Is targeting preforeclosures an easy way to get listings if you are a new agent? What are the pros and cons of this?

There is nothing easy about pre-foreclosure listings.If you get 20 listings but can't close any of them your losing money not making it.Ask your broker first if you are even allowed as a new agent with there firm to do them.Some brokers won't allow new agents to do them because of the specialized knowledge and training needed-without the trianing you can create huge liabilty for the broker.

The success rate for pre forclosure is low for an experienced agent. Then the time and energy put out for a deal that will likely not work anyways its a wasted effort.

Like super said, if you want a listing its pretty easy. If you want an actual closed deal, not so easy. And of course check with your broker (as Super said) there is more liability.

Nothing like a pissed off client whom you promised I could sell the property, they loose the property, and blame you as the agent for it.

Pre-foreclosures can be very frustrating for all parties. If I were you I would go after expireds before pre-foreclosures.

First I do not know definition as a pre-foreclosure. If you talking about shorts sales I would not advise you to go after that. It is not fun at all and you never know if you will close it. You do not have any control on the transaction. And if somebody tells you that is an expert in short sales do not trust them. There is not animal like that.

I woudn't do pre-foreclosures as new agent. You realy need to know your subject, your timeline. The owners give the listing to you and you MUST perform. If not, it's not like they'll just stay in their home, they'll lose it. And that's important.
However, if you get a pre-foreclosure, you may try a 'subject to' and buy it yourself. Make sure to disclose your position to everybody though...

I avoid pre-foreclosure even as an agent with over 12 years of experience. In general the best you can hope for is a quick short sale which is highly unlikely. Without that it will go to foreclosure and most likely be assigned to an experienced REO agent, at which time all your efforts expended in time and money are lost!

it is a very tough market to try to work.

Go with FSBOs and Expireds. That way you are prospecting from a pool of candidates who are already motivated to sell. Plus with expireds you should be able to get a price reduction which will help you to sell it.

They say it is location, location, location. Bull - it is price, price, price.

some on these forums have great experience with short sales and pre forclosures.

try something easier starting out to learn how to work transactions, before you get into more complex sales.

good luck to you.


do a search. you will find some great results

My DW (dear wife) and I have been around for about 15 years and we don't mess with short sale listings or pre-foreclosure listings. Like they say: PIA. My co-workers have some... so what? They stay on the market for months - IF they sell at all. Concentrate on buyers. They're easier to earn a living off of than listings right now IMO.