Listing opportunities series, part 7 of 7
A default referral is an introduction to a homeowner behind on payments, a corporate seller or a bank-owned (REO) property that needs a local agent. Before you accept one, check four things: the area you can really cover, your time for follow-through, a price you can defend and updates someone can act on.
These opportunities are active in our community right now, and most of them are for KW agents only. On short sales and corporate files, Joe Iuliucci always makes the warm introduction and the handoff, so you won’t be cold-calling. What happens after that is on you, though.
KW Default Solutions (KWDS) training puts a lot of weight on the practical side of these opportunities, because an introduction only helps a homeowner or an owner if the agent can follow through. Local knowledge matters, but so does being available, communicating clearly and knowing when a question belongs to someone with more authority or different expertise. So if you’re interested, it’s worth taking an honest look at what your business can handle today and where you’d want more preparation.
Make your coverage area something a coordinator can use
Your license covers a state. It doesn’t tell anyone how fast you can get to a particular house, how well you know that market or whether you can go back when something changes.
Look at the towns, neighborhoods and property types you actually work. Think about drive time, access, MLS coverage and how well you know the comps. A county can include one area you know inside and out and another you’ve been to twice.
“I can reliably cover these communities, and I’d want to talk about the outlying areas before accepting” is a lot more useful than a list of every ZIP code you might someday drive to. If you work with a team or a backup agent, make sure that’s allowed and that the coordinator knows who’s involved. Your availability shouldn’t depend on someone who hasn’t agreed to help.
Look at the follow-through, not the first appointment
It’s easy to make time for a listing appointment you want. The harder question is where everything after it goes. A homeowner referral can mean chasing documents, redoing a market analysis, a second property visit or an update when the owner changes their mind. An institutional listing can mean reports and approved vendor coordination. An REO assignment can also mean fronting the money for approved work, since many REO clients expect that, and waiting on the reimbursement. All of that tends to land in a week that’s already full.
Pull up a recent busy week. Where would that work have fit? Who would have been watching for something time-sensitive while you were in appointments or out of town? Response times and reporting schedules should come from the actual assignment, so don’t assume an old training example sets the rule, and don’t agree to a standard you know you can’t meet.
Be able to defend your recommendation
On default and institutional files, an owner or coordinator may be relying on what you saw locally. That makes the reasoning behind your report matter as much as the report itself.
Could you explain why your comps fit? Could you describe the condition without overstating what you verified? Could you explain the difference between the likely sale price and what the owner would actually walk away with? You don’t have to solve every issue yourself, but you do need to spot what’s missing. A homeowner saying the house is worth one number and the mortgage is another doesn’t establish equity, because the current payoff (the exact amount to pay off the loan on a given date), other liens (legal claims against the property), costs and timing still need to be confirmed.
If valuation or the proceeds math is your weak spot, make it your first training priority, before a real file depends on it.
Practice an update someone can act on
A coordinator shouldn’t have to call you to find out whether “working on it” means an appointment is set, a report is done or something is missing. A good update says what happened, what’s still open and who takes the next step. A fictional example:
“Property visit done. Photos and condition notes are in the approved file. Pricing is pending because I couldn’t get into the garage. I’ve asked the owner about a return visit and will update you once it’s scheduled.”
If you hand off a task you’re allowed to delegate, stay on top of it. The person asking you about the property shouldn’t learn something your own team found out but never passed along.
Know where your role stops, before something urgent tests it
Permission to contact a homeowner, a listing agreement, authority to discuss a loan and permission to market a property are four different things. Know which ones are in place and which you still need. On a possible short sale, know who handles the lender and the approval request. On property work, know your access authority and how vendors and expenses get approved. And talk with your broker about the agreements and compensation before you rely on something someone remembers from another file.
Private financial documents need an approved place to go, not a big email thread or a community post just because that’s where everyone first connected.
Try this one before a real referral comes in
Here’s a fictional request. The property is an hour away, you’re booked solid tomorrow, the owner reportedly got a foreclosure sale notice and the message doesn’t say who is verifying the date.
An enthusiastic yes doesn’t answer any of the real questions. You’d still need to sort out your availability, who is reviewing the notice, what contact permission exists and what the homeowner is expecting first. You might need to suggest an approved alternative or decline, and either one is more responsible than accepting and leaving the gap unspoken. (A referral or a pending sale doesn’t stop a foreclosure on its own, which is exactly why the deadline question can’t wait. Foreclosure timelines vary by state, so get the notice reviewed by a local attorney or housing counselor.)
Being a member or taking part in training doesn’t guarantee work.
Pick one gap from this list and work on it this week. Write a practice update, go through a sample agreement with your broker or bring one specific process question to KWDS training.
Previous: What an REO listing agent does before and after the sale