How Any Real Estate Agent Can Generate New Leads & Listings from Foreclosures

The title to this article is a pretty bold statement, but if you’ll allow me a couple of minutes of your time today, I’ll show you how you can take advantage of a brand-new Real Estate niche that most Agents don’t know about. It’s not that they aren’t aware of it; it’s just that they haven’t put two & two together.

This new source of Real Estate Leads could mean another 100 – 600 new, very motivated (Seller) Leads that are desperate for your professional help. And that’s only for a market of 100,000 homes. You’re market could have even more.

Why hasn’t this opportunity been available before?

Well, before now all the pieces were not readily available. Today, the technology is in place, the turnkey business-in-a-box-training-systems are available, and the market for this business is very ripe & growing.

Foreclosures will be the next big thing in Real Estate Leads

We are often asked by our Coaches Corner{tm} Newsletter Subscribers (350,000+): “What’s the next big thing going to be for Real Estate Agents?”

Well, if you asked me that question specific to Real Estate Lead Generation, I’d have to say Foreclosures & PreForeclosures are going to be the next big thing for New Real Estate Lead Generation.

You’ve probably already heard that Real Estate Foreclosures, as of April 2007 U.S. Foreclosure Market Report (published by RealtyTrac® – the #1 online authority for Foreclosure data), are up by 62% nationwide from April 2006. Some states are up by as much as 3,325% (New Hampshire).

Real Estate Foreclosures Rates continue to grow

Recently USA Today printed an article about the fact that 75% of the new home mortgages in California are No-Doc-Loans (some industry experts call them liar-loans). These No-Doc-Loans allow the homeowner to use stated income and often allow them to borrow more money at higher debt-to-income ratios than they could traditionally. The no-doc loans have become very prevalent in the last couple of years and are now widely used nationwide.

In my opinion, the majority of these liar-loans are Real Estate Foreclosures in embryo. It’s likely just a matter of time before the homeowners get into trouble and fall into Foreclosure.

Over a Million Real Estate Foreclosures Each Year

According to RealtyTrac®, with whom we’ve established an exclusive partnership, the number of Foreclosures will likely exceed 1.2 million this year if we continue at this pace. To read the complete May 15th, 2007 press release for RealtyTrac®’s U.S. Foreclosure Market Report click here.

What this means for the average Real Estate Agent in a market with 100,000 households is that about 127 new properties will enter some state of Foreclosure per month. Some of the not-so-average counties will see 431 new foreclosures per month for those same 100,000 households. So, that means that there will be 14 new Real Estate Foreclosure Listings per day per 100,000 households.

If you had the home seller information in a timely manner and were equipped to deal with this specific type of lead, it could mean 100 – 500 brand new leads every month in a market with 100,000 households.

Most Real Estate Agents don’t know how to handle prospects in Foreclosure and usually see them as junk prospects. So, there’s very little competition for you in this niche if you become a Real Estate Foreclosure Expert.

Couple that with a very highly motivated home seller, and you have a recipe for New Lead Generation Success.

Do you know your State’s Foreclosure Rate? If it’s only the national average, you’ll have 1 Foreclosure for every 783 households like quite a bit of the country? How many households do you have in your market, and what does that equate to in Foreclosures? A whole lot no matter where you live!

The Foreclosure Rates are growing almost everywhere and there are already an enormous amount of potential leads for you where you live, so take action and equip yourself with as much information as you can on Real Estate Foreclosures. The information will help you carve out a brand new niche in Real Estate Foreclosures in your area and help you grow your Real Estate Business.

Current Trends in Texas Foreclosures and Real Estate

There were 57,000 foreclosures that were completed in Texas between February 2012 and February 2013, which ranks Texas fourth nationally in completed foreclosures for the period. Out of 5,411 Texas foreclosure filings in the month of February 2013, 3,252 filings were foreclosure starts. This suggests that despite a 43.36% decrease in foreclosure notices filed in February 2013 over February 2012, the market for distressed property in Texas will continue to remain active.

Sensing localized recoveries in the Texas housing market, mortgage lenders are moving in and expanding operations in the state, particularly in North Texas. This could prove to be a boon to first time homebuyers as well as foreclosure investors looking to realize value on the purchase of distressed property, especially as interest rates remain low and inventory stays strong.

Positive Economic Indicators Support Strengthening North Texas Real Estate Market

North Texas by many measures remains the strongest local market. In North Texas, the average sale price in February 2013 was 94.0% of the original list price, a 1.9% increase as a percentage of list price over February 2012. Overall, pre-owned home sales were up 14% year over year, with prices 8% higher in February 2013 than in February 2012. The higher average sale prices are partly due to a more restricted supply, with the housing inventory falling to 3.6 months in February 2013 as compared to an inventory of 5.6 months in February 2012.

Austin is another area where the real estate market is gaining strength. Sales were up 26% year over year in February, while the median price for listed homes was up 7% during the same period, to $208,500. The competitive market resulted in a drastic reduction in inventory, which stood at just 2.6 months at the end of February. Townhouses and condominium units shared in the gains, with 31% more units sold in February 2013 than February 2012. Strong gains in employment rates as greater numbers of people relocate to Austin are likely supporting the increases in real estate activity, as Austin boasted just 5.4% unemployment in February 2013. Still, there are contracts waiting for distressed real estate buyers who know where to look.

Advantageous Markets to Pursue Texas Foreclosures and Distressed Real Estate Transactions

An assessment of the outlook for distressed real estate performed by Cole Schotz predicts Dallas will be within the top markets for distressed real estate throughout 2013. Median list prices in Dallas are at $205,000, a 5.39% increase year over year. However, in light of a 20.34% drop year over year in active listings, this increase is quite modest. The delinquency rate for Dallas mortgages also remains high, reported at 4.28% in January 2013, suggesting that more distressed properties are entering foreclosures in Texas pipeline in this market.

El Paso may be one of the most promising places to look for distressed property in Texas, with 8.79% of all sales in 2012 taking place on foreclosed homes. The average discount realized on these sold properties was 17.80% despite a 93.42% increase in foreclosure activity in the area. Foreclosure discounts in McAllen, Texas were also high in 2012, at 21.49%; however, the foreclosure activity in McAllen decreased substantially in 2012 from 2011, falling 65.90%.

The overall economic outlook in Texas is strongly positive. In February 2013, the state saw its largest monthly job gains ever recorded, with 80,600 new jobs added, adjusted for seasonal variations. The regenerating job market and the strengthening real estate market, on the whole, point to opportunities for investment gains on distressed real estate for those who buy during this recovery.