I would like opinions on when to recommend repairs to REO's as opposed to as-is sale.

I also would like to know how others respond to the how would you market this property beyond yard sign and mls.

Thanks
(I really appreciate this board)

If it is lower priced and the most likely buyer is a first timer or investor, i usually recommend an as is sale.

If it is an upper range listing, i do the opposite.

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Wes Murphree
Investment Realty
http://www.SCInvestmentRealty.com
http://www.3NetLease.com
http://www.MultifamilyListings.com

The key is... will the repairs result in a higher sale price than the cost of repairs, reduce the holding time with normal risk taken into account.

Depending on your targeted buyer... some will want to do "sweat equity" while others will only be interested in Move In ready properties.

As far as marketing goes... if all you do on a normal listing presentations is say you will place a sign in the yard and put it in the MLS.... how many listing would you think you would get????

REO companies know what their looking for in local listing reps.... those that can move properties and know how to market them. Many variations exist depending on the property type / condition / targeted buyer.

You have to develop a market plan for the specific property... And execute it....if you don't.... don't look for more REOs from that source.



[This message has been edited by Realty Check (edited 09-01-2004).]

As far as marketing goes... if all you do on a normal listing presentations is say you will place a sign in the yard and put it in the MLS.... how many listing would you think you would get????

REO companies know what their looking for in local listing reps.... those that can move properties and know how to market them. Many variations exist depending on the property type / condition / targeted buyer.

You have to develop a market plan for the specific property... And execute it....if you don't.... don't look for more REOs from that source.

I work at a 90% REO listing brokerage. The company has came to rely one Lender for most properties. The lender supplies alot of listings. Now the Lender is no longer providing as many listing, limiting negotiations with investors and decided to add a few more agents to the area.

I personally started to work on bring more lenders to our firm. Since June I have 5 listings in process, 2 inherited from an escrowing agent. 7 different lender, three have worked with our office prior to my effort.

Now, just as my office became lazy getting listings they also are 15-20 years behind. They stick a sign out,(90% of the time) pictures 3 day after listing (not at all last year when I started).

I make sure photos and signs are in place. As REO specialists can capitilize on the fact consumers call us, we have many established relationships with able buyers.

I am stuck on what else will draw the REO companies? I think our years of experience in handling the paperwork has already drawn some.

What do they want to hear in marketing?
We provide full color advertising in Home Listings Mag. until sold?... Or do BPO's requesting this info just want opinions for area marketing and not my marketing?

They want to know specifically what your going to do to sale the property, and more specifically what your recommending in addition to what everyone else already does.

Buyer targeting is one strong point... some properties are best suited for Owner/ Occupants while others are more suited for Investor or "Handymen".

Each of these should have a well designed marketing plan that will target the desired group.

Time tables of when activities will occur can also be important for some properties... such as having an in place database of registered buyers and investors.

Automated e-mail notifications immediately or even prior to MLS listing to selected databases.

Some properties are good for Open Houses... identity those or state why that are poor candidates.

The key is to show your knowledge of the marketing needs of the specific property... and NOT that you will just toss it into the MLS and stick a sign in the yard.