How to Sell REO Properties

REO properties are often good deals for owner occupants or real estate investors.

REO (real estate owned) means a home is now the property of a financial institution, rather than a homeowner. A lender acquires a house when it is not bought by any buyers who attend an offline or online auction. These lenders utilize the services of Realtors who specialize in listing this type of property. The job of a REO real estate agent is to find qualified buyers, and list REO property so the bank can recover as much money as possible after a sale. An agent who functions in this capacity must also keep the REO free from debris so worthy buyers can see the home when they wish.

Instructions

1. Educate yourself about the current real estate market. People who want to market REO listings must know the state of the real estate market where they do business. You can attend courses that focus on short sales, learn all you can about foreclosures that banks own, and even earn a four-year degree in the field of real estate to increase your chances of becoming a bank-owned listing agent.

2. Meet the licensing requirements to become a Realtor in your area. Though the procedure to become an REO agent differs according to the location where you run your business, an agent who works with bank-owned listings usually must have more than 50 hours of course instruction to earn her real estate license. Agents must also achieve a certain score on the state exam to sell real estate.

3. Work at a company that focuses exclusively on the REO side of the property market. There is no better way to learn how to sell REO homes than to work and learn from a successful REO listing team. You can look for agents and real estate companies who do nothing but list and sell lender-owned properties, so you can learn the hands-on skills needed to master the REO business.

4. Contact companies that manage lender-owned assets for lenders. Once you have become a listing agent that these companies call upon on a regular basis, you will have more than your fair share of REO listings with which to deal. You should do your best to return any communication attempts with these organizations in a rapid fashion, so they can see your level of responsibility. Also, it is vital that you are prepared to perform a BPO (Brokers Price Opinion) whenever you are asked to complete this task. This job requires you to go to the property in question, take pictures and research similar homes in the area to come up with an accurate assessment of the subject home's value. When you prove that you can do BPOs quickly, respond to emails with little delay and show you have a valid real estate license, you should have no problem receiving REO property listings from these groups.

References

• Realty Trac: Bank-Owned Properties and REO Frequently Asked Questions
• HUD: How To Sell HUD Homes