Mastering Foreclosures as a Realtor

Realtor Magazine recently featured an article titled "Mastering Foreclosures". They suggested that working the REO business requires a great deal of detail juggling and negotiation. The upside is that there are little emotions to have to deal with. You're dealing with a bank who is cut and dry for the most part and simply wants to unload the real estate at a fair price. Here are the 5 steps they suggest:

1. Join default services organizations and attend conventions where lenders, servicing companies, and other industry representatives are.
2. Sign up with lenders to provide broker price opinions, which determine what a foreclosed property is worth.
3. Describe properties as foreclosures in your marketing if lenders allow it.
4. Ignore e-mail pitches for fast-money REO schemes.
5. Use lenders you have worked with on previous transactions as references in making connections with other institutions.

Real estate agents will commonly net 1% from the transaction. One agent noted that you have to work harder for a smaller fee. However, if you are good you can turn a lot of business. And in a struggling market turning a lot of properties can be a life saver.