Many agents show only particular types of homes. Other agents show anything and everything. It has been our observation that agents that stick to a particular niche have the best results in their home sales. It is important to stake out a sector and become an expert in it. foreclosures are not like high-end and high-end is not the same as waterfront or defining a couple of neighborhoods as your area of expertise. In order to select a particular area of focus it is also important that we determine who we want to work with as each type of real estate comes with its own set of buyers.
The hottest market in the past several years has been the new home buyer or first time home buyer market. But this doesn’t mean that everyone should be in it. first time home buyers bring with them baggage that more established home buyers don’t have. Un-established or un-managed credit, low savings and unrealistic expectations are more common in the first time home buyer market while rigid standards and low inventory are more common among the high-end buyers. Homes that are priced above a million are turning over more quickly now than they did only a couple of years ago but the rate that they are coming on the market means that the inventory is lower now than it has been for some time.
In the same vein, foreclosures are less common than they were two or three years ago but the inventory like that of diamonds is being controlled so that the market doesn’t base itself on the lowest sales price and therefore the worst case scenario.
As the largest provider of foreclosure information for the past decade, we are particularly focused on that market. The average prices of foreclosures vary depending on the city and state but the overall prices of foreclosures are still lower than the average cost of a similar resale home in the same area.
Econ 101 told us that scarcity increases the price of the goods sold but what we had to wait to hear about during the next semester was that access to the goods would also have to be entered into the equation. That is where foreclosures are able to score high points on our list of desirable products to sell. Because most brokers have never taken the time to teach their agents about the foreclosure market and therefore most agents don’t have a clear concept about the nuances of selling foreclosures the market remains open in most areas. Furthermore the idea of using foreclosures as an introductory tool has not been fully appreciated most real estate agents don’t realize that a foreclosure buyer is not too difficult to introduce to traditional resale homes. These are just some of the reasons have enjoyed the foreclosure arena as real estate agents as well as online. If you have any questions about foreclosures or how to break into the foreclosure market as a loan officer or a real estate agent don’t hesitate to ask. We are always happy to help.