Even in a busy market, listing agents typically handle only a handful of listings at any one time. With today’s environment of limited inventory and high competition for listings, resourceful agents are looking to new markets to generate leads. The niche REO market has traditionally been difficult to break into, but technology creates more opportunities for agents to learn the business and connect with asset managers.
What is REO?
Real estate owned (REO) is the term for a residential property acquired by a bank or other lender in a foreclosure auction. REOs are often sold at a discount, however, they are usually sold “as is” and are sometimes in disrepair. In an REO transaction, the bank or other lender pays the listing commission at the closing of the eventual sale of the property. Like typical listings, the listing agent splits the total commission with the buyer’s agent.
The REO industry has traditionally been a high barrier of entry for real estate agents. Banks and other lenders prefer to work with agents they know and have worked with in the past. This has made it a niche business because most real estate agents don’t have the right connections or experience.
But for those who do have the right connections, the REO market can be a reliable, high-volume source of listings. Top-producing REO real estate agents who have good relationships with an asset manager can list anywhere from 50 to 300 or more REO properties a year. But how can you forge connections in this relationship-driven market—especially when most asset managers are now working from home?
Technology opens the door for new agents
Fortunately, there are digital platforms that can elevate your profile among the network of asset managers who manage listings in the REO space. Technology platforms like Radian’s Pyramid Platform, which hundreds of REO professionals use to manage REO properties, enable you to promote yourself directly to decision-makers.
Much like the consumer real estate platforms on which agents advertise directly to prospective buyers as they search for homes, Pyramid Platform is a professional-grade asset management platform where agents can market themselves to asset managers looking for new agents to list their properties. A membership on the platform allows you to advertise your availability for property assignments near you, increase your earnings potential by widening your broadcast capability, and build relationships with asset managers who have listings in your area. A Premium membership unlocks these additional advantages:
Visibility – Boost exposure for property assignments with a full profile and photo
Reach – Expand your coverage area up to 5x with additional office locations
Differentiation – Stand out from other agents and demonstrate your proficiency on the system with Pyramid Certification
Access – Premium members get exclusive access to features to help improve their efficiency
Tap into new opportunities
Expanding your market share can be challenging, especially during this uncertain time. The market for REO properties offers a relatively untapped opportunity for real estate professionals willing to explore that possibility. Advertising on strategic technologies like Radian’s Pyramid Platform makes it easier to enter the REO market, grow your business, increase your bottom line, and build your brand within the communities you serve. With the market increasingly migrating online while face to face transactions are restricted, leveraging digital technologies is not just an advantage but a necessity.
Radian is ensuring the American dream of homeownership responsibly and sustainably through products and services that include industry-leading mortgage insurance and a comprehensive suite of mortgage, risk, title, valuation, asset management, and other real estate services. We are powered by technology, informed by data, and driven to deliver new and better ways to transact and manage risk. Visit radian.com to learn more about how Radian is shaping the future of mortgage and real estate services.