Listing opportunities series, part 1 of 7
Default listings come in three kinds: homeowner referrals, REO (bank-owned) assignments and listings for corporate or investor sellers. Each has a different seller and a different job for the local agent, so knowing which one you’re looking at tells you what you’re signing up for.
So it’s worth sorting them out before you decide which one fits your business, because being great at one doesn’t automatically make you ready for the others.
A homeowner referral starts with a person, not a property
In the homeowner-referral work we teach, a referral source connects a homeowner with our team, Joe Iuliucci has the first conversation with them, and then he makes a warm introduction to a local agent. That first conversation is the part people underestimate. You’re not getting a name and a phone number cold. You’re stepping into a conversation that has already started, and you can find out what the owner has already talked through and what they’re hoping to figure out.
What you usually don’t know yet is which kind of sale this is, if it’s a sale at all. Some homeowners who are behind on the mortgage still have enough equity to sell and pay everything off. Others may need a possible short sale reviewed because the sale won’t cover what’s owed. And some just want to understand their options before deciding anything. Being behind on payments doesn’t tell you which one you’re walking into.
Your part, when the owner wants your help, is the local real estate work: a property visit with their permission, condition notes and photos, a price recommendation you can actually support and, if they decide to list and the agreements are in place, the marketing, offers and closing. What the introduction doesn’t give you is authority to talk to their lender or to promise how a short sale will turn out.
Corporate and investor sellers already have a process
A company or an investor that owns property in several markets usually has its own way of handling pricing reviews, repairs, offers and reports. You’re not designing the process. You’re the person who knows what’s actually going on at the property and in that neighborhood, and who can explain it clearly enough for someone far away to make a decision. On our corporate files, Joe makes the introduction and the handoff, so you start with the seller’s context instead of a cold call.
That sounds simple until the file says “vacant, ready to list” and you walk in and find water damage, a missing water heater and a back door that doesn’t lock. The value you bring is noticing it, documenting it accurately, recommending a sensible next step and getting the right person to approve it before anyone spends money.
And no two of these sellers work quite the same way. One may run everything through a portal with several levels of approval, while an individual investor answers the phone and decides on the spot. Ask how each one works instead of assuming the last one taught you the rules.
REO work often starts before there’s anything to market
REO stands for real estate owned, which usually means a property a lender or other institutional owner took back through foreclosure or a related transfer. That’s a different situation from helping a homeowner sell before foreclosure, even though both get lumped under “defaults.”
On an REO assignment the listing agent may be asked to report on occupancy, document condition, give a value opinion, coordinate approved vendors, check on the property regularly and keep expense records, all before and alongside the listing itself. It suits agents who like detailed property work and staying on top of a lot of moving parts. It also means being honest with yourself about drive time, help, cash flow and the client’s requirements, because the tasks and the authority you get can vary quite a bit from one client to another.
Two things that get mixed in: Dual Path and BPOs
You’ll also hear us talk about Dual Path Marketing, which keeps an eligible listing in the MLS and adds it to Hubzu’s online marketing and bidding platform (Hubzu is a separate company). That’s a way to market a listing, not a separate kind of seller. A homeowner’s listing, an investor’s property or a corporate-owned home might each be reviewed for it, and using it doesn’t make anything a short sale.
A broker price opinion, or BPO, is a valuation assignment. Doing BPOs builds skills and relationships that help in this world, but finishing one doesn’t mean the listing comes next.
Where to start
You don’t need to chase all of this at once (most agents shouldn’t). If you’re good with people in stressful situations and you know your resale market, the homeowner-referral work is probably the place to start learning. If you like property operations, reports and vendor follow-through, look closely at what an REO assignment actually involves. If you already work with investors on the buy side, find out how their listing needs differ from what you do now.
Training and community participation can help you get ready for any of these, but they don’t guarantee assignments, listings or income, and learning about an opportunity isn’t the same as being eligible for it.
Pick the one that fits how you already work, and write down the first thing you’d need to learn before taking it on, like reviewing the numbers with a homeowner, writing a property report or following a client’s offer process. Then bring that question to the next KWDS training.
Next: The homeowner already talked to our team. Now it’s your call.