In a previous post we looked at the importance of leveraging each real estate listing you have into additional opportunities including using off-market strategies for your pre-marketing REO properties. (Consult your Master Listing Agreement to make sure it does not prohibit this)
If you are a real estate agent who has listed REO properties, you know that contrary to popular belief, being an REO listing agent is not like having your personal money tree.
Over the past few years there has been a trend with REO clients to reduce commission percentage to the listings agent, often while offering the buyer’s agent a higher amount.
You also have to factor in the carrying cost you may be responsible for and have to pay upfront on each listing: utilities, lawn care, pool care, repairs & rehab, re-keys, etc. Plus the time it costs to file for reimbursement…
Ultimately, when you consider the reduced compensation to listing agents, the carrying costs and the split with your broker, you may end up with 0.1-1% of the final sales price.
If you want to make money listing REO properties, you cannot be only an REO agent.
I can tell you from firsthand experience, you have to have a strategy for leveraging your REO listings to generate additional transactions if you want to have a successful and profitable business listing REO properties.
One of the most powerful off-market strategies, especially for REOs, is Craigslist.
In this article I will show you a step by step system on how to leverage Craigslist with your pre-marketing REO properties to generate leads, increase your potential to double-end your listings, and ultimately increase your income. (If you are unfamiliar with how to post a property listing on Craigslist, you can check out my 5 minute tutorial)
Here is an example of a pre-marketing REO post on Craigslist:
One thing to keep in mind is that I would only use this off-market strategy with vacant and re-keyed pre-marketing REOs.
To post your pre-marketing property on Craigslist, post your listing as you normally would, but make the following adjustments (click the image on the right to enlarge):
- Use general area the home is located in, rather than the specific subdivision
- Use the nearest major intersection, rather the address of the home
- Since you cannot provide a list price as there is none yet, you can include information on the most recent tax assessment, but be sure to include some kind of disclaimer
- Include “coming soon” information
- Include a call to action, something like the VIP Buyer network in the sample provided to demonstrate value, create a sense of urgency and give buyers an additional reason to contact you
In conclusion, due to the often low compensation and high cost of doing business, if you want to have a successful and profitable business listing REO properties, you must leverage each listing to generate additional leads, opportunities and more transactions.
One of the easiest and best ways to leverage your REO properties is with an off-market strategy for your pre-marketing REOs.