Straw Offers Merely Make Additional Work For Everybody.
If you remember last week, Kevin and Fred spoke about Matt Vernon, the executive at bank of America who came to Arizona last week. Mr. Vernon talked to additional than a thousand real estate brokers openly regarding deficiencies at bank of America.
One of the things that Mr. Vernon spoke about was the ’straw’ offers that jam up the system. Basically , a straw offer is an offer that is so unreasonable that the offer will not get usual. Kevin and Fred reckon that you ought to not send an bid to the lender that you do not reckon will get standard. The straw bid only hurts this process. You’re giving yourself extra work, the lender additional work and you are slowing down the progression for anyone that has a small sale listing in the system.
One of the scariest things is that there are small sale instruction courses out there that teach this as a common do. In essence, the agent will take a listing and place in prose their own investor bid for an unreasonable amount so that they can get the small sale procedure started. In the mean time they can get a negotiator assigned and get a BPO prearranged. All the while, the agent is hoping to locate a real buyer and swap out the real buyer with the bogus buyer.
On the other hand, if you get a BPO done, the BPO value may not be applicable when you finally get a real buyer. At the end of the day, you are hurting the whole community and the value that you assume you have in this straw offer process only works out one in ten times. You are not assisting yourself by using the straw bid process. On behalf of other real estate agents and banks across the country please stop this process!
Get powered up by Kevin and Fred at Small Sale Power Hour by the Small Sale Specialists of Arizona