When you end up with an REO property, you’ve got one single goal above all else, and that’s to get it back on (and off) the market fast — and sell it for as much as you can. It’s not easy to get these products listed; there are a lot of complications that go along with them.
There are also, however, a lot of benefits to working with these kinds of properties, and they can represent a solid bread-and-butter for a real estate career. Learn how to list REO properties, what they are, the special considerations involved, and how you need to handle these listings to make a career out of this kind of sale.
How to List REO Properties
Learning how to list REO properties is a little different than other kinds of real estate listings. REO properties come with a certain set of assumptions that a standard property doesn’t. They also attract a different kind of buyer. After all, these are homes that have been seized through foreclosure. All too often they don’t have upgrades or repairs done, and they may be sorely in need of maintenance. Further, banks want to get them off the books quickly.
The Benefits of REO Listing
Unlike other kinds of real estate listings, REO listings are almost entirely done over email. The realtor will get a new REO assignment via email with all of the instructions either in the body of the email, as an attachment or via a link to an online database. In this sense, the process is much easier. There’s a lot less back-and-forth and almost all communications will be done through email.
This means that you won’t have to do cold calling, have open houses, send out mailings and fliers, or be around to answer incoming calls.
The Right Clients
REO properties are less likely to sell to private homebuyers, though there are some people who look to buy one as a fixer-upper opportunity at a bargain. In general, however, your clientele for REO listings is going to be the real estate investor or house flipper. These are people who are actively looking for homes in need of renovation that they can get for relatively cheap, fix up and resell.
Working with an REO Management Company
REO agents need to handle several aspects regarding properties. This includes regularly inspecting properties for vandalism, neglect and squatters. They’ll have to handle maintenance and necessary repairs, including keeping the lawn trimmed and the house in stable condition. It could require fronting a lot of money.
In many cases, the best option for this is to work with an REO services management company. After all, a real estate agent’s forte is selling properties, not upkeeping and flipping them. The right REO services company can actually save you money in terms of the time and effort you have to spend upkeeping the property, and avoiding mistakes in doing so.
If you’re looking to begin learning how to list REO properties, consider signing on with a reputable management firm like First Freedom Preservation right off the bat. Give us a call and let us help you turn your REO property into profit today!