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Are REO listings hard to capture?

By
Real Estate Broker/Owner with Kim Davis Realty BK516953

  I'm new to this site but would like to share some insight into the torturous path of how to become and REO listing agent. 

 Having been a former REO Asset Manager for a company called Lender Processing Services in Denver, CO and also as a remote manager, I have insight from both sides of the isle. Early on in 2008 as the market was tumbling onto a downward spiral, I knew it was time to get into REO sales. Try as I may I would apply like a fox on fire only to hear NOTHING back over and over. My credentials were impeccable. I was a Certified Appraiser as well as a Broker for many years. I finally decided to apply to become an Asset Manager and out of over a hundred candidates flew to Denver and got the job.

  I learned some valuable lessons from that opportunity. I learned what not to do to become an REO agent. First of all, most agents are not hired directly by the Asset Managers (they have specialized person who does the hiring). So trying to hook up with these managers is a waste of time in most cases. Attending the large conferences won’t get you anywhere either unless you “know someone” who can hook you up. Many of these webinar gurus will tell you it’s not too late to get into REO and all you have to do is lots of BPO’s and send out catchy marketing material to asset managers. They are out to get your money. Do agents ever get listings from BPO’s? I can’t say 100% but I never have and I’m an appraiser.

  Now for the final reveal…the best way is to buy onto sites like res.net and take their agent certification courses and make sure you have an outstanding profile. Let the people searching for the best agents know that you are educated and qualified. MMM. yes that means that you will need to become educated and qualified. Thomas Edison said "The harder I work, the luckier I get."  My best word of advice is to try and find someone outside of your market area who is highly successful listing REO’s and take them to lunch. Pick their brain and maybe ask to partner with them? Maybe they can establish a presence in your location with you as the agent. Persistence pays off.  Another trick is to attend or research your local foreclosure sales and see what lenders are not huge national banks and try and contact the loan officers or REO department directly. Use your imagination. Don’t be afraid.

Sincerely,

Kim Davis

 

Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Is this your first feature as Christine was implying? If so, congratulations! I must've skimmed too fast.

May 31, 2015 05:14 PM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I gave you a follow just for the heck of it and I have no regrets whatsoever. Love and light!

May 31, 2015 05:15 PM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

Welcome to ActiveRain, and thanks for the information - it was very interesting. I've had several REO sales recently (from the buyer end) and I realize I have no desire to list REOs. I prefer people business as opposed to bank business.

May 31, 2015 08:45 PM
Kim Davis
Kim Davis Realty - Bushnell, FL

Thanks for all the comments. I think in many markets there is such a tremendous change in the values and a higher buyer demand than there used to be that getting into REO's now would be like becoming the captain of a sinking ship. I know some people who became wealthy during the downturn from selling REO's who are now looking in other directions to maintain that wealth. My goal was not to suggest that you start to do so but that if you have made up your mind to make it happen that you will be more informed from a different perspective than somone trying to sell you something. I hope to learn much while becoming a participant.  

May 31, 2015 08:55 PM
Janis Borgueta
Newburgh, NY
Retired RE Salesperson

OH the joy of NOT doing REO's. I still get calls from banks looking for BPO's for free. I am over that. Yes, there are some that have made some serious money with them, but that ship has sailed on for now. More to come? maybe, but I don't think I want to deal with it. Great post, and welcome to AR.

May 31, 2015 09:44 PM
Michael Blue
Home Smart Realty West - Encinitas, CA
REALTOR - 760-889-8877, Encinitas/Carlsbad

I know quite a few asset mgrs now back in real estate sales.

May 31, 2015 10:01 PM
Michelle Grunberg
eXp Realty - Ijamsville, MD
When Honesty, Integrity and Loyalty Matters!

Welcome to Active Rain and congrats on having this post being featured. Thank you for your insight 

May 31, 2015 10:33 PM
Macy Babb ... North Georgia Realtor
Re/Max Around Atlanta Realtor - 404-234-6166 - Cartersville, GA
Realtor, SFR, HUD/REO Certified

I used to "think" that I "wanted" to list REOs... but discovered my niche is working with the Buyers for these homes

May 31, 2015 11:13 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Some poor family was thrown out and left behind was a house that used to be a home. Reminds me of the predator/prey relationships in Africa where everyone feeds off the carcass until it is just bones....Long live Standard Real Estate!

May 31, 2015 11:24 PM
Roy Kelley
Retired - Gaithersburg, MD

Thanks for sharing this advice. Best wishes for great success with your ActiveRain blogs.

Follow the bloggers you enjoy, leave lots of comments and 'like' the blogs and comments as you view them. Your network will quickly expand.

Jun 01, 2015 12:16 AM
Roy Kelley
Retired - Gaithersburg, MD

Suggestion: Use your blog settings to create an automatic signature for your blogs. Readers want to see your contact information and your office address.

Jun 01, 2015 01:17 AM
Frank Rubi
Frank Rubi Real Estate, LLC - Metairie, LA
FrankRubiRealEstate.com

Kim great thought on dealing with REO Listings. I have tried in the past to obtain the REO listing to no avail. 

Jun 01, 2015 01:06 PM
Frank Rubi
Frank Rubi Real Estate, LLC - Metairie, LA
FrankRubiRealEstate.com

Kim Davis Congrats on your Feature Post. Also welcome to the Active Rain Community. 

Jun 01, 2015 01:07 PM
Praful Thakkar
LAER Realty Partners - Burlington, MA
Metro Boston Homes For Sale

Wow, information packed post - and congrats on feature, Kim Davis . Way to begin your ActiveRain journey.

Welcome to ActiveRain.

Jun 01, 2015 03:34 PM
Richard Arnold
Keller Williams Realty East Valley - Tempe, AZ
Realtor - Tempe, Chandler, Mesa, Gilbert, Phoenix

A couple of years ago my team had a steady supply of REOs - now they are rare.

I can tell you there are as many flavors of REO management - as pies at Marie Callender's.  

Each REO agent I've spoken to has a different tale of labyrinthian paper trails and complicated listing requirements that would give pause to particle physicists.  Over the course of only a few years, in our case, the number and frequency of reports DOUBLED.  That's right - they change the rules every few months and each time the agent's pile of work gets bigger.

~ ~ ~

Working in the system I can tell you that every property has a unique story - it's not a solitary column of vagabond families kicked into the streets by heartless accountants.  There are the cash for keys owners who leap at the chance to get out of the upside-down value.  There are houses that have been abandoned for months, even years, that have finally been restored to move-in ready condition and sold at market price - no longer an eyesore in the neighborhood.  And there are people who just had a bad year or two - know the clock is ticking - and when they get notice, quietly move out of their impeccably tidy houses.

In my opinion, the stigma attached to REOs is unfair & doesn't help the neighborhoods where these houses exist.  The average resale house is in no better condition that most REOs - in fact, most the REOs my team listed were in better shape because the bank spiffed them up to be market-ready.  Yes, luxury home-owners cut corners, repairs and cleaning, too. 

Listing REOs is serious hard work - agents catch a lot of grief from both ends.  In addition, you may have no choice over what houses you list in order to keep your "plum" role with the bank.  I think you've got to have an aptitude for the process or for managing the properties - the human element is not prioritized from the bank's perspective.  You need to simply perform the tasks or get out of the way.

Jun 01, 2015 05:37 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thank you for the infromation and advice. Congratulations on the featured post.

Jun 01, 2015 08:35 PM
The Temple Team
THE TEMPLE TEAM - Mooresville, NC
Specializing in Lake Norman/Charlotte/Charleston

CONGRATULATIONS on your First BLOG!  And ... WELCOME TO ACTIVE RAIN! You're going to LOVE it here!!

 

KT

Jun 02, 2015 05:30 PM
Erin Green
Realty Executives Exceptional Realtors - Oakland, NJ
Find A Home With Erin

Rich Arnold, I work with an agent who only deals with Reo properties. I totally agree that the stigma of listing these properties, is what it is. Like you said, Listing REOs is serious hard work . 

Jun 03, 2015 03:54 PM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Lots of things to consider.  I think each person will have to make their own decision.

Jun 04, 2015 02:03 PM
Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

Welcome to ActiveRain Kim! I'd pass on listing REOs, but would buy one as an investor if the price is right.

Jun 07, 2015 01:59 PM