Foreclosure Bus tours

Greg - we are going to give it a try in Sacramento, CA.  We have so many foreclosures in our area in Elk Grove...and we have great buys.  We have been holding REO specific open houses on Thursday evenings and getting 20-30 buyer groups through each one.  One of our buyers' agents put 3 buyers into escrow last week alone from the REO Open Houses.  We hope that adding the bus tours will help us with more buyer leads.  The cost for the bus is approx. $600 - $700 for 4 - 5 hours...we are going to try for 10 - 12 homes, about 40 buyers on the bus.  Agents have been charging $20 - $25 for each buyer without a problem.  We're also going to try to offset some of the cost by having a lender and a title company with us on the bus.  We think it's worth a try! 

I Think it will work in an area with many homes in foreclosures in a small area. here IN Pa homes are way too far apart. .However on 60 Minutes last evening.it was working . so why not try it?

Greg: I have been contacted by companies putting on those types of seminars in the past. It just sounded like a waste of a good day for a hard working Realtor.

We're doing the same in Palm Springs, www.RepoCaravan.net.  We're gotten a lot of positive response.  Many of our buyers that can't make it on the bus tour, we've met with individual.  For the most part it is a learning experience for buyers interested in REO properties.

 There's been some negative comments that we're taking advantage of the sellers.  Its just the opposite...we're dealing with only bank owned properties with the hope of selling homes quickly in neighborhoods, so they don't fall into disrepair by being neglected and unkept, which leads to further devaluation of neighborhoods with a lot of foreclosures.  We only deal with prequalified buyers, so that those buyers on our tours are ready to buy and not wasting anyone's time.

 

I'd be happy to answer any additional questions.

 

Best regards,

Paul Kaplan

www.RepoCaravan.net

 

You really do think out- of-the-box!  That's quite a concept.

I am scheduling our areas first Floreclosure tour in March. I have a lender sponsoring the bus, everyone has to pre-register be pre-approved and sign an Exclusive Buyer Agency agreement. I will see how it works and is accepted

Greg,

I am not sure having a few or many of your clients together, who look to you for your expertise to insure their best interest are protected (Buyer's Agency)......seeing the properties together and wondering why you are not giving them the personal and private attention to get the best deal......this environment might be best if you are the Listing Agent.....just my humble opinion.

Understand your opinion.  But the clients will get one on one individual service when they decide there is a property that they want to submit an offer on.  For the most part, the tour gets a client interested in the process.  Then once we narrow down what they're criteria is, we can work with them individually to show them the properties they are most interested in.  We seem to end up working more with people that call from all over the country, individually because so many can't actually make the tour.

 www.RepoCaravan.net

 

 

Sounds like an i nteresting idea - Curious to see how it works!  Keep us posted!

I think it would work as long as the homes are close together.  At our company we are trying to implement land tours on large tracts.  Maybe some type of off road vehicle or just a plain "hay ride" on a tractor with wagon.  Any ideas to make this better or are with way out in left field?

I'm curious what success ray had with requiring pre-qualification and signed buyer agreements.  I know many agents are doing the tours without this - and it might deter potential buyers. I had considered doing this and charging a fee - but waiving the fee if they signed a buyers agreement. 

I agree with Ray by saying that everyone should pre-register,pre-approval and sign an exclusive buyers/tenant agreement. You just dont want to put anyone on the bus. If anyone have had any success in Washington DC,Maryland and Virginia,please let me know. Great post.

Greg,

  I'm currently setting up a tour here in Virginia Beach.  We have over 600 Homes available in the Hampton Roads area that are REO.  The homes we are doing walk throughs on are in excellent shape and will provide a first time buyer with equity and valve as they walk in the door.  We are going to show homes that are move in ready or investment properties.  By doing this we are concentrating on First time home buyers getting a great deal.  We will also be able to show potential buyers the upside of investment property ownership as well.