There is no mystery to the REO market. There's no ‘secret' or ‘system' that you need to buy on TV. Any experienced REO agent can provide all of the "inside information" you'll ever need. Developing a good relationship with one is your best way to buying the best homes at the best price. They'll be able to provide access to available REO properties and provide advance notice of properties soon to become available.
The very best deals are long gone before most even know they are available. The properties that remain are left for everyone else to sift through. How do you get access to the best properties? By making your first step finding an experienced REO agent.
Find the Right REO agent
Finding the right agent to represent you may be the most difficult part of the process. Keeping a good agent is even harder. Good agents, that are really familiar with the REO market, will typically have a long list of clients looking for a particular type of property. The very best homes, at the very best prices go to, wouldn't you guess, their very best clients. It takes a huge investment of their time to scour through all of the properties entering the market and these agents and their clients will need to make immediate, educated decisions or . . . you may end up last in a long list of offers. The early bird truly gets the worm! If your agent has called you about multiple properties and you have not responded immediately or you are indecisive, you may just end up on the bottom of their list of clients to call.
What to Expect
An experienced REO agent will ask you more questions than you ask them so, be prepared. Having a pre-approval through a direct lender or, proof of available cash will be on the top of their list of things for you to have. Other factors they'll consider are whether the home will be your primary residence or a rental.
If an agent doesn't interview you before taking you on as a client, you may want to stop and ask yourself why. Even if you're their only client, how can they find what you're looking for if they don't know what you're looking for. The time to ask questions about your motivation and goals is not during the process, but before it! A well qualified REO agent will know this.
Where to Look
Active Rain has a great selection of qualified REO agents. While you're here, give yourself the ultimate advantage by finding one now.
Experienced REO agents don't have time to work with buyers. If they are good at what they do, they have too much REO work to do and must delegate others to work with incoming buyer inquiries.
Cameron Novak
The Homefinding Center
Corona, California
951-212-7479
Working with investors can be time consuming.
I like what you said: "If your agent has called you about multiple properties and you have not responded immediately or you are indecisive, you may just end up on the bottom of their list of clients to call."
They really need to know that when we finally find them something that is a good deal they need to at least make the effort to look at what we've discovered! That's why we only work with a few investors. The guy that wants the to-good-to-be-true deal can go somewhere else!
Good post!
Very good information. 90% of my good deals are gone before they hit the mls!
might be a stupid question ..... but i'm a buyer... how do i know and how do i find an experienced REO agent. How should i interview a REO agent to find out if he's really good at what he's doing?