How do you become an agent for banks?

6 Replies

I noticed that one local agency in my market gets all the homes that are taken back by the bank(s). How does this one agency get all the listings? How can I work my way into handling the sales (by listing) the properties taken back by banks?

I would like to bump this thread. I am trying to figure out how to do the same thing.

Just an opinion and only as it relates to my market but, for any agent wanting bank business from me, the best way to get it is to come with a signed purchase offer on one of my REO's. I get agents all day, every day wanting me to spoon feed them listings. They tell me, "I can sell them for you". I respond, "Really? Ok, bring an offer from one of your clients". They don't like bringing buyers I find. Instead they want listings. I politely tell them it doesn't work that way in my market. Then they get all butthurt because I wont' grease their hands, and try to find ways to backdoor me with someone in the building above my pay grade to try to force their way into my portfolio. Then I smile and put them on my list of agents to never ever ever use.

Bring me a buyer? They go to the top of the list because they've demonstrated they will get out of their chair. Bring me their hand wanting listings? Not a chance.

REO listings are a shrinking market, maybe 10% of what they were. Banks have been cutting back on the number of years, will still plenty of experienced REO agents wanting the work. I wouldn’t pursue it, in fact as an agent at the time decided not to pursue it back in 2012..

@Ron S. The REO's in my neck of the woods are always handled by a few different brokers. Also it appears that many banks require them to be listed on the MLS. The listings brokers then split their commission with a cooperating broker who has a buyer. I am sure some brokers have several buyers already lined up but I think the bank still wants the listing exposed to the market for a certain period of time.

@Wayne Brooks Do you think there will be another wave of foreclosures in the next couple years?

Originally posted by @Rich Hupper :

@Ron S. The REO's in my neck of the woods are always handled by a few different brokers. Also it appears that many banks require them to be listed on the MLS. The listings brokers then split their commission with a cooperating broker who has a buyer. I am sure some brokers have several buyers already lined up but I think the bank still wants the listing exposed to the market for a certain period of time.

@Wayne Brooks Do you think there will be another wave of foreclosures in the next couple years?

@rich Hupper - Of course they are required to be listed on MLS. I assumed that was assumed.

I'll hijack your question to Wayne with my own two cents...No. I don't think we will have a wave. Maybe a ripple, but not a wave. The perfect storm scenario that caused the last one doesn't exist on this one. We have suppressed affordability like last time and, rampant appreciation like last time but the economic factors for wages and employment are different and the products on the market are different. We don't have neg am loans any more and while stated loans are creeping back up, ATR (ability to repay) rules, AMC's for appraisals, and other measures in place should at least mitigate the fake valuations from exploding and tanking the market. Maybe a bump, but no thud.