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#395569 - 11/26/11 07:35 PM
Re: 2012 predictions
[Re: rls362]
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Veteran Member
Registered: 09/02/08
Posts: 761
Loc: Massachusetts
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There are currently 6.3 million properties at least 90 days in default. At this time last year there were 6.8 million. While NAR will most probably sent out a "happy days are here again" mailing, I believe REOs will be stable for the next few years. However, if the government steps in to help out, the REOs will be here for much longer.
Regarding BPOs. I really have no idea. I never thought the prices would drop to the levels they have, but then I never thought there would be this influx of new agents performing them.
However, I've chosen to focus on REOs. One sale being equal to over 100 35 dollar BPOs.
I would also predict that the number of agents working in RE will drop, the number of outsourcers will drop but overall income for the survivors will climb.
In other words, no change from 2011.
Edited by JackREO (11/26/11 09:10 PM)
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#395576 - 11/26/11 08:53 PM
Re: 2012 predictions
[Re: rls362]
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Member
Registered: 11/04/08
Posts: 358
Loc: new york
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I believe there will be REOs and BPOs in 2012!
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#395588 - 11/27/11 08:33 AM
Re: 2012 predictions
[Re: cleonard]
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Major Contributor
Registered: 03/04/07
Posts: 1801
Loc: SWI
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Can you narrow that down to a particular month or quarter?
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#395642 - 11/27/11 10:35 PM
Re: 2012 predictions
[Re: rls362]
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Member
Registered: 12/15/08
Posts: 310
Loc: Northern Ca
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Lower commissions for the same or more work.
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#395656 - 11/28/11 07:59 AM
Re: 2012 predictions
[Re: rls362]
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Veteran Member
Registered: 01/02/07
Posts: 724
Loc: Port Jefferson New York
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I think we will see some level of consolidation. Some of the smaller companies, maybe not so well run, will close. Sadly some of the decent small one will go as well. Get paid up!
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#395679 - 11/28/11 10:26 AM
Re: 2012 predictions
[Re: rls362]
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Major Contributor
Registered: 02/16/06
Posts: 2130
Loc: United States
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I never get Zillow comps, do not think I ever have. I have had comps brought to me for comparison, but they are not Zillow comps. I have no reason to think BPOs are falling by the wayside. Nothing that I see points to that at the moment.
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#395704 - 11/28/11 01:53 PM
Re: 2012 predictions
[Re: grexley]
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Veteran Member
Registered: 08/01/06
Posts: 1123
Loc: Downey, California
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Unemployment numbers are a lot higher than 9%. That is just a "pick a number" % the administration throws out. I am hearing of and seeing more layoffs in Socal than ever before. That number does not reflect the underemployed either.
_________________________
"People rarely succeed unless they have fun in what they are doing"....Dale Carnegie
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#395742 - 11/28/11 10:01 PM
Re: 2012 predictions
[Re: rls362]
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Veteran Member
Registered: 12/14/05
Posts: 1304
Loc: Winfield, Mo
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I agree with Ellen...for the past 6+ months my comments have included... increasing fair market homes entering the market indicating underlying pressures to sell in a less than desired market...whatever that might mean...I will leave it up to the bean counters... come to think about it...my fingernails are looking a little ragged...
_________________________
Beware the barrenness of a busy life...Socrates
Let go...or be dragged...Zen
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#395748 - 11/28/11 11:42 PM
Re: 2012 predictions
[Re: rls362]
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Member
Registered: 10/22/09
Posts: 119
Loc: Tempe, AZ
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I think that REOs will be slow for 2012 because it's an election year.
_________________________
I am a Tempe Real Estate agent specializing in foreclosures and short sales. I also focus on Chandler Real Estate. To search for your next Phoenix home, check out Phoenix MLS to view all homes available in the MLS. We are hiring. Keep 50% on all leads we refer you.
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#395751 - 11/29/11 12:52 AM
Re: 2012 predictions
[Re: rls362]
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Major Contributor
Registered: 09/24/06
Posts: 1967
Loc: US
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I really hope BPO and reo work increases. I was spoiled by 2009 and 2010 with almost more work than I could handle. I know there are a lot of people that need to go through the process, but it just seems like things are being held up for one reason or another. I am also thinking of moving out of state within a year to a place with much higher average sale prices.
Edited by BpoBill (11/29/11 12:52 AM)
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#395780 - 11/29/11 01:33 PM
Re: 2012 predictions
[Re: rls362]
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Member
Registered: 08/25/10
Posts: 10
Loc: San Diego, CA
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2012 will be a good year for reo/bpo agents.. wink wink!!
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#395797 - 11/29/11 04:39 PM
Re: 2012 predictions
[Re: rls362]
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Member
Registered: 11/24/10
Posts: 35
Loc: California
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2012 is going to be more of the same that we had in 2011. Tight money equals a slow market. Banks and servicers will continue to slowly work through their inventory and BPO volume will be more of the same. That's my two cents.
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#395818 - 11/29/11 07:56 PM
Re: 2012 predictions
[Re: rls362]
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Junior Member
Registered: 11/29/11
Posts: 1
Loc: Florida
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Im new and dont know how to post a new subject and post. I have a company asking me to do a free bpo.? Is this a rip off or do I have a chance to list the property. The companies name is 31point asset management
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#395819 - 11/29/11 08:08 PM
Re: 2012 predictions
[Re: nbass]
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Veteran Member
Registered: 09/02/08
Posts: 761
Loc: Massachusetts
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To the right there are 2 search features. The top one is google, the second one is what you'll need. Type in 3 point. There is much info there most of which advises you to run away from them real fast. But, search, read, learn and draw your own conclusions. Kudos for doing your research before performing a dozen free BPOs like some fools do.
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#395839 - 11/30/11 06:30 AM
Re: 2012 predictions
[Re: rls362]
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Veteran Member
Registered: 06/15/05
Posts: 1245
Loc: Texas
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There are generally a number of types of RE agents.
One, those that pick or migrate to an aspect that they enjoy and are good at and work it to success. Some become listing agents, buyers agents, REO specialists, etc.
Two, there are those who want a constant income so they become a salaried assitant of an agent in group one and perhaps get an increased bonus if they bring a buyer or seller.
Four, those that just don't get it in terms of the difficulty of being successful or just don't enjoy the profession and its challenges of being a sole propriator and try real estate for a few years and then eventually go back to an 8 to 5 job working for someone else because they want the consistancy of income and time. Real estate is not for everyone.
Four, there are those who enjoy the diversity of being involved in all aspects of real estate and also other areas that complement real estate in terms of time and location. This is where I am.
I not only handle 20 to 25 real estate deals a year but also do 100+ BPOs a month and have an additional five other steams of income that are not real estate sales but similar in nature. There are at least ten other income producing activities that you can develop that brings you income. There are days where I go out and perform 8 to 10 different jobs in five different industries in an afternoon.
I know that as that is where I am now.
I am at the point where my real estate sales activities are only about 1/4 to 1/3 of my income and now the REO market fluctuations don't have a great affect on me.
My suggestion is to not spend too much time on those aspects of the industry you cannot control but target those activities that you can affect and improve your business activities and therefore your income and secruity.
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#395845 - 11/30/11 08:32 AM
Re: 2012 predictions
[Re: Gig em]
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Major Contributor
Registered: 02/16/06
Posts: 2130
Loc: United States
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Good post Gig---GEts the wheel turnin' in my head...
(Only problem is, yoiu skipped number three and have two number fours...)
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#395934 - 11/30/11 08:09 PM
Re: 2012 predictions
[Re: Gig em]
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Major Contributor
Registered: 01/26/09
Posts: 2961
Loc: Old Dominion
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I like that post Gig'em. I might recall a similar post back a while from you. I could be mistaken. Are you talking about things like remote closings, notary services, insurance adjustments, etc.?
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Trust your Maker. Watch your manager.
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#395948 - 11/30/11 11:20 PM
Re: 2012 predictions
[Re: JackREO]
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Member
Registered: 08/27/08
Posts: 110
Loc: Oregon
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There are currently 6.3 million properties at least 90 days in default. At this time last year there were 6.8 million. Today I saw a stat saying nationally we have 16,000,000 homes with mortgages at 125% or more LTV. While this isn't a direct correlation to REO/BPO, with our economy and unemployment, I think we will be busy for the years to come.
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#396028 - 12/02/11 07:59 AM
Re: 2012 predictions
[Re: rls362]
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Veteran Member
Registered: 10/13/08
Posts: 618
Loc: Mass
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In 2012 I will be 1 year older. LOL NOT.
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#396029 - 12/02/11 09:04 AM
Re: 2012 predictions
[Re: Greg Masson]
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Major Contributor
Registered: 02/16/06
Posts: 2130
Loc: United States
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There are currently 6.3 million properties at least 90 days in default. At this time last year there were 6.8 million. Today I saw a stat saying nationally we have 16,000,000 homes with mortgages at 125% or more LTV. While this isn't a direct correlation to REO/BPO, with our economy and unemployment, I think we will be busy for the years to come. Greg- Good post and my stance. I do not see any reason why REO and BPO activity would be minimized given the state of things. If any changes were to occur, I would anticipate activity going up...
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#396092 - 12/03/11 12:43 AM
Re: 2012 predictions
[Re: Gig em]
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Major Contributor
Registered: 09/24/06
Posts: 1967
Loc: US
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There are generally a number of types of RE agents.
One, those that pick or migrate to an aspect that they enjoy and are good at and work it to success. Some become listing agents, buyers agents, REO specialists, etc.
Two, there are those who want a constant income so they become a salaried assitant of an agent in group one and perhaps get an increased bonus if they bring a buyer or seller.
Four, those that just don't get it in terms of the difficulty of being successful or just don't enjoy the profession and its challenges of being a sole propriator and try real estate for a few years and then eventually go back to an 8 to 5 job working for someone else because they want the consistancy of income and time. Real estate is not for everyone.
Four, there are those who enjoy the diversity of being involved in all aspects of real estate and also other areas that complement real estate in terms of time and location. This is where I am.
I not only handle 20 to 25 real estate deals a year but also do 100+ BPOs a month and have an additional five other steams of income that are not real estate sales but similar in nature. There are at least ten other income producing activities that you can develop that brings you income. There are days where I go out and perform 8 to 10 different jobs in five different industries in an afternoon.
I know that as that is where I am now.
I am at the point where my real estate sales activities are only about 1/4 to 1/3 of my income and now the REO market fluctuations don't have a great affect on me.
My suggestion is to not spend too much time on those aspects of the industry you cannot control but target those activities that you can affect and improve your business activities and therefore your income and secruity.
I sent you a PM about your other sources of income. I am normally the type of person who has 4 sources of income coming, but two have dried up over the last year, and another one has slowed down. I would love to hear what you're doing.
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#396378 - 12/07/11 01:40 PM
Re: 2012 predictions
[Re: rls362]
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Major Contributor
Registered: 06/30/09
Posts: 2255
Loc: Margaritaville
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IMHO. We are in the 5th year of at least a 10 year process.
I also anticipate that the banks will continue to try and encourage defaulting occupants to short sale instead of foreclose due to the net return on asset value being higher on a short sale than the average REO.
We will start to see a higher quality homes as REO. We will also see a continuation of time required to complete a foreclosure. We are in a judicial state and are about 700+ days from NOD to foreclosure. Currently the average person foreclosed on has not made a payment in over 2 years.
Since we have had fewer REOs we have done more premarketing of the ones we get and have increased the number of buyer conversions that we actually do. We used to refer out 90+% of buyer leads to others.
We also never stopped doing conventional resales and try to do at least 30% of our business as conventional resale. Getting more difficult to find sellers who will listen to reality but they are still out there. Our goal is to do at least 1 transaction per year that is over $1 million.
Personally I still prefer to work with banks and AMCs than humans. Fits better with my personality (or lack thereof) but, my wife is still a people person and likes the humans being.
But, I am just guessing like everyone else. Hope it is better than this year.
_________________________
"Be who you are and say what you feel, because those who mind don't matter and those who matter don't mind."
Dr. Seuss
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#396418 - 12/07/11 11:27 PM
Re: 2012 predictions
[Re: Grampa]
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Member
Registered: 08/12/07
Posts: 238
Loc: florida
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Personally I still prefer to work with banks and AMCs than humans. Fits better with my personality (or lack thereof) but, my wife is still a people person and likes the humans being. funny and i agree--even though i now have my wife trained NOT to bring people around. ok here is goes.. good news--Bpos will be here all year next year. the trend will the same-work harder for less money but you can easily survive. many agents will leave and few new ones will come on board leaving the rest of us with enough to survive. I still have not been able to get Plan B in action-I will blame God for that. But i plant to spend the next year working on a better business plan. Right now it is in everyone’s interests, politically and economically, of all ideologies and philosophies, to get things going. There will be enough low paying jobs to give the low level agents a way out. So for those who do 100 plus bpos a month, you should be fine. You may have to work for $40 instead of $50..but it is better than a real job. I figure I would have to sale 1-2 houses a month to compete with my current income—no thanks~ Good luck and Happy Holidays.. Diversify, be grateful and be nice to children, old folks and idiots..
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