A seemingly unseen set of circumstances may be contributing to the rising inventory of available real estate across the nation.  Yes we've bashed, blamed and pointed fingers at all of the sub-prime, sub-culture people and the issues that launched this recession, however the vast number of un-trained people remaining in the industry may be contributing to the escalating problems. 

We can categorize the available real estate inventory into the following 3 general categories:  RETAIL, SHORT SALE and REO's.  They all look the same on the internet, some look the same inside, yet the price ranges vary as much as 70% for similar properties.  BUYERS say WOW!!! The media hypes this to a point of bypassing the reality of entering a recession to launching the propaganda of maybe a depression.  Looking at all the available inventory becomes very confusing and frustrating to the average consumer and to the un-trained agents.                                                                                                                                          

With the growing abundance of inventory, the numbers continue to be skewed with lack-luster buyer activity.  This continues to cause significant margin calls from all three real estate categories.  REO's (Real Estate Owned/Corporate Owned) margin calls of 10% per price reductions until they sell also fuels the margin calls for both retail properties and properties subject to short sale approval.  Conditions are seemingly perfect for buyers, yet activity regarding pending sales are only slightly up than in recent months.  We would think the pendulum would be swing back in the other direction.

Here are some of the un-noticed problems associated with the abundant properties posted for sale and the lack-luster buyer activity.  I'll ignore the issues associated with over-priced properties in the retail category and the un-trained associates handling those properties.  Let's focus on the REO's and the Short Sale Inventory.  From the two categories of real estate, there are many properties posted for sale and literally un-attainable.  Many listing agents post properties for sale with little knowledge associated with obtaining approval for a short sale, which lending institutions are associated with the property, the length of time it may take for a response or call to action on a purchase agreement and of course the many potential lien and/or default issues that may be behind the scenes.  Meanwhile, REALTORS are out and about showing properties with buyers.  Buyers get excited about the price on a short sale property, submit a purchase agreement and wait too often, only to hear that listing agent just listed their first short sale property, they just submitted the authorization to speak with the banks, they just submitted the purchase agreement with the authorizations and the clock continues to click.  Frustrations set in for the buyers who have their hearts set on that home, yet they're really not in a position to be patient and wait.  The buyers have many other similar properties to choose, however they feel they've been robbed of a good deal.    

The REO category of homes is very similar yet different.  Typically a much more motivated setting with respect to margin calls on the pricing and a number of As-Is issues associated with categories of disclosure, mold, condition, winterization, utilities re-hook-up fees, warrantees etc.  Some of the buyer frustration problems stem from the huge inventory held by the REO team of agents.  Particularly, the number of un-returned buyer inquiries and/or poor response times associated with servicing purchase agreements.   Again, an un-trained buyer agent showing these properties to un-trained buyers or buyers without consultation generates more frustrated buyers.  Buyers need to be aligned with a real estate professional that will, meet, consult and establish a strategic plan in order to help develop their personal wealth with their real estate transactions.  Helping consumers understand the process, the advantages and the disadvantages of purchasing retail, short sale and/or a REO property is essential in advance. 

This marketplace will have significantly more pending and closed transactions when those frustrated buyers begin working with a trained professional who takes the time to meet, consult and strategically plan their real estate needs.  Imagine this!  Trained Professionals + Educated Consumers = Wealth Enhancement to all parties.  The affiliate industries begin flourishing with activity and the economy begins to stand tall. 

For the concerned real estate professionals who have experienced any of the above frustrations; simply do more homework with your buyers in advance (Meet, confer, consult, and PLAN), pre-screen the inventory with qualifying questions to the Listing Agents before showings and finally, get more training from your brokers.

For the concerned potential buyers and sellers out there; get yourselves aligned with an area specialist to help you with your needs.  When you need guidance in your particular state, city and neighborhood, simply utilize the speedy links below to help you become aligned with your particular trained professional.  A Real Estate Professional who will meet, consult and strategically help develop your personal wealth with your real estate needs in your neighborhood.  This referral service is gratis.  Please Remember to Bookmark this Blog.

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Congratulations on taking the time to help yourself and thank you for reading this post. 

Best Regards & Remember to align yourself with the Best Trained Agents in the Industry,

Frank D'Angelo - Broker/SRS

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Contact Frank D'Angelo, Broker, Sellers Residential Specialist. Licensed Broker in the State of Minnesota at (763) 548 1444 to list your property for sale or to purchase a property in Blaine, Fridley, Spring Lake Park, Coon Rapids, Centennial, Lino Lakes, Ham Lake, Andover, Champlin, Brooklyn Park, Minneapolis, St. Paul metro Minnesota.                           

   We Are Accepting ReferralsVisit our profile to find out more about our services. Call us today at (763) 548 1444. Contact us by email if you prefer by clicking on email me on the right side of this page under our profile.

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It is virtually impossible to escape the negative media influence associated with foreclosure properties, pre-foreclosures, short sales and the volitility associated with the real estate market.  When you compare the actual median prices in the midwest of traditional retail listings versus Real Estate Owned (REO's) properties the gap is significant, however the risks associated with each vary greatly. Click Here for the actual Trulia Trends Report for February 2008 Median REO prices versus Median List Prices

Some REO listings (Real Estate Owned) are priced better then comparable owner occupied and/or retail listings available.  Some are not.  However, when buyers buy a REO they are buying them in "AS-IS" with no disclosures or warranties.  Often times an REO may require appliances,updating, heater/air conditioner, who knows what kind of condition any of the mechanical systems may be in.  So even if an REO is priced well, its always best to check the condition of the property and budget the necessary cash necessary to make the property habitable.  You can get a great buy on an REO however, it does require a trusted advisor . Personally, I don't think Short Sales should even be considered as comparables when establishing market values for homeowners.  So often a seller and or their agent, often times simply pick numbers out of the air with no justification, to list the property in order to get activity. 

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Regardless of market conditions, the sell through ratio these days continues to rise.  Generally speaking, one in six listing sell in the retail market.  If you are about to expire a listing and feel the sellers will likely make a change, please consider this very user friendly option to salvage a commission.  Your integrity and reputation will be supported by your referral/heads up.  Simply let us know in advance when your listing will expire and provide the appropriate contact information, it would be our pleasure in sending you a 25% referral agreement, make contact with your soon to be former sellers and take the listing.

  Click either Banner to Salvage a Commission.   Your reputation will be tastefully honored.  Not all homes sell these days.  Sometimes a change is good and making that appropriate referral might be the best thing for salvaging a commission for all the hard work you put into the listing originally.

Do you want help in developing a book of business with Short Sales and/or REO's?

Feel Free to visit us on-line here:

Thanks in Advance,

Frank D'Angelo - Broker/SRS (Sellers Residential Specialist)

EXIT Realty Executives

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I rarely get political, however this one's great.  Not sure why it couldn't be as simple as this: 

WOULDN'T IT BE GREAT TO TURN ON THE TV AND HEAR ANY U.S. PRESIDENT, DEMOCRAT OR REPUBLICAN, GIVE THE FOLLOWING SPEECH?

"My Fellow Americans: As you all know, the defeat of the Iraq regime has been completed.

Since congress does not want to spend any more money on this war, our mission in Iraq is complete.

This morning I gave the order for a complete removal of all American forces from Iraq. This action will be complete within 30 days. It is now time to begin the reckoning.

Before me, I have two lists. One list contains the names of countries which have stood by our side during the Iraq conflict. This list is short. The United Kingdom, Spain, Bulgaria, Australia, and Poland are some of the countries listed there.

The other list contains every one not on the first list. Most of the world's nations are on that list. My press secretary will be distributing copies of both lists later this evening.

Let me start by saying that effective immediately, foreign aid to those nations on List 2 ceases indefinitely. The money saved during the first year alone will pretty much pay for the costs of the Iraq war.

THEN EVERY YEAR THEREAFTER IT'll GO TO OUR SOCIAL SECURITY SYSTEM SO IT WON'T GO BROKE IN 20 YEARS.

The American people are no longer going to pour money into third world Hell holes and watch those government leaders grow fat on corruption.

Need help with a famine? Wrestling with an epidemic? Call France.

In the future, together with Congress, I will work to redirect this money toward solving the vexing social problems we still have at home. On that note, a word to terrorist organizations. Screw with us and we will hunt you down and eliminate you and all your friends from the face of the earth.

Thirsting for a gutsy country to terrorize? Try France or maybe China.

I am ordering the immediate severing of diplomatic relations with France, Germany, and Russia. Thanks for all your help, comrades. We are retiring from NATO as well. Bon chance, mezamies.

I have instructed th e Mayor of New York City to begin towing the many UN diplomatic vehicles located in Manhattan with more than two unpaid parking tickets to sites where those vehicles will be stripped, shredded and crushed. I don't care about whatever treaty pertains to this. You creeps have tens of thousands of unpaid tickets. Pay those tickets tomorrow or watch your precious Benzes, Beamers and limos be turned over to some of the finest chop shops in the world. I love New York.

A special note to our neighbors. Canada is on List 2. Since we are likely to be seeing a lot more of each other, you folks might want to try not pissing us off for a change.

Mexico is also on List 2. Its president and his entire corrupt government really need an attitude adjustment. I will have a couple extra thousand tanks and infantry divisions sitting around. Guess where I am going to put 'em? Yep, border security.

Oh, by the way, the United States is abrogating the NAFTA treaty - starting now.
We are tired of the one-way highway. Immediately, we'll be drilling for oil in Alaska- which will take care of this country's oil needs for decades to come. If you're an environmentalist who opposes this decision, I refer you to List 2 above: pick a country and move there.

It is time for America to focus on its own welfare and its own citizens. Some will accuse us of isolationism. I answer them by saying, 'darn tootin.'

Nearly a century of trying to help folks live a decent life around the world has only earned us the undying enmity of just about everyone on the planet. It is time to eliminate hunger in America. It is time to eliminate homelessness in America. To the nations on List 1, a final thought. Thank you guys. We owe you and we won't forget.

To the nations on List 2, a final thought: You might want to learn to speak Arabic.

God bless America .. Thank you and good night."

If you can read this, thank a teacher. If you are reading it in English, thank a soldier.

If you can comment and/or forward this widely spread email and blog, thank you :)

Author Unknown...

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Contact Frank D'Angelo, Broker, Sellers Residential Specialist. Licensed Broker in the State of Minnesota at (763) 548 1444 to list your property for sale or to purchase a property in Blaine, Fridley, Spring Lake Park, Coon Rapids, Centennial, Lino Lakes, Ham Lake, Andover, Champlin, Brooklyn Park, Minneapolis, St. Paul metro Minnesota.                           

   We Are Accepting ReferralsVisit our profile to find out more about our services. Call us today at (763) 548 1444. Contact us by email if you prefer by clicking on email me on the right side of this page under our profile.

 Forward to a Friend who can utilize this