The Flip Side About REO Agents

Don't forget that the commision is often as low as half of what you make on traditional listings.

These houses are often the most beat up, and may sell for a very low price.

We get to deal with past owners and tenants, squatters, and vandals.

This can be a lot of work for little money.  I like REO, and I will continue doing this, but it is not a lot like traditional real estate.

But for many Realtors, it is better than nothing.

We also have heard from several REO agents who are losing money on homes -- if they do enough they make money by the volumes of course -- but one needs deep pockets to be in the REO game it seems.

Thank you so much for this post! I think it is interesting how some people (Agents)still don't get it! Yes, while it's a stream of work, it is not for the faint at heart or those that don't want to work really, really,really hard for pennies on the dollar! You do not always get a full commission either. It is a learning experience and one that I will keep doing for as long as they are around!

Besides the inspections and the reports required, the money outlay I would like to sugguest buyer agents to email the REO list agent.  Agents calling with low ball offers and wanting to justify when I may have 4 other offers near market is a real time eater.  I have not had the luck to have so many REO listings to be one of the bad agents we read about. The right amount of employees to handle task with the proper systems in place will make a shop run smooth.  And just to add, the biggest best REO agents in my area were not top producing agents in the regular market.  Some of the worst REO agents were not that good at regular sales either, so go figure.  REO is a breed all itself and from my experience top producers have not made the best REO list agents.  No offense intended.

I'm amazed, usually banks are so eager to help and easy to work with. Oops, that's us mortgage brokers I'm talking about, the banks are acutally a pain in the arrears.

I have been on a team that has been doing REO's for 4 or 5 year. It is not a piece of cake like most other agents think it is. The occupied properties, cash for keys, utilities in our names, the deposits, the weekly inspections, the monthly status reports and BPO's, the out of pocket money waiting for the bank to reimburse, I repeat, it is not the piece of cake others might think it is. It is a way to make a living in a transistioning market. If I had to do it over it ........ not a chance.

Valuable information to share, Jackie, and all the commenters' experiences too.    I prefer to be a buyers' agent for the REO properties because of all these factors.

I ahve felt that lenders are taking advantage of REO agents in many instances...I was unaware of the utilities issues though....

Paddy Deighan

http://www.homesavers.pro

REO agents, RE agents, they're similar, yet unique and different, however, the only common concern we all have is to close a transaction and the more you close the more you earn, don't you?

The next wave here is a cooperative short sale. These are a huge amount of work that if the property is not priced correctly it will stay on the market forever. The banks don't budge. Am tired of being married to properties for 6 months or more.

It may be tough, but I don't know one REO agent getting off the gravey train.

"If you choose to be an REO agent then do the job correctly or don't do it all. No one forced these agents to take on these listings and if they choose to front money, clean up buildings and condos and homes that sanitation workers would probably turn their noses up at then so be it. Just because you have a difficult job does not give you license to do it poorly. There is an implied level of competence that comes with being a realtor. When my buyer wants to make an offer on one of these god forsaken properties I expect the same amount of professionalism from the REO agent as I do from any other agent I deal with. I don't recall there being a two-tiered level of Realtors. We should all be held to the same principles and ethics. With the exception of one team in our area, most do not return phone calls EVER, insist on all communication by e-mail, aren't available on weekends, have outdated attached paperwork and information on the MLS and do not put forward the type of image that we all work so hard to project. I respect any and all agents who respect me and when I am expected to tolerate behavior that I would never exhibit, I have no patience for it.

Hi Jackie, I agree.  I was doing short sales before most here.  When that all moved to REO I refused.  Instead I moved back to resales which are my bread & butter.

Yes, REO is hard work.  I had a pastor once who preached a sermon summarized thus: 'Don't covet what your neighbor has, because if you had it, you may not equally covet what they have to do to keep it.'

REO agents also rarely are paid as much as Buyer's Agents.  Volume discounts, referral fees, etc. often result in unequal compensation.  Check your commission statements on your next REO ... you may be surprised at how little the listing agent receives.

Wow - Although I'm not an REO agent, I am glad that I live in AZ and even though it's one of the 5 hardest hit states with distressed properties, we don't go through this with our foreclosures.  It is much easier here.  It did make me realize that REO's are much harder than I thought!   Thanks for the insights.  Angies quote in #70 is fantastic - that's the truth!