How to Become an REO Agent

An REO agent specializes in bank-owned property.

REO stands for real estate owned and refers to bank-owned properties. A bank gains possession of a home when the house is not sold at a foreclosure auction. Banks use REO agents to market and sell their properties so that they can recuperate costs incurred through foreclosure. REO agents publish property listings, show homes, make offers, and negotiate financing for potential buyers. They also clean and maintain the properties post-foreclosure for the bank. The average salary of REO agents was $38,000 as of 2010, according to Simply Hired.

Instructions

1. Take real estate classes for certification, associate degrees, or bachelor's degrees in real estate. Additional coursework in marketing, business, law, finance, and economics are also desirable. Although some real estate agent opportunities exist for high school graduates, banks prefer REO agents with higher education and experience in the field.

2. Get licensed as a real estate agent in your state. Licensure requirements vary by state, but typically an agent needs 30 to 90 hours of classroom experience. He also must pass a written test covering real estate topics such as legal issues.

3. Gain experience as a real estate agent. Agents get hands-on experience working with a real estate broker. An agency also may work with a few REO properties in addition to typical residential and commercial properties. New agents often work directly with an experienced sales agent to pick up the practical knowledge needed.

4. Work with a real estate agency focused on REO properties. You'll learn how agents handle REO properties, including how to find them and to make contacts with bank asset management departments and financing companies that have REO inventory. With enough experience you can become a real estate broker and run your own REO agency.

References

• Realty Times: Too Late to Become an REO Broker? No Way!
• Realty Times: REO Brokerage
• Simply Hired: REO Broker Salary