One finds it impossible to make a generalization about anything in life or at least in my experience. I can make a statement and then find myself backtracking with all the exceptions to the original statement. I would hope that it indicates a balanced perspective on life and the duality of those opposing forces in Nature. You know, the Yin/Yang, Shiva/Shakti, or Good/Evil elements of life. My life and spiritual evolution has paralleled my work and the passion I have for providing excellence in our business development and services.
Let's examine some of the Myths and Legends about REO Agents and see how they compare. Like most things in life.....the answer is not black and white. Are all REO Listing Agents bad or evil? One would hope not but rather like car salesmen, they have a bad reputation. We have all experienced and been frustrated with the very nature of dealing with foreclosure properties. Let's take a look and explore the premise.
~~~~
MYTHS and LEGEND ABOUT REO LISTING AGENTS
- All REO Agents are BAD--of course this is not true. There are good REO agents and it is a sliding scale on how good versus how bad they are. Some are diligent, provide information, data and the marketing to help agents sell their listings. They answer their phone and support other agents in the offer process. The other end of the spectrum are REO Agents that provide minimal information and may have sold the property prior to it every being listed. They do not answer their phones or return phone calls. Their MLS listings have 1 photo and no relevant data to help the selling agent qualify the listing as a viable property for their Buyer clients.
- REO Agents double-end all their listings--real estate in general is never about double-ending properties. I don't know an accurate percentage rate but it would be in the high 90 percentile range of properties that listing agents double-end. The agent base is critical to the success of selling your client's property and all agents incorporate in their marketing plan a profile of the buyers for the property and how to market to that profiled buyer. Unfortunately, if we were to compare REO agents, I believe we would see that percentage rate come down. Inherent in the REO listing process there is advance notice given to REO Listing Agent of the assets that are assigned to them. REO Listing Agents have a process and number of tasks that must be completed prior to listing the asset. This process lends itself to an opportunity that the Agent base is not privy to.
- Do all REO Lisitng Agents take advantage of this opportunity to double-end their listings--I believe the answer would be to some extent, yes. It is a business proposition like any other and when properly managed should not be unethical. The exception is when REO Listing Agents make the effort to exclude or take advantage and keep the listing from the Agent base.
- REO Agents do not answer the phone--some do and some don't. When REO Listing Agents have 30 listings there comes a time when it becomes hard to always be available to take phone calls. Communication must still happen, however and good REO Agents make an effort to provide needed information and return phone calls at some time during the day or evening. Of course the reverse is also true and some REO Agents never return phone calls or so it would seem.
- REO Agents are lazy--nothing is more frustrating for me as an REO Listing Agent than when I am doing BPOs for new properties and the comps do not have any data. No photos, no lot size and no marketing for the property. Often, these listings are the double-ended REO listings. Our business is based on the data we have in our MLS systems. Performing market analysis is a way of life for us. I get very grumpy when there is no data in the comps I am pulling. Don't be a lazy agent whether you are an REO Listing Agent or not!!!! Sorry.....sore spot for me.
- All REO Agents are FAT (like in financially set)--it costs money and resources to be an REO Listing Agent. Getting started is hard and the overhead far exceeds the income in the beginning. REO work is very demanding work both physically and financially. If you are good and diligent with the work, it can pay off. Your performance determines how many assets you get and your future business. Getting properties sold in 30 days with an accurate BPO and keeping the asset safe and secure are your priorities. We have never worked so hard. We seldom have days off and we typically work a 12 hour day.
TRUTH
So for our business as an REO Listing Agent (we work as a team) has been rewarding. We have worked very hard to meet the performance criteria that Pemco (our Asset Manager) has set. We do a monthly training to help our selling agents learn about HUD Homes and the process involved in bidding successfully and closing transactions on HUD Homes. We hold a number of Buyer Outreach Programs each year and we attend trade shows to promote and provide information on HUD Homes and the opportunities they present.
- Double-ending my listings--I am given a performance criteria to double-end my listings. Both my Coach and Pemco believe that I am the most qualified person to help Buyers in the HUD Home Buying process. The truth is that I don't often have the opportunity to help Buyers with my listings. I do not promote the listings until they go on the MLS and by the time Buyers may contact me from this marketing or drive-by the sign, the property is pending. HUD Homes have a 9 day bid period and typically they go pending on the 10th day. What I do work hard to do is to answer the phone on calls from agents about the property that is coming soon and also help the agents in my office know about the HUD listings. I have double-ended 4 listings out of something like 60 listings and that was because the Buyer could not find anyone to help them make an offer. They have all been out of area listings with one exception. I hope going forward to have more opportunity in representing Buyers in buying HUD Homes.
- I don't answer my phone--I use to use "My Name is Jeanean Gendron and I answer my phone" as a tag line on all my posts. It is no longer possible for me to answer my phone every time it rings. I do now screen my calls. We have made huge efforts to make knowledge-based "how to" documents available to the agent base on how to bid on HUD Homes. I do return calls that need support in the bid process. I don't return phone calls where agents are too lazy to read the MLS sheet and call me to see if there is a lock box. I do return calls to Buyers inquiring on HUD Homes. I answer their questions and if qualified, I refer it to my office.
- I am not a lazy REO Listing Agent--all my MLS listings are fully popped with good data and marketing. I always disclose in "Public" and "Private" remarks pertinent material facts that should be known and refer all to the HUD Disclosures and website.
- Am I a FAT REO Listing Agent--well it is beginning to look like we will be in the black this year and not tittering between black and red. It has been a daunting process and rewarding. Our skills are better than ever and my market knowledge has become precise and skilled. I will never see the world of real estate quite the same ever again. In another sense, I AM on a diet....LOL!
The critical thing that I have learned is that I must know my Seller's motivation and need. Discovering the Seller's motivation is not always easy or apparent. Often times, the Seller is not even aware of their true motivations. You cannot sell your listings unless you have matched value and the Seller's motivation to the market trend. The hardest part comes in your communication with your Seller and the experience to keep it simple.
SELLER MOTIVATION/NEED + MATERIAL VALUE + MARKET ANALYSIS = SOLD IN 30.
It is not rocket science but it is hard work. I like it!
