The Wilmoth Group Blog

Maybe the most sensitive of all topics within the real estate community is why can’t REO listing agents return phone calls?  The answer is usually nothing to do with personality, or choice…it has to do with the type of calls received.  This post could be very long and I may come back and edit it a few times as I try to document the kinds of calls typically received.  We have gone overboard to provide written instructions, available via fax, email and posted on our website.  We also provide a webpage specifically written to answer agents questions (www.BuyWilmothREO.com).  Unfortunately, there is just a very large part of the Realtor population that has the time, and additionally is use to the old practices where two agents talked and worked out a deal for their buyer and seller.  Transparency, and the expectations of buyers and sellers in today’s information age, causes the old time practices to be considered poor, possibly unethical, and with corporate sellers not allowed. 

Here are some samples of the calls received by me and our office many times a day..and why these calls go unresponded.

Is this bank owned home still for sale?  

This question infers that somehow it is felt we do not update the MLS in a timely manner.  Either that, or the agent is to lazy to log into their MLS to check the status.  Since I have been a Realtor for almost 20 years, I am of the opinion the answer is the former, not the later.  We update our website and the mls immediately when an offer is accepted.  Up to that time the home is still for sale.

How much will the bank accept?  What price is it going to take to put a deal together?

First, we honestly have no idea.  We do not know the banks internal metrics for an acceptable sale.  Going beyond that, this question reeks of old time, buddy dealing, real estate sales.  If I did have this information, how ethical would it be for me to disclose it to a potential buyer’s representative?

Are there multiple offers?

This question is often followed with a statement that their buyer does not want to mess with multiple offers.  I often then say to myself, the buyer or the Realtor does not want to mess with multiple offers?  Do they also encourage their buyers not to go to auctions or use ebay?  We will not answer this question as the status may change any second, but more importantly, we are not representing our sellers if we say anything that discourages offers. 

 How can I make sure my offer is the highest and best? 

Lets see, we represent the seller and our job is to do what?  These questions hark back to the old time buddy systems, disguised by Realtors as “cooperation”, that led to a lot of people getting into transactions outside of their financial or the market realities.  It is time for all Realtors to act with the professionalism we promise to adhere to in our Code of Ethics.  Don’t ask this question unless you are confused what form to use.

Thats it for the calls that come to mind today.  I am on a little bit of a rant but there is a need for somebody to speak out about what REO listing agents are being asked to provide in the name of “cooperation”.   I am all for professional representation of our clients.  Just don’t ask us to compromise what level of representation we provide our bank clients by expecting us to return these calls or answer these questions.  

I found this blog posting from Clark Rosen interesting as it pertained to the way making offers on bank foreclosures is a ever changing process.  Many of our clients are using systems that do require the Buyers Agent to submit their offer direct to the seller or their representative.  We get involved when they tell us to.  I can empathize with the long time agents who really want things to go back to the “good old days”.  But, when you really think about what that means, isn’t that a big part of what got us into this mess in the first place?  A wink and a nod helped bring together many buyer and sellers.  Were the markets natually set, or did the good old days allow a lot of man-made values? 

I think the evidence is starting to tilt toward transparency and full disclosure.  Real estate transactions without these hallmarks are what systems for buying REO are trying to avoid.  For better or worse, we reap what we sow.  Nobody really wants to have false markets and over-lent mortgages again!