The market is changing, and asset managers are on the front lines of that change.
The “Adapting to the Shift” session at the 2026 Velocity conference in New Orleans brought together asset management leaders to discuss the trends reshaping their portfolios, from evolving property conditions to shifting timelines and buyer demand. Attendees learned how to adjust their strategies to maintain performance, where to focus resources, and the specialized niches they rely on to solve complex asset challenges.
The panel offered practical insights for agents, servicers, and vendors looking to better support asset managers in a dynamic environment.
Moderated by Sharon Bartlett, REO Director at US REO Partners, the panel included Doug Bowman, VP of REO with Renovo Financial, and Talia Ramirez, President of Spectrum Solutions Acquisitions.
According to the panelists, as distressed property inventories begin to rise and commercial defaults loom on the horizon, REO professionals should prepare now by expanding their expertise, embracing technology, and becoming strategic advisors rather than simply completing tasks.
The panel explained that today’s REO environment is different from previous market cycles. While inventory is increasing, buyers have become more selective, forcing asset managers to rely more on local market intelligence from agents.
“We are increasing our inventory,” Bowman said. “The buyers have more opportunity, and so the assets that are coming to market now, we have to reposition a little bit more with buyer-friendly repairs, financing, better marketing, and we need more granular information from the agents in the field.”
Bowman said agents must provide real-time intelligence about neighborhood conditions, recent comparable sales, employers opening or closing, and other local developments that can affect property values.
Pricing Remains the Industry’s Biggest Challenge
Panelists repeatedly identified unrealistic pricing expectations as the primary obstacle facing today’s REO market.
“The market is slowing, and appraisals are always late to the party,” Ramirez said. “Appraisals are based on old data, not current market conditions. The biggest problem right now is just overpricing the market, and things just aren’t selling.”
Ramirez said agents should be willing to push back when pricing doesn’t reflect current market realities.
“You guys are our eyes and ears on the ground,” she said. “You need to tell me what that market is like so that I can educate my clients.”
Bowman noted, however, that asset managers are often balancing market realities against investor expectations.
“Sometimes the investor dictates where that pricing is coming from,” he said, adding that asset managers must consider acquisition costs, investment goals, and portfolio strategies when setting prices.
Communication Matters More Than Task Completion
Panelists emphasized that successful agents distinguish themselves through proactive communication rather than simply meeting deadlines.
“If you have new information that you can bring to them that’s relevant to the property, send an email because then it’s documented, but pick up the phone and call them,” Bowman said. “Any new information that you can bring to the table is going to be valuable and strengthen that relationship.”
Ramirez agreed, encouraging agents to challenge pricing decisions when necessary.
“I prefer honesty,” she said. “Don’t tell me what you think I want to hear.”
Panel members also stressed that agents should present solutions instead of simply identifying problems. Rather than asking asset managers what to do when issues arise, brokers should recommend strategies based on their local market expertise.
“Be you. Be you. Don’t try to be someone you’re not,” Ramirez said.
Commercial REO Expected to Surge
Looking ahead, Ramirez predicted commercial distressed assets will represent one of the industry’s biggest growth opportunities over the next year.
“Commercial real estate is coming,” she said. “The SBA loans, MCA loans, they’re all defaulting. People can’t pay them, so all of these commercial assets are going to hit, and they’re going to hit hard.”
She encouraged residential REO professionals to invest in commercial education now or partner with experienced commercial specialists before demand accelerates.
Bowman agreed that diversification will be critical, urging agents to understand multiple property types while developing networks of investors tailored to specific asset classes.
Technology Is Becoming a Competitive Advantage
Artificial intelligence and new marketing technologies are already reshaping REO operations, panelists said, though they emphasized that technology should enhance—not replace—human expertise.
Ramirez described herself as an enthusiastic user of AI tools, encouraging agents to embrace technology before competition intensifies.
“Definitely get invested in technology,” she said. “Everybody does the same thing, so find ways to elevate yourself amongst your competition.”
Panelists pointed to AI applications for property descriptions, photo analysis, virtual staging, and market research, while cautioning that human review remains essential.
“If you utilize AI, you still have a responsibility to check the work that AI did,” moderator Sharon Bartlett said.
The panel also highlighted newer technologies such as advanced property photography platforms that improve documentation, before-and-after comparisons, and communication with asset managers.
Relationships Remain Irreplaceable
Despite growing automation, speakers argued that personal relationships will continue to drive success in the REO industry.
“Be you,” Ramirez advised attendees. “Be comfortable with who you are. Real, genuine people are the type of people that I want to make connections with.”
Bowman agreed and encouraged agents to continue attending industry conferences, finding mentors, and focusing on long-term relationships.
“I don’t need a task manager,” he said. “I need someone with intelligence that will bring me real market solutions.”
As distressed inventories gradually build and the market evolves, panelists said the agents who combine local expertise, honest communication, technological fluency, and strong relationships will be best positioned to capture new business in the next phase of the REO cycle.
