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Foreclosure bus tours...Are they good for buyers?

By Jerry Murphy, CRS, SRES

Real Estate Agent with Long Realty West Valley AZ RE Lic. #SA560004000

April 07, 2008 07:28 AM

With every type of market come new and innovative ways to create business. Some may even call these methods opportunistic. One of the new trends in this market that we are seeing is the foreclosure bus tours. The idea is simple. Rent a luxury touring van, schedule viewings of 15-20 bank owned homes in an area, and invite investors and home buyers out for a day of bargain hunting. But are these bus tours in the best interest of the buyers.

Here's what I'm getting at. If there are 30, 40, 50 people on one bus, all looking at the same properties could this not create a frenzy whereby bidding wars for the same property might ensue? In this market where there are literally thousands of bank owned properties on the market, why get in a bidding war. Would it not be better to just go out one on one with a Realtor who will show you as many properties as you like, without the pressure of having dozens of other people looking at the same property? I think from a buyer's standpoint that would be a better scenario. That way you won't have quite the competition, nor the peer pressure and mob mentality that usually accompanies tours.

If you would like a list of bank owned properties in the Phoenix area please e-mail me at:

jwmurphy@windermere.com

If you would like any information regarding Anthem, AZ real estate please visit:

www.AllAboutAnthem.wordpress.com

And if you would like more information about the Phoenix and Scottsdale real estate markets please visit our website at:

www.ArizonaPremiereLiving.com

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Adam Brett

The Adam and Eric Group - Fullerton, CA

The Adam and Eric Group, Fullerton's Finest

You are not hoping to create a bidding war, but procure 30-40 buyers under contract.

Apr 07, 2008 07:31 AM

Christopher Bonta

The Bean Group - Londonderry, NH

Realtor, Integrity and Honesty

Adam, good point but I think Jerry knows this. My interpretation of what I read is that Jerry is speaking to BUYERS, not anyone else. He is stating that rather than going on a "tour bus" of forclosure properties it is better for a Buyer to contact a good Agent (him).

Jerry, I like your post, best of luck!

Apr 07, 2008 07:37 AM

Katie Graham

Cherry Creek Properties, LLC - Denver, CO

Denver Real Estate

Spending marketing dollars to procure bank deals? No thanks. I'll stick to marketing to families in good neighborhoods with few foreclosures.

The Entire Team of Price & Company Professionals

Price & Company Realty - Myrtle Beach, SC

Odds are that all 40 of the Buyers won't be interested in the same house... but at least a few of them would be. You are right in your concerns about the best interests of the Buyer. If there WAS a bidding war, you could be held liable for not ensuring them the best deal you could get for them.

Apr 07, 2008 07:40 AM

Lindsey Hasford

Edina Realty - Elk River, MN

Bringing you home...

Wondering what kind of success the buses have. They tried it here, but I haven't heard anything from it.

Apr 07, 2008 07:47 AM

Gary J. Rocks

Juba Team Realty - Jefferson Township, NJ

Jerry

I don't know if it is right for the buyer but, it is great for the listing agent to create a frenzy of buyers.

Apr 07, 2008 07:51 AM

Steve Sanders

Independent Observer - Saint Paul, MN

Innovation in any market is a good thing.

Apr 25, 2008 04:27 AM

Utah Dave

UtahDave.com Neighborhood Experts - South Jordan, UT

Homes for Sale - Utah

Its funny how one brokerage in Las Vegas has been supposively cashing in on it. I prefer to have a sign on corners that say FREE FORECLOSURE LIST OF HOMES ...than people come into my open house. :)

Apr 25, 2008 04:41 AM

Bo Buchanan

Kettley Realtors - Oswego, IL

I think these bus tours are more likely a way to develop relationships with the clients. I've seen that many of them charge $100 bucks a pop to take the tour, sometimes less (I saw one doing it for $20.00).

May 01, 2008 04:32 PM

Anonymous

Anthony Brooks

I think that the Foreclosure Bus Tours are a great thing. Alot of people continue to buy these outdated, overwhelming lists on the net or sent to them via MLS, but never actually step foot in a foreclosure. It appears that most Foreclosure Bus Tour participants are getting some training and information on the pro's and con's of buying a foreclosed home, plus they are meeting people than can help them. That's some real value. Forget the competition for a minute, these bus riders get a chance to get unbiased opinions from other non-sales people on the bus. Believe it or not, their peers opinion probably carrie more weight than you think. I see people bad mouthing these tours, but I would love to attend one for networking and information from other real estate investors and home buyers that are just like me. Who else is going to take the time out to help the "little guy" that wants to buy his first foreclosure? So, it looks to be win-win for both. The realtors don't have to run around burning $4 a gallon gas showing houses and the little guy gets what he has been searching high and low for. If you can't get a deal on the tour, at least you know where to find them and who to call. How else are all of these foreclosed homes going to get sold? I have spent 10 times what they charge on these tours for lists and how-to stuff, so what's the worst that could happen? Most couples spend $100 bucks going to the movies. Which would is the better investment?

Tony

Jun 02, 2008 04:52 PM

#10

Rob Kelly

RE/MAX Alliance - Louisville, CO

Louisville Colorado Realtor

Hi Jerry, I think I understand what you mean by potentially creating a "buyers frenzy" in viewing the bank owned properties.

We've got our initial tour planned for November 15, 2008, and this has been an area of concern for the partners. We have a lot of current clients that have signed up, and we do not want them to feel pressured by a "mob"...however they are all very excited about hopping on board for a tour of bank owned homes.

However, we also are trying to provide a "rolling classroom" with plenty of time to talk to a Certified Home inspector, Mortgage broker, Attorney, as well as a Realtor. I think this Q&A time and rapport building will be beneficial long term to folks even if they do not buy from us.

It would be great if we are able to translate an initial meeting on the tour into a long term relationship. We would call it a success even if no offers are made that day, but if some potential friends and/or business comes out of it it will be great.

Check out our site if you get a moment: www.DenverForeclosureTour.com

Good luck in your business! I do not have a referral partner in your part of AZ, if you are interested please drop me a note,

Rob Kelly RE/MAX Alliance-Louisville, CO www.RobKellyColorado.com

Oct 31, 2008 12:00 AM

Aspen Robinson

Century 21 Tri City Realty - Saint Marys, GA

We actually thought of doing this too. Has anybody had any good experiences/success from it?

Nov 01, 2008 01:52 PM

Foreclosure bus tours...Are they good for buyers?

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