Residential Real Estate

Any real estate brokers/agents working on an FDIC property for a Buyer?

Recently, one of my many clients -- who just happen to be sitting on their cash -- struck an interest in a current FDIC Las Vegas Commercial REO'd property. The (pompous -- in my humble opinion) real estate agent -- thru their assistant -- tells me that I have to get my commission from my Buyer.

Okay! My client and I have a mutual understanding that if push came to shove, they would compensate me on an already agreed upon commission struture.

Then, as we are doing our preliminary work on whether or not to make an offer (the property is way too over priced for the current market conditions, but, okay.  I have found that a listing broker who is out of state does really and truly know best (sic).), my client happens to ask: "Doesn't the FDIC pay at least a two percent commission on all properties they are involved in?"

Hmmm....?  Good question.

So, I contact the RE agent (thru the assistant) and ask that question. The response from the Listing agent thru their assistant was that their listing ageement is with a mid-west receeiver, not the FDIC, therefore, there will be NO procurring commission paid by the seller.  I retorted that I was going to verify that by calling the FDIC.  The (pompous) RE agent told me to: Go ahead. (I paraphrased for the sake of shortness.)

The FDIC Offical who is responsible/in charge of this particular Las Vegas based property, said that if the FDIC is involved in a property, in any capacity, anywhere in the US, the FDIC maintains that a procurring broker be compensated at least a two percent commission. Oh!  Really?

After our short discussion in which he was very concerned, he asked if he needed to make any telephone call on my behalf.  I told him that since the numbers for acquiring the property didn't work out for my client, he decided to forgo making an offer.

The FDIC official said, in an  earnest manner, to have my client "make an offer."  I said if my client does make an offer, it will be for less than half the listed price.  He re-iterated, "Have your client make an offer," adding, "...and send a copy to me when you submit and I will see it gets done."

What?  Huh? 

He also said to make sure there is a provision in the offer for a 2% procurring commission.

Since then, my client said this situation was "interesting."  But, he still wants to see where everything falls commercial real estate wise the first of the year.

So, if a procurring commssion is a problem, the FDIC is on your side.

P.S.: I found the area offical thru the FDIC REO web site.

For Information about Las Vegas Commercial, Investment, Resorts, or Gaming Properties, contact David Howes at: david@davidhowes.net