Brokering Bank Owned Properties

8 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'm not an agent, but the ones I work with submit resume and request to the bank and end up on a list. Then, when the banks aren't happy with the current listing company, they will open up the process and notify all the folks on the list and then the begging begins.

But, from talking to agents, I understand that there's almost no money in it for the listing agent. They have to give the banks a huge discount on the seller's percentage, and most of the agents who do it are mostly trying to grow their name recognition and meet prospective buyers who may hire them as buyers agents for other houses.

Both the previous posters are correct in the most part.

I do work as a listing agent for a few lenders. Depending on the lender, some are looking for new people to get in their network , most already have favorites. You can attempt to meet the lenders in person , but that's another story of social engineering.

Anyways, the comissions vary from bank to bank , lowest i've seen has been 2% regardless of listing price, i've heard of some banks doing a $500 flat brokerage fee.

The comission isn't the problem , the problem is YOU are the one that picks up the tab for the electric, water ,and any maintenence that's done on the property (From most vendors). IE , property can't be driven to well ,so it needs a new gravel driveway...you spend $2,500 out of pocket, which will be reembursed in 2 months. Some repairs are even more , it changes from lender to lender. It can be profitable... but mainly if you're a full time agent. The best thing to do is go for investors and sell to them, some banks will want to work with you because you have a large investor base.

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