Sunday, October 5, 2008

The lack of calm after the storm

Well sorry I haven't written sooner. The most recent financial spiral caught me unprepared for the onslaught of business that would follow. Many people who call me tell me that they "want to buy a foreclosure property." When I ask why, they invariably say that they are "looking for a deal." The irony is that the REO sellers have become the most experienced home sellers around and they know how to use the real estate professionals in different markets (like myself) to maximize their returns.

I will often direct these buyers to purchasing homes in default that have not yet been foreclosed upon because often times these sellers are not represented by Realtors, and with represntation from an experienced agent, a home buyer has a much better chance of getting "a deal" when working with these more desperate, less knowledgeable sellers as opposed to REO (real estate owned) properties.

That was the case until now. Banks want to sell properties like never before. As a result of the announcements about Lehman Bros and AIG, I had banks call and slash prices as much as $70,000 in one day. I put 11 deals together in the week that followed. Now 11 deals may not sound like a lot to some, but keep in mind that the average Realtor does 11 deals a year. I usually close about 30 per year. When the week ended I still was negotiating 5 other properties, and 3 of those came together the following week. Now we just have to see if they all close.

Last week the announcement came that Wells Fargo bought Wachovia. Let's see what happens with Wachovia properties!! When Goodman Dean acquired Litton Loans a month or so ago, it caused a fair amount of havoc in my world as properties were pulled and business was shaky. I have also received about 6-8 new properties over the past week, which is huge volume as well. As soon as I have a minute, I will post the updated list of Vermont Foreclosures. Please email me if you want it sooner!!

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