On Friday morning I had a meeting with one of my bank clients.  We scheduled about an hour for our get together, but after an hour and a half we still didn't get through all of it.

I am currently working on 9 REO for this lender + I am working with one of their borrowers to undertake a short sale on 15 single family homes.  This is not all I am working on for them, but it gives you a thumbnail.

I went in to discuss a price reduction of 5%.  The decision maker asked about the marketing efforts and asked about the showings.  Efforts high, showings low.

Without me making the suggestion, the lender tells me to pick a day and offer all of his REO at auction.  In his words, he wants to sell at the beginning of the selling season and before the market slips any further.  He wants to get as much as possible sold before the market becomes even more glutted with inventory.

As I was walking out, one of the other bank officers hands me a list of another 10 addresses and tells me to do drive bys and prepare listing agreements.  She goes on to say that there are another 3 borrowers with over 60 properties that are well past 60 days late and that this is probably not all of it.

This is not the first conversation I have had like this with local and regional lenders.

If the trends continue, we are going to see a lot more bank defaults.

The lenders are looking to auctions to dispose of property.

Ok Rich, get to the point....

At my auctions, the buyer is represented by agents only about 20% of the time.  Auctioneers around the United States will tell you the same thing.  Auctioneers want to pay you a co-op.  They want your buyers at the auction.  Most are happy to walk you through the process.  Many are teaching seminars on How To Buy At Auction all over the US.  There are NAR predictions that 30% of all property will be sold at auction by 2010.

All I am asking is that you take the opportunity to learn about the process now.  The wave has started and it's not just in the low end properties.  I have a hotel and bowling alley on my list of proposals right now.

Richard F. Kruse is the President of Columbus, Ohio based Gryphon USA, Ltd. (www.gryphonusa.com).  The Gryphon Organization includes Gryphon Asset Management providing receivership and consulting services in the distressed marketplace, United Country Ohio Realty & Auction Group (www.ucohiorealty.com & www.ucohioauctions.com) providing real estate brokerage and auction services throughout Ohio and OnlineAuctionUSA.com (www.onlineauctionusa.com) providing commercial asset liquidations from the Midwest to East Coast. 

United Country Ohio Realty & Auction Career Opportunities Available.  Call 614-885-0020 x 17

 
Post is included in group: Real Estate Auction Referrals

7 Comments on Bankers, Auctioneers & Buyers Agents, Oh My......

MAR
25
2007
5 Featured Posts Outside Blog
Sign me up for the bowling alley! What is it? Ten Pins or Duck Pins?
9:47am • #1
117,279 Points 9 Featured Posts Outside Blog
It's white pins with red on them. ????
10:20am • #2
1 Featured Post

Wow Rich:

 How do you get 20% of your buyers represented by agents?

We have yet to have an agent represent a buyer who wins the auction.

Most just want a 3% adavantage over the other bidders.

2:39pm • #3
117,279 Points 9 Featured Posts Outside Blog

Billy- I should have said bidder.  The buyer is rarely represented.

I do not allow agents to collect the commission if they are the buyer.

7:05pm • #4

Hi Rich,

Same thing out here.  Auctioneer's having seminars to teach and encourage realtor participation.  I know of two this week holding seminars at local real estate offices.

9:30pm • #5
MAR
26
2007
173,945 Points 17 Featured Posts Localism Sponsor Outside Blog

Rich,

This I'd like to get on board.  Thanks for providing a heads up and the link.

Fran

12:48am • #6
1 Featured Post
Rich, your aritlce is disturbing because I am hearing the very same thing in my office on a day to day basis.  (It was at one point week to week.)  I have thought about looking into the process and seeing what I need to know.  Thanks for the link.
7:39am • #7

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Rich Kruse

Columbus, OH

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Gryphon USA, Ltd.

Address: 9387 S. Old State Rd., Columbus, OH , 43035

Office Phone: (614) 885-0020 x 17

Cell Phone: (614) 885-0020

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A lighthearted and informative look at the real estate and asset sale professions. The Gryphon Organization provides real estate, auction and asset management services through a variety of subsidiaries including Gryphon Asset Management and United Country Ohio Realty & Auction Group.


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