Florida Realtors ask, “Should REO sales be a brokerage priority?”
NEW YORK – Oct. 29, 2018 – Michael Krein, CEO at RIO Genesis Software and president of the National REO Brokers Association, believes every real estate brokerage should have an REO (real estate owned) department.
REOs “may be a small market niche and only 3 percent to 5 percent of any overall market right now, but it is once again increasing and can easily be leveraged for additional revenue streams at better than a 5-1 ratio,” Krein says.
REOs – bank-owned properties – acquired through foreclosure or sometimes “deed in lieu,” is “a phenomenal revenue center,” Krein says. “With the housing markets once again over-inflated and due for another correction, many real estate professionals are now realizing that as the markets soften, there will be a major increase in REO listings available for brokers and agents, and they have come to realize the need to be involved. The corrections are beginning regionally, with REOs already increasing much faster than expected in many markets.”
Klein says it’s important to understand who controls REO listings. Brokers must apply to every known REO client and outsourcer and be approved in their vendor database to receive listings.
In addition, Krein says that they also must be listed in the vetted online directories that clients and outsourcers use.
Source: Forbes (10/16/18) Krein, Michael