Duties of the REO Agents and Why Do Banks Need Them?

Listing a property for sale and searching and selecting the qualified buyers for this property are the responsibilities of a real estate agent or broker but the responsibilities of REO agents are more from those of the brokers. The real estate agents sometimes jump to sell the REO properties also because these properties are profit earning opportunities for the agents. The agents must not start trying their luck in REO properties before they actually know the duties of a REO agent and the difference between them and the REO agents. The agents must not be only skilled in selling but they must also have the good knowledge of the real estate market of local area.

Duties of the agents

The real estate owned properties cannot give any profit to the agents before they actually do not know what they must do to sell these properties. The major duties of an agent willing to sell the real estate owned properties are listed below.

The agent is responsible to schedule the trash outs and clean the foreclosed property.

If there are any utilities during the listing then the agent has to pay for the utilities.

The agent is also responsible for the tasks like lawn maintenance and snow removal.

The agent is also responsible to negotiate the contract between the buyers and the sellers. This negotiation includes the sale terms and the dates of payment and agreement signing.

Why the lender or banks need agents?

The agents must understand what the lenders or the banks need from them. The valuable knowledge of the agents will not only help to sell the properties quickly and minimize the losses of the bank but will also reduce the dependence of the lender or the bank on other parties such as appraisers and house management companies.

What the banks will do in absence of the knowledgeable agents?

If the banks do not get an agent who know the responsibilities and whose knowledge is good enough to sell the property, the banks will hire the appraisers to know the value of the home that they want to put on sale. The banks will also need the services of a house management company to maintain the house while it is listed for sale in the market.

So to save the expenses in hiring the appraisers and house management companies, the banks or lenders need the services of good REO agents.

3 Pitfalls That Can Kill Your Real Estate Investment

Countless of people have been known to have made their fortune through real estate investing, and you might have heard of a friend, relative or colleague who likewise, have achieved a significant increase in their net worth when they sold off a property they have invested in years ago. Others have found financial freedom through their property investments, as their portfolio of well-chosen properties has given them a sustainable flow of rental income. Robert Kiyosaki of Rich Dad Poor Dad fame is one of the major advocates of property investing.

However, just like investing in any other assets, investing in real estate requires thorough planning, preparation and implementation work. Here are some common pitfalls to avoid before you invest in your first real estate.

Pitfall #1: Investing in real estate is not a get-rich-quick scheme

Investing in real estate is often promoted as a get-rich-quick scheme by the so-called gurus of real estate investing. However, this cannot be further from the truth. It takes time to pick a great property that will appreciate in value, and in the event if you picked the right property, more time is needed for it to appreciate in value. And just in case you are wondering, the flipping of properties in an attempt to get rich quick can be a risky endeavor!

Pitfall #2: Not doing a thorough preparation and research

Real estate as an asset class works just like any other long-term investment, you will have to plan in advance, work hard to search for worthy property deals (or get a property agent to do it for you), understand how a property can fit into your investment plan, calculate the cash flow that can be derived from the investment, and the list goes on.

Furthermore, unlike liquid assets such as stocks real estate constitutes an illiquid asset class. This means that it is difficult for you to liquidate this asset immediately without the risk of suffering loses to the actual value of the asset. Thus, a more thorough research is needed to justify the investment.

Pitfall #3: Not doing due diligence

Not all properties will appreciate in value over time. Factors such as the future development plan of the vicinity, the population trends of the city, the economic health of the city or country all contribute to the viability of a property investment.

Unfortunately, new investors make decisions to buy properties based on ‘gut feeling’ or on a vague idea or belief that the given properties will appreciate in value. They buy it based on the sales pitch given by their real estate agent. They don’t do their due diligence about the deal, the costs or the market conditions, and they wind up draining their personal savings because the house needs extensive repairs or they can’t sell it.

Conclusion

These are the three major pitfalls of investing in real estate. Read widely and research thoroughly in the property you are keen in investing. If you can commit to thorough research before committing to a property, you will avoid the common pitfalls that has plagued investors and radically increase your probability of making a successful investment.

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How to Get More Business Using Real Estate Management Software

As a property agent, your contacts are your best assets. Maintaining relationships between your buyers and sellers is imperative to your financial success. The thing with commercial property is that it’s a numbers game, how many leads can you get, and how many of those leads can you convert? These are the most important questions for any home’s sales agent and their answers are directly related to business growth. The goal of real estate management software is to make this process not only simpler but more efficient for the agent.

There are many different types of real estate management software on the market that can assist the home’s sales agent to carry out their duties. Real estate website design software can be used to create a website that is not only easy to navigate but also customer friendly. With a growing trend in online property buying, such software is indispensable for anyone who wants to build their real estate business. Using such programs, realtors can create an easy to use customer friendly website; no prior website design skills necessary, as well as showcase the best aspects of their properties using strategic pictures and videos. A properly designed website can help you increase your leads generation as well as your conversion rate.

It has been proven that the number of leads an agent can convert contribute to the number of new leads they can generate. This is where customer relationship handling computer programs comes in – to make sure that everything you do as an agent contributes to the growth of your business. Though customer relationship management technology is used across the board in sales in every industry, in property handling its uses are broader. CRM for property is more than just technology that you use to manage clients. When it comes to real estate contact management software, it does everything from helping in real estate leads generation, administration, conversion as well as facilitating deal closure.

Real estate CRM can help you track every visitor to your site. This is through using CRM design based forms to get potential client details as well as information on the type of property they require. Once the leads have been generated you can use lead handling programs to monitor them and their interests. If there are properties that match the requirements of the leads, then the real estate CRM not only automatically suggests them to you but also sends out an email to the matching lead. Some of this administration technology also comes with property contract templates that make closing deals a lot easier.

It is always a good idea to be well informed on your options in available market technology solutions before making a choice to investing in one.

Homes Offered for Sale by Their Owner

The ensuing article throws light on the various aspects of buying houses put up for sale by their owners apart from dealing with all the challenges faced by owners who intend to sell their properties without enlisting a broker’s help.

Homes being put up for sale by their owners are those properties that are on offer without the involvement of an estate agent in between. The main reason behind home owners deciding against selling with the help of an agent is the fact that they cannot trust the agent enough and do not believe that he or she will have their best interests in mind. Another reason is many home owners try to save the large sum of money they would otherwise have to pay the agent, by doing the job themselves.

Homes that are put up for sale by their owners do not generally feature on the Multiple Listing Services (MLS) which are commonly used by estate agents. Even if they do so in some rare cases, buyers’ agents are generally unwilling to deal with the actual owners of a property. Hence people who are interested in properties for sale by owners should think twice before employing a buyer’s agent.

The following points on the positives and negatives of selling their home without the help of an agent can assist people to decide on the appropriateness of marketing their home as FSBO.

Commission: The major advantage of not enlisting an estate agent’s help while selling a property is the fact that the owner can save a lot of money that otherwise had to be paid as commission to the broker. It is to be remembered that the commission is generally 5% to 6% of the final selling price of the house. However, enlisting a broker might also be beneficial because since the commission is relative to the price of the house, broker’s for their own benefit make an effort to sell the property at as high a price as possible.

Advertising and Information: Earlier, it used to be extremely difficult for owners to sell their homes without a broker because the number of websites catering to the FSBO market was meager in comparison to present times. Nowadays, anyone can register for a MLS website by paying a fee. The MLS facility provides a good platform for marketing a property.

Property Appraisal and other Technicalities: the seller must ensure that his or her house is not overpriced in order to attract a large number of buyers and ensure a quick sale. For this reason getting the cost of the house calculated by a professional is extremely necessary. The process is known as property appraisal and is crucial for selling a house. Apart from this the legal formalities also need to be dealt with and in this respect it is prudent to ensure the help of a experienced lawyer. Finally it has to be ensured that the prospective buyer is a legally safe bet. Buyers with pre-approved home loans do not generally pose trouble since banks do every security check necessary before lending money.

10 Tips For Choosing a Real Estate Agent

Whether you are buying or selling a property, choosing a real estate agent may be the most important decision you make. Good real estate agents can save you a substantial amount of time and money. They can also ensure that the buying or selling process is an enjoyable and memorable experience. Here are some tips for choosing a real estate agent:

1. Ask Friends/Family for Referrals

Ask family and friends for their advice on local agents. This way you will be sure to find an agent with a good reputation.

2. Consider More than One Agency

There is an array of agents that will kill for your business. That is why you should interview as many agents as you can. Compare agents with regard to their knowledge of the area, experience and qualifications. Also, ask for references from previous clients.

3. Choose an Agent that Knows the Importance of Customer Care

While interviewing different agents you will be able to establish their level of customer care or how far they will go to satisfy the customer. Look at things like their attitude towards returning phone calls and their willingness to meet with you.

4. Choose an Agent that Handles Homes in Your Price Range

When you opt for an agent that deals with homes in your price range, you will be sure to end up with an agent that will give his or her best effort. Some agents deal only with high-end properties and are used to high commissions. They are more likely to attend to these properties first.

5. Choose an Agent that Respects Your Time Schedule

If you will not be able to view properties during office hours, you need to find an agent that is willing to do business after hours or over weekends.

6. Look for an Agent that You Can Communicate With

Communication is vital when buying or selling real estate. Make sure that you choose an agent that understands your needs and that communicates them well. You will be best off if you choose and agent that registers a high level of comfort with you or with whom you are compatible with.

7. Choose an Agent that Provides Multiple Services

It will be a bonus if you can find an agent that can handle the buying/selling process as well as other additional services like arranging property inspections or who can refer you to a trustworthy real estate attorney.

8. Choose an Agent That Can Negotiate

Negotiating skills is an essential quality of a good real estate agent. Make sure you choose and agent with impeccable and proven negotiating skills.

9. Choose an Agent with Lots of Resources

Ask agents where your property will be advertised. Make sure that the agency uses print advertising (newspaper/magazines) as well as other promotional material such as brochures. Also check if the agency makes use of the Internet for advertising their listings.

10. Follow Your Instinct

Choose an agent that makes you feel comfortable and whom you trust. You level of comfort and satisfaction will let you know if you’ve met the right agent.