Real estate agents get foreclosure listings.
Real estate agents can find a lot of profit in working with pre-foreclosure and foreclosure properties for sale. Knowing work these types of listings requires specialized knowledge and training specifically in the area of distressed homes. In order to qualify to take bank-owned listings and pre-foreclosure listings, the agent should become familiar with the bank that owns the home. Agents should know what is expected of the them to sell the property, as well as the property management expected responsibilities for each listing.
Instructions
Pre-Foreclosures
1. Search the pending foreclosures in your area. This is public data and will be posted either in front of the county courthouse or online at the county clerk's site. This information will give you the name and address of each distressed property owner in the county.
2. Visit the court posted addresses in the area in which you have chosen to work. Bring materials on how you can help the home owner avoid foreclosure with a short sale of the property, as well as listing paperwork. Most home owners are distraught when a foreclosure is pending and don't think there is anything they can do to stop it.
3. Be prepared to complete a short sale packet with the home owner. You will need to provide income statements, debt and a hardship letter to present to the bank. Make sure to notate all required repairs and upgrades that will discourage the bank from foreclosing and taking more of a loss.
4. List the property on MLS as quickly as possible. Use the home owner's current balance on the mortgage as a pricing guideline. Short sales will be most successful when priced 10 to 20 percent below market value.
Foreclosures
5. Contact banks using their websites and apply to be a listing agent. Most banks prefer to work with agents that they have a relationship with, but will occasionally accept new agents. It is best if an agent has a certification in distressed properties in order to be considered.
Most banks will test an agent's competency by assigned them a BPO or broker price opinion.
6. Complete BPO assignments within 48 hours of receipt. BPOs require that the agent visit and take photos of the property and provide an assessment and comparative market analysis for the surrounding area. The BPO will also outline a recommended listing price for the property, which is ultimately subject to bank approval. Once an agent has completed enough BPOs for a lender, he will receive a foreclosure listing assignment.
7. Inspect the listing on a weekly basis. Take note of showings and repairs. The lender will require that an agent provide a weekly property status report, as well as a new BPO each month. After the property has been listed for a few weeks, it will also be necessary for the agent to provide the lender with an estimate for repairs and upgrades that might make the home sell faster.
8. Be prepared as an agent to pay for repairs and upgrades up-front. At the conclusion of the listing term or at the conclusion of the sale of the foreclosed property, the lender will reimburse these expenses. It is wise for an agent to have a business account that funds can be withdrawn from in order to keep accurate tax records.
Tags: home owner, lender will, repairs upgrades, agent provide, estate agents
