OfflineI got a list of property addresses that were bought from my realtor for cash this month and was going thru the records at the county revenue office to see who the buyers are. Some of the purchases of single family homes were by other financial institutions. My question is:
Why would a financial institution buy a single family home thru a realtor from another financial institution (ie, mortgage company)?
Why don't they just go direct and avoid the realtor fees?
One house was listed for $75k but the financial institution bought it for $82K. What's up with that??
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One possibility could be that the bank selling had a second and in order for the bank holding the first not to lose an even greater amt of $$ they purchased it themselves.
Karen
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Well the main reason they would still use an agent is because majority of the time they dont know about real estate and it is just easier having an agent do it for them. I am sure they would also have some legal reasons to do it like that.
I dont know why they are paying more for it. maybe the value of the property is a lot higher than the purchase price they got it at.
Financial institutions can represent pension funds and other investing groups. It is quite possble that something was being picked up by this type of investor.
Roy Voeks
Official RE Coach
The reason why is because banks aren't in the business to sell houses but to give loans. So Banks give REO'S to a Agent to sell for them. They call them REO agents. But in some cases if you been in the business a long time and you have a good relationship with a Bank the assets manager will call u directly and offer it to you before they list it with an agent on the MLS. Thats why sometimes you look at a house that just came out on the mls as pending. Thats called and inside connection. When the bank passes a house off to a REO agent to sell for them they give that agent a certain amount of days to put it on the mls. I have some agents that call me before they list it so they can double dip. Which means they represent the seller and the buyer and they get paid well. I do this with all my REO agents so they bring me the best stuff first before they put it on the mls. they don't do it because they like me but they do it because they get 2 checks instead of one.
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