Newport Real Estate REO's (bank owned property) Marketing plan

REO Managing - Marketing Steps

• New REO Property - Initial Services
• Property Valuations (BPO, Appraisals)
• Maintenance & Repair
• List and Market the Property for Sale
• Monthly Status Reports
• Closing the Deal: Property Sells

New REO Property - Initial Services

Lender provides information on new REO property:

• Property Assignment & Real Estate Agent Selection - PRo Newport Asset Management assigns property to agent to obtain occupancy status.
   
• Drive by BPO - Agent drives by property and from an exterior evaluation prepares opinion of property's market value. (A drive-by BPO is a frequently used form of assessment. It is typically done as the first assessment of the property's value. The report contains basic property information as well as a few comparables in the area. This is less expensive than doing a full appraisal or an interior BPO and an agent can provide this information even if the property is occupied.)
   
• Occupancy Status - PRo Newport Asset Management informs client of occupancy status within a 24-hour period.

For occupied properties:

• Cash For Keys - PRo Newport Asset Management coordinates with agent and occupant to offer "Cash for Keys". (Amount of cash for keys has client's prior approval.)
   
• Evictions - PRo Newport Asset Management coordinates with client, attorney and agent to facilitate timely eviction of occupants. At client's request we can deal directly with attorney, thereby saving client time.
   
• Eviction Status - During the eviction process, agent is instructed to drive property every week to monitor for vacancy.

For vacant properties - Agent is instructed to proceed with the following: (or once property is vacant)

1. Secure Property - Re-key property (front and back doors secure)
    
2. Utilities - Turn utilities on in agent's name (if applicable)
    
3. Initial Clean - Obtain trash-out, initial yard service & maintenance program, cleaning and pool bids (if applicable)
    
4. Valuation - Submit Broker Price Opinion with pictures and bids within 10 days

Property Valuations (BPO, Appraisals)

• Drive by Broker Price Opinion (BPO) - Real estate agent drives by property and from an exterior evaluation prepares opinion of property's market value.
   
• Interior Broker Price Opinion (BPO) - Real estate agent provides estimate on home's value when property is vacant or accessible and serves as a more detailed and accurate valuation of listing price. With interior property access the agent can assess a more complete analysis of market value.
   
• Appraisals - Order appraisal or second interior BPO. Agent supplies report within 10 days (or within client guidelines).
   
• Reports - Order reports as necessary (including foundation report, roof inspection, termite inspection etc).

Maintenance & Repair

• Emergency Repairs - Coordinate emergency repairs with agent when needed.
   
• Rental Properties - PRo Newport Asset Management manages rent collection in cooperation with listing agent, if property is tenant occupied and a decision is made to leave the tenant in place. Forward rental payments to client minus applicable management fee.
   
• Initial Clean Up - Obtain trash-out, initial yard service, and cleaning services.
   
• Ongoing Maintenance - Weekly yard maintenance, property preservation, basic winterization, pool maintenance, termite treatments (each dependant on client preferences and property needs).
   
• Rehab Bids - Solicit bids from qualified contractors for work needed on property.

Listing and Marketing the REO Property for Sale

• Marketing Report - PRo Newport Asset Management reviews Broker Price Opinion and Appraisal and completes a Marketing Report suggesting a list price and market strategy.
   
• List Price Approval - Client confirms list price within 5 working days or designates authority to us to set the list price. Allowing PRo Newport Asset Management to set the listing price greatly shortens marketing time. In our normal procedures list price is set only based on the appraisal and the agent's BPO (or two BPO's) being within a 10% variance of each other. If prices are out of variance, PRo Newport Asset Management works with all parties to bring values within variance prior to listing the property.
   
• Property Listed for Sale - Coordinate any rehab projects on property and place property on the market with designated listing agent.
• Title Commitment - At the time property is listed Bankers Asset Management opens title with a designated Title Company (at Client request), orders title commitment and advises client of any back due taxes or liens against the property.
   
• Monitoring and Reporting - Constant monitoring with agent regarding sale of property. Monthly status reports to client.
   
• Price Reductions or Listing Extensions - Coordinate listing extensions and price reductions.
   
• Contract Negotiations - Negotiate all offers on client's behalf (within predetermined guidelines & stipulation "subject to corporate approval"). Receive and review contract, forward to client with a "Contract Cover Sheet" summary, all negotiation sheets, countering sheets, seller's net sheet, buyer pre-approval letter/proof of funds and copy of earnest money check. Client promptly signs and returns offer.

Monthly Status Reports

All of our clients receive monthly status reports of all REO properties under our expert management. This is in addition to ongoing advisement and monitoring of current issues. This is one way that we keep you updated on your holdings and their progress.

Monthly Status Reports include the updates listed below. Reports are also customized based on our clients needs and preferences.

• New Acquisitions
• Occupancy Report
• Redemption Report
• Evictions
• Listed Properties
• Listed Properties over 30 Days
• Listed Properties over 60 Days
• Listed Properties over 90 Days
• Sales Pending Report 
• Property Rehab Report
• Total Inventory Report

Closing the Deal - Property Sells

• Contract Negotiations - PRo Newport Asset Management negotiates all offers on client's behalf (within predetermined guidelines and stipulation "subject to corporate approval"). Receive and review contract, forward to client with a "Contract Cover Sheet" summary, and negotiation sheets. Client promptly signs and returns offer.
   
• Preparing for Closing - Offer is accepted. PRo Newport Asset Management monitors all details and activities necessary for closing, including: inspections, contingencies, loan approvals, repairs, and disbursement instructions with title/escrow companies, etc.
   
• Real Estate Closing Papers - PRo Newport Asset Management reviews all escrow papers, fees, commissions and HUD & closing statements, then forwards to client for approval and signature.
   
• Funding - PRo Asset Management monitors all closings to expedite funding to lender.
   
• Accounts Payable - Collect & disburse payments to agents and vendors. Submit invoices to client for reimbursement on a weekly basis. Upon closing, immediately obtain all final invoices from the Broker for final close-out of file.

Newport Real Estate has agents serving the entire state of Rhode Island, including Newport, Middletown, Portsmouth and surrounding areas. We can help you with all your buying, selling or renting real estate needs.


Please visit our website or call us directly if you need any assistance regarding any of our services.

Jorge Muralles
Real Estate Consultant
401-855-1335

Newport Rhode Island Real Estate - Residential & commercial real estate sales and rentals!!

www.locopro.com

www.newporttimesharesrus.com

www.ripropertyvalues.com

Real Estate services for today's market: We can help you with all your real estate needs, from buying, selling, or renting to avoiding foreclosure, we do it all. Call us with any questions.

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