Pursuing REO listings can be a waste of time, or it can be a way to expand your portfolio and grow your service. This short article covers the fundamentals so you'll know how to get REO listings the right method.

What Are REO Listings?

REO (" Real Estate Owned") listings are residential or commercial properties that were foreclosed on by a bank or a loan provider 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 lent for the residential or commercial property.

It is very important to see the difference between foreclosures and REO listings.

Foreclosures: The homeowner defaulted on their payments, but the bank does not own the residential or commercial property (yet). REO Listings: The residential or commercial property has undergone the foreclosure process, and the loan provider, bank, or federal government company now owns the residential or commercial property.

Both scenarios present excellent methods to create property leads because they include highly motivated, "distressed" sellers who would like to hire an agent like you! (Learn other ways to find inspired sellers.)

How To Get REO Listings: A Quick Overview

These are the four techniques we'll cover in this article:

1. List yourself on REO directories. 2. Work with federal government companies. 3. Offer BPO services to asset managers. 4. Work directly with banks.

How To Get a List of REO Properties (totally free!)

One choice is to be proactive and take foreclosures before they technically end up being REO listings. To discover 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 directly on bank websites and make a deal. You can try the huge banks such as Wells Fargo, Bank of America, or US Bank. But you're most likely to be effective if you pursue local banks, lenders, and smaller sized cooperative credit union in your area.

• Look for listings on REO property management company sites such as HomePath.FannieMae.com.
• Take a look at federal government firm websites like HUD.gov.
• Visit your local county's website. (Google search" [your county] reo homes," [your county] residential or commercial property search," or" [your county] foreclosures for sale," for instance.).
• Lastly, you might even discover REO listings on Craigslist or within your local paper's classified advertisements.
  
  Now, let's get more specific and dive into the four best strategies for getting REO listing leads.
  
  Strategy # 1: List & Advertise on REO Directories
  
  Listing yourself and advertising your services on REO directory sites can be an efficient method to link with banks, loan providers, and possession management companies looking for realty agents with knowledge in dealing with REO residential or commercial properties.
  
  For instance, you could sign up with the REO Network.
  
  The downside to this method is-you're not really "discovering" leads. You're putting yourself in a position to be found by leads. Simply put, you have to depend on luck.
  
  Is a network or directory going to be your finest source of REO seller leads? Probably not. But it's not hard or lengthy, and it might effectively be a "passive" method for you to get REO listings.
  
  Strategy # 2: Deal With Government Agencies To Get REO Listings
  
  In some 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 federal government firm. So as you're searching for ways to get more REO listings make sure to check out ...
  
  - The Department of Housing and Urban Development (HUD), which gets unsettled Federal Housing Administration (FHA) mortgages (Note: a Single Family Acquired Asset Management System [SAMS] accreditation is required.).
• Veterans Affairs (VA) REO residential or commercial properties for sale. Fannie Mae. Freddie Mac
  
  Pro Tip: Consider obtaining specific qualifications and certifications, such as NAR's Short Sales and Foreclosure Resource accreditation, to bolster your own self-confidence and increase the possibility that prospective clients will see you as a trustworthy expert.
  
  Strategy # 3: Offer "Broker Price Opinion" (BPO) Services
  
  A BPO is a professional quote of a residential or commercial property's value. Don't think about it as an official appraisal. It's more similar to a comparative market analysis (CMA). Find out more about how to craft a strong real estate CMA.
  
  BPOs are often utilized by banks, mortgage lending institutions, and possession management companies to figure out the existing market price of a residential or commercial property, especially when they are included in transactions like refinancing, brief sales, or foreclosures.
  
  So the strategy here is to reach out to the decision-makers at the banks, lenders, and property management business (not their administrative assistants!) and provide to supply a BPO as a type of real estate networking.
  
  If you can develop relationships with those who deal with REO listings every day, you set yourself up to end up being a go-to agent for your area who can handle the sales procedure on their behalf. (As a side-benefit, obviously, you'll receive settlement 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 asset management business in your target market who regularly offer REO listings. Do your finest to get all of the contact details for each.
  
  Again, attempt to determine who the decision-makers are so you can speak directly to them instead of their assistant. Your success at this moment will depend on how well you can establish 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).
• Connect to them with a telephone call.
• Follow up within the week (and any weeks that may follow) with an additional call and an email. Be persistent. Showcase your expertise, and make it clear why you're the best property agent who can help them move REO residential or commercial properties.
  
  Step 3: Prepare
  
  Meanwhile, as you're constructing relationships, prepare for the minute when you make your pitch to take on an REO listing.
  
  Conduct research. Familiarize yourself with the regional housing market (specifically any information connected to foreclosures and REO listings). Also, get to know who they are, what exactly their business does and represents, and about how lots of foreclosures they generally deal with throughout any offered month.
  
  Prepare a scripted discussion. A well-crafted script will assist you sound more like yourself, discuss all of your essential talking points, and strategically direct the conversation. As part of your discussion, be sure to include ...
  
  - Your unique selling proposal (what sets your genuine estate brand from the rest).
• Exactly how your service can benefit them.
• How you plan to offer REO listings (and how that differs from what your competitors and they're current go-to representative are doing)
  
  Step 4: Ask
  
  Once you're positive that you've established some degree of relationship with the possession supervisor, bank agent, or whoever it may be you're working with, it's time to make your pitch. Ask if you can set up 15 to 30 minutes to discuss your presentation and describe your method to offering REO listings.
  
  If they state yes, blow them away with an amazing impression! This is an essential chance that could assist your company grow for years to come.
  
  If they're not interested in working with you today, you may pick to continue fostering the relationship or just proceed to another potential company where you might be a better fit.
  
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