Bloodbath in Coto de Caza
- Thread starter muffdaddy_IHB
- Start date
NEW -> Contingent Buyer Assistance Program
It's funny, I remember when I had access to the MLS, and then those bastards made it only work with that stupid key code thingy, weenies had to make their "private" database actually private. Anyway, I would notice some of the listings having a bonus/trip/date with TenMagnet, etc., come up one day, and the next day they would be changed to not include that. Some hands were probably slapped. But, they are not supposed to that in any way shape or form, even if it comes out of their proceeds of the commission, disclosed or not.
No offense to IR2, but any agent who has offered or received any of these bonuses could and should lose their license and be hit with a hefty fine. It's too bad the DRE was too busy getting people licensed rather than get people to lose their license. I have stories of kickbacks that would make even IR2 want to go IR1 on those agents. If the rules were 25% as strict as the securities license like series 6 or 7, then 1. very few of the agents would ever pass 2. they would so scared to lose their license because A. it was so hard to get B. the chances to lose it would be 1000 times higher C. they would hate to suffer a minimum fine of $5k for the smallest of things D. never being able to get it or any other license from selling tacos to homes would be difficult at best , if not impossible 3. actually have to have a fiduciary duty. Granted, there still would be some bad apples, but not baskets full. Good thing IR2 didn't land in the basket.
Big RE brokerages are already way ahead of you. Requirements now include a client sign-off on current comparable closed and active listings, along with additional sign-off on agent reports that include all compensation details. Smart, good business.
Hmmm-m-m, I wonder why Countrywide would postpone the auction since this property has been for sale at this price for awhile with no sale and it is obvious they will barely cover their first, and maybe not even that. Maybe Countrywide does not want more property on their books that they have to account for at the auction price?
For what it's worth (not much), the reason listed is mutual agreement.
bix - I will speculate that if your lender is Countrywide and you stop making payments, you can delay the auction just by making a phone call or giving them assurance of your intention to pay or something like that. Countrywide REOs have decreased last month, even though all other lender's REOs have increased. Kinda makes you say, "Hmm-m-m-m".
6 Vintage Way just got relisted with ANOTHER another agent, except this time it is one of the previous agents. Bobbi was the first or second agent to list this property. At least she got them to lower their price by $50,000, although it seems doubtful that is enough to get under the market.
IrvineRealtor_IHB
New member
I actually feel that those notes are less sinister than you are making them out to be. It is no different than making commission available only on agent reports, which is also the case. Often times those "bonuses" are coming at day 170 on a 180-day listing and are coming out of the listing agent's proceeds. Better to have a smaller piece of the pie than no pie at all. Also, many in OC have their license carried just for the sake of their purchases, and this small tidbit might pique their interest.
Brokers can do this (give away more of their share of commission) without need for a formal Modification of Terms (MT-1), whereas to lower advertised price, the seller needs to sign the MT-1.
Brokers can do this (give away more of their share of commission) without need for a formal Modification of Terms (MT-1), whereas to lower advertised price, the seller needs to sign the MT-1.
IrvineRealtor_IHB
New member
Good smell test. It is a violation to post any bonus based on threshold pricing, punishable by the DRE up to and including loss of license and/or financial recourse. There is a self-policing policy much like the "report" function here, flagging inappropriate content.
Inappropriate content can include any number of issues, such as fair housing violations, photo restrictions, and illegal pay structures (as you have mentioned) to name a few.
Inappropriate content can include any number of issues, such as fair housing violations, photo restrictions, and illegal pay structures (as you have mentioned) to name a few.
graphrix_IHB
New member
IrvineRealtor said:
It's funny, I remember when I had access to the MLS, and then those bastards made it only work with that stupid key code thingy, weenies had to make their "private" database actually private. Anyway, I would notice some of the listings having a bonus/trip/date with TenMagnet, etc., come up one day, and the next day they would be changed to not include that. Some hands were probably slapped. But, they are not supposed to that in any way shape or form, even if it comes out of their proceeds of the commission, disclosed or not.
No offense to IR2, but any agent who has offered or received any of these bonuses could and should lose their license and be hit with a hefty fine. It's too bad the DRE was too busy getting people licensed rather than get people to lose their license. I have stories of kickbacks that would make even IR2 want to go IR1 on those agents. If the rules were 25% as strict as the securities license like series 6 or 7, then 1. very few of the agents would ever pass 2. they would so scared to lose their license because A. it was so hard to get B. the chances to lose it would be 1000 times higher C. they would hate to suffer a minimum fine of $5k for the smallest of things D. never being able to get it or any other license from selling tacos to homes would be difficult at best , if not impossible 3. actually have to have a fiduciary duty. Granted, there still would be some bad apples, but not baskets full. Good thing IR2 didn't land in the basket.
IrvineRealtor_IHB
New member
Why do so many posts begin with, "No offense to IR2, but...."?
No offense is taken, so go ahead and take your shots.
Just keep in mind that while there are some "bad apples" in every industry,
there are a great number that really do get it and do right by their partners/clients.
No offense is taken, so go ahead and take your shots.
Just keep in mind that while there are some "bad apples" in every industry,
there are a great number that really do get it and do right by their partners/clients.
awgee_IHB
New member
First, my compliments to IR2. You have a thick skin.
Second, my attitude on the agent's commission is that as a buyer, it is none of my business. As a buyer it is my responsibility to realize that the agent's first priority is his commission, his second priority is the seller's interest, and the buyer's interest is his last priority. I am not talking about legality. I am talking reality.
If, as a buyer, you trust a real estate agent to tell you what the best price you can a get a property for, you deserve to be skinned. You are being lazy, stupid, and foolish.
Second, my attitude on the agent's commission is that as a buyer, it is none of my business. As a buyer it is my responsibility to realize that the agent's first priority is his commission, his second priority is the seller's interest, and the buyer's interest is his last priority. I am not talking about legality. I am talking reality.
If, as a buyer, you trust a real estate agent to tell you what the best price you can a get a property for, you deserve to be skinned. You are being lazy, stupid, and foolish.
CalGal_IHB
New member
I agree with awgee. Even in the financial industry, brokers work with multiple companies to sell their clients "what's best for the client." But if the broker can sell the client a mutual fund with 7% commission or a mutual fund with 4% commission - which mutual fund do you think the broker will sell. It's all legal, but the broker looks out for him/herself first. And there may not be official kickbacks, but brokers will work with companies that treat them better than other companies.
awgee_IHB
New member
Calgal - It seems 32006 Via Coyote is scheduled today for the courthouse steps auction with a notice of sale amount of $1,026,462.66. It appears to still be on the market with a list price of $1,050,000 which would not be enough to cover the first and pay the broker's commissions. It is a beautiful home, but a tad overbuilt for the village in my opinion. The auction has been postponed twice, but I have a hunch it will not be postponed again. IMO, these folks could have avoided foreclosure if they had priced this property realistically in the beginning instead of chasing the market down. Didn't this property first go on the market more than a year ago at $1,400,000 or more?
southoctracker_IHB
New member
That place on Via Coyote is one of those foreclosures that shouldn't have happened. The owners bought in 2003 for $1.023 million ($273,000 down) but refinanced into $1.44 million worth of loans ($944k/$500k) from C'Wide in 2006.
I think I am with skek on this one. Any agreements between agents that facilitate a transaction are fine by me. However, I think that the buyer and the seller deserve to know when these agreements exist, so they can evaluate for themselves whether those agreements are influencing the counsel the agents are giving their respective sides.
If you want to sell goods and services to many companies, you have to first have to sign a non colusion contract, which requires you do disclose all gifts, spifs, referral fees made to the prospective company, it's employess and agents. Perhaps such a document would be helpful in the real estate industry.
I think we are also going to see a record number of lawsuits against real estate agents, as homeowners in distress start looking for a scapegoat, and go to an attorney. That law firm is going to go through the contracts with a fine tooth comb, and look for instances where RE agents were paid extra commisions and bonuses to facilitate a transaction that ultimately was not in the interest of the buyer.
If you want to sell goods and services to many companies, you have to first have to sign a non colusion contract, which requires you do disclose all gifts, spifs, referral fees made to the prospective company, it's employess and agents. Perhaps such a document would be helpful in the real estate industry.
I think we are also going to see a record number of lawsuits against real estate agents, as homeowners in distress start looking for a scapegoat, and go to an attorney. That law firm is going to go through the contracts with a fine tooth comb, and look for instances where RE agents were paid extra commisions and bonuses to facilitate a transaction that ultimately was not in the interest of the buyer.
southoctracker_IHB
New member
Via Coyote has been postponed till July 16...
IrvineRealtor_IHB
New member
cdm said:
Big RE brokerages are already way ahead of you. Requirements now include a client sign-off on current comparable closed and active listings, along with additional sign-off on agent reports that include all compensation details. Smart, good business.
awgee_IHB
New member
caliguy2699 said:
Hmmm-m-m, I wonder why Countrywide would postpone the auction since this property has been for sale at this price for awhile with no sale and it is obvious they will barely cover their first, and maybe not even that. Maybe Countrywide does not want more property on their books that they have to account for at the auction price?
southoctracker_IHB
New member
awgee said:
For what it's worth (not much), the reason listed is mutual agreement.
no_vaseline_IHB
New member
Mechanicing the books. Shameful. Immoral. Should be illegal.
biscuitninja_IHB
New member
Wow, how do you borrow 1.44M, default and then still keep the house off the market? Bankruptcy? Wish I could, I woulden't be working and i'd invest in anything that came along. Oh well..
-bix
-bix
awgee_IHB
New member
biscuitninja said:
bix - I will speculate that if your lender is Countrywide and you stop making payments, you can delay the auction just by making a phone call or giving them assurance of your intention to pay or something like that. Countrywide REOs have decreased last month, even though all other lender's REOs have increased. Kinda makes you say, "Hmm-m-m-m".
awgee_IHB
New member
awgee said:
6 Vintage Way just got relisted with ANOTHER another agent, except this time it is one of the previous agents. Bobbi was the first or second agent to list this property. At least she got them to lower their price by $50,000, although it seems doubtful that is enough to get under the market.