Bankers, Auctioneers & Buyers Agents, Oh My......

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.