List REO properties
Let’s face it, if you can figure out how to get in with the banks and lenders that need to sell their REO’s, you may have a foundation that will anchor you in the this market fulltime. If you don’t know what a REO is, it is a real estate owned (REO) property. The majority of the homes go back to the bank after the auction, then the property becomes what is called a real estate owned (REO) property. As a real estate agent, we have an opportunity to work with banks and mortgage companies to sell these properties. We must first understand the basic principles of selling REO properties. Continue reading to learn how to become an REO listing agent.
2 – Pricing is the key! A BPO is a report that is used to analyze real estate market data and similar properties in the area in order to come up with the fair market value of a home. We are not psychic, but the best indicator of what a willing and able buyer will pay for your REO listing is what a buyer recently paid for a similar home within close proximity to the subject property. Banks use this information to determine the selling price of an REO property. They hire real estate professionals to put together these reports. Due to the detailed information that a BPO contains, a real estate agent must understand how to analyze and use this information to come up with a fair market value estimate. You can get training on completing BPOs in the same ways you can learn about REO listings. However, it might be easier and cheaper to get help from an experienced REO listing agent working in your firm than it would be to take a course on BPO reports.
3 – Register with a bank or an asset management company as an approved real estate agent. REO or asset management companies are hired by banks and lenders to manage REO listings. Through a nationwide network of real estate agents and brokers, these companies market and sell REO listings. To list REO properties in your area for these companies, you must call the asset management companies and provide them with your contact information. Once you have been approved, you will be contacted as soon as there is an assignment in your area. Most companies are no longer looking for agents but you never know when your time will come. It’s worth signing up for as many as you can and wait for them to contact you. It’s worth the wait, what can you lose? You will need to respond immediately to any assignment notification you receive. Many times you will begin by completing a BPO report on a property before you can obtain the REO listing. Banks and lenders also give real estate agents an opportunity to sign up to be on a list of approved real estate agents. Once you are on this list, you will receive offers to list REO properties. All you need to do is request to be added to the list and provide proof that you are a licensed real estate agent.
5 – Network with people in the mortgage and banking industries. Sometimes the best way to get REO listings is to go out and get in touch with asset managers and those working in the REO departments of local banks. These are the people responsible for choosing which agents will list their REO properties. Contact the people you know in the real estate or banking industries and let them know you are interested in selling REO properties. Tell them about your training and experience with REO listings, and offer your assistance with these properties or with completing BPO reports. Attend real estate conventions in your area to make new contacts, and be prepared to ask for and give out business cards.