Listing REO / Bank Owned properties

By
Real Estate Agent with Keller Williams Realty

I keep seeing posts from agents asking if they should pay large fees and register on web sites claiming to connect agents with asset managers who assign listings. As an agent who has specialized in marketing and sales of REO/ Bank owned properties for more than 12 years, I would like to take a moment to advise you not to waste your hard earned money.  Since the downturn in the economy, everyone is trying to get on the REO bandwagon. The truth is that asset managers want to use experienced, seasoned REO professionals to list these properties.  You cannot BUY your way into the REO industry.

As a matter of fact, many of the largest asset management companies and banks have closed their registration sites due to the sudden volume of new registrations. Agents who once turned their noses up at these properties are now asking "How do i get on board?".

The very best way to evolve yourself into a successful REO agent is to sign up with as many BPO outsourcers as you can. Provide accurate, professional property evaluations over and over again for $45, $50 or maybe $55 each. That will get your name in front of the asset manager preparing to list a property. Then, sit patiently (sometimes for months) and wait for someone to notice your hard work and competence and call on you for a listing assignment. And when you get a listing, love it, care for it and give it all the attention as if it were your only child.

And then you build REO experience from there.

   

Comments (10)

Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

As a broker who manages a very successful REO agent with 12 years experience I certainly ditto your advise.  Stupid to throw money away to a company who can't guarantee you a listing.  And I find it amusing that so many agents are trying to jump on the wave of REO agent success with no experience.

Jan 25, 2010 08:36 AM
Account Deleted
Beaverton, OR

Sally, I couldn't disagree more with this statement you made: "Then, sit patiently (sometimes for months) and wait for someone to notice your hard work and competence and call on you for a listing assignment.

This attitude is why so many agents fail in the REO business. I guarantee if the agent in the office next to you is prospecting Asset Managers daily, sending emails, attempting to build relationships, and asking for assignments...they will get a listing before you if you are just sitting there waiting.

So many agents treat REO like its such a unique industry with different rules than the rest of the working world, when in reality it's just like every other industry when it comes to getting hired. You have to stick out above the competition and get noticed. Doing BPOs and just waiting is what most other agents are doing. That's just like sending in your resume in any other industry and just waiting to be called while it sits in a stack with hundreds of other applicants.

You have to follow up, be persistant and show them how hungry you are to work for them. Show them your value and how you can be an asset to their company. Asset Managers get bonuses on closed deals so they want to work with the agents they feel are going to close the most deals for them in the least amount of time. They want educated, organized, and hard working agents willing to do all assignments and do them well.

You may be one of those agents, but if you don't let them know that and let them know often, they have no way of knowing. By doing BPOs and waiting you're just another BPO agent to them and those are a dime a dozen anymore.

 

Jan 26, 2010 04:33 AM
Sally May
Keller Williams Realty - Fort Mill, SC

Sorry to ruffle your feathers, REO Intellignece. But, after all, you ARE one of those companies who solicits a registration fee from agents with a promise of a fast track to the REO listings. I cannot speak for the asset managers, but I can tell you from my own experience and conversations with them that the fastest way NOT to get their business is to bombard them with cold calls and mailings. They are all overworked and under paid. They do not have time to handle calls from agents trying to get into the REO industry. One asset manager whom I have a long business relationship with, told me that sometimes she has as many as 200 files on her desk she is trying to keep up with. When I attended the Five Star Convention in Dallas, Tx, asset managers turned their name tags over so as not to be attacked by agents every time they walked down the halls.

This makes it even more important that they have a predefined vendor list including listing agents who are already trained either through the bank's in-house training program or one they have selected as a requirement for their partner listing brokers to remain on that list. Asset Managers go to trusted networks like the NRBA membership list (which requires a long application, a certain level of REO experience and approval by other members to join), REOMac, Equator and Default School Graduates,etc. 

Also, most of the larger Asset Management Companies and in-house REO Departments of lenders have taken the task of assigning listings away from the asset managers so that they are not distracted by solicitations from agents. Listings are assigned by pre-marketers. But , of course, if you don't do a good job, the asset manager can certainly take the listing away.

The way to show your committment to the REO industry is to take the required training, show a short marketing period from list to contract date, provide accurate and professional property valuations, show a sales price close to your original BPO value. Remain easily accessible, communicate clearly and concisely.

In short, you EARN the REO listings by years of accountability and hard work. You cannot BUY your way into the REO industry by paying a registration fee to have your name placed on a list. It just isn't good enough.

Jan 26, 2010 05:45 AM
Account Deleted
Beaverton, OR

Sally you said a few things I want to respond to:

But, after all, you ARE one of those companies who solicits a registration fee from agents with a promise of a fast track to the REO listings.

Not true at all. We do not solicit any type of registration fee from agents and we make no promise of anything. We simply provide/sell contact information. We leave all of the work up to the agents to make that info work for them. Some use it very successfully and some do not. We are not one of these directory sites that taskes your money so you can post your name in the hopes of an AM coming to find you there.

Also, most of the larger Asset Management Companies and in-house REO Departments of lenders have taken the task of assigning listings away from the asset managers so that they are not distracted by solicitations from agents. Listings are assigned by pre-marketers.

You are correct here and that is the reason why our database of contacts actually contains many more pre marketers than asset managers.

The way to show your committment to the REO industry is to take the required training, show a short marketing period from list to contract date, provide accurate and professional property valuations, show a sales price close to your original BPO value. Remain easily accessible, communicate clearly and concisely.

I agree with everything you say here. But how do you think an AM or Pre Marketer will know any of this about you if you don't tell them?

In  short, you EARN the REO listings by years of accountability and hard work. You cannot BUY your way into the REO industry by paying a registration fee to have your name placed on a list. It just isn't good enough.

I don't advocate buying your way into anything. But I also don't agree with sitting and waiting. Actually that is exactly what the companies you mention propose as well. Pay us $300, put your name on our list or in our directory and you will get calls for listings. That is garbage. But besides paying the fee, you are basically advocating the same approach. Sit and wait to be picked among hundreds or thousands of agents all waiting for the same thing.

There is too much competition out there for that approach. It worked years ago, but things have changed. If you just sit and wait you will get passed up by the agents that are more hungry, more aggressive and more persistent. Obtaining listings is all about the relationships you build and foster with your Asset Managers and Pre Marketers. Anyone telling you different is not being honest.

 

Jan 26, 2010 09:22 AM
Bill Somerset
Re/Max Realty Group - Dover, NH
ABR, e-PRO - Realtor - NH Real Estate Agent

Thanks for the information Sally.  I have been performing BPO's for about 2 years now and still have yet to be assigned a single REO.  I also want to be able to list and sell REO's but refuse to pay anyone an upfront fee.  I have been told by several people that it does not work.

Jan 26, 2010 11:08 AM
Tere Rottink
CoastalVa Realty Inc - Virginia Beach, VA

Sally,

Thanks for this information.  I was considering signing up with one of those companies, and you have saved me some time and I am sure lots of headaches and frustration.  Plus  $$$$

Tere

Jan 27, 2010 12:23 AM
Kathy Torline
ERA Herman Group Real Estate - Colorado Springs, CO
Colorado Springs Real Estate Blog 719-287-1049

Thank you, thank you again for this post.   I've heard from many of my agent friends that the best way to get the listings it to do good quality BPO's vs. paying money for services where you don't get anything.  This just reaffirms what I've already been told.

Jan 27, 2010 03:28 AM
Tere Rottink
CoastalVa Realty Inc - Virginia Beach, VA

Sally,   I sent you an email.  Did you get it?  Just checking.     Tere

Jan 29, 2010 12:30 AM
Jesse Madison
One Point Plus Real Estate - Laguna Niguel, CA
List For Less...Sell for More | 1% List Fee!

When I first started in REO I did pay to sign up with certain companies and it did pay off for me. However, I feel tha at this stage it would be very difficult to break in. The number of agents registered at most asset management comanies has surpassed the supply of REO inventory at most companies. There is a large waiting list at these comapanies and many are turning agents away. It is so hard to predict what the need will be for agents in any given market once inventory levels increase. I really think you have to look at these comanies on a one by one basis. Great post. Thanks for sharing.

Feb 08, 2010 07:23 PM
Violetta Polyakov
Florida Home Consulting - Мы Говорим По Русски - Boynton Beach, FL
Broker/Owner

Sally, I agree with you completely.  More and more we get bombarded with emails from so called "reo industry experts" who want our money in return for empty promises. 

Economy is down and many agents are without work, but please don’t be so hungry as to completely lose any respect for yourself and for our profession and beg for a listing from these vultures that make money on.

The situation is getting critical to the point of NAR should get involved and stop all these thieves from getting money of unsuspecting naïve inexperienced agents.

 

Mar 17, 2012 03:07 PM

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