Savvy buyers in today’s market are aware of the opportunity to save money with bank owned properties or REOs which stands for “Real Estate Owned” properties.
They understand the situation and know that banks are motivated to offer deep discounts that typical sellers simply can’t match.
This creates an opportunity for real estate agents that specialize in finding their clients the best property for the lowest possible price.
Here’s some pros to bank owned listings:
- Deep pricing discounts up to 40% are common.
- Properties are usually in popular locations as banks screen neighborhoods prior to lending.
Here are some cons in the REO niche:
- Properties will need repairs. Most have sat vacant for years and have deteriorated or been vandalized.
- With REOs banks hold all the cards and they call all the shots. Dealing with their seemingly endless policies and processes can be time consuming and frustrating.
With that said here’s how to get in on the REO action:
Build a Page on your site
The best way to get the message out about your new specialty is to build a page on your website that explains to your potential clients (banks) how you can help them and why you are qualified to do so. Explain your experience and certifications or testimonials you may have. Then when you reach out to them to solicit business link back to this page.
Mail post cards
As you ride around you’ll notice properties that appear to be foreclosures or becoming bank owned. Take down the addresses and Look up who the bank involved is then send them a post card offering your bank owned service. Make sure you include your website address so they can learn more about you before they call you which all banks will do before they’ll hire you for a listing.
Specializing in short sales is a great way to position yourself as a REO agent.
This makes sense because if you’re the listing agent as part of the short sale negotiation it will be easier for the bank to keep you in place if the negotiations fail and they end up repossessing the property.
This will reduce work on their part as the property can remain listed in the MLS and continue to bring interest.
The best way to begin attracting short sales is to create a page on your website that details your experience in negotiating shorts sales, your training, and why they should hire you.