Selling Auction Properties kajabi

Expand Your Business: Adding Auction Property Services for Clients

• Managing auction properties across multiple platforms (Auction.com, Zome, RealtyBid)

• Developing virtual teams and support systems for property management

• Leveraging relationships and networking in the default property space

• Adapting business practices as market conditions and personal circumstances change

Comprehensive Summary: Real Estate Auction Q&A and Default Management Strategies

Navigating Auction Websites

1. Platforms Discussed:
• Auction.com: The largest with a significant volume of REO (Real Estate Owned) and foreclosed properties.
• Zome and RealtyBid: Additional auction platforms offering diverse property types, from CWCOT (Claims Without Conveyance of Title) properties to bank-owned options.

2. Property Listings:
• CWCOT Properties: FHA foreclosure properties with no buyer premium, which save investors the standard 5% auction fee.
• Bank-Owned Homes: Typically come with cooperative commission structures and may require agent-driven negotiations.
• Vacant vs. Occupied Properties: Vacant properties are often easier to access and evaluate, while occupied properties require additional due diligence and potential negotiation with residents.

3. Workflow and Alerts:
• Agents can set up tailored searches on these platforms and receive automated alerts for properties meeting client criteria.
• Important features include filters for geography, property type, and pricing.

4. Buyer Registration:
• Agents must create accounts and register buyers individually for properties, ensuring streamlined bidding processes and access control.

Investor-Centric Strategies

1. Customized Client Services:
• Agents guide investors through property acquisition, including:
• Bidding strategy development.
• Due diligence, such as RPR (Realtors Property Resource) analysis for accurate property valuation.
• Managing physical property inspections, especially for vacant homes.

2. Added-Value Offerings:
• Post-Purchase Services: Agents assist in managing repairs or renovations through vetted contractors, often charging a 1% service fee.
• Marketing & Resales: Agents prepare properties for resale, offering advice on upgrades and facilitating marketing efforts.

3. Communication and Marketing:
• Weekly email campaigns featuring “Hot Properties of the Week” help maintain engagement with investors.
• Leveraging builder closeouts and standing inventories can attract buyers seeking new or nearly new properties.

Challenges in Managing Foreclosed Properties

1. Common Issues:
• Break-ins and Squatters: Properties frequently experience vandalism or unauthorized occupancy, necessitating regular inspections and swift action.
• HOA Liens: In super lien states, unpaid homeowners association dues can lead to complications, including foreclosure by the HOA.
• Aging and Distressed Conditions: Many properties require significant rehabilitation, impacting their appeal to certain buyers.

2. On-the-Ground Tactics:
• Agents often handle issues such as overgrown lawns, structural disrepair, or squatter removal to ensure properties are marketable.
• Experience with local laws and bank policies aids in mitigating risks, such as ensuring HOA violations are addressed promptly.

Building Systems for Scalability

1. Keller Williams’ Default Community Initiative:
• A national program aims to standardize default property services across offices. Key benefits include:
• Unified processes for handling bank-owned and auction properties.
• Enhanced training and support for agents engaging in default management.
• Opportunities for cross-regional collaboration and scalability.

2. Virtual Assistance:
• Virtual assistants are increasingly integrated to handle repetitive tasks, such as property inspections, data entry, and marketing material creation. This enables agents to focus on higher-value activities.

3. Advanced Technology Tools:
• Systems like agent portals and collaborative platforms streamline workflows and improve communication between agents, investors, and banks.

Outlook for the Default Market

1. Upcoming Trends:
• A significant increase in foreclosures is anticipated due to economic shifts and the cessation of pandemic-era mortgage forbearance programs.
• The second quarter of 2024 is expected to see heightened activity in the default market.

2. Agent Preparedness:
• Agents are encouraged to build robust infrastructures, including scalable teams and default property expertise, to capitalize on the forthcoming wave of opportunities.