Bypass Agent for REO Property?

Hi all,

Just curious here. I’ve run into a few agents recently that have been a pain to work with, in regards to REO properties. For the sake of curiosity, are these agents mandatory in working with the bank? Is it possible to send offers in directly to the REO department?

I’m open to all opinions and suggestions here. So far, some of the agents make the entire process so much longer than is necessary.



Hi Vic,

I understand your frustration on working with a buyer’s agent with a REO. If the property is listed, have you considered working with the listing agent or is that the basis of your frustration? Agents don’t understand the process unless they are investor friendly. Check your local REI clubs to see the agents posted there and if they will help you write offers and see houses. Since the bank is paying their commission, it could be a win-win deal for you both.


I could be wrong, but I think what the OP is saying is that the listing agents are the ones who are a pain to deal with. He would rather work with the seller (lender) directly.

Maybe things will change as lenders take on more real estate, but I don’t like working with listed property, either. I find that the agents/brokers must be inflating their expectations of value to the client to get the listing, because it seems like every REO I have looked at is way overpriced.

Here’s my understanding on the topic –

If you don’t like the listing agent of a typical home you like in your neighborhood, what happens if you just tried to negotiate the sale directly with the owners?

It’s pretty much the same thing once an REO home is a broker-listed property. The bank is the owner of the property, and if you go to them you’ll only be told to contact the listing agent… who will be getting a commission as the agent, and is currently taking care of property maintenance while it’s on the market. …if the owner of that neighborhood home DID work a deal with you and cut out the agent, you can be sure that agent would find out and still get a check. (Banks, however, generally don’t care to screw over a listing agent to ‘save a buck’ like Joe Homeowner might try.)

And depending on the leader, many REOs aren’t sold directly from banks, but rather are handed to an asset management/mitigation company who then gives the listing to an agent.

sometimes an agent is a pain in the butt, regardless of the type of purchase… at least you’re usually getting a nice deal on a property for putting up with it!

Get yourself a good, investor friendly buyer’s agent to ride the listing agent. It won’t cost you anything, as the BA commission is paid from a split with the listing agent. Just make sure you have money to put where your mouth is, as a buyer’s agent won’t work with you very long if you are making offers on properties and you can’t complete the deal.