What to List in this Market- Listing Homeowners VS. Listing Foreclosures/Short Sales

By
Real Estate Agent with Nationwide Homes

Some homeowners & agents I know have expressed concern about their listings experiencing increased competition from Foreclosures & Short Sale listings. Selling your homeowner's listing can be more difficult than it used to be but it's certainly not impossible to do so effectively in this market.

For one, Preforeclosure & Bank Owned listings are "As Is" sales. Owner listings are better than foreclosures because foreclosures are typically in distressed condition & you can't ask for repairs as you can when purchasing from a homeowner. 

Preforeclosure listings are usually in better condition but I find a lot of agents who list them to be inexperienced in closing short sales & jumping into a deal with them can cause you to lose your buyer while the deal sits on someone's desk in loss mitigation. Your buyer can also lose the money they invest into inspections and in getting their mortgage started.

Another thing is that homeowner's who are willing to price their home to compete with the foreclosures & short sales can often sell their home faster than both. It always comes back to price, doesn't it? If the house is in great condition with some nice upgrades & priced right nothing can stop it from selling. Most homeowners know that if they need to sell competing on price level & condition will give them the upper hand on any foreclosure listing or short sale.

If all your homeowners don't need to sell so you are priced higher than every comprable listing then maybe it is time to reevaluate your position in this market.

List preforeclosures (if you know how to do short sales). Don't list them if you don't because you will cause people to lose their homes to foreclosure.

It is tough becoming an agent for the foreclosed listings. The banks have agents & everyone in the business wants to do these listings so the competition is fierce. I would suggest representing buyers in these deals.

With these tips you can still be part of this vibrant marketplace- it's the best time ever to buy real estate & even if you have to sell to buy you will make up the loss on the sale when you make a purchase at the current price levels.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Location:
Connecticut
Groups:
Short Sale Specialists & Pre-Foreclosure Education
Tags:
reo listing
pete testa
ct short sales
nationwide homes
listing property as a short sale
listing foreclosures
how to get foreclosure listings

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
226,832
Tara Stone
eXp Realty - Alexandria Township, NJ
NJ Estates and Stables

It's hard to get homeowners to price competitively against the short sales and foreclosures but unless their willing to get in the game they are better of staying OUT!  We have too many over priced homes sitting for 300 + days.

Jan 11, 2009 10:17 AM #1
Rainmaker
344,122
BethAnn Long
RE/MAX Inland Empire - Spokane, WA
Realtor, CRS, e-PRO, Spokane Wa Real Estate

Good post... I have been thinking about the possibility of doing short sales and foreclosures, but so far I have not listed any. Best wishes! And yes...PRICE IS KEY!

Jan 11, 2009 10:40 AM #2
Rainmaker
187,259
Marty Remo
RE/MAX Benchmark- Marty Remo-CDPE, E-Pro - Monroe, NY
HV Home Team

Good post. It tough ou there. Many homeowners are holding on to numbers that they are never going to see.

Jan 11, 2009 10:42 AM #3
Rainer
334,480
Tom Davis
Harrington ERA,DE Homes For Sale, $$ Save $$ Buy Today ! - Dover, DE
FREE Delaware Homes Search!, $$ Save $$ - Find Homes! Delaware Realtor

I was on a call about this the other day... it is something isn't it?  Gee Pricing is the main Piece 9 times out of 10 !

I recommend anyone thinking about doing short sales to get all the training and ask your broker lots of questions.

Thanks

Tom Davis

DE Realtor

Jan 11, 2009 11:07 AM #4
Rainmaker
887,383
J. Philip Faranda
J. Philip Faranda (J. Philip R.E. LLC) Westchester County NY - Briarcliff Manor, NY
Broker-Owner

I do quite a few short sales. They aren't for everyone. Given the direction of the economy, they aren't going anywhere soon.

Jan 11, 2009 02:39 PM #5
Rainmaker
410,960
Robin Scott
Robin Scott, REALTOR® - Austin, TX
Broker, CRS, ABR, SRS, REALTOR® - Austin Texas

Most of the time there is a real difference between short sale/foreclosure and the average listing. My buyer's usually ask to see short sale/foreclosures but when they see the work and money they'd have to put in, they understand why a standard listing may cost more.

Jan 13, 2009 03:43 AM #6
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
588,864

Peter Testa

PETER TESTA
Ask me a question
*
*
*
*
Spam prevention

Additional Information