Agent Consolidation of REO Bundles by Asset Managers is leading to delays in the buy process and increases carrying costs through longer time on market.

As an REO Specialist and a Buyers agent we are seeing both sides of the market. Here in AZ, recent trends and buyer behavior are showing appeal of foreclosed homes drop, as buyers frustrated with delays and response times are starting to look at resale homes as a preference. Condition issues aside, this is becoming a problem that is more noticeable compared to about a year ago. I have seen some agent portfolio's in excess of 300 properties ACTIVE. On trying to do business with many of the teams with large portfolios, telephone calls are not returned, emails are not returned, delays and oversights are frequent and professional courtesy is thin. As a result my buyers are electing to look at alternative properties, which can either be private resale or foreclosed with better response rates. Time and time again I see truth in the saying "Once Bitten, Twice Shy" as buyers elect to passover a property because the listing Agent or Team was difficult to deal with. From an asset managers perspective I can understand the values and possible improvements by consolidating, but I ask all of those Asset professionals that read this, to stop and consider total cost. Indirect costs, and risks of over consolidation is real and more time needs to be taken to spread asset bundles out to ensure highest quality service, increased care, lower errors, reduced risk and minimize bottlenecks and delays in REO asset sale and servicing. As REO specialists we must be careful of over stretching our capabilities with too much inventory and lacking infrastructure or capacity to support it. Resources are cut to the minimum as margins for all are also cut. For this reason we need to look at ensuring greater distribution of assets with those teams that also have the skills and capabilities to service them to the highest of standards.

Here we are again in a down cycle across the entire US and Global Economy. Companies and businesses have to continue to reinvent who they are and how they do it to survive. Green business has a great opportunity to grow and integrate more into production methods as companies look for new ways to do things. Business models in practically every industry has to be challenged, if not by our customers but by us in order for us to compete.

Having worked in business strategy and cost re-engineering for over two decades in all aspects of indirect and direct business cost/operations, we need to embrace this challenge, rise to it, and develop our talent and our thinking to find new opportunities and new markets.

Can green survive, I think yes in many aspects of real estate and of business. Technology is enabling a more remote work force. Less is the need to occupy a desk space. You can work from home and be connected and large companies can take millions out of their operating costs if they have the will and the expertise to implement flexible work plans and the appropriate infrastructure.

As prime business real estate in some markets become more cost prohibitive and the fight for talent and available work force to fill operations become more costly, a flexible workforce and real estate strategy is the only way businesses can continue to re-engineer costs.

At a residential level, I think builders needs to look at their materials and challenge production companies to find cheaper, greener, more responsible materials that will help reduce build cost, but can be done so in a way that it also improves construction times = reduced labor = reduced cost. A great example of this is in Norway where you can literally choose your home mass produced, and it is delivered in component form and built almost within a day on already laid foundations. GREEN and Cost Cutting can come together if only there is the courage to challenge business models and the product.