The current market has lower than normal inventory. Why do I think that is? Well for starters the end of the year is historically slower than the rest of the year. The only spike I see is when an investor has a 1031 and they need to name a property and close it before the end of the year. I believe the REO inventory/ Foreclosures have been reduced for many reasons. Servicers are moving mortgage servicing rights so that shuffle has slowed down the process. We have large hedge funds buying up pools of mortgages. I have read that some of those have been converted into rentals according to some default mortgage publications. While some lenders have completed modifications as the process appears to have improved, some people have been able to work things out and stay, Ah a win for some of the struggling homeowners. The next part of the inventory is tied up in the court systems in litigation. It’s usually an effort that still lands the homeowner out of the home in my experience and out the cost of court. I think the legal system and the banks are wise with the same old bag of tricks people bring to try to invalidate the sale. The most well-known to me is M.E.R.S. Another place inventory has been sliced off the MLS is Auction sites. Why a lender may take properties to auction is another topic for another day, but they do. I have personally worked with or on six large auction companies over many years. If you think you’re looking for hidden inventory on the auction sites ask me for my list of auction sites, email [email protected] and ask for Auction list. The last part of where the hidden inventory is people who decided to try to sell a property without a real estate professional. This inventory is generally much harder to find and can often be uncomfortable with both parties. If you’re looking for inventory it’s important to work with an agent who first knows where to look and second can help work with you and your real estate needs.
If you’re in the market and are looking for a Buyer’s agent who is knowledgeable about the auction sites and where some possible local inventory maybe hiding please contact [email protected] or call or text me at 805-748-2262,
Author: James Outland jr.