Sam Richards GRI, Broker/Owner
BRE License #01305588
April 23, 2014
Real Estate Q & A
Q. I followed a home going into the foreclosure process, and realizing it could take some time before it surfaced for sale, I waited. The next thing I knew it was sold; it was never offered for sale to the public. Are Realtors doing some kind of insider manipulations? V.W. Rio Vista
A. With half a million agents licensed in California, there will be some bad apples. Unfortunately, we have seen transactions locally that have been unethical and bordered on being illegal.
When a home is taken back by the lender to be Real Estate Owned (REO), that home is assigned to a Realtor by random choice, and geographical proximity is not considered. So, you end up with an out of area Realtor that does not belong to the local MLS board and does not advertise locally. Sometimes they don?t even bother to put a sign in the yard.
The reason for doing business this way is they have investors or clients looking for homes and they want to ?double end? their commission.
To counteract this practice, the Northern Solano County Association of Realtors in conjunction with Bay Area Real Estate Information Service, a Multiple Listing Service (MLS) provider, has designed a reciprocal agreement with all northern California MLS providers to share information through their IDX affiliations. Through this alliance, the MLS now delivers everything for sale in this area even if it is listed on a service many miles away.
So, the next time you want to follow a foreclosure, just let us know and it can be tracked and you can be the first offer.
Q. I'm doing a short sale, and I have just learned that after waiting 4 months that my offer has been pushed aside for a better one. I'm really frustrated that I've spent all this time trying to buy this house and was never locked in on the offer. Is this normal? D.S. Rio Vista
A. Buying a Short sale can be brutal; many Realtors continue to collect offers throughout the process and pick the best one at the end, and the end may be 4-6 months.
Normally, the bank short sale negotiator only wants to deal with 1 offer at a time. Knowing this, when a sale is accepted on a short sale, then the home should be marked as contingent in the MLS, and all other offers be held as backup in case the first offer fails.
In my experience, this is the only way to maintain buyer interest and speed up the process with the negotiator.
When we first started doing short sales, we learned right away that the negotiator will ask the Realtor which offer is the best one, and have the Realtor choose. That choice then becomes an ethical dilemma; pick the one through your own office and make more money, or the one from a competing office.
It seems easy enough to me, I pick the first offer and hold the others in backup in the order that they came in.
A sad statistic is that whenever a Realtor gets a license suspended, it was a violation that had to do with greed. Usually it involves trust fund money, but many times it is from sale manipulation to make more commission. All I can say is that none of them work in this office, nor will they.
Sales done right. 707-374-6491 or visit: www.richards-realestate.com