It is important to note that there are many different ways for an REO agent to market their properties. Live auctions, social media websites, online listing services, and sites that dedicated to auctioning off properties, these are huge opportunities for advertising bank owned foreclosures. It is important for banks to have these options at their disposal since it gives them expeditious ways to get the properties off of their books. Thereby, allowing the bank to save huge sums of money instead of holding on to vacant properties, while also increasing the amount earned from the sale. Regardless to the type of advertisement used, the primary purpose of marketing these properties so aggressively is to assist REO agents with their overall goals and objectives.
With over one million US properties in the process of being foreclosed today, aggressive marketing plans are needed to increase visibility. Typically, some of these properties may be available due to default (33.3%) because the homeowner cannot pay their mortgages as required. Or, in some cases, the properties are already bank owned (21.5%)because they are in the number with those that have already been foreclosed. As a result of the large quantities that need to be sold, there are numerous benefits to utilizing the process of auctioning properties. With auctions, buyers can compete on the same platform so that they will know that there is fair competition in the industry. Which means, every buyer has an opportunity to prepare their bid before the auction takes place. If the bid that they prepare is the highest, the buyer wins the property and can take possession according to the guidelines of the auction.
One of the top benefits of participating in these auctions is having an opportunity to place the bid and win it. Especially, since auctions are platforms that guarantee the property goes to the highest investor or buyer that bids. With an auction, the bank has an opportunity to liquidate large numbers of properties that they have within their scope, and they can start to transfer this property to the buyer as soon as they win the bid. Because this is a more efficient way of unloading the property that the bank owns, it has become a more popular way of selling REO properties to the buyers over the years. Therefore, when REO agents have a lot of bank owned property that they want to sell, they may choose to sell some or most of them in Real Estate auctions.