Question: Why Do Realtors Hate Foreclosures?

Do Realtors make money off foreclosures?

All real estate agents are paid commission based on the sale price of the home.

Foreclosures are no exception.

Since the bank is the seller, the bank is responsible for paying commission to the realtors involved in the sale.

Commission is traditionally between 5 and 8 percent of the sale price..

Can you look inside a foreclosed home?

If you buy a foreclosure at an auction, you won’t have the chance to tour its interiors. This means that you are buying the home sight unseen. You’ll have no idea what repair jobs face you after you complete your purchase. The repairs could be extensive, and they could swallow any of the savings you expected to enjoy.

Do you need a realtor for a foreclosure?

In a home foreclosure sale, the seller is actually a bank or mortgage lender. … So, if you’re buying a foreclosure property, do you even need a buyer’s agent to represent you during the process? Spoiler alert: Yes, you still need a buyer’s agent.

Is buying a foreclosed home hard?

A foreclosed home is one that’s usually owned by a bank or lender. … Yes, buying a foreclosed home does require a few extra steps and some additional planning. But the process isn’t overly complicated, and buying the right foreclosed property can get you a home at a bargain price.

Will bank pay closing costs on short sale?

Lenders in short sales may also pay some buyers’ closing costs or none at all, or even all of them. Whether a mortgage lender in a short sale pays for any buyer closing costs depends completely on its bottom-line financial decision about that sale.

How long does it take to close a short sale?

Once an offer is received and signed, I send it to the bank, along with the seller’s short sale package and a prepared HUD. From that point to the time of short sale approval, the average timeline is about 60 to 90 days. It means 30 days to sell + 60 days for approval + 30 days to close escrow = 4 months, on average.

Can you lowball a short sale?

It’s true that short sale properties are often sold at a discount. However, just because the seller is motivated to sell doesn’t mean any offer you make will be accepted. It’s unlikely that the bank will approve an offer that is less than what they believe they can get for it.

Can realtors see foreclosures?

To find a foreclosed home, you can peruse listings of foreclosures on realtor.com®, which may also be marked as “bank owned” or “REO.” If you spot a home you like, contact the real estate agent on the listing as usual.

Why do Realtors hate Zillow?

Realtors have long complained about Zillow’s inaccurate Zestimates, valuing homes with online data and algorithms, with no physical walk-through or neighborhood assessment. … Realtors say this damages their sellers because buyers get information from agents who have never seen the home.

Do banks negotiate on foreclosures?

Banks are willing to negotiate foreclosures because they are losing money on the property when it sits vacant. … Banks can negotiate directly with buyers without the assistance of a real estate agent. Because they own the property, banks can set the price for any value they deem acceptable.

Does Realtor get commission on short sale?

While a seller typically pays all real estate agent commissions and other closing costs, in a short sale the seller pays nothing; the lender or bank foots the bill.

Why does Zillow only show pre foreclosures?

Whenever a homeowner misses a payment on his or her mortgage and the lender sends a notice to the owner, Zillow takes this public record and lists the home in pre-foreclosure status on their site from the data provided to them by Realty Trac.