have representation. Often they will not allow their listing agent to deal with you either. Their lawyers tell them to make sure the buyer has his advisor (Realtor).
Experienced wholesalers (bulk buyers) as Jim called them usually have their lawyer or favorite Realtor negotiate with the bank.
Realtors don't cost you any money -- the seller pays, and you get free experienced advice. What a deal!
Web Reference:  http://www.SumnerRealty.com
3 votes
Bruce Lynn, Agent, Coppell, TX
Sat Mar 8, 2008
Perhaps not impossible, but I think very unlikely. Due to the shear number of properties the banks almost always list the REO properties with a realtor. Once they list they'll always use that realtor and not try to cut out the middleman if someone tries to submit an offer directly to them. At the point it' listed you can and should use a buyer's rep to buy the house. It won't cost you a thing, and I believe in most cases you'll just get a better deal if your agent is experienced. You won't save any money by going to the listing agent directly. You won't get a better deal trying to go around the system and often unless perhaps you buy hundreds of homes a year. You see many of the bank asset managers or loss prevention specialists have hundreds of homes to sell and manage. The process is just much more efficient for them to use agents to help manage the process. They just don't want calls and offers from 50-100 buyers trying to submit 50% offers with $10 option money and outsource some of that process to a realtor to sort through. The exception to this might be for investors who want to purchase packages of homes. If you are prepared to buy 20-30-50 homes, regardless of condition, for a package price you might be able to get some of the lenders to stand up and listen to you. This is probably not what you want to hear, but just the reality of the situation.
Web Reference:  http://www.teamlynn.com
3 votes
Jim Walker, Agent, Carmichael, CA
Sat Mar 8, 2008
Banks will deal directly with you if you are bulk purchaser; That is if you are an investor purchasing dozens or hundreds of houses at the same time for cash. You would not be asking this question if you were one of those investors..

As a an individual buyer you can try to contact the bank. The bank will give you their contact person. That contact is a real estate agent. You will have wound up talking to a real estate agent anyway.

One difference in dealing with the banks choice of agent is that the bank contact person will represent the bank only and will not clue you into what the house is actually worth if the bank is asking too much. They are not allowed to take your side. Only a buyers agent can do that. Oh and the bank is often, but not always, asking too much.
2 votes
Randy, , Rowlett, TX
Mon Mar 16, 2009
lets be honest about who is paying the realtor. we all know the seller has added 4 to 6% to the asking price to arrive at a "list Price". And that cost is passed on to the buyer.
1 vote
That's why builder developers always quote buyers 4%-6% less price when approached directly by a buyer. They also never inflate options prices whne no agent is there to call them out either.
Flag Wed Jul 30, 2014
Michael Ford, Agent,
Sun Mar 9, 2008
the short answer is that the vast majority of banks, or other institutional owners, are not set up to deal with unrepresented buyers. they all learned during the last go round in the early nineties that they needed local representation. remember also that they are dealing with properties in many states and that the operative on the bank side cannot have adequate knowledge of the many local practices that the buyers demand as usual and customary. hey, bruce lynn, excellent answer!

out of curiousity Ed, why do you prefer to deal directly?

bruce lynns's answer
1 vote
Mickie Barne…, Agent, Marysville, WA
Mon May 2, 2011
Why would you want to be under represented when purchasing? If your idea is the bank will be more likely to negotiate since they are not paying two commissions that information is false. Banks do not care about commissions; they care about selling property. In conjunction, like others have mentioned, banks want a "arms-length" transaction to mitigate their liability. There is no benefit for voluntarily removing your representation and buyers can't - as far as my knowledge goes - ever work directly with a bank to purchase.
0 votes
Izzy Buholzer, Agent, Sunny Isles Beach, FL
Mon May 2, 2011
Banks never did or ever will talk to a direct buyers/investors. Also, these assets never make it to the MLS. However the banks are represented through lawfirms that deal in "special assets". Find an experienced realtor that can get you access to these liquidators. We work with firms that represent over 15 banks in Florida.

Izzy Buholzer
The Miami Real Estate Team
Web Reference:  http://www.ibmiami.com
0 votes
please contact me on tuesday. maquimex@prodigy.net.mx
Flag Mon Sep 7, 2015
Heather Peck, Home Owner, Las Vegas, NV
Wed Apr 28, 2010
Ed - My question is why would you want to? The bank is not going to give you any big discount. The days of them dealing directly with buyers are gone. You are not doing them a favor by taking it off their hands for a discount.

The banks have set systems in place that can only be accessed by the assigned real estate agent who is representing them. Chase Bank alone has 550,000 bank owned properties nationwide. The asset managers who are juggling 300-1000 properties each, so they don't want to deal with individual buyers. They only want to deal with agents who know the rules, can provide them with the documentation they need to make a decision, and make their lives as easy as possible.

Besides, working with an agent who represents you doesn't usually cost you a dime. So let the professionals help you, advise you on the complications and intricacies of buying a bank owned or short sale property.

Heather Peck
Realtor, SFR
SellState NRES
702-595-7380
VegasCastles@gmail.com
0 votes
Keith Manson-…, , Milwaukee, WI
Wed Apr 28, 2010
Why would the bank want to deal with you? You are trying to reduce the cost to you but the bank has to put more time in addressing your issues. The person at the bank has not seen the property, does not know the laws in your state, is not an expert in real estate in your state, has over 200 more properties that they are handling. The cost they pay for a agent in establishing values, taking care of the property, addressing emergencies, dealing with the city authorities, and providing pictures with weekly or at least monthly updates on how the marketing or closing is going. Also who would be going to the closing for the bank? Should the bank processor fly to each closing around the United States. The commision is a cheap price to pay for all these things while the processor is handling there 200 files. Find a buyers agent to help you make a good investment and understand the bank is paying for you to the advice of another to get the best deal you can on their property!


Keith Manson

First Weber Group

Certified Distressed Property Expert
Metro Milwaukee

http://www.milwaukeebailout.com
0 votes
Mike Linkena…, Agent, Jacksonville, FL
Wed Apr 28, 2010
You can't, and the lenders don't want you to. They hire agents because of this
0 votes
Mando, Both Buyer And Seller, San Bernardino County, CA
Mon Apr 26, 2010
how can i con tact the bank
0 votes
Mando, Both Buyer And Seller, San Bernardino County, CA
Mon Apr 26, 2010
how can i ask the house
the cost
0 votes
Mando, Both Buyer And Seller, San Bernardino County, CA
Mon Apr 26, 2010
yes now no aget o some how
0 votes
Christine, Home Buyer, Temecula, CA
Mon Feb 23, 2009
I have the same question but for different reasons. I have two houses that I feel the listing agent is just playing games. I placed an offer on a house that was listed at $199,000. A week later the listing agent changed the listing to $213,000 and asked my agent if I can do $213,000 and the house was mine. Well I placed my offer at $185,000 and was not going any higher so I kept on looking. In the mean time, just about two weeks after, I came across the listing again and now the house is listed at $180,000 and my agent said that the listing agent asked her if I would give them $195,000 for the house. Let me add that this is an approved short sale. Now can anyone explain why this would be happening? The listing agent said the he has other offer at the time I placed my offer and he still says that he has a few offers right now. The offers, according to the listing agent, are from $190,000 to over $200,000.
What is he playing? And this goes for another house I am looking at which I have not placed an offer on. The house is listed at $200,000, when we called the listing agent she states that she has offers over $200,000 and this is what they are now looking for as an offer. OK, so I have not placed an offer thinking that they are basically done. No, the house is still active on top of all the stories she told my agent I had another agent call. You would not guess what happened they were told an entire different story. What the heck is going on with the home market?
I hope that anyone that reads this can understand my crazy situation. I tried to explain it as best as possible. If anyone has any ideas of how to deal with this let me know. I am a first time buyer and just want to buy one house for me and my family. I would have never guessed it would be so difficult. WOW
So can I have my agent submit my offer directly to the bank without all this Fofo agents
0 votes
Kathy Fisher, Agent, Decatur, TX
Sat Mar 8, 2008
Aaron, the only exception to this, however, is IF the home is going to be sold through a Short Sale. Banks will ONLY deal with a Realtor at that point also.
0 votes
Search Advice
Search
Ask our community a question
Home Buying in Rowlett Zip Codes

Email me when…

Learn more