|
Fees are set on a per client basis. Many factors determine charges associated
with REO asset management services. Below is information on typical fees associated
with managing REO properties. This information is intended to provide general
industry explanations.
Types of Fees in REO Asset Management
- Asset Management and Referral Fees
- Appraisal & Drive-By Broker Opinion Fees
- Commission Agreement for Listings Fees
REO Asset Management & Referral Fees
- Sometimes there is a fee for each asset management file determined
by average price range of portfolio.
- We receive referral fees from the listing agent's commission.
- All asset management and referral fees are included on HUD statement and
paid directly to Bankers Asset Management by the title company at the time
of closing.
Property Appraisal & Drive-By Broker Opinion of Values Fees (BPO's)
- Property apraisal fees generally range anywhere from $300 - $550 depending on size
of property or complex and whether it is an initial order or a report update.
- Asset management fee paid to order appraisals.
- Drive-by BPO and Interior BPO range in price, depending on area of country. From $100 to $125.
- What is a Broker Price Opinion or BPO?
Commission Agreement for Listing Fees
- The commission schedule is based on the property price.
- The commission is split between the selling agent, listing agent and Bankers
Asset Management.
- Total brokerage commissions are typically six (6%) or seven (7%) percent
(depending on the area and list type).
- Commission schedule and final payments to agents and Bankers Asset Management
are included in the closing statements.
Maintenance & Repair Fees
There are some expenses associated with taking ownership of the REO property.
There are also some ongoing maintenance costs that are usually necessary while
marketing an REO property for sale. In addition to that, some properties may
need repairs. Bankers Asset Management negotiates many of the following services.
- Cash for Keys (Must vacate within 30 days or less time frame)
- Re-Key (Front & back doors only)
- Trash Removal
- Initial Clean
- Initial Yard Start-Up Service
- Weekly Yard Maintenance We shall evaluate if maintenance is needed on 7, 10 or 14-day schedules.)
- Property Preservation (board up, etc)
- Basic Winterization
- Emergency Maintenance (plumbing breaks & etc. handle and advise client)
- Foundation Report (must get authorization from client)
- Pool (startup & repairs)
- Pool Maintenance (per month chemicals included)
- Roof Inspection Report (must get authorization from BAM)
- Termite Inspection Report (to be transferable to buyers)
- Termite Treatment (must obtain authorization from client)
- Rehab Bids (1-3 bids depending on size of project)
|
