Saturday, October 25, 2008

Who Says Selling REO Properties Is Easy!

Being a seller of foreclosed properties isn't easy. “It’s more about the numbers, and less about the emotions,” says Michael Krein, president of the National REO Brokers Association.

Real estate pros trying to move foreclosures often must clean out properties that have been abused, pay past-due utility bills, arrange for repair of hard-to-ignore damages, and provide security in lousy neighborhoods.

Despite these issues, selling REO properties isn’t all that lucrative. Commissions are split with the associate who sells the property and after payment of the costs of maintenance and cleanup. Collecting money from slow-paying banks is also part of the job.

Professionals who specialize in these properties make money on volume. For instance, so far this year Christina Lazrak, owner of RE/MAX Prestige in Chelmsford, Mass., and her partner Ann Marie DuRoss, have sold 85 properties worth a total of $16.2 million in the Boston area. For the year, they expect to net less than $100,000 each.

It may not be big bucks or inspiring work, but there are rewards. “We’ve got job security into 2009,” DuRoss says.

Source: Newsweek, Daniel McGinn (10/20/08)

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