What is the use of showing REO's? BY the time you place an offer after it is listed they always have 10-15 offers. Your client gets excited and they even bid higher than asking price but don't get the property anyways.
Buyer's now want to deal directly with the REO listing agent because they feel they have a much better shot at getting the home. I think there are some real ethical questions concerning inside information on REO properties.
I have found it a lot better to deal with a regular listing and negotiate them down close to the price of a foreclosure. Those homes are in much better shape anyways and makes for a much smoother sale.
For example a 3/2 REO single family home gets listed for 210K, they receive multiple offers and it ends p selling for 235K. Why not find the same home which is a regular sale for 260K and negotiate them down close to 235K? Even if you spend a few extra bucks, almost always the home is in much better shape.