Myrtle Beach Real Estate by Mirela

Are Asset Managers Losing The Banks Money?


Is this what the Banks are doing?

While the media keeps harping on the horrible state of the Real Estate Market, we are seeing Multiple Offers on Oceanfront properties again.  Any time the listing price is lower than the amount the property finally sells for, it is fair to assume that a multiple bid situation has occurred.


Here are four oceanfront condos transacted in North Myrtle Beach within the last 90 days which sold for more than the asking prices:


Tilghman Beach & Racquet Club

 208 N Ocean Blvd





List Price 


Sold Price 


Bay Watch

 2701 S Ocean Blvd #405







Crescent Shores

 1625 S Ocean Blvd Unit 209








 304 North Ocean Blvd







Are Asset Managers Losing the Banks' Money?

Three of the properties were Bank Owned and one was a Short Sale. Two of the Bank Owned properties were contracted within a week.  In two of the transactions, the same agent who represented the Seller also represented the Buyer.  Only two of these listings had several price adjustments prior to the multiple bids.


Question: were the two properties sold within a week for more than the original listing price improperly valued?   Could the Banks have garnered more money from the transactions if the original listing prices were higher?  Should there be regular price adjustments on Bank properties in order to ensure safeguarding the interest of the Seller (the Bank), thus precluding a precipitous drop in pricing within a particular development?  

Selling Bank Owned property within a week, with multiple offers and a transaction represented on both sides (Buyer and Seller) by the same agent, should perhaps raise some eyebrows.  But then again, who’s watching?  Banks and asset managers are too busy to concern themselves with choosing the right agents for the job.  A handful of agents have more business than they can handle.  Take a look at the REO’s in your area:  the same tired agents have dozens upon dozens of Bank Owned property listings, sometimes even hundreds of them.   They offer limited and perfunctory marketing, limited communication and cooperation with the Real Estate community at large.  One of these REO agents doesn’t even provide his cell phone number or e-mail address on our MLS roster.  Most of the agents in this area refuse to show his listings, because it’s invariably an exercise in futility. 

Are Asset Managers Losing the Banks' Money?

I am no Robin Hood for the Banks, but when they lose by virtue of hiring these tired agents who get the job done simply by slashing the prices to the bare bones, property values drop for entire communities.  The whole evaluation of Real Estate is based on comps.  Every time the bar is set lower, we are all in danger of losing our homes’ values…

I propose setting some rules for the proper distribution of these REO’s.  How about allocating a certain number per agent and closely monitoring each agent’s performance?  If the Agent sells the property within 6-10 weeks for top dollar, that agent deserves the business.  Don’t overwhelm that agent to the point where he will stop performing; instead find more agents like him! 

In a market such as ours, where we have a two year supply of inventory, selling a property within a week for more than the original listing price due to multiple bids, is not what I consider good salesmanship; in my book that spells improper estimation of value.   When the same Agent represents both the buyer and the seller in such a transaction, one can not help but raise an eyebrow…


Perhaps it’s time we get back to the regular business of selling homes – you know, the kind where the Seller carefully interviews the Agents and hires the most promising one after doing his due diligence.  The Agent lists the home, markets it extensively, facilitates and follows up on the showings, gives the seller feedback and adjusts the pricing, addressing any problems and getting the home sold.   Not only would the banks make more money, but the homes in our communities would suffer far less from this unnatural loss of value…

Mirela Monte, Your Myrtle Beach Real Estate Connection              Join The Optimist Group!


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Comment balloon 14 commentsMirela Monte • December 19 2009 01:46AM


What do you thnk about this?  I'd love to hear from you!

Posted by Mirela Monte, Myrtle Beach Real Estate (Buyers' Choice Realty) over 10 years ago

Featured @ Club Chaos

Posted by C Tann-Starr (Tann Starr & Associates, Inc.) over 10 years ago

I love the cartoon picture. . it is hilarious

Yes, in my market we are seeing multiple offers in almost everything. .but they must be priced well

Posted by Fernando Herboso - Broker for Maxus Realty Group, 301-246-0001 Serving Maryland, DC and Northern VA (Maxus Realty Group - Broker 301-246-0001) over 10 years ago

I think they deliberately under price to sell fast. Incidentally, that first picture is hilarious. 

Posted by J. Philip Faranda, Broker-Owner (J. Philip Faranda (J. Philip R.E. LLC) Westchester County NY) over 10 years ago

In my area it is common practice to list a home low and get multiple offers to see what the true market value is and generate multiple offers. However, what usually happens it the person with the most cash and fewest contingencies wins which is hard for many young families.


Posted by Marcy Moyer, Probate, Trust, and Investment Specialist (eXp Realty of California Silicon Valley Probate, Trust, and Investment Sales) over 10 years ago

Mirela - Like Marcy, I'm seeing the same scenarios down here in SoCA.  Reagardless of much lower the all cash offer is, my financed buyers with higher offers are getting rejected simply because they won't waive all their contingencies with the offer and they need 30-60 days to close, depending on their loan product and whether or not they're receiving any down payment assistance (a silent second).

It's just wacked.  Some of theses all cash offers are 20k-30k lower than my financed buyers offers.  Talk about losing money!  It's not just the REO agent either because the banks are approving these lower cash offers over the higher financed offers.

Posted by Donne Knudsen, CalState Realty Services (Los Angeles & Ventura Counties in CA) over 10 years ago

Donna:  I know what you mean, but I typically get it through.  I always have my buyers apply for the loan first.  They do a full application, tax forms, pay stubs, etc.  My lender puts it through underwriting for a committment letter for that amount of loan (the only thing missing is the address).  The banks typically give it as much weight as they do to cash deals with a committment letter like that.  Try it!

Marcy:  No contingencies.  The banks don't go for that.  You have to write it clean. 

Marcy and Philip: I agree that pricing it lower will get it sold faster, but we don't need to go SIGNIFICANTLY lower to get it sold.  1%-3% under market should suffice, we don't need a 20% price slashing...

Fernando:  Multiple bids are just fine, but multiple bids within a week indicate too low of an asking price.  It really messes up our values overall.  Taking sealed bids for a certain length of time and opening them all at once to decide who gets the winning bid might actually get the job done much better.  Why don't we do that?   How is this for a model?  Advertise the property intensely for 4 weeks while taking sealed bids.  Open up all the bids after 4 weeks & award it to the highest bidder (or not...).  The fear of loss would drive the prices up.  Just a thought...  Actually, now that I think about it, I will run it through Legal next week and see if I can try that with one of my REO's.

Posted by Mirela Monte, Myrtle Beach Real Estate (Buyers' Choice Realty) over 10 years ago

Carolyn: Thank you C!  Much appreciated!

Posted by Mirela Monte, Myrtle Beach Real Estate (Buyers' Choice Realty) over 10 years ago

I am not sure I agree about the "unnatural loss of value" -- I think it's mostly that our suffering now is because of an "unnatural increase in values" a few year's ago.

Posted by Aaron Vaughn, REALTOR© 512-845-4204, My knowledge is your power | eXp Realty (eXp Realty) over 10 years ago

Kyle:  I actually agree with the second part of your statement!  Well put!  What a ride 2005 was...

Posted by Mirela Monte, Myrtle Beach Real Estate (Buyers' Choice Realty) over 10 years ago

I agree with you that some of the REO agents have way too many listings and don't service them properly. Why the banks are not looking for additional agents blows my mind.


Posted by William "Bill" and Karen Farragher, SFR (EXIT Blue Water Realty, Matawan, NJ 07747) over 10 years ago

You're on to a few things here. I list and sell REO properties in the northwest suburbs of Chicago, as well as the city. While I've worked on both sides of deals, I don't do dual agency.

I've seen low-ball pricing in the city, where my investor client has been involved in bidding wars, paying above listing prices to get the properties. He probably paid fair market value for the properties, so yes, the listings were low-balled, probably in an attempt to generate multiple offers.

It's not the BANKS who set listing prices, it's asset management companies. Not only do asset management companies differ, but individual asset managers within those companies approach the properties from different mindsets. From what I've seen in the last few years, that includes preferences on selling as-is, or doing some level of rehab first (why, I don't know, as it's good money chasing after bad), aggressive (at or slightly above my BPO) pricing compared to high-ball prices have been unrealistic for two years.

For example, I had a 3,500-sf house on 2 acres listed at $275,000. It eventually went to auction, where the high bid was $199,000. We should've adjusted the price, but instead, the listing was given to someone else, As it turns out, a few more brokers since. It's now priced at $165,000 -- about $25,000 more than the high bid at a subsequent auction.

I handle one listing at a time, so I'm not exactly one of those "tired" agents you're talking about, but have dealt with some. Non-responsive staff members who can't/won't return phone calls, etc. Again, that's not the bank's fault, and it'd be interesting to know the criteria the asset managers use in selection. When I figure that out, I might afford to retire.

Posted by Mark Ruda (Mark A Ruda) over 10 years ago

Thanks for saying that so well.  And I loved the pictures!  I wish the banks could see how lazy the  listing agents have become.  It seems their only interest is the money that goes in their pocket, not how the low sales price affects the market.

Posted by Dawn A Fabiszak, The Dawn of a New Real Estate Experience! (Private Label Realty ( Denver metro area, Colorado) over 10 years ago

By selling to cash buyers for less money, the banks are creating a great deal for flippers.

Posted by Matt Kofsky (Transaction Realty 500 Reno, Nv.) about 10 years ago