Foreclosures Reach All Time High in 3rd Quarter

Foreclosures Reach All-Time High in the 3rd Quarter of 2009 according to RealtyTrac.com. Real estate owned (REO - Bank Owned) sales rose 21% from the second quarter to the third quarter, which mirrors increases in defaults and scheduled auctions in the first quarters of 2009 said James Saccacio, the chief executive officer of RealtyTrac.

What does this mean for you as a Real Estate Agent?

The current stats coming out of the 3rd quarter signifies that the Real estate market will probably see another wave of foreclosure and property value declines in the coming 12 months.

Right now, most transactions taking place are being financed through FHA which is under massive scrutiny and claims that they may need a bailout. Money is already tight and loans are more difficult to close than ever. If FHA dries up, where are your buyers going to get financed? What are you going to tell your sellers when you can't sell their homes?

New School vs. Old School Realtors

Being the youngest Realtor in my office can be funny at times. I am a young, technology driven Realtor who lives online, and is always connected. Most of the agents in my office are 40+ and just have a whole other style of doing Real Estate.
Now i'm not saying one way is better than the other, I just find some of the conversations we have to be amusing.
For example, I had a marketing meeting with my team today going over some new listings and things we are trying to move quickly. I must have spent 45 minutes watching one agent explain to another agent what Postlets.com was, how to set up an account, and then how to post it online. Meanwhile I was updating my facebook ads, craigslist ads, my MLS, my twitter, and Blog. While I am talking about my new website, lead generation, online ads, etc, they are talking about new yard signs and putting things in the paper. Its just a different world.
I love teaching the older Realtors about Craigslist, Twitter, and all the other ways to get your property online. I also love to hear about how they used to do business.
Now don't get me wrong, there is definitely something to be said for face to face meetings, hand shakes, mailers, etc. I pride myself on being able to be in a room and close the deal myself. But to get your properties out there to the masses, and really compete, you need to be online. That is what a lot of older Realtors are just starting to realize.
I get more leads, and active buyers coming to my email everyday than most of the agents in my office combined. Im always sitting down with someone and showing them some HTML code to make things easier for them, or setting up an account online somewhere to showcase their properties. Even my dad calls me for help doing Postlets, Craigslist etc.
I like being in an office where I can get tips and hear stories about how the other agents in my office became successful, and then sharing my tips on how I am just becoming successful. Its a great environment to work in.

For Sale: 2BR/1BA Single Family House in West Palm Beach, FL, $129,000

For Sale: 2BR/1BA Single Family House in West Palm Beach, FL, $129,000

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For Sale: 4BR/2BA Single Family House in West Palm Beach, FL, $109,000

For Sale: 4BR/2BA Single Family House in West Palm Beach, FL, $109,000

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Bank Owned Properties or REO's

Bank Owned Properties or REO's

I get asked a lot, the difference between Pre-foreclosure, Short-Sales, Foreclosures, and REO's/Bank Owned Properties.
The easiest way to explain it is-
-Pre-foreclosure / Short Sale: The owner still has some say in the deal, but the bank makes the final decision. The owner owes the bank more than what they can sell the house for, and so the bank accepts a "short" or "less" amount than what is owed, and allows the owner to get out of the property. Now the owner may still be in the hook for the difference between what they owed and what they sold it for, but each situation will be different. These deals usually take the longest, so dont be mislead by the name "Short sale", thinking it will be a quick transaction.
Foreclosures /Bank Owned / REO's (Real Estate Owned): Just like it sounds, the bank has taken over the property, and they now own it, and are looking to sell it. These are usually the best deals to come across. Closing can usually happen quickly, and there are less hoops to jump through as far as paper work and waiting around for answers. In this case however, the bank is usually not likely to make any repairs, or really do much to assist the sale, other than letting it go for a very cheap price. The banks dont want these properties sitting on their books, and so they are willing to let them go for fire sale prices.
In a nutshell, that is the easiest way to describe the different kinds of deals you may come across out there. I have worked Short Sales, as well as Bank Owned properties, and they both can be easy, if you have the right people working for you.

Holding out for Offers

Holding out for Offers

We all have been there, you have a property that is priced so low, that you know the owner is going to only take a full price offer.
But at the same time, if you are priced low, and the property is still not moving, you need to think about accepting lower offers. This goes for both rentals and sales.
Then there are the rentals that are priced high and the listing agent is just holding out for that one client willing to over pay.
Ive been trying to get a client into a house out west, in the Wellington area for about a month. 2 or 3 of the listings she liked, were all from the same agent. All the properties were listed at prices higher than last year, and in some cases, in worse shape. I had put in offers for a couple hundred less than asking, but still well within the fair market value for the properties. The agent would not even show the offers to the owners unless they were full price.
I feel that agent was not acting in the best interest of the owner by not presenting every offer. We all know that if you get a low offer, and then the property sits for another month or so, you would have already lost the difference from that one low offer, and you may not get another offer.
I understand that the agent is trying to make the most money they can by holding out, but at the same time, if my offer was the only one you have seen in 3 weeks, you would think they would reconsider.
The same goes with sales, shooting down a fair offer to try to make a few thousand more, in this market, is not the best strategy. Qualified buyers are few and far between. Motivated buyers, and tire kickers, yes, there are tons. But actual people with the cash, credit, and willingness to buy, not so much.
I just think some Realtors need to sit back and look at what they are doing, and holding out for, and see if they are making the best decision they can, or are they holding out for a few more bucks, and letting a property sit.

For Sale: 2BR/1BA Single Family House in West Palm Beach, FL, $129,000

For Sale: 2BR/1BA Single Family House in West Palm Beach, FL, $129,000

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For Sale: 4BR/3BA Single Family House in West Palm Beach, FL, $139,000

For Sale: 4BR/3BA Single Family House in West Palm Beach, FL, $139,000

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For Rent: 1BR/2BA Condo in South Palm Beach, FL, $1,295/month

For Rent: 1BR/2BA Condo in South Palm Beach, FL, $1,295/month

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3/2, Historic Style home, Easy close, Motivated seller!

3/2, Historic Style home, Easy close, Motivated seller!

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