One way to stay ahead of the competition is to know about upcoming listings before they do, and maybe even before the lender or the asset managers do.
It’s a Feature: REO properties
Use ForeclosureRadar to find properties that were bought by the lender on the day of the auction and then focus on specific lenders, such as a smaller, local bank that may not use an asset manager or lenders where you already have a relationship.
Cherry-picking. Tracking properties as they are taken back to the bank is a great way to obtain listings you know you can sell. It’s always better to select a winner than be assigned the dogs. So track what’s coming with ForeclosureRadar and contact the asset managers to let them know how qualified you are to sell the properties you want to sell.
Low or no equity properties. With the ForeclosureRadar you can track properties that are likely to return to the bank. Properties with no equity or considerable negative equity are good candidates for becoming REO listings after auction.
Opening bid and market value. The opening bid will likely have little or no relevance to the list price that the property would sell for in a traditional sale. If the opening bid is released before the actual sale, use your margin calculations to cull out unprofitable deals instead of wasting your time on the courthouse steps.
See Understanding amounts in the Understand Foreclosure Comps section.
Focus on REO buyers. If the REO club sounds too daunting, you can work the other side of the street instead, showing your buyers the advantages of considering an REO property. You escape the headaches of property management but still get a full commission. On an REO property, the selling agent’s sign usually doesn’t go up until the property is listed, but with ForeclosureRadar you can know about the REO property before the listing and do some marketing to have buyers lined up the day the listing hits.
It’s a Feature: Updated daily
ForeclosureRadar.com is updated daily, so you can use it to track auction results daily and take advantage of the time between the assignment to an asset manager and the listing with a broker.
Knowledge of the properties, neighborhoods and markets of an asset manager’s caseload enhances your value as a listing agent or broker. If you’re informed and aware of what they’re dealing with, you’re more likely to be considered for listings.