I totally love Lenn Harley, Maryland & Virginia real estate Broker and blogger extraordinaire. And she's totally nailed it again with the following article on banks and real estate. Now if we only knew how she REALLY felt. LOL
Inspired by an article by Scott Daniels this morning, I experienced a genuine EUREKA moment.
Banks are not negotiators. BANKS ARE DICTATORS.
Banks do not consider the listings for their properties as "offered for sale". They consider their property listings to be a menu of what's available and priced as is and the banks are not really interested in what a consumer believes that property to be worth to them, they home buyer.
The thought that resale real estate has no "retail" price such as shoes in a shoe store or chairs in a furniture storeis anathema to banks.
THE BANKS SAYS, THIS PROPERTIES IS. . . . $XXXXX.XX.. . . . . and the consumer is expected to write a contract for that amount with no conditions or contingencies. Sort of like buying a pair of shoes.
The banks actions and procedures are calculated to avoid risk on their part and create an atmosphere of submission on the part of the buyer.
The price is what the price is.
BUT WAIT!!! Suppose there are 6 homes on the market in a neighborhood which are . . . .
- similarly situated,
- similar in size,
- similar in floor plan,
- similar in amenities,
- similar in condition
Appraised Value $363,500 Appraised Value $700,000.
BEFORE AND AFTER RENOVATED HOUSE - THE BANK WOULDN'T KNOW THE DIFFERENCE.
THERE IS A BETTER WAY TO SELL REAL ESTATE.
THE BANK HAS NOT SEEN THE OTHER HOMES in the neighborhood. In fact, the bank may not and has probably not even seen the home that they own and which is now priced for sale. YET, they persist in thinking that the consumer should simply buy "as is" with no negotiation.
This concept may explain the banks unwillingness or inability to conduct real estate sales efficiently. Real estate agents and brokers have learned over the past 100 years that one of the keys to successful real estate sales is timely communication between the agents for the buyer and seller.
BANKS HAVE NOT LEARNED THAT LESSON. Sadly, the banks do not seem likely to learn that lesson because they appear unable to change their procedures for selling REO inventory.
BANKS NEED FOOT SOLDIERS rather than AN ARMY OF GENERALS. Real estate brokerages have been successful managing the sale and resale of real property for generations. We have foot soldiers, agent who get out in the field and reconnoiter properties and neighborhoods. Agents know the market. Agents know how to compare property condition and amenities. These important duties cannot be performed sitting in an office probably in another state.
BANKS DON'T KNOW HOW TO DELEGATE.
BANKS NEED AGENTS. . . . .
BANKS NEED TO LISTEN TO EXPERIENCED REAL ESTATE PRACTITIONERS. . . . .
WILL THEY, NO. THEY HAVEN'T IN 50 YEARS AND THEY ARE NOT LIKELY TO NOW . . . .
THE MORE THINGS CHANGE, THE MORE THEY STAY THE SAME.