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-brokerâ€™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, Iâ€™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.
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