I have a co-op BOA short sale listing. We've had a few price reductions since it was listed in Feb, but it's still a bit high. Even cutting my commission, if I lower it any more, they won't make their bottom line and they said they won't accept less. They have contacted me via equator, to disucss with the seller using their partner auction company (auction.com) and sent me the sample contract. I discussed the contract with the auction company and how it's supposed to work with the listing agent. My commission is protected, there is a 5% buyer premium, the contract is for 120 days and they can hold as many auctions as they want there. All offers need to be submitted via their website at auction.com. Any unrepresented buyer will be referred to me and all they want me to do is hold a few open houses. My seller and I signed the contract. Nothing has started yet, but I was given a contact at the auction company and have been informed for the life of the contract, I will not have access to the property on equator. My question is, has anyone else had any experience with this or any feedback? It seems like a good deal, but you know what they say - if it sounds too good to be true, it probably is.
BofA has had a bad rash of horrible BPO's for me lately. This is not new, and I have put in value disputes because of insane numbers. My guess is that if you are seeing the price as unreasonable, then you probably should ask them for the form or rules to dispute their value and do so. Take FHA, for example. (They are very much screwed up, very especially at BofA, due to BofA - different issue.) They do an appraisal (usually better because it is with FHA licensed appraisers - no $25 18 yo kid from 3 states over getting a number from his XBOX game), then they tell you the number and tell you that you must next 88% of that number. Others work on the theory that all buyers are rich idiots and will pay 50% more because BofA says it is worth 50% more, etc. Funny how that doesn't seem to work too well. Possibly, from what you say, you have been saddled with a number for market value which is bogusly high and to ever get a buyer, you need to make them correct that. (So, if your bottom line is 88% of their BPO, is that a reasonable market value number? I'm guessing not.)
And, no, you don't cut your commission.
I cannot speak to the BofA co-op - just assume that it is as flawed as other BofA avenues.
Joe, that was just the background info. What I was looking for was feedback on their auction process. Have they ever presented that to you or your seller? I don't think it will sell at auction either, unless their reserved price is much lower than the bottom line they gave me.
The contract states the commission amount right on it and states the buyer agent's commission is taken from the full commission amount, but it also lists the original price. I called their attention to that and that we've had some price reductions in the meantime. I had our company lawyer look over the contract and it seems the commission is protected, but I just feel uneasy.
Sharon, I'm not sure where to start here, so I'll just start with the Auction Process. I've been through many. Any person that puts in a bit and is accepted you will be notified. You will not be left in the dark. The contract will be sent to you to sign off on.You after all are the listing agent, or you should be. What does the contract say they sent? Hmm, after re-reading your post seems I'm confused as to who the agent is going to be. My commission was protected, and I was always notified when a bid was accepted. They always came back to me, because after the inspections the buyers backed out and I ended up co-oping them.
Sharon, what you described is exactly what they said they would do. Since I've done auctions - just not BOA ones, I wasn't sure if what they said was really what they did. From the sounds of it, they are for real. Thanks. You made me feel much more confident that this was definitely the way to go on this one. I just hope the reserved price is a good one.
Now as far as getting a real buyer in there after the auction process. Do your job.Run comps, show the seller where it needs to be and lower the price. It's not going to sell if it's too high. BOA gave me a net they needed on one after I listed it, HAFA, so far out of the ball park. I listed it at their price, no showings, did the rigamarol, did the report, told them to high gave them what it should be still to high finally I just lowered it to where it needed to be. Got interest, got an offer, they played around, lost the buyer, all cash. Put it back in at their new reduced price, no bids, a month later I reduced it back to where it was supposed to be got multiple offers submitted one, nowhere near what they wanted and we are closing (knock on wood) 365 days later.
Push the comps once it comes off auction status.
Thanks for the advice, Sharon. I really hope it settles sooner than that. My seller's nerves can't take too much more. She's been fighting for a reduced price, too. She's so disgusted she doesn't even want to open their mail anymore.
Well, house is in short sale auction with auction.com on behalf of BOA (and me). I know of 4 different buyers that will be bidding and I sent all the paperwork we require to the auction company. The bidding begins 8/22 thru 8/25. We'll see how it goes. Still no idea of what the reserve price is. (Joe, the commission is spelled out in the auction contract as 6% and then there is a buyer premium of 5% so I'm thinking the reserve price is probably higher than I have it listed.
The reserve, in my experience has always been higher. Good luck.
In My Opinion: If you want to get offers at 50% value .. go ahead and send it to Auction.com. With all their auction 'rules' and dead-lines, most buyers would rather not get involved. Only cash investors are really willing to take the risk.
Hopefully you were reconsidering the value every 3 weeks. If you thought the BPO Value was too high you should have initiated their dispute process: https://realestateagent.bankofamerica.com/ptff.aspx?p=293
I would never send a property to Auction unless it was fire-damaged or something 99% of buyers would run from.
Thank you for posting this. I have been getting calls on my coop from Auction.com too. I told the representative that Auction denotes bad property condition and rock bottom price. I advised the seller against it. Why don't they just price the property correctly and let us sell!!!!