Tuesday, April 29, 2008

A Marketing 101 refresher for bank REO sellers and their agents:

1. In a buyer’s market, you are in a competition for buyers and buyers’ cash. The banks and agents that make it easier for a buyer to buy, will get more buyers for their REO’s, than the banks and agents who make it harder.

2. Every telephone call and email is a potential new customer for you. The courtesy and promptness with which you respond to that telephone call or email may make the difference between whether you get a new customer or forever alienate a potential new customer.

3. If you think you don’t need to work to get new customers because you have the cheapest product, you should save every dollar that you make now, because these times will not last and buyers will remember.

4. Banks: The conduct of your agents reflects on you. Choose carefully.

5. Agents: You have a fiduciary duty to hold your client’s (bank’s) interest above your own. If you have accepted more listings than you have the time or resources to properly service for the sake of more commissions, you are (in my opinion), breaching your fiduciary duty.



Patient Renter said...

I agree with this post.

What the banks and REO agents are forgetting is that total capitulation is on its way... it's just a matter of time.

As has been pointed out, at the low point of the 90's downturn, NOBODY wanted anything to do with housing. Everyone wanted to rent, and the industry bent over backwards to combat this mentality. It was neither a buyer's nor sellers market, it was a "real estate is the devil" market.

Right now, there are plenty of people still willing to own, yet as the market cycle continues we'll eventually come to that point of total capitulation where sentiment changes and nobody will buy a house to save their life. I suspect at that point, the agents will wish they could go back in time and return a few calls.

alba said...

REO RE agents are like vultures, in a good way. They clean up the mess; they're not very gregarious; don't like crowds; socially inept; hate being the center of attention; stay clean; and perform an ungratifying, yet necessary, duty for society that doesn't usually end with a happy story. Wait...that's me.

Deflationary Jane said...

Add to that the Forbes article that came out today on Homeowner Debt. They ranked Sacramento #1.

So about that inventory reduction....

sacramentia said...

How can they tell what the amount of debt on a HELOC is? I thought the HELOC was recorded as a lien at the max value even if the balance was much smaller?

Paul said...

Alba-Speaking only for myself, I like turkey vultures ... and have no problem with REO or any other kind of real estate agent, except, those agents who are not professional, not competent or are dishonest. (From my experience, those that fail one of my standards usually fail all three.)

But, there is no reason that an REO listing agent can't end with a happy story. If REO buyers are truly getting such great deals, the listing agent should be happy to see folks getting such great deals, right? Sellers are not faring so well, but that is a different topic.

Patient Renter: I agree. If we still have multiple offers coming in, we are a long ways from capitulation. And with 1st 1/4 2008 notices of default increasing by 100% over 2007, that bodes for much more inventory down the road.

Jacob said...

And credit is just getting tighter:


Investor activity is still pretty high. Take most of them out of the market and your sales really fall through the floor.

Its funny, how come people say dont be offended by bag agents or sellers cause after the deal you will never see them again, but you are also told not to offer a price too low or you will offend the sellers. Like I should care about them.