The answer to this is yes, real estate agents do indeed make a commission off the sale of a foreclosed property, but if you are wondering why your real estate agent seems to be steering you away from properties like this, here are a few things to consider. 

First of all, if all you wanted was a property that had previously been foreclosed on, then a real estate agent would gladly sell it to you. But since they actually might make more money on a home that has not been foreclosed on this may cause the agent to push another home on their client. Also selling a foreclosed home can have some disadvantages other than that as well. There can be a hundred different reasons behind this, including some of the following. 

First, some foreclosure property requires more drastic restrictions. These could slow or delay the sale process, and in a real estate agent’s eyes, would be risky because in the meantime you may find a different real estate agent or lose interest in the home. If this happens, the agent that put in a lot of work to complete the sale would fail to do so, all because they tried to sell you a foreclosed property. 

Some foreclosed-on properties come with more liability issues, and your real estate agent might not be completely comfortable with that. It is sort of like car salesmen… some just like to sell new cars, while others don’t mind selling the used ones. 

If you are having trouble getting your real estate agent to level with you about why he/she does not want to sell you a foreclosed-on property, then simply find another real estate agent.

Moe Bedard
My name is Maurice "Moe" Bedard. I am the founder of America's #1 Mortgage Forum, My online work has been featured in the New York Times, LA Times, Fox Business, and many other media publications.