Provided By KW Blog
Kevin Kauffman and Fred Weaver of Tempe, AZ (near Phoenix) live in the middle of one of the nation’s most distressed markets. In 2009, they helped more than 150 individuals and families avoid foreclosure with a short sale. They are among the select few short sale agents in America who close more than 90% of the deals they take on.
Today Kevin and Fred led a presentation on Short Sale Offers and Contracts That Win. Here are some of the things we learned in the session:
•The real estate boom of the mid-2000s was followed by a precipitous drop in values in many regions of America.
•Today, in half of all US states, 30% or more of all real estate sales involve a foreclosed or foreclosure-threatened property.•This “distressed property” phenomenon first grabbed the nation’s attention about two years ago.
•The dramatic market shift continues—though recently, the first signs of “light at the end of the tunnel” appeared.
•One reason for the recent positive shift has been the diligence and passion of short sale specialist real estate agents. These professionals reach out to homeowners in financial distress and help them avoid foreclosure through a short sale.
Their secret to their success:
•Attracting offers that banks accept the first time, and negotiating with the bank efficiently and effectively to close the deal.
•A high success rate closing short sales requires a great mindset—a determined, independent, and very well-informed agent and team.
•You must truly know the short sale process, and you must be familiar with the unique requirements of the different lenders you encounter.
•On the buyer side of short sales, you must prequalify the listings you show—by pre-screening the listing agent! You want to bring offers to agents who know the ropes and have proven track record of success—whenever possible.
•Present one and only one offer to the lender on a given property.
•Never take “no” for an answer!
Showing posts with label short sales. Show all posts
Showing posts with label short sales. Show all posts
Thursday, January 27, 2011
Tuesday, October 12, 2010
A Peek into the World of Short Sales and REOs
Provided By KW Blog
Want a quick peek under the tent at the large and very different world of short sales and REOs (bank owned foreclosures)?
Four top distressed property agents chatted with Gary this morning, sharing some views into a world that a relative few agents know well, and one that a growing number are learning.
Foreclosures have been growing across America in the past several years and nothing has changed about that reality. What’s new is that more agents in places like Pennsylvania and Minnesota are learning what the most distressed markets like California, Arizona, and Florida have known for some time. Distressed property is here to stay, for years to come.
The panel was short sale specialists Brian Gubernick from Phoenix, AZ, Jeff Payne from Panama City, FL, as well as REO masters Kristian Peter of San Diego, CA, and Andrew Monaghan, from the Phoenix-area. Between them, these agents listed and sold more than 1500 short sale or bank owned properties in 2009, and their businesses are all growing!
Their focus was on key business realities that define what they do. Here’s a short list of key messages they shared, and the huge crowd listening in:
Short sale lead generation is much like traditional lead gen. Gubernick and Payne use the same techniques to prospect that work in traditional markets. They make themselves very visible in all their target markets as “the short sale expert.” Said Gubernick, “The difference is we ask just one very direct question in our lead gen, “Are you behind in your mortgage payments? Are you underwater? If so, we can help you.”
Seller qualification is very important in short sales. “These homeowners are in serious financial pain, or headed that way fast,” said Gubernick. “For the best chance of selling short, homeowners need to be motivated to cooperate with their agent all the way–fully disclosing their financial status and providing all the documents including tax records that banks want to see. Gubernick does a brief qualifying phone interview (less than 30 minutes) and then emails the necessary documents from him–and also a list of what the homeowner must provide. “If I don’t get a completed document set back in about 48 hours, chances are that party is not going to work with me successfully,” Gubernick emphasized.
The all important negotiation of offers with the lender is the part many agents dread. The best alternative? Refer a short sale lead to an expert in your area, and stay focused on your own lead generation. “When an offer is received, that’s when the hard work really starts,” said Payne. Both agents confirmed the key to success is negotiating the offer to an acceptance from the bank or asset manager is “not taking no for an answer” and “being willing to escalate quickly and forcefully to higher-ups in the bank when unreasonable no answers are given.”
Homeowners are more likely to be forthcoming about their distress these days. “There’s been so much written and broadcast about short selling now that people seem less afraid to move forward,” Gubernick said. “And there are people who are planning to sell short even before they’ve missed a payment.” Payne reported more than 20% of his closed sales there days are for homeowners who were not behind in payments when they made their decision to sell.
REO agent Monaghan and Peter emphasized they live in a process-driven foreclosed property world. Their institutional clients, also banks and asset managers, insist on fast turnaround and precision from the moment a listing is assigned to an agent–that includes property inspection, rekeying and security, accurate pricing, property cleanup, and efficient cash for keys exchanges to move out occupants (tenants or former homeowners).
The institutions who hold foreclosures are expecting more from agents than ever before. “Were scored by either manual or automated systems on almost everything we do,” said Monaghan. There’s a lot at risk. A well-regarded REO agent receives listing in batches–anywhere from several to ten or more at a time. “My inventory has gone from as high as 700 listings to less than 150 in the last year or so,” said Peter. You have to be very cost conscious and have a great staffing game plan to manage it.”
REO agents make big financial commitment to have their business with lenders. “Ninety percent of expenses are reimbursable,” said Monaghan, “but I estimate my out of picket on a typical listing runs almost $4,000.” Top REO agents have full time accountants working for them.
Lead generation for REO is not unlike ordinary lead generation. The difference is who the clients are. “These are institutions. People change jobs, and it’s a world of policy and process,” Andrew said. “I spend almost all my time networking with my institutional contacts. I used to have as much as 80% of my business with one client. Now, that’s changed a lot.” Both Peter and Monaghan said they regularly work with more than 20 banks or asset managers at a time–and each one has their own systems and requirements.
Want a quick peek under the tent at the large and very different world of short sales and REOs (bank owned foreclosures)?
Four top distressed property agents chatted with Gary this morning, sharing some views into a world that a relative few agents know well, and one that a growing number are learning.
Foreclosures have been growing across America in the past several years and nothing has changed about that reality. What’s new is that more agents in places like Pennsylvania and Minnesota are learning what the most distressed markets like California, Arizona, and Florida have known for some time. Distressed property is here to stay, for years to come.
The panel was short sale specialists Brian Gubernick from Phoenix, AZ, Jeff Payne from Panama City, FL, as well as REO masters Kristian Peter of San Diego, CA, and Andrew Monaghan, from the Phoenix-area. Between them, these agents listed and sold more than 1500 short sale or bank owned properties in 2009, and their businesses are all growing!
Their focus was on key business realities that define what they do. Here’s a short list of key messages they shared, and the huge crowd listening in:
Short sale lead generation is much like traditional lead gen. Gubernick and Payne use the same techniques to prospect that work in traditional markets. They make themselves very visible in all their target markets as “the short sale expert.” Said Gubernick, “The difference is we ask just one very direct question in our lead gen, “Are you behind in your mortgage payments? Are you underwater? If so, we can help you.”
Seller qualification is very important in short sales. “These homeowners are in serious financial pain, or headed that way fast,” said Gubernick. “For the best chance of selling short, homeowners need to be motivated to cooperate with their agent all the way–fully disclosing their financial status and providing all the documents including tax records that banks want to see. Gubernick does a brief qualifying phone interview (less than 30 minutes) and then emails the necessary documents from him–and also a list of what the homeowner must provide. “If I don’t get a completed document set back in about 48 hours, chances are that party is not going to work with me successfully,” Gubernick emphasized.
The all important negotiation of offers with the lender is the part many agents dread. The best alternative? Refer a short sale lead to an expert in your area, and stay focused on your own lead generation. “When an offer is received, that’s when the hard work really starts,” said Payne. Both agents confirmed the key to success is negotiating the offer to an acceptance from the bank or asset manager is “not taking no for an answer” and “being willing to escalate quickly and forcefully to higher-ups in the bank when unreasonable no answers are given.”
Homeowners are more likely to be forthcoming about their distress these days. “There’s been so much written and broadcast about short selling now that people seem less afraid to move forward,” Gubernick said. “And there are people who are planning to sell short even before they’ve missed a payment.” Payne reported more than 20% of his closed sales there days are for homeowners who were not behind in payments when they made their decision to sell.
REO agent Monaghan and Peter emphasized they live in a process-driven foreclosed property world. Their institutional clients, also banks and asset managers, insist on fast turnaround and precision from the moment a listing is assigned to an agent–that includes property inspection, rekeying and security, accurate pricing, property cleanup, and efficient cash for keys exchanges to move out occupants (tenants or former homeowners).
The institutions who hold foreclosures are expecting more from agents than ever before. “Were scored by either manual or automated systems on almost everything we do,” said Monaghan. There’s a lot at risk. A well-regarded REO agent receives listing in batches–anywhere from several to ten or more at a time. “My inventory has gone from as high as 700 listings to less than 150 in the last year or so,” said Peter. You have to be very cost conscious and have a great staffing game plan to manage it.”
REO agents make big financial commitment to have their business with lenders. “Ninety percent of expenses are reimbursable,” said Monaghan, “but I estimate my out of picket on a typical listing runs almost $4,000.” Top REO agents have full time accountants working for them.
Lead generation for REO is not unlike ordinary lead generation. The difference is who the clients are. “These are institutions. People change jobs, and it’s a world of policy and process,” Andrew said. “I spend almost all my time networking with my institutional contacts. I used to have as much as 80% of my business with one client. Now, that’s changed a lot.” Both Peter and Monaghan said they regularly work with more than 20 banks or asset managers at a time–and each one has their own systems and requirements.
Tuesday, April 13, 2010
Increase Your Distressed Properties Pipeline
Provided By Keller Williams Realty
Source Winning With Foreclosures
Short sales and foreclosures represent more than 40 percent of all home purchase transactions in the United States. For buyers looking to leverage current market opportunities, that’s a large pool of untapped homes.
The “Winning with Foreclosures” Seminar, PowerPoint and additional resources, is an opportunity to educate buyers on the benefits of buying a short sale or foreclosed property while positioning yourself as a local expert in this field.
Teach It:
The main tool in this kit is the PowerPoint presentation for your workshop session. In field tests, and at Family Reunion, the presentation took about 30-45 minutes to deliver. The presentation covers:
> Definitions – Basic definitions of key terms buyers will hear and need to understand.
> Benefits – The top three distressed property purchase benefits for buyers.
> Action steps – Five key steps that can lead buyers to a successful short sale or REO purchase.
> Rules of the Road – Rules of the road in buying—underscoring a number of key differences between traditional real estate purchases and short sale or REO purchases.
> Market Realities – How to seize the buying opportunity by understanding six key realities driving distressed property markets.
> Myths and Truths – Key myths about distressed properties—and the truths about these myths.
> Checklist – A short checklist buyers can use to tell they are ready to move ahead with finding and buying a distressed property.
> The presentation is designed to position you as the local expert in this field – and to involve participants in the workshop.
In addition to the PowerPoint Presentation, the following resources are also available to help you promote your “Winning with Foreclosures” Seminar:
> Flier you can customize to promote “Winning with Foreclosures” sessions you hold.
> Email header you can include in any email invitations or follow ups you send out about the workshop.
> 16-page attendee handout, filled with illustrations, headlines and bullet points designed to: 1. remind attendees what they heard in your workshop, and 2. prompt follow up with you about the possibility of buying.
Source Winning With Foreclosures
Short sales and foreclosures represent more than 40 percent of all home purchase transactions in the United States. For buyers looking to leverage current market opportunities, that’s a large pool of untapped homes.
The “Winning with Foreclosures” Seminar, PowerPoint and additional resources, is an opportunity to educate buyers on the benefits of buying a short sale or foreclosed property while positioning yourself as a local expert in this field.
Teach It:
The main tool in this kit is the PowerPoint presentation for your workshop session. In field tests, and at Family Reunion, the presentation took about 30-45 minutes to deliver. The presentation covers:
> Definitions – Basic definitions of key terms buyers will hear and need to understand.
> Benefits – The top three distressed property purchase benefits for buyers.
> Action steps – Five key steps that can lead buyers to a successful short sale or REO purchase.
> Rules of the Road – Rules of the road in buying—underscoring a number of key differences between traditional real estate purchases and short sale or REO purchases.
> Market Realities – How to seize the buying opportunity by understanding six key realities driving distressed property markets.
> Myths and Truths – Key myths about distressed properties—and the truths about these myths.
> Checklist – A short checklist buyers can use to tell they are ready to move ahead with finding and buying a distressed property.
> The presentation is designed to position you as the local expert in this field – and to involve participants in the workshop.
In addition to the PowerPoint Presentation, the following resources are also available to help you promote your “Winning with Foreclosures” Seminar:
> Flier you can customize to promote “Winning with Foreclosures” sessions you hold.
> Email header you can include in any email invitations or follow ups you send out about the workshop.
> 16-page attendee handout, filled with illustrations, headlines and bullet points designed to: 1. remind attendees what they heard in your workshop, and 2. prompt follow up with you about the possibility of buying.
Subscribe to:
Posts (Atom)