Detroit Michigan is probably taking one of the biggest hits in the nation, when it comes to foreclosures.
The depressed economy in the area that has resulted from the loss of jobs in the auto industry and the fall-out of over lending to high risk borrowers, has some property selling for less than the price of a new car! You can learn more about what is going on in Detroit, MI by reading the complete article here on Yahoo News.
Now wait... don't get the checkbook out just yet. Analysts are not predicting a quick turn around on this market. If you plan on attending this gold-rush for a great deal, expect to be in it for the long haul, between 5 and 7 years.
The good news for real estate agents in this area is that there are a LOT of real estate transactions happening in Detroit right now. The problem is, its not between the buyers and sellers you are used to dealing with in residential real estate. You've just got to figure out how to get into the middle of these transactions!
It's the perfect time to develop some "out-of-the-box" marketing for yourself.
If you've never dealt with banks or lenders before, start positioning yourself as an ally for them to help recover their losses. Becoming an REO agent for the banks is all about who you know. Get your foot in the door by offering to help them liquefy the inventory of homes that they need to sell.
I don't know who to tell you to call specifically, since I'm out here in Plainfield, IL... but I would suggest identifying the lenders who have the highest inventory or foreclosed homes and then establish contact with someone (preferably a decision maker) from their REO department.
Another Idea: Since a lot of investors are purchasing these homes at the auction, it would be a great place to connect with an investor who will have multiple homes for sale in the future. I do realize that not all investors use agents to re-sell their investment properties, but there are still many who do. If you start building those relationships now, you will be the one to get those listings when it's time to "cash out" for the investor.
Investors Can Also Provide A Service To You!
An extension of the relationship with investors is that they may be able to help provide a service to you! If you are working with a homeowner that owes more money than their home is worth, you may have just found yourself a whole new breed of buyers. Buyers who can negotiate a short sale AND buy the property!
Don't worry... your commission is safe! Banks usually have no problem paying out a commission on a short sale if it is included in a HUD.
It is a real estate investors dream to buy low and sell high. You just have to make sure you keep your footing and have an eye out for those bumps in the road.
Good luck everyone! It looks like your getting ready for some RAIN!
Buying a new home is almost always a positive emotional experience. Selling a home though, can stir up complex emotions and negative feelings about leaving behind cherished memories and a sense of security. This is commonly true of even the most ambitious sellers who prepare for the decision months in advance... and are excited about the prospect of the change. Now, can you just imagine the emotional state of a distressed homeowner?!