Real Estate Blog - Marketing REO Properties... Why Bother?!

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Marketing REO Properties... Why Bother?!

Three years ago as a newbie to BPOs and REOs, I saw a trend in the marketing of REO properties that I didn't like, so I decided to do something about it.

As a starry eyed, seize-the-tiger-by-his-tale kind of agent, I just knew I could do a better job of marketing these properties than the current practice. In 2003, in our market, most REO agents were just submitting incomplete MLS listings and placing signs in yards. That's it - nothing more, nada! Not even a photo in the MLS!

As I would show the properties to the buyers, I wondered why in the heck wasn't more of an effort being made to market these homes? Why weren't photos in MLS? Why weren't data sheets filled in entirely? Why weren't there positive comments in the remarks sections? Where were the print ads? Where were the internet ads? These were GREAT listings that NOBODY seemed to know about!

I decided that REO agents must be better at property management than marketing. I knew I was great at marketing, so I jumped in to the REO pool to learn all I could about BPOs, evictions, rekeying, clean outs, management and so much more.

Along the way, I learned that there were wonderful veterans willing to teach me at http://www.agentsonline.net/ and I was an eager student.

I learned very quickly that I did not want to be a BPO mill - I just didn't have the stomach for churning out 20 or 30 BPOs a week for $50 each. So I went in search of the REO Listing.

As soon as I started listing REOs, I applied my "regular" marketing plan to them:

Full listing detail and maximum photos allowed in MLS
Virtual Tours showcasing the home, neighborhood highlights and schools
Yard Signs with Info box flyers full of color (YES! Color!) flyers (We cross referenced other listings on the backside in black & white)
Print ads in local Real Estate Publications and Newspapers
Enhanced Listings on Realtor.com with Virtual Tours attached
Toll Free Number for buyers to listen to pre-recorded message - awesome way to capture leads
Promotion of all listings on multiple websites

What are the results of my efforts? My REO listings sell fast! Agents are encouraged to show the properties because they have seen the photos and know what to expect. Buyers are impressed that there is more information available to them and I hear "THIS is a repo?" all the time.

I also believe in educating the co-op agent. Not every agent is familiar with the process of selling HUD homes or REOs. I truly believe that the more they know, the more they'll sell! And, that makes a win-win-win-win for the Seller, the Buyer, and both Agents.

~~~~~~~~~~~~~~~ JOIN ACTIVE RAIN FOR FREE! CLICK HERE TO GET STARTED!! ~~~~~~~~~~~~~~~~

Posted by Melissa Schnieders on 03/10/2007 11:56 PM

Comments (25)

reo info for real estate pros

Post is included in group: Consumer Foreclosure Help

25 Comments on Marketing REO Properties... Why Bother?!

MAR

2007

Wow what a great attitude. I love that fact that you do not have the typical, at least in my area, attitude about REO’s.

MAR

2007

I am glad to hear that. I am typically 20-30 days quicker than our MLS average pretty consistantly. I premarket all my homes ( after the 10 period after the evictions) to my investor base as well as other area Realtors. I keep a running list of agents to call when I get one in the pipeline. I usually have an affer within a week of listing ( typically a really low ball) and it will sell shortly there after. With our hands being tied as far as listing prices (I know they dont read my price opinions....) I have decided by creating the atmosphere that they are getting in and having inside knowledge hypes them up to buy. Did I mention that I do absoluetly NO personal advertising of these homes other than what my company does and of course two mls systems..... Its all about finding a system that works in your market and repeating it.

Of course the quicker it sells, the fewer of those impossible mmrs you have to submit.

Beth ~ Thanks! I like to think that REO's don't have to be drudgery for the selling agent! :)

Rudy ~ Those are great ideas too. Can you put a yard sign out with a "Coming Soon" rider on the top of it? A few agents here do that, but the companies I work for don't allow pre-marketing. They feel it's giving some an unfair advantage.

An agent in my town that used to do pre-marketing had told someone he would call them back with a price as soon as it was listed. The day it was listed, an offer came in on the property and the potential buyers weren't ever notified that it was available for purchase. They sued the listing agent - claiming specific damages. I learned a valuable lesson from that - always give the buyers a place to go to check the information on their own. In my case, we have public websites where the properties are advertised. I direct potential purchasers as well as agents to that site.

MAR

2007

I have my first REO listing and although I treat it just like my other listings, I find the attitude of other agents and buyers is different. They look "down" at it and one buyer actually hit the bank with an offer more than $100,000 under asking price. The listing price was where it should be for the location, condition etc. I am sure they wouldn't have done this to the "regular" seller.

It is perfectly proper to laugh at the other agent when they present offers like that. All I can say is welcomt ot our world. I dont get a lot of that....anymore. I flat out ask the other agent if they really think that that offer should be taken seriously and thatnk them for wasting my time. I have found out that cuts a whole lot of it. There really is a lack of education for and by buyers agents and the new buyers to foreclosures. Shows like flip this house and all really have hurt our industry and I think they will continue to feed the foreclosure rate... I have been seeing a rash of foreclosed homes that have come back on again as foreclosures....with remodel work started, obviously a flip gone wrong. People hear foreclosure and they assume steal. I have found the prices actually going up and the margin (read market value discount) going down. THe bottom line is there are so many the lenders are not willing to take as much of a loss.

Please let me know if I am worng here.... This is a trend that I have seenin my market and I am interested to know if there are other regions affected as mine is. We are at 25% here (1 out of 4...scary)

The number of foreclosures here in southern NH has definitely increased though we are still at the low end from the charts I have seen based on the number of homes in our areas. A year or so ago it was hard to find any and now they are spreading like wildfire. The sad thing about the low offer I had mentioned was that it was a Realtor's husband!! He wanted to do the flip thing and the house did need work but not to the point that his price was anywhere near reasonable. The banks obviously want to get as much of their money back that they can and unfortunately with all the refinancing and driveby BPO'S in the past few years, I find that the lenders were giving money far above what the homes were actually worth. That is the case on the one I have and also there was some damage, the insurance company paid the homeowner, and they never fixed it! So now the bank is stuck with selling it like this and the former owner took the cash and ran.

Yes,I have seen a bunch of that as well. I think it is only going to get worse... Geez, that was a realtor's husband... It would be one thing if it was a regular client. I have had to do that....but I call the agent and apologize for the offer and do it verbal....So as not to waste too much time.... But a Realtor...that is just sad.... Was she really expecting that they would even counter on that offer I wonder?

She joked about it but I think she really did expect them to counter. I even told her that there was another offer going back and forth. I guess they thought it was worth a shot but it really was a waste of my time. Maybe she had nothing else better to do.

MAR

2007

Would appreciate your suggestion on how to get REo listing from the banks. Thanks

MAR

2007

Melissa,

Great Post, and I agree that REO's need to be better represented/marketed. I have become the foremost SHORT SALE expert in my area, closing millions of dollars in SHORT SALE transactions. I thought this would eventually lead to relationships with lenders, and REO listings. This has not happened the way I anticipated, any suggestions?

MAR

2007

Ralph,

You are right to say that the Loss Mit department doesn't know the REo department. Often times, when a home goes into foreclosure, the lender lumps it with all it's other properties and sells it or outsources it. The large blocks are broken up and dispersed. So, just because a home was foreclosed by Countrywide, it doesn't mean that Countrywide will end up selling it as an REO. Just like not all FHA mortgages go back to HUD. The best way to know WHO is selling the properties is to check out the current REO agents. See if you can figure out who the sellers are. In our MLS, we can upload documents, so I check out the addendums to see if it mentions a particular company. I also scour the internet for foreclosure listings in my area to see if they'll point me in the right direction.

I've just uploaded a post on how I got started in REO... check it out!

I'd love to swap ideas with you too. I got disinterested in the pre-foreclosures as so many were hard luck stories and pleas for help. But, I do like the idea of picking it up again.

MAY

2007

Dear Melissa,

I did not see your post on how to get started in REO, how to get that first REO listing.

Patrick Dunaway

Century 21

MAY

2007

I just started doing BPO's for the first time in my career - the first two or three were kind of fun - but I know what you mean about the BPO Mill! I did a few hoping to get in contact with the right people to get the REO listing - it has only been about 3 weeks - but is this a good way to get to the REO Gods who are able to grace us with an REO listing! :-)

JUN

2007

REO Listing

I'm so excited!! I just got my first REO listing today!!!

I never did one before though, but I don't let what I don't know stop me from finding out!! I've heard some negative things about them, but I'm not going into it with any negative expectations. They seem a bit complicated, but I want to do a good and thorough job. I don't mind the fact that they take more time than regular listings....I'm willing to wait because that's all I've been doing anyway, so a little more patience won't kill me!! :)

Mellisa, you have the kind of attitude about these REO's that I admire and want to immulate!! I wanna be just like you when I grow up! (LOL!) I'm gonna be reading your blogs like CRAZEEEE!!

May God continue to bless you and increase your business as you share your blessings with others!!

Wide-eyed, newborn REO agent,

Toya

JUN

2007

Toya,

That's so sweet!! You have all the makings of a Super Agent!! Keep us posted on how it's going!!

JUN

2007

You all better think about becoming a REO agent before you jump in head first. If you don't have $5000 - $10,000 to front the bank for expenses, you've got no place. Our firm has someplace above $50,000 out on loan to our client currently and we are not alone. This is an expensive racquet but is very profitable also.

JUN

2007

REO's are hard work and much time is invested. But if done the right way and often, you've got a great business going!!

JUL

2007

I was thinking about becoming a new REO agent. I have searched several websites trying to find out where to start. Any suggesstions?

Also, do you have to be a broker to be a REO agent? I have 5 years experience as a Buyer's Agent. I have gotten listings, but they usually end up in foreclosure before they sell. That's why I wanted to try REO.

Thanks

Barbara,

Check out my other posts including this one: http://activerain.com/blogsview/65843/You-Don-t-Scare

And, no, you don't have to be a Broker to be an REO agent. With some companies, they only want to deal with the Broker, but most are willing to work w/ an agent too.

JAN

2008

Very refreshing. I have recently involved myself in the REO world. I wondered why I shouldn't apply my normal marketing plan to my REO listings and why the majority of REO agents in my area don't market these properties to their full potential.

The marketing plan will work for all your listings. Eposure!!!! Exposure!!!!!!Exposure.

I market my REO properties the same as my others as well. I have the same goal and that's to sell them fast. My Asset Manager is so pleased that my listings are selling after they had been on the market for a year or so with other agents.

FEB

2008

Great Post. Our designated REO agent in our office is the same as you mentioned. Picture of the outside only, etc.

OCT

2008

Great post Melissa.

Keep up the good work & best of luck

APR

I wanted to share this free list of REO asset managers and there website information that I got. I signed up with just about every one of them. Now in less than three months I have plenty of BPO's and two REO listings, one of which is already in contract. Just do what ever you can to get started and be patient. Good luck.

Company	Link
Accredited	http://www.accredhome.com/
Assetlink	http://www.assetlinklp.com/
Atlas	http://www.atlasreo.com/index.html
Aurora	www.res.net
AVM	http://www.assetval.com/
Badisso	http://badisso.com/
Bankers Assest Management	http://www.bankersassetmanagement.com/
Bank of America	http://reointelligence.com/uploads/bank_of_america.pdf
Bayview	http://www.bayviewfinancial.com/
Brighton Real Estate	www.brightonreo.com
CalReo	www.calreo.com
(CMS) Carrington	www.carringtonms.com
Chrisley	http://www.chrisleyam.com/
Citi Financial	https://oms.citiresidentiallend.com/oms/jsp/login.jsp
Countrywide	http://my.countrywide.com/BizPartners.aspx
Electronic Mortgage Corp. (EMC)	https://www.emcmortgagecorp.com/EMCMORTGAGE/
Equity Pointe	http://www.equitypointe.com/
ETC REO	http://www.etcreo.com/
Executive	http://www.executiveam.com/general/registration.cfm?ContentItemID=Registration
Fannie Mae	https://www.efanniemae.com/is/npdcvendors/index.jsp
Fidelity (LPS)	http://www.fidelityasap.com/registration.aspx
First American	http://www.firstamreo.com/application.asp
First Preston	http://www.firstpreston.com/re_broker_registration.asp
AHMSI (First Option)	https://ahmsi3.com/servicing/home.asp
406 Partners	www.406partners.com
GMAC	REOTRANS.COM
Green River Capital	http://www.riocentral.com/prospectivebroker.aspx
Group Financial	http://www.grpcapital.com/contact/index.html
Goodman Dean	http://www.goodmandean.com/
HSBC	http://www.reotrans.com
Home Eq	http://www.homeq.com/reo/reoProperties.do
Integrated Asset Services IAS	http://www.iasreo.com/workwithus.aspx
Indymac	http://reo.indymacbank.com/reo.ext/presentation/BrokerApplication.aspx
Land America	http://www.lendersreo.com/application.aspx
Lighthouse Real Estate Solutions	https://extranet.lrescorp.com/vreg/index.cfm
Litton Loan Servicing	https://www.littonreo.com/litton/DesktopDefault.aspx
Loan Servicing Solutions (LSS)	14
Keystone	https://www.keystonebest.com/agent_login/agent_login.asp
MDWEBB	http://www.mdwebbinc.com/contactUs.aspx
Nationstar Mortgage	https://www.nationstarmtg.com/Realtors/RealtorApplication_Step1.aspx
Metro Pacific REO	http://www.depotpoint.com/news/?p=126
National City	http://www.nationalcitymortgage.com/
Nations Reo	http://www.nationsreo.com/brokers.cfm
National Default NDS	http://www.defaultservicingllc.com/become_broker3.htm
New Vista	http://www.newvistareo.com/app.php
NPR Capital	http://www.nprcapital.com/
NREOB	http://www.nreob.com/Public/Registration/Broker/RegistrationAgreement.aspx
Ocwen	http://www.ocwenbusiness.com/bs_loanservicing_res_bi.cfm
Old Republic	http://www.oldrepublicdefault.com/Default.aspx
Olympus	http://www.olympusasset.com/agent/agentdata.php
Owen REO	http://owenreollc.com/index.asp
Phoenix	http://www.assetonemg.com/Website/coprofile.htm
Premiere Asset Services (PAS)	http://www.pasreo.com
PMH Financial	http://www.pmhfinancial.com/Registration.htm
PNC	http://www.realtyservices.pnc.com/
Premiere REO	http://www.premierebpo.com/premweb/Home/ContactUs.aspx
Real Estate Disposition Corp. (REDC)	http://www.redcgroup.com/index.html
Reo Experts	http://www.reoexperts.net
REO World	http://www.reoworld.com/
REO Financial Asset Services	http://www.reofas.com/
Single Source Property Solutions	https://www.reotrans.com/index.cfm?
SNSC	http://www.snsc.com/ReoPropertiesBroker.aspx
Sun Trust	http://suntrust.res.net/
Tactical REO	https://www.disposolutions.com/clientlogins/dst/default.aspx
US Bank	http://www.usbank.com/
USRES	http://www.usres.com/vendors/real-estate-brokers/
Wachovia	http://reo.wachovia.com/wbreosubscription.aspx
Washington Mutual	http://www.wamuproperties.com/
Wilshire	https://www.wcc.ml.com/Homes.aspx

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