| Maintenance on REO listings is not always the agents | | | | electricity. If there are any minor hazard violations they |
| responsibility. Fortunately, there are national companies | | | | will expect them to be addressed also. You'll have to |
| that do this kind of work for corporate seller. Many | | | | pay out of pocket for these costs and get reimbursed |
| lenders have contracts for maintenance and ongoing | | | | later down the line. |
| care of their assets. As a listing agent. This is one very | | | | Maintenance is one are where agents lose good REO |
| easy way to take on a large volume of listings. You | | | | accounts. Failing to connect utilities and not maintaining |
| spend much less money and don't have to worry | | | | the asset are sure ways to get fired. |
| about reimbursement. | | | | When you do your initial BPO, you'll get a good idea as |
| Field Asset Services and Safeguard are a couple of | | | | to what repairs need to be completed. It's always a |
| the names you'll see, among others. As a listing agent, | | | | good idea to have a few contractors you can go to, |
| you are responsible for notifying your asset manager if | | | | to workout estimates. Preferably contractors you've |
| the asset is being preserved properly and on time. If | | | | worked with in the past and you can trust. In your |
| there's issues, you notify your asset manager and they | | | | assignment, you'll have repairs that have been |
| work on correcting it with their contacts. There is no | | | | authorized. Examples of this are the boarding up of |
| involvement on your part. | | | | windows and doors that aren't functioning properly, |
| When there isn't a preservation company involved you | | | | re-keying and trash outs. Some minor repairs, such as |
| as the listing agent slash property manager have to | | | | small electrical and safety hazards, like handrails are |
| maintain the property, get bids for repairs, contract help | | | | included. |
| and oversee that the asset is being cared for as | | | | At this time most lenders are not repairing properties. |
| specified by your seller. If you're responsible for this | | | | They are selling them as-is, in many cases to cash |
| work don't neglect the responsibility. At times your | | | | investors. Part of the reason, is that for a lender to |
| sellers will keep track of your performance and inspect | | | | authorize repairs to a property, they have to capture |
| your work. If they find the property in unsatisfactory | | | | double the dollar invested into the repairs. For example, |
| condition they can pull that listing and any others they | | | | if the repairs cost is ten thousand dollars. The lender |
| have from you. Remember that at any time they can | | | | want to capture twenty thousand more on the sale of |
| request a interior BPO from another agent, without | | | | the home, from the as-is value. In my experience, this is |
| your knowledge. A full interior report will show any | | | | possible, especially during a sellers market. Lenders are |
| deficiencies in your ability to maintain the asset as they | | | | just not interested in holding the home from sale. At |
| require. | | | | this point they want the inventory sold. |
| Maintenance will primarily consist of maintaining a | | | | Maintenance is key to a prosperous listing relationship |
| reasonably cared for lawn, the home being free of | | | | with a lender. Keep their assets in good shape and |
| debris and trash, the utilities being on, at the very least | | | | you will see more listings. |