It'd be interesting to compare E&O claims between REOs and non-REOs.

Clifton?

Kath, I talked to Clif today and his business is doing just fine. -Meredith

My ear was itching for some reason... any questions just give me a call or send an email.

Take Care

Cliff

lol, no questions.

Just asking if you were who he was talking about.

63 REO listings is quite a burden to be carrying. Lots of good points being made here. I'm the REO manager for my office, and it's tough to get a foot in the door with the various banks. What I think is an even bigger disadvantage is when you're not affiliated with a well-known RE Office National chain, like RE/MAX, etc. Big banks and the Fed Gov't "identify" better with big or Nationally known RE offices that can actually claim to have an "REO Department" with a group of full-time staff already gainfully employed. Being a one-man show like me, or even a partnership doesn't always come across very well as a potential professional match. I have also turned down offers from banks that want to take away some of your commission as a "favor" for considering you. No thanks, let someone else put those homes on the market, and I'll try to sell them and recieve the better SOC. I don't mind the spirit of competition so much in regards to commission costs, but I just don't budge for banks, not worth the trouble to me unless they pay top dollar. Owner-occupieds however, I'm all over it-and will always have the best deal! LOL

I second everyone above! I too am an REO BRoker and it is very hard work. PLus be prepared to shell out a lot (and I mean a lot!) of your own cash to prepare a property for sale. Also, be prepared to employ and adequetaly pay staff to help. Its a high pressure position, and to be honest, very cut throat. There is always someone on your heels ready to jump on your business should you miss a deadline. Its not a get rich quick business and should only be pursued with a lot of thought and preparation to work for very little and hope for more.

True story. Several weeks ago I sold an REO to a first time buyer. Immediately after closing, my anxious buyer and I took out the yard sign and called the REO agent to pickup. No problem there.

The following morning a local sheriff came to post a vacant building notice. Apparently someone forgot to call. Problem solved with a fone call.

A day later my buyer began moving in and noticed that somebody came to re-install another RE/MAX for sale sign. She called and screamed why and who is putting her house back on the market? I thought she was kidding ... she wasn't.
It looks like the REO agent forgot to notify their maintenance people of a sale. Buyer became outraged so I called the listing agent and forwarded some concerns.

Three days later after coming home from work my buyer noticed somebody was mowing her lawn. She called the cops. Cops came and everything settled. Again, apparently nobody notified maintenance of a sale.

All this after having contracts lost/missing through faxes and mail several times. Listing agent didn't know if the property had missing keys or who yanked all the wires out of the power outlets.

I have to credit all the REO agents I've worked with over the years. They do a great job giving the impression that they know their stuff. Or, do they?

Without reasonable compensation I don't recommend REOs.

I market REOs almost exclusively. I like the emotionless seller response and being able to control the showings/marketing/closing aspects without hysterics. [WHY aren't you having my house open every weekend? WHY isn't my house in the newspaper twice a week? WHY can't we close on Friday so I can move out on the weekend?] Timewasting and exhausting when you hear it enough.

pain in the rear questioning sellers are just another objection in the sales process
if i get a seller like that i will offer to let them run their own newspaper adds and take an exclusive agency listing instead of exclusive right to sell, but as the risk goes up for me and the reward goes up for them the commission is going to go up as well. i have had a few take me up on that offer only to have me sell their home and get a higher commission. not to mention the fact that they found the newspaper is worthless for buyers who will actually purchase their home. they normally stop advertising in the paper after an add or 2.

Hey Cliff, when you come up for air tell us how easy it is

I did REO work for a number of years. It helps that I worked almost exclusively with investors and am an investor myself. I started a small side company to do all the prep work for my REO properties and that of other agents I know. The company does all the trash outs, rekeys lawn maintainence and any repairs as well. Doing this increased my profit from those REO properties.

Anything you do not have a crew for or do not have the expertise you sub out. I always got authorization in writing via e-mail for any repairs or onging lawn or landscape work and since doing that I always got paid because as a contractor doing work on the property I could and did on several occasions file a mechanics lien on the title so I was always paid for any maintainence plus associated fees at closing even if I lost the listing.

You are exactly right, everyone wants to be an REO Agent. You have to have a good procedure in place for property preservation, cash for keys, inspect properties weekly, approach occupants and handle evictions, work long hours, meet deadlines, lots and lots of paperwork. AND it seems that always just when you think you might get a Saturday off an AM sends you 3 or 4 new listings at 4:55 pm on a Friday wanting occupancy verified in 24 hrs, BPO completed in 3 days...

It is no use. All of the non REO agents who want to be a REO agent, think we are telling them horrible stories to keep the gold to ourselves.

I received three listings at 6:54pm on July 3rd... those were tough occupancy checks, since we had plans starting at 10:00am on the 4th