Lenders see them as REOs, buyers see them as foreclosures, and ebay sees distressed properties as opportunity.

Since September 2001, ebay Real Estate has offered lenders and asset managers a place to advertise REOs, and for a change, their real estate agents aren't being charged for promoting listings. At least, not by the site. Instead, the listings promote the agents on ebay Real Estate's foreclosure page.

According to spokespersons, ebay offers properties from the HUD, VA, and numerous lenders, and in less than a few months has already registered over 500,000 users who want information about foreclosures. The site as a whole boasts more than 50 million registered users as well as hundreds of thousands of daily visitors who come hunting for a bargain.

"Everything is paid by the institution," explains Adam Friedman, COO of ebay Real Estate, REO division, "the agent is getting marketing for the listing on their sites."

REO properties aren't ordinary listings. It is important to note that REO means privately held, or real estate-owned, meaning that the property is being operated by the lender for disposal. Sometimes, the property is turned over to a third-party asset manager for disposition. While not all REO properties are foreclosures, the properties offered for sale on the site have already been through institution processing and are available for immediate sale and/or auction.

Certain REO properties, such as government listings, can not be purchased without an authorized agent to represent the buyer. They are also represented by selling agents. However, it is ebay's rule that all consumers who wish to bid on ebay-advertised properties be represented by an agent.

This gives an opportunity to agents to be found on the site free of charge - with one exception. If an agent is representing a property and the lender does not have a relationship with ebay, then the agent can still list the property in the foreclosure section for $150 per listing.

"We recommend the agent post the REO immediately on eBay and then, secondly, the agent should have the lender contact us to set up a meeting to find out how eBay benefits and enhances the REO disposition process," suggests a spokesperson.

To be found free of charge, agents can be part of a lender listing, or can register to get into the site's directory to represent buyers.

"Our money is made off the listing fee from the institution," explains Friedman. "The 'Find An Agent' feature is not a revenue generator. That is a free marketing services to the agents."

Agents have to qualify with individual institutions, notes Friedman. "We don't control that, but additional agents who are registering can appear in the directory as well. We leave the front door wide open."

Listing agents who are representing REO properties get freebies, too. "When a government listing is on ebay," says Friedman, "we assign the listing agent to respond about that property, and any e-mails will get directed to that agent."

Andre P. R. Zietsman, vice president, Lender Division of ebay Real Estate adds, "Our single fee offers huge benefits for the seller, listing agent, and buyer. We have an offer negotiation tool that allows the agent to submit a bid and for the asset manager to counter in real time. We keep harmonious communication going."

He says, "In addition to marketing benefits, there is an efficiency benefit. Agents complain about the forms, and we have put the entire process online and allow them to free themselves from forms. It is a simple process, the application is Web-based. We are focused on the complete chain, having access to lenders as well as the agents that are associated to allow us in the future to get involved in other aspects of the transaction."

ebay has about 30 percent market share in REO marketing, with government agency shares much higher, say spokespersons. In the past 12 months, ebay has listed 93,063 REOs from all 50 states. To date, ebay has approximately 120,000 registered agents from all across the U.S.

"We are creating a marketplace for the agent," reminds Friedman, "they know where the buyers and sellers are. It would make farming and marketing easier, and we are creating efficiencies - real-time communication and paperwork reduction."

Published: September 10, 2002

Use of this article without permission is a violation of federal copyright laws.

Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.