Leveraging Shadow Inventory When Buying Foreclosures

Why would a buyer want to attempt to purchase Bank Owned REO's or Short Sales with an unqualified agent? First, let us determine what the State defines as a qualified licensed agent to sell properties:

There is an age criteria: Age 18

There is an education requirement: 90 hours of State approved Education

There is an exam: State and Federal

That's just about all for the qualifications of an agent to get the job done right? Technically yes! However the likely-hood of any successfully closed transactions will be slim to nil without the support, training and proven experience associated with lender mediated real estate transactions.

More and more consumers today are looking online for their real estate deals well before they contact an agent. Sometimes as much as 12 months in advance. Once they're ready and find the ultimate deal, they call someone they know who holds a real estate license show the home and submit a purchase offer. After a few failed attempts, the consumer realize that one of the reasons they keep coming up short might be due to the fact that their agent might be limited to the same information they have and might not be experienced with lender mediated transactions. Savvy buyers are usually aligned with an REO Broker or Agent who have their buyers informed, armed with options, pre-approved, ready, willing and able to purchase that great deal the moment the asset was actually attainable. What about SHADOW INVENTORY?

There are many homes literally sitting vacant either in foreclosure or already bank owned and yet they are not posted for sale on the public MLS sites. Are they attainable? Many are attainable and some require more time depending on the situation. It is critical for buyers to be aligned with a REO Broker who manages assets for firms during the foreclosure process usually months before they are actually attainable. REO inventory is only one of 7 additional NON MLD databases or SHADOW INVENTORY. So if you're really looking for the best deals, you should include more than what is publically posted for sale. If you're in the Greater Metro Minneapolis area, or want to be associated with another REO Broker in your City/State: Contact us early in your timeline. See below!