We are doing things like, sign drops with the telephone number for buyers to call our Buyer Center.
Doing open houses on the homes we list for the seller/lender....
Advertising the homes, buyer center number, and open houses.
Reporting to the seller/lender results such as number of open houses, number of prospects visiting the open house. etc etc
We found the major difficulty with the prior system was ........the listing agents are usually too busy with prop management functions as a lister.....BPO's photos, dealing with vendors ( locksmith, pool guy, clean out crews, utility companies.... & handling the billings for these services ) The listing agents had a difficult time responding to seller AND to the buyer calls.
Hence we did a division of responsibilities......left the listing agents to work with the sellers and opened the Buyers Center to work with the buyers.
The Buyers Center opened 3-1-09 and it is ramping up very well. We think this Buyer Center approach will help answer your needs.
Hope this answers your questions.
Realty Executives. Phoenix Ops.
2. $8,000 tax credit.
Be sure to incorporate the benefits of using the full 203k Renovation loan (not the Streamline). The more gutted the home,the better for the buyer. And, if the buyer is a first time home owner - then they also get the tax credit.
Finally, locate the trustee with the highest number of foreclosure sales and attend a few of their auctions so you can hand out your list of REO's to the bidders.
The other suggestion would be to offer a full buyer compensation to the buyer's agent to encourage your homes being shown.
I am an REO agent for a few lenders. Irrespective of the price, if the property has an outdated kitchen and needs a few repairs, it'll makes sense to do the repairs. Buyers in the lower-to-mid priced homes have many choices today and many don't want to go through the hassle of buying their first home and then having to fix it up to make it habitable. Most lenders won't touch any repairs unless required by open permit issues or FHA. I've done rehab work so I'm familiar with what costs what. Listen to the agent's feedback, if they're experienced in rehab, and spend the $3000 today - you'll see a higher selling price with less carrying costs. I'm speaking only about the troubled properties as a majority of my foreclosures sell very quickly. Make it look nice and it'll sell.
I sell a lot of foreclosures and below are the things you can do to attract more buyers and offers. I know that some of them will be out of your control, but if you can negotiate with the bank about being better on those, both you and the bank should have a better response and better offers.
* Make the homes more presentable - buyers want move-in ready houses, many of them need to qualify for FHA loans.
* Faster response times - sometimes banks take up to a week to respond to offers, many times trying to collect bids. After that they can take 1 to 3 weeks just to send the executed contract - which in turn may affect the buyers ability to complete their loan. If you can advertise a quick response time, that can help. For that same reason many buyers are placing multiple offers.
* Easier to understand and more fair seller's addendums. I have seen seller's reducing or eliminating inspections periods and appraisal contingencies. Other advertise that the buyer should turn the utilities on if they want to inspect the property, etc. Others won't even sign some of the contract addendums. I have had buyers cancelling contract due to some of the above factors. The more fair the seller is, the better their chances to get offers and avoid cancellations.
* Faster seller response after contract acceptance. I recently had a buyer that almost canceled because her rate lock expired. The reason was that the seller (bank) took over a week to approve the HUD1 and return the executed deed. She almost cancel the contract.
* Faster response and communication from you or your team to buyers/agents. Many seller's agents that have a high number of foreclosures are so busy that they take a long time to return calls or emails. If I try to communicate with a seller's agent and it is hard to communicate or get a response back I will communicate this to my buyer and probably we will not be placing an offer, as that will be an indication of things to come.
I know that most of those things are outside your control, but if the bank agrees to be more fair and have a faster response you and your bank will move the properties faster and get higher offers.
ABR - Accredited Buyer Representative
Buyers are thirsty for more info on short sales, foreclosures and REOs. I find that most are familiar with the word foreclosure first, then short sale sale and when u mention REO they appear to become overwelmed. Having said that, I might recommend holding informative FREE seminars wherein you provide a take home handout of your inventory with complete descriptions of the properties and photos.
Some topics might include:
(1) Benefits of purchasing a REO over a foreclosure
(2) What is an REO
(3) What to expect when placing an offer on an REO
(4) 25 economical fix-ups for your REO property
Francesca Patrizio, Realtor, ePro
Fix the houses!
Do what it takes to sell the homes!
The quality of the REO inventory is SO bad its a disgrace to our industry. I understand the challenges, but with lenders requiring huge down payments and rediculous debt to income ratio's buyers don't have the money buy fixers. That leaves cash laden saavy investors to prey on banks like vultures at a bunny farm. You don't stand a chance.
These investors come into a property, do their own calculations and write offers that include considerations for profit and short term market risk. Dealing with these people will not get banks the last dollar.
The old rules apply in this market the best properties are commanding the best prices. There is a growing spread between the prices received for the fixers and the best prices. A saavy agent has the knowledge and connections to fix a home at a modest cost.