Why Do Realtors Hate Foreclosures?

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..

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.

Is selling to Zillow worth it?

Forbes Magazine says Zillow may offer you 10% to 15% percent less than what local realtors could sell your home for. That’s how home flippers work: they buy low, then resell for a nice profit. … A recent Forbes report says for many homeowners, Zillow Offers will be well worth it, for the elimination of stress and hassle.

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.

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.

What’s the problem with buying a foreclosed home?

Buying a foreclosed home is riskier than buying a home that’s owner-occupied. Some of the drawbacks to buying a foreclosed property include: Increased maintenance concerns: Homeowners have no incentive to maintain the home’s condition when they know they’re going to lose their property to foreclosure.

How much should you bid on a foreclosed home?

You should probably make your initial bid at a price that’s at least 20% below the current market price—perhaps even more if the property you’re bidding on is located in an area with a high incidence of foreclosures. If you can pay for the property and any necessary renovations in cash, you’re in an enviable position.

Why you should not use Zillow?

Inaccurate information For buyers: Many of the homes listed on Zillow may not be for sale. … Another way Zillow can provide inaccurate information is through the agent listed with the property. You would think this is the “listing agent” or the “seller’s agent.” Wrong.

Why is Zillow bad?

Zillow sells advertising to real estate agents and brokers based off of the traffic they receive (which is a lot). Since they have a huge portion of buyers searching for homes for sale, they can sell the leads that they generate to local agents and brokers. … Zillow is the devil to most real estate brokers.

Will bank pay closing costs on short sale?

With a more traditional home purchase, you can often negotiate with the seller to have them cover some closing costs. But in a short sale, buyers are rarely afforded this concession. The bank probably isn’t going to pay your closing costs because they’re trying to recoup as many costs as possible on the loan.

Can you lowball a short sale?

Lowball offers get slow or no response: Remember that the bank is typically unaware of the pricing during a short sale. When lowball offers stream into the bank they are often scoffed at and rejected, giving the prospected buyers little or no feedback.

Do Realtors help with foreclosures?

Some real estate agents earn commissions helping buyers with foreclosures and REO’s. Many use a real property auction site like Auction.com to help clients find good deals. Another source includes REO and “bank owned” foreclosure listings at Realtor.com.