April 13th, 2010 6:52 PM

Calling all realtors, Hendricks Appraisal Services wants you to maintain the forward momentum!

April 13, 2010—CNN reported last September that 1.4 million Americans had already taken advantage of the first time home buyers tax credit. It is reasonable to conclude that number now exceeds 2 million. With the tax credit being an engine for that many sales and as the date for the expiration of the program rapidly approaches many concerned agents are asking, “Now, what?”

 

A few agents fault the banks need to improve as a reason for not participating.

According to an online newsletter: “Most of my buyers have elected to not even view short sales. The banks need to get their act together first!”

Apparently the idea that patience and persistence might be necessary to achieve a huge cost savings is an alien idea to this agent. Instead the realtor should consider adjusting buyer’s outlook on this. After all, if 50% of sales are REO and Short Sales, refusing to look at them wipes out a 50% chance to sell a home! Short sales can be frustrating but when they work, they’re home runs. It’s not just the banks, but rather people who need to get their acts together.

What can agents do to replace the first time buyers’ credits as a key part of their marketing plan?

It might be a good idea to target distressed property buyers and to do it online. It might be a good idea to remember that speed in response is of the essence. 

Realtors and Appraisers alike had it really good for a long time and many still haven’t realized that the same old way will not yield the same ole results. Clients must be answered immediately, leads must be treasured, opportunities must be taken, new markets must be aggressively pursued. If you want to spend the summer selling homes instead of having no one to call on, try going after distressed property buyers and REOs.

Don’t turn up your nose at REOs. Don’t turn up your nose at any market segment that accounts for 50% of sales. Follow the money trail and at the end of the day you will find yourself at distressed properties.

April 9, 2010 a news article read: “Distressed Sales Gain Greater Market Share” – First American CoreLogic reports that distressed properties accounted for 29% of all U.S. home sales in January. Also, real estate-owned sales rose to 22% of homes sales from 19% in December, and short sales rose to 8% from 7%.

Average sale prices in January were $161,600 for distressed homes, compared to the average non-distressed sale price of $247,700, $141,900 for REO properties, and $215,300 for short sales.”

After all, the quicker distressed properties are taken off the market the faster the Real Estate Confidence Index (RECI) will rise. This will be good for all Americans.

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