Hello Michigan and Randy!

Remember that Banks selling real estate is not their forte!   Of course they are going to try to get top dollar for their REO properties because they have lost their shirt or skin on these homes.  They have shareholders to account for and the President of the Board of Directors with a gavel that is swinging down hard saying "Recoup our loses!!  Recoup them now!".  

So how do you get the banks to listen?  They "listen" to what is supplied to them by an appraiser and then the Realtor.  

How I get the banks to listen is to give them a ton of photos of the interior of the subject property, the condition of the mechanics, the life expectancy on the roof, repairs needed to make the house sellable.  I also get a written letter from the Realtor who was the LA on the comparable properties I use for the analysis and ask to get into the house to take pictures, if the new buyers haven't made any significant changes or if the Realtor has photos.  I would emphasize the fact that Michigan has one of the most undesirable economies in this country!  Not the "worst" but "Undesirable"!!  Know who will be buying these homes?  Out of State investors?  What financing programs do these homes, properties qualify for?  Would these homes be good for second or vacation/rental homes?  How do you target those potential buyers?  

I let the banks know all of that and then I remind them that they are not in the business of holding real estate and to get the properties/homes off the books would be a blessing to the shareholders.  Know what the carrying costs are for that/those properties.  Run the numbers and remind the Bank what it is costing them and put it in front of their faces!  They are not in the business of holding real estate.

Do the Rate of Absorption for the homes in each and every area and let the Banks know what their chances of are getting a contract.  What month is the hottest selling month in Michigan and then in Traverse City.  Know both of them.

It's been a long time for me, but if your RE Board has been set up whereby you can look at the sales for the last 12 months, showing LP, SP, DOM and do it for 9, 6 and 3 months - look at the average selling price - is it going up or down?  

The banks are in business of making money not loosing.  Real estate holdings is not on their resume.  Get yourself exposed out there on the internet, especially for Traverse City.  I would assume you are on the Chamber of Commerce list?  

Of all the States, Michigan's Banker's do listen, it's how and what you say and show them.  They are number's people.  

BTW, you can have all the REO's you want, but if you aren't closing them - it doesn't matter!  You have to know where the buyer's will be coming from and then throw the information out into that area and reel them in!

Say YES to Michigan!

Barb Van

The market will let the bankers know what the homes are worth, it doesn't matter what price they ask. All you can do is EXPOSE the property to the market and let supply and demand take its course.

The sellers determine the asking price BUT its the buyers that determine the SALE PRICE.

(caps not yelling)

rate my site: Http://realtybydan.com

Dan, I'm going to disagree with you on "it doesn't matter what price they ask", because it does.  It's not just about exposing the property, it's pricing it properly for that marketplace.  There are plenty of short sales and foreclosures out there.  If the property isn't priced properly, how many Realtors do you think are going to show that property when there are plenty of other ducks in the lake that are priced right?  How does one explain that to Ma and Pa seller, as we are giving them the CMA, unless some Realtors aren't.    

It is up to agents to set the marketplace conditiions before the seller in order to come to a fair list price.

The bankers do not know what those homes are worth!  I've been raised in this industry since knee high to a grasshopper and I knew the presidents and VP's of banks and savings  loans in GR, Michigan.  These men and woman did not know.  Realtors would have a hard listing and would have my Dad appraise it and on the listing card it at the top it would say "Van Stensel Appraised".  That meant that that was what it was worth.  The Realtors paid for the appraisal.  

I have a deep respect for this industry and people in the various positions of the wheel of financing.  There is a reason why there are Presidents and Vice Presidents, Appraisers, Realtors.  Each plays an important part in the whole process but the bankers do not know what the homes are worth.

In fact, I have a meeting (they called me) with a major Bank tomorrow to discuss this very issue.  Why aren't their homes moving?  

I'm just getting off of pain medicine, so you must excuse me as my energies have been "caged in", but why would any Realtor appear to be casual about "bankers know what the homes are worthm, it doesn't matter what price they ask?"  Just asking?

What Barb is saying is quite true, IMO.  You really need to take a look at the bpo that the bank received and then produce your own and help in justifying the price you think it will sell at.  Many of the bpos done are done by agents who are sometimes quite ignorant to the facts or are trying to 'buy the listing' so to speak...much as they might do with a resale listing.   All the conditions of the property, neighborhood and area status must be taken into consideration.