Bank Owned Properties Hot Property Lists

In a article published by ForeclosureU, an age old complaint by agents and brokers is addressed.  Real Estate Professional Sites such as Active Rain have frustrated agents who have been addressing the issue of a world of REO listings dominated by a few.  In my area of coverage, there are less than 6 agents/brokers who represent banks and their REO properties. 

I have over 22 buyers who would love to buy some of these homes, but the elite REO listing agent seem "too busy" to tend to the offers let alone instructions in showing the property.  Listing status is not updated on a timely basis, attitudes by supporting staff are worse than going to the DMV!

Hopefully something is done!

Here is an exerpt!

MLS Bank Homes Newswire 1/19/09
From national correspondent: Ms.Catarina Huntington

That is the headline that Realtors can only hope for at this point in time. A more proportioned assignment of REO Lisitngs would have a dramatically positive impact on the Realtor industry. However, as of January 2009, REO Listing Agents continue to own a stranglehold on REO markets while the rest of the industry sinks in despair.

An investigation into the facts surrounding the REO listing market is interesting....

2 million foreclosures up for grabs

Nationwide the “private club” of REO Agents currently monopolizes about 1.7 million active REO listings. In 2009, 2.0 million more properties will foreclose and according to a recent report by "Credit Suisse" the US market will be averaging 2 + million foreclosures over each of the next 4 years.

Estimates are that 150,000 Realtors nationwide, provided the pertinent education, would be very qualified listing agents of REO properties. There are no specific prerequisites to become an REO Agent. Qualified Realtors simply need to possess a willingness to enter the REO arena and be thoroughly educated on the unique aspects of listing bank owned foreclosures.

Hence, there are 150,000 active full time Realtors in the United States with 2 million foreclosures "up for grabs". If divided equally each Realtor would close 13 REO listings per year for the next 4 years.

REO Agents Dominate Market

Instead, roughly 5,800 Realtors Nationwide sold 1.6 million REO homes in 2008. That translates into an average of 22 closed listings per REO Agent, PER MONTH. That certainly doesn't sound like a “spread the wealth” philosophy does it?

The REO industry's current model appears to provide for a single beneficiary: REO Listing Agents.

Unfortunately the industry’s model comes at the expense of the lenders themselves, frustrated buyers and the tens of thousands of agents left out to dry.

The vast majority of REO Agents are overwhelmed with inventory and under staffed. Realtors “in the field” showing REO properties tell me that they understand this “all to well”.

The systemic problem within the REO Agent "underground" appears to have a multitude of negative consequences which result in longer market times and lower sale prices, say industry sources.