Many of these sales involved little participation from a real estate agent.
I was just talking to an Agent who called for an Inspection tonight ,about how it must be bad for them guys not getting a bigger commission on all the smaller priced foreclosures.
Unfortunately many were not inspected either.
When you are paying forty cents on the dollar or less than $50 a square foot it appears that inspections won’t help in any further price negotiations.
Almost all REO properties are bought and sold through RE Agents here. A small percentage (probably less than 1%) are sold at auction without RE Agent involvement.
Foreclosures and short sales are also a specialty from some Broker offices.
I agree with ‘little participation’ remark, I’ve seen this in action lately. However, they are still grabbing their ‘typical’ fees.
There are agencies in this area that are set up specifically for REOs. Most of the other agencies around here don’t really want to deal with REOs - it typically takes 6 months or more for the banks to close the deals. A 6 week wait is common just to see if the bank has accepted the buyers offer. Many are not inspected as there is no negotiating with the banks - they are sold “as is”. :neutral:
Ditto. “Little participation” means they don’t have to get off the couch. They just list it and make $$. They make money on the transaction, with less work.
Turn on the utilities for the home inspector? Forgetaboutit!