SUCCESSFULLY RESPRESENTING REO BUYERS

Sales associates working with buyers interested in a bank-owned property are well advised to leave some of their traditional thinking behind.

To avoid unmet expectations it is extremely important that the selling agent educates both himself and his clients about the realities of REO brokerage. REO listing brokerages are required to conform to each of their clients’ (banks or third party asset managers) needs and regulations. Each client’s requirements can vary from one extreme to another. And they can be far different from the traditional practices with which selling agents have become comfortable in their markets.

Traditional expectations about gathering information on a property, communicating, negotiating strategies and processing paperwork must be replaced with new thinking.

Some basic questions to which selling agents should seek answers before proceeding:
• How and when are offers presented?
• Can a counteroffer ever be expected or will the highest offer simply be accepted?
• Are offers sent to a special e-mail or fax address?
• What are the specific qualification requirements?
• Are there special forms that need to be included?
• Can communications take place by phone or must everything be done via e-mail?
• Will a single package e-mail submission over 4 MB be accepted?
• What are the office hours of the REO department or listing agent/team?
• If you are the successful selling agent, what time frames
and procedures are expected of the agent and client to return documents, checks, addenda and other documentation?

Understanding that selling bank owned properties is a vastly different process than many agents are used to can help avoid the frustrations involved in the REO process. Knowing these ins and outs is yet another unique skill required today to continue to provide outstanding customer experiences.