Pursuing REO listings can be a waste of time, or it can be a financially rewarding method to expand your portfolio and grow your service. This article covers the basics so you'll understand how to get REO listings the ideal way.

What Are REO Listings?

REO (" Real Estate Owned") listings are residential or commercial properties that were foreclosed on by a bank or a lender and have actually not been sold at a foreclosure auction. Instead, the lending institution now owns these residential or commercial properties, and they want to sell them to recuperate the cash they provided for the residential or commercial property.

It is very important to discover the distinction in between foreclosures and REO listings.

Foreclosures: The property owner defaulted on their payments, however the bank does not own the residential or commercial property (yet). REO Listings: The residential or commercial property has actually undergone the foreclosure process, and the lender, bank, or government firm now owns the residential or commercial property.

Both situations present great ways to produce property leads since they include highly encouraged, "distressed" sellers who would love to employ an agent like you! (Learn other methods to find determined sellers.)

How To Get REO Listings: A Quick Overview

These are the 4 methods we'll cover in this short article:

1. List yourself on REO directory sites.

1. Work with federal government agencies.
2. Offer BPO services to asset managers.
3. Work directly with banks.
   
   How To Get a List of REO Properties (for Free!)
   
   One choice is to be proactive and nab foreclosures before they technically end up being REO listings. To find foreclosures in your location, take a look at listing services like Auction.com or Foreclosures.com.
   
   Otherwise, here's how to get REO listings:
   
   - Search for bank-owned homes straight on bank websites and make an offer. You can attempt the big banks such as Wells Fargo, Bank of America, or US Bank. But you're more likely to be effective if you pursue local banks, loan providers, and smaller cooperative credit union in your location. - Search for listings on management company sites such as HomePath.FannieMae.com.
4. Have a look at government company sites like HUD.gov.
5. Visit your local county's site. (Google search" [your county] reo homes," [your county] residential or commercial property search," or" [your county] foreclosures for sale," for example.).
6. Lastly, you might even find REO listings on Craigslist or within your regional newspaper's classified advertisements.
   
   Now, let's get more specific and dive into the 4 finest techniques for getting REO listing leads.
   
   Strategy # 1: List & Advertise on REO Directories
   
   Listing yourself and marketing your services on REO directory sites can be an effective way to get in touch with banks, lending institutions, and possession management companies trying to find realty agents with knowledge in managing REO residential or commercial properties.
   
   For instance, you might sign up with the REO Network.
   
   The drawback to this method is-you're not actually "finding" leads. You're putting yourself in a position to be discovered by leads. In other words, you need to depend on luck.
   
   Is a network or directory going to be your best source of REO seller leads? Probably not. But it's not difficult or lengthy, and it might effectively be a "passive" method for you to get REO listings.
   
   Strategy # 2: Work With Government Agencies To Get REO Listings
   
   In many cases, a bank owns a foreclosed residential or commercial property. (We'll cover that in Strategy # 4 listed below.) But other times, it's a government firm. So as you're looking for methods to get more REO listings make sure to check out ...
   
   - The Department of Housing and Urban Development (HUD), which obtains unsettled Federal Housing Administration (FHA) mortgages (Note: a Single Family Acquired Asset Management System [SAMS] accreditation is needed.).
7. Veterans Affairs (VA) REO residential or commercial properties for sale. Fannie Mae. Freddie Mac
   
   Pro Tip: Consider obtaining particular credentials and accreditations, such as NAR's Short Sales and Foreclosure Resource accreditation, to bolster your own confidence and increase the likelihood that possible clients will see you as a trustworthy expert.
   
   Strategy # 3: Offer "Broker Price Opinion" (BPO) Services
   
   A BPO is a professional price quote of a residential or commercial property's value. Don't consider it as an official appraisal. It's more similar to a relative market analysis (CMA). Find out more about how to craft a strong property CMA.
   
   BPOs are often utilized by banks, mortgage lending institutions, and property management companies to identify the existing market price of a residential or commercial property, particularly when they are included in transactions like refinancing, brief sales, or foreclosures.
   
   So the technique here is to reach out to the decision-makers at the banks, lending institutions, and property management companies (not their administrative assistants!) and offer to offer a BPO as a form of property networking.
   
   If you can develop relationships with those who handle REO listings every day, you set yourself as much as become a go-to representative for your location who can deal with the sales process on their behalf. (As a side-benefit, obviously, you'll get compensation for your services.)
   
   Strategy # 4: How To Get REO Listings from Banks
   
   Step 1: Learn Who You Can Speak with
   
   Create a list of banks and possession management business in your target market who regularly sell REO listings. Do your best to get all of the contact details for each.
   
   Again, attempt to identify who the decision-makers are so you can speak directly to them rather of their assistant. Your success at this point will depend on how well you can develop a relationship with those who remain in a position to pass REO listings on to you.
   
   Step 2: Make Connections
   
   Go through your list and ...
   
   - Submit your application (if relevant).
8. Reach out to them with a call.
9. Follow up within the week (and any weeks that might follow) with an additional call and an e-mail. Be consistent. Showcase your expertise, and make it clear why you're the best real estate agent who can assist them move REO residential or commercial properties.
   
   Step 3: Prepare
   
   Meanwhile, as you're constructing relationships, get ready for the moment when you make your pitch to handle an REO listing.
   
   Conduct research. Familiarize yourself with the regional housing market (specifically any information associated with foreclosures and REO listings). Also, get to know who they are, what exactly their business does and stands for, and about how many foreclosures they usually deal with throughout any provided month.
   
   Prepare a scripted discussion. A well-crafted script will help you sound more like yourself, discuss all of your essential talking points, and tactically direct the conversation. As part of your discussion, be sure to consist of ...
   
   - Your unique selling proposal (what sets your real estate brand from the rest).
10. Exactly how your service can benefit them.
11. How you prepare to offer REO listings (and how that differs from what your rivals and they're existing go-to representative are doing)
    
    Step 4: Ask
    
    Once you're confident that you have actually developed some degree of connection with the property supervisor, bank representative, or whoever it might be you're dealing with, it's time to make your pitch. Ask if you can schedule 15 to thirty minutes to review your discussion and outline your method to offering REO listings.
    
    If they say yes, blow them away with a remarkable impression! This is a crucial chance that could assist your company grow for years to come.
    
    If they're not interested in working with you today, you might select to continue fostering the relationship or just move on to another potential company where you may be a better fit.
    
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