If you’re a realtor interested in working with real estate-owned (REO) properties, you should know how to obtain REO listings. This post will give you the groundwork knowledge you need to list bank-owned real estate owned (REO) properties. Foreclosed properties are called “Real Estate Owned” or REO. The bank has taken back possession of the property and is now trying to sell it or otherwise get rid of it. After regaining property ownership through a foreclosure sale, the bank will hire a real estate agent or broker to manage the property’s marketing and eventual sale. A real estate agent who is well-versed in acquiring REO listings stands a better chance of being selected by the bank.
Instructions for Obtaining Real Estate-Owned Listings Before we go into how to find REO listings, let’s take a step back and look at the big picture.
Once a real estate agent and broker have been appointed, they will coordinate and supervise all the steps necessary to get the property ready for sale.
Providing access to the property for the bank-required Appraiser.
Facilitating the entry of the second BPO agent
Property rekeying and lockbox installation
The cleanout, which includes sweeping the premises and taking out the trash.
Rearranging and cleaning the yard every month.
Any repairs that the lender or bank requires.
The presence of a pool, A protective enclosure is being built over the pool.
When all these steps have been completed, the bank or lender will review both BPOs and the appraisal to decide at what price they will tell the realtor or broker to list the property. The agent or broker may initially bear these costs, which will be refunded within 30-60 days.
Finally, we’ve reached the meat of the matter: procuring REO listings.
Since entering the REO market might be difficult if the agent or broker lacks experience in the BPO REO industry, I advise you to establish a BPO firm before pursuing REO listings. To make money and develop expertise as an agent or broker, it is crucial to establish a BPO Broker Price Opinion firm first. Businesses that order BPOs may also deal with real estate-owned (REO) listings, thus maintaining a good reputation with the BPO businesses by completing orders on time and doing a thorough job may help you prevent having REO listings sent back for fixes. So, if you’re wondering “how to get REO listings,” completing BPOs (Broker Price Opinions) is the way to go.
Fannie Mae and Freddie Mac Real Estate Owned Listings: How to Obtain Them If you’re a real estate agent or broker, you can apply to be a Fannie Mae or Freddie Mac REO agent. However, I wouldn’t advocate doing it unless you know what to do when acquiring REO properties. Remember that always providing BPOs and REOs with timely and accurate work is crucial.
Once an agent or broker has built a solid reputation with BPO firms, they are in a prime position to receive referrals from these firms and obtain information about the REO Asset Management Company responsible for handling listings on behalf of banks and lenders. I would caution you to proceed with caution if you decide to contact REO asset managers to solicit listings; these managers are overworked and underpaid, and the agent or broker will need to apply the “Law of Reciprocity” strategy to have any success.
The BPO REO Academy is the place to go if you want to learn more about acquiring REO listings.
Robb Krzyston is offering free copies of his 40-page BPO REO Handbook.
[http://www.bporeoacademy.com]Robb is a licensed Realtor with RE/MAX Elite in Cocoa Beach, Florida. He has been involved in over 200 real estate-owned (REO) transactions and has done over 6,000 BPOs.
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