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.
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