How to Become an REO Realtor
When a home is foreclosed, the lending institution takes back the title and becomes the owner of the property. Lenders call these properties REO, for real estate owned. At one time, before the downturn in the U.S. economy, there were few Realtors that specialized in listing REO properties. It was a niche specialty. Today, with foreclosure rates skyrocketing, Realtors are finding the REO niche quite profitable, albeit challenging to break into. The first step in becoming an REO Realtor is to join the National Association of Realtors. Only then can you call yourself a Realtor. Obtaining REO listings is the next step and it can be a lengthy process.
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Instructions
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Learn how to compile a Broker's Price Opinion (BPO). The BPO is comparable to the CMA that you construct for individual clients. Although all BPOs contain the same information, most lenders have their own BPO forms. If there is an REO specialist in your office, ask if you can take a look at some of his past BPOs to get an idea of what is required.
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Ascertain that you have enough money to carry REO listings through to the sale. REO Realtors frequently pay for repairs, re-keying, trash-outs, cleaning and other items out of their own pockets. The lenders eventually reimburse them for these items, but it may take some time. You will need to be sure that you have enough financial reserves to pay for anything that may need immediate attention.
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Build a team. The REO Realtor requires a group of people she can depend on to get the home ready for the market. At a minimum, these team members include a licensed contractor to handle the repairs, a trash-out person, a cleaning crew and a locksmith.
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Register with banks and asset management companies. On the Internet, bpoaccess.com offers a list of broker price opinion companies with which you can register. After you've registered, follow up with a phone call to make sure your information was received.
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Add your information to online databases. There are a number of sites that will allow you to advertise your REO services. Some require a fee, others such as reonetwork.com, do not.
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Tips & Warnings
The BPO is the only chance that you will have to make yourself stand out from the rest of the Realtors competing for the lender's listings. Make sure that it is impressive by doing a thorough, professional job.
