In an effort to remove the temptation for listing agents to offer lenders low prices on short sale properties so that they can turn around and flip the properties to higher bidders, a new software program has been released to cut listing agents out of the equation all together[1]. The new business model will enable every buying agent to “bid directly to the bank, government or other seller through a website.” The designers of the software hope that this will effectively prevent listing agents from “holding anything back.”
At press time, there was little information available on this software. We decided that you should still be aware of the program as soon as possible and so opted to run the story. We will update the article when more information becomes available.
Do you think that this is a good solution to “short sale fraud?” Is it appropriate to cut out the listing agent?
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[1] http://www.newsjunkyjournal.com/new-software-attempts-to-prevent-short-sale-flopping/2517014/
Real estate (regardless of who you are) is all about relationships. If you are an investor, you either have taken time to develop a relationship with a real estate agent whom you trust or you haven’t and won’t.
Same goes for real estate agents. Some (many) real estate agents do not (and never will) work with investors. Investors (to those agents) are perceived as slimy and willing to sell their mother to the highest bidder….
Do some real estate agents “play games” with listings?
YES.
In fact, I get p*ssed off regularly when forced to deal with one of these “mega” REO agents who’s fed listings (and I mean 20-30 a month) by the banks. They’re impossible to work with – as my buyers believe these agents (alleged by past customers) pass deals to their “buddies.”
True?
Well, it seems that way. How many times have I passed higher, cleaner offers to these REO agents who claim the “asset manager” chose a lower offer?
Who rejects more money when it’s cash and clean?
In some ways, cutting out the agents sounds and looks good.
In some ways, cutting out the agents will prove horrible for the long-term real estate investor who won’t have REOs off which to feed down the road. Real estate agents have long-term memories when it comes to getting burned by a real estate investor.
I guess it comes down to whom needs the other more…and are you looking for long-term survival or short term ease (if any gov’t adopted software possibly could be better).
As always, I throw my 2 cents out there to get the discussion heated up or at least going.
Mike Payne
The realtor is versed and experienced with short sales and even they are stumped. The realtors are not the problem with short sales it is 3rd party lenders. The few cases of favorites that maybe played out is completely irrevelant to the big problem. Banks will not easily sign off even when full price BPOs are avialable. Good luck to any investor that feels they will get a good deal from software. Anything is possible.
I totally agree with Steve Lundin comments. I have been in the real estate business for more than 40 years and my experience with realtors has been exactly
like the ones described by Mr. Lundin with few exeptions the vast majority of realtors have no ethics, they are corrupt and absolute liers.
Realtors are an endengered specie and in the not too distant future they will go the way of the horse and buggy.
Realtors, increase the cost of the product ( houses ) without increasing its value. When the buying public realize the con game the realtors had played on them
for many years,that will be the end of the realty industry.
Again, my prediction is that in 20 years the industry will be non-existent.
Anthony Garcia
I believe that this is an attempt by the criminal banking syndicates — those same institutions that have looted the U.S. Treasury, and destroyed the dreams of so many innocent American families — to deflect blame away from themselves, and redirect it towards a “problem” that barely exists. Real estate agents have committed less than .001% of the fraud that the criminal bankers have.
Want to stop fraud? Start throwing bank executives into prison.