REO Listings: More Americans Interested In Buying REO Properties
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A new survey by RealtyTrac and Trulia, two online real estate powerhouses reveals that more and more Americans are realizing the benefits of buying REO properties.
49 percent of those surveyed said they were likely to consider purchasing a foreclosure, up from 45% last May. Two-thirds of those expected to receive a discount of about 30% off the normal price of such a home – which is in line with the average 32% lower purchase price of a foreclosure currently on the market, according to RealtyTrac.
The survey, done in conjunction with Harris Interactive, one of the leading custom market research companies, was conducted in November of 2010.
The uptick demonstrates a growing acceptance of REO properties as a viable alternative by mainstream home buyers, which is good news for REO agents, brokers and other REO professionals.
Though there’s been a slowdown in foreclosures in the latter part of 2010, due to the foreclosure documentation problems the major lenders have been experiencing, as well as the traditional holiday season moratorium on foreclosures, most real estate analysts project that the first quarter of 2011will be an extremely busy one when it comes to REO listings.
That’s because the shadow inventory of foreclosures is again straining at the seams, because of the aforementioned slowdown. “Even with this big drop in November we do have a continuing building inventory of properties in foreclosure or REO,” said Daren Blomquist, managing editor of the RealtyTrac reports. “We’re estimating those properties plus delinquencies to equal 3 million to 4 million homes waiting to hit the market.”
That will potentially create what “The Boston Globe” recently predicted would be a new “tidal wave” of foreclosures in 2011. “The Wall Street Journal,” in an article from December 12th, also sees a big increase on the horizon with the New Year.
“Next year could very well be a peak year for foreclosures”, commented Rick Sharga, a senior vice president at RealtyTrac, an online marketplace for foreclosure properties. “The market is expected to tally about 1.2 million bank repossessions in 2010, up from 900,000 in 2009. We expect we will top both of those numbers in 2011.”
Adding to the shadow inventory of REO properties will be new foreclosures occurring as a result of continued high unemployment, as well as upcoming interest-rate resets on adjustable-rate mortgages that will increase the monthly payments for some homeowners. Loan modification programs for homeowners that are currently behind also don’t seem to be working for the majority.
Between the increase in the number of REO listings and the growing willingness on the part of potential homebuyers to consider buying REO homes, 2011 could be the biggest year for REO sales yet.
For those who want to know more about how to become an REO agent and how to get REO listings, one important resource is ASREOS (the American Society of REO Specialists). ASREOS is the first professional association for REO agents created by REO professionals and contains numerous tools to maximize REO opportunities and find REO listings – as well as the ability to interface with other REO Agents across the country in an exclusive forum.
Find out more about ASREOS and what it has to offer at http://www.asreos.com.
About the Author
Frank Patrick began his real estate career in 2000 after a 12-year stint in corporate America as a sales manager. As a new real estate agent Frank knew that he wanted to find a niche within the real estate industry. After months of research Frank decided to specialize in REO, an acronym for bank owned foreclosed homes. Frank quickly became one of the top REO agents in the nation averaging over 100 transactions per year for the last 8 years. In 2007 Frank’s production soared to over 214 sales. In 2004 Frank and his brother Scott Patrick started a property preservation company to offer maintenance and repair services to banks with foreclosed homes. Frank’s solid understanding of the REO industry and Scott’s 20+ years in the construction business was a recipe for success. This year their property preservation business is on track to gross over one million dollars in revenue. Today Frank manages his REO Real Estate Brokerage, REO Renegades an REO agent training business, his trade association The American Society of REO Specialists and is developing a national Franchise Property Preservation company, REO ResQ. For more information please visit http://www.REORESQ.com
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