I would hate to be this agent

By
Real Estate Agent

One of my friend's house recently got foreclosed upon. I never listed the house. I didn't really want the listing because it was worth $80,000, had two mortgages, and it was my friend's house. This is a pretty close friend and my friendship is more important than making a couple bucks.

The REO agent contacted him. Fannie Mae is willing to pay him $2,000 to move out. However, the agent has to give him the $2,000 upfront and then wait 6-8 months to be reimbursed. She told him she didn't have the $2,000 right now, but has a closing coming up and should have the money then. This agent is still waiting for reimbursements on other listings.

The house will probably sell for $80,000 at a 3% commission. She'll make $2,400. But, this agent is going to have to give her entire commission check to the homeowner. Basically she is doing a bunch of work today and then waiting 6-8 months to get paid for it. She still has to pay for gas, lockboxes, and spend her time handling the listing and closing. It always amazes me at how desperate some people are for business.

This is what happens when you aren't proactive about bringing in new business. You end up working with low quality customers. She should spend that $2,000 on marketing to get higher quality listings. Maybe mail some letters and list a few short sales. We recently spent about $500 and listed 7 short sales.

We project we'll make about $57,000 from those listings. Based on those numbers she could turn her $2,000 into $50,000 minimum. And, she'll start seeing a profit in 3-4 months versus waiting 6-8 months.

Are you looking for a marketing system to list more short sales? We have developed a system to farm and convert the Pre-Foreclosure Leads and the Expired Short Sales. It enables us to list a consistent number of short sales each month. Now we are offering it to other agents.

Get more info at: http://www.AgentLeadExplosion.com .

If you're running into problems with short sale files, then you probably need to look into the How to Escalate a File Course. Get more info at http://www.HowToEscalateAFile.com .

You can get a copy of all the fax numbers for congress and a fax template to send to them here: http://shortsaleagentadvocate.com .

Got questions about short sales? Just ask.

Ben Curry & Chris Curry - Keller Williams Real Estate, Gainesville Florida.

http://www.CurryTeamHomes.com

We specialize in short sales in Gainesville Florida. Gainesville Florida short sale, Gainesville fl short sale, Gainesville Florida short sales, Gainesville short sale

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Show All Comments
Rainmaker
1,282,998
Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ
EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD

Thanks for posting. We learn a lot from Active Rain blogs. Best Regards

May 10, 2010 04:25 AM #1
Rainer
84,677
Dan Benefield
Benefield Realty - Decatur, GA

Those REO agents really do put in a lot of work for a commission that has been cut to pieces. However, when I was working Fannie Mae listings, they were a little quicker about reimbursing you for expenses incurred. It is a steady source of business, but you are right, sometimes efforts are better spent looking in another direction.

May 10, 2010 04:30 AM #2
Rainer
176,251
Julia Odom
Select Realty Professionals - Chattanooga, TN
Chattanooga Homes for Sale

REO work is often thankless but it does cut down on the amount of prospecting and lead generation you have to do. Sometimes a steady flow of listings is worth more to an agent than having to wait a few months for reimbursement. 

Having said that, it definitely isn't for me.

May 10, 2010 04:33 AM #3
Rainmaker
2,346,102
Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

Ben, I 'd hate to be that agent too, I agree.

May 10, 2010 05:08 AM #4
Rainmaker
171,157
Diane Osowiecki
Diane O and Friends - Benchmark Realty - Franklin, TN
Greater Nashville Real Estate

Ben, I am with you REO work is very hard and low paying.

May 10, 2010 05:15 AM #5
Ambassador
893,091
Janna Scharf
Keller Williams Realty Coeur d'Alene - Coeur d'Alene, ID
Coeur d'Alene Idaho Real Estate Expert

Thanks for the great info, I think I will check out your system and see if it has a place in my business plan. 

May 12, 2010 09:09 AM #6
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Rainer
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Ben Curry

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