REO software is a specialized tool designed to help real estate agents

Thanks for sharing great info on REOs Christopher!!!

REO software is particularly valuable because it addresses the unique challenges of working with bank-owned properties, such as high transaction volumes, strict lender requirements, and the need for detailed reporting.

Christopher, I don't have any SEO software, but my website has good activity.  Welcome to ActiveRain.

In Manhattan we only have about 10-15 foreclosures a month- in all forms. Many of these could easily be condos and co-op boards foreclosing for unpaid monthlies and special assessments, which add up. So we don't have a lot of REO's- and thus not really a big need for REO software. For me it would be more of a curiosity than a solution for my business. 

Hi Christopher Shearer MBA DRE #02062657 Yes, we are very tech heavy here. At my firm, management created a very corporate like structure to address our tech needs by creating a corporate intranet with Single Sign On connectivity for everyone in the firm. Of course there is the general tech that is used across the industry such as a CRM and document signing software, etc. I think we now have 20+ sites connected on our intranet. That said- the NYC specific sites (excluding rentals) worth mentioning are:

1. Streeteasy -  bought by Zillow 13 years ago. It's a listing site- but it was built specific to NYC. While you can find the listings on Zillow and many other sites- it was built to provide greater transparency. That said, in the last 5-6 years, features have been removed- and I expect at some point management will likely offer these features to agents for a subscription fee. Note- Manhattan doesn't have an MLS - so Streeteasy as well as OLR comes the closest.

2. OLR - a database closest to an MLS specific for NYC for brokers.

3. Propertyshark - I believe they have now grown to include other parts of the nation- but it started in NYC. The site grabs data that can be found on various NYC real estate related government websites and sales data and can compile everything into 1 combined property report.

The next 2 are the most unique:

4.  Urban Digs - The founder was originally an equities day trader, turned real estate agent and then decided to try to combine his skillsets from these two industries to analyze NYC properties from a data analytics perspective. Through this service- I can create infographics in 2 minutes that are specific to a clients search (i.e. 2 bed condos in specific neighborhoods- avg time on market, price per square ft, Cap rates, buyer vs. seller market- and how strong, etc) and other data analytics. Amazing tools. One of the newer and incredibly powerful metrics- Odds of going into contract within the first 30 days on market (been hovering in the 9-14% range in the last year) by product type, bed count, neighborhood, etc, and also % discount by time on market. This site focuses on resale properties.

5. Marketproof- This site brings transparency into the new development market in ways not available any other way. Weekdays I get a daily update on contracts signed, new buildings filed with the state, building/construction updates, etc. They provide data such as % of the units sold along with a breakdown by bed count- so I can see what's selling well in a building, and what's not. I can see what's been listed vs. shadow inventory- but I can also see stacking plans to gain a visual sense of what's selling - and if units have been released vs. shadow inventory. There is a lot more to the site- but this should give you a sense. 

Hi Christopher,

I am a former Wall Streeter myself, so while intuition will always have a place in the conversation - I rely heavily on data to the extent it's possible or realistic. Some situations will defy data and have an emotional component- so while I can use data, not every client will respond in the same way. I worked with derivatives valuations, risk management, etc and other areas that I can apply to the real estate world but it doesn't always work that way.  In the last year I have encountered some unusual properties- and in these cases had clients for them. In each of these situations I told the client that if they wanted to move forward- they would be paying a premium to move forward on them- but it could still be a wise move if they are purchasing to own for a longer term. In one case the buyer was willing to pay a 5% premium because the apartment hit every point of her criteria other than price. Still to pay a 5% premium isn't the end of the world when you realize how rare the opportunity was isn't too big of a deal. In another- there were so few data points- I had to include sales as far back as 7 years ago...and prices were around the same point as then- so while my usual practice is to try not to look back beyond a year for comps- they just didn't exist. 

Manhattan buyers and sellers tend to be sophisticated - so even when they aren't numbers or data people- they like to know that their agent is an expert. 

Hi Christopher Shearer MBA DRE #02062657 New York City is still very much it's own beast in so many ways, for so many reasons. Not a lot of places in the nation have co-op's while we do. And it's not just that we have co-op's- but these types apartments represent about 70% of our housing stock for purchase. We have condo's (so do many parts of the nation), co-op's, condop's, condotels, HDFC and HDC income restricted co-op's,  townhouses (which includes brownstones- but not every townhouse is a brownstone), and SRO's. Most of this housing stock doesn't exist elsewhere. When working with co-op's - a bank pre-approval is a nice to have, but it doesn't tell me much if the buyer will actually qualify to buy a co-op. Most co-op's want to see that a buyer can put down at least 20% down, though I have seen a lot more buildings as of late wanting at least 25% down- but it could be much higher. Additionally, co-op buyers have to have low debt to income ratios - typically 28% or less, but 25% or less is becoming more common, and the board wants to see that the buyer has 2 years worth of mortgage and maintenance payments in cash or cash equivalents after factoring in down payment and closing costs in post closing liquidity. If the apartment needs renovation- the board might want to see a much higher post closing liquidity to account for reno costs.  This isn't common in other markets.  We also have a tremendous level of regulation here- some of it necessary to avoid bricks falling on people's heads or buildings collapsing like what happened in Miami - though some might be too over the top. Miami does no have tougher regulations in place as a result of that building collapse a few years ago- so I do see at least some of the environment changing and becoming more sophisticated as a result but it's not exactly a 1 to 1 comparison.   

That said- I could see other markets benefiting from some of the tools being developed here. Marketproof has launched (or is about to) a Miami/South Florida tool similar to what they have in NYC for new development (and now resales). For brokers that use this tool- it gives them a huge edge when working with buyers looking at multiple new/newer construction buildings.  

Last summer I was working with an incoming Columbia University freshman from overseas looking to buy in a luxury new construction condo. Marketproof was showing me that 1 beds were selling extremely fast while 2 beds weren't (not a surprise to me- since a lot of 1 beds were being bought by the families of Columbia students since the main campus and new campus expansion were both only a few blocks from the building).  I was telling this buyer that they might get a better deal on some of the 2 beds than on one of the larger 1 beds since the 2 beds weren't selling nearly as fast. The listing agent later confirmed what I was seeing on Marketproof- and ultimately my buyer purchased a 2 bed for a little less than the 1 bed+home office that she was otherwise considering. 

These tools give me an edge when working with clients- and I suspect that smart brokers- no matter where they are located are always going to be looking for ways to gain an advantage in the market. So while NYC is truly it's own beast- I do expect that other markets will build out tools that give them an edge in their local markets over time.