No response from Seller about my offer.

Asked by Aden, Gwinnett County, GA Tue Oct 30, 2012

I am frustrated with the dishonesty of some Agents/brokers when it comes to offers. My 2 friends and I are looking for our first time homes and each scenario has a unique problem or luck but my last two experiences mirrored something fishy from what might be the broker or the agent. I offered $20k over the asking price on a H&B and I hoped to win or at least hear back in 5 days according to what ReoSouth promised my agent. 9 days passed and I got frustrated at my agent and she forwarded me the email that said, “ no answer from seller” But as a coincidence, one of my friends called the Listing agent a day before and agent said the house just went under contract. I waited 2 more days, totally thinking it was my offer under way, but still broker’s office says “no answer from Seller. Agents, please tell me what goes on behind these listing agent’s offices? are they dealing with another buyer putting me in the back burner if that falls through or why….?

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6
Bruce Ailion, Agent, Marietta, GA
Tue Oct 30, 2012
Many of today's REO agents are the same agents that helped the foreclosed former owners into their overvalued mortgages. These agents were relatively new to the business jumping on the hot market for new construction and liar loans, when that easy money dried up, they transitioned into representing REO. They grew their offices and staffs, and did pretty well till 2012 when many banks slowed foreclosing, sold more properties at the court house steps, did more short sales or no sales resulting in sharp drop in REO and fairly serious financial hardship among the ranks of REO brokers. More than a few of the largest REO brokers, names well known to the community, have themselves had their homes and offices foreclosed on, filed for bankruptcy or are on the verge of filing bankruptcy.

This impacted the market, by their grossly underpriced listings assuring a quick sale with little to no work or advertising expense. There have been offers to sell information to buyers for a fee of the not yet on the market properties "pocket listings" and yes the wholesale shopping of co-broker’s buyer offers to preferred in house buyers to obtain both sides of the commission. Sadly desperate people will do desperate things and you the consumer and these broker's clients get screwed.

As it relates to REOSOUTH, I’m not aware of their financial situation, but I do not find them listed in the National Association of REALTORS directory, this indicates that they do not adhere to an established nationally established Code of Ethics and professional business standards. Surprise. Surprise. More surprising is that this is the case with many of the REO brokers who masquerade as professional REALTORS, and that those banks that cut corners making loans also cut corners in selecting the lower quality non-REALTOR brokers to represent their properties.

As a professional in the industry for 33 years, it is embarrassing to me that there are agents who continually give the industry a black eye. You have a choice, you can be a victim or you can go to Yelp, BBB, Kudzu, Zillow, Trulia, realestateratingz.com other review sites and publish your complaint there. You can also file a formal complaint with the Georgia Real Estate Commission. Word gets out bad actors will either improve or be forced out of the market.

If you offered 20K over market on a 100,000 home it was either was either grossly underpriced or you were ill advised. Offering 20K over list on a 500000 home might be reasonable. Currently the market is being distorted due to an influx of blind or stupid money in some price ranges and a shortage of inventory. Waiting till the first quarter of 2013 might be your best strategy.

Look for a knowledgeable and experienced REALTOR willing to tell you the truth. Hopefully that is one who is representing you. There are a number of listing agents I discourage clients from attempting to purchase from, due to problems like you have experienced.


Bruce Ailion,
RE/MAX Greater Atlanta
An Atlanta Real Estate Expert Serving Clients Since 1979
RE/MAX Hall of Fame – REALTOR Phoenix Award
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2050 Roswell Road
Marietta GA 30062
404-978-2281 Direct
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bruce@locationlocationlocation.com
http://www.LocationLocationLocation.com
1 vote
Joel Madden, Agent, ATLANTA, GA
Wed Nov 14, 2012
With the foreclosed properties, the listing agent is at the mercy of the Asset Manager. What may typically take 3-5 days for an approval may end up taking 10 or more days on another deal. There are often other factors at play with the Seller, that the Buyer and their Agent are not aware. I recently had two deals on Fannie Mae foreclosures where my clients had accepted the Seller's counter. As with most foreclosures, the acceptance of a counter is basically a verbal acceptance. While we were waiting for the Seller to send their addendums, other offers came in and our verbally accepted counter offers were cancelled and we were put back in a multiple offer situation. It sucks when it happens to you or your client, but without a legally binding document there was nothing I could do.
I did want to touch on your concern about REOSouth. On occasion I do wonder if the listing agent is doing something shady that benefits them and hurts my chances at winning the bid on a property. Overall, I've found that pretty much all of the larger REO Brokers in the Atlanta market operate ethically. REOSouth is a mid size REO Broker closing between 250-350 homes per year. I worked for them as a Buyer's Agent for 4 years, just leaving last September. I can say with 100% certainty that there was nothing unethical taking place. The owners of the company, Kat and Gary Tice, go to great lengths to make sure that all offers are handled fairly.

Joel Madden | Associate Broker
404.353.4500 cell | 800.205.2001 efax
joel.g.madden@gmail.com

Rick Hale and Associates
Keller William Realty Atlanta Midtown
1420 Peachtree St NE, Suite 100
Atlanta GA 30309
0 votes
Aden, Home Buyer, Gwinnett County, GA
Thu Nov 1, 2012
Thank you so very much all of you who took your time to answer my question:
Seller actually responded and I owe it to them to come and clear up my complaints.
I was actually the winner of the bid :-) I am done for now except when
I buy my investment properties :-) I actually encountered another fishy transaction so I thought this was a second occurrence for me but thank God not.

A bunch of lovely helpful people here Thank you !
0 votes
Rodney Mason, Mortgage Broker Or Lender, Atlanta, GA
Wed Oct 31, 2012
Aden,
This situaiton is not that uncommon, especially today. Currently, many homes are receiving multiple offers. As Fred indicated, some are receiving 30-40 or maybe even more. There are not always enough hours in the day for the Listing Office to notify all of those that did not have their offer accepted. This is why the Buyer's Agnet has to be a little more aggressive.

A Listing Agent NEVER really knows how long it will take to have an REO offer reviewed and accepted or countered. That really all depends on the number of offers received and that time it takes to evaluate each one.

Also, most REO sellers will take a cash offer over one with financing. Some may even accept a lower sales price on cash offer than what a buyer with financing is offering. This especially true if they have any concerns with the property condition for an appraisal.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing
0 votes
Steve Miller, Agent, Rome, GA
Tue Oct 30, 2012
Aden: Your questions appear valid and worthy of a full explaination, but are questions YOUR agent should be asking the seller's agent AND Broker. Good luck.
0 votes
Fred Yancy, Agent, Woodstock, GA
Tue Oct 30, 2012
There are brokers/agents who have properties that receive 30 or 40 offers on one property and when that happens, they are a little reluctant to contact all the bidders to say that they did not win the bid. I don't know if that is what happened in your situation, but it is certainly possible. Your agent could be a little more assertive in trying to track down the information but she/he may be sending emails and voice mails only to be ignored and your friend just got lucky in reaching the selling agent. Anything is possible but I'd rather think that your agent is doing thier best. The market is very different now from a couple of years ago or even a decade ago. Best of luck with your realtor and your home search.

Fred Yancy, Broker
Crye-Leike Realtors
(678) 799-4663
0 votes
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