public real estate auctions

Real Estate Investors From All Countries and regions Flock To This Location…

As one of the most moribund housing markets in Europe, Spain has become a magnet for global bargain hunters. Real estate prices are down as much as 50 percent from their peak during a housing bubble, and investors from Asia to the United States and Britain are flocking to Spain to try to catch the uptick.

British Airways flights to Madrid are packed with London-based real estate executives. The hedge fund Baupost is buying shopping centers, Goldman Sachs and Blackstone are buying apartments in Madrid, and Paulson & Company and George Soros’s fund are anchor investors in a publicly listed Spanish real estate investment vehicle. Kohlberg Kravis Roberts just bought a stake in a Spanish amusement park complex. Big-name private equity firms and banks are teaming up with and competing against one another on huge loan portfolios with names like Project Hercules and Project Octopus.

“It’s surreal,” said Dilip Khullar, a 25-year veteran of Spanish real estate investing and director of Cadena, an investment fund. “One day it’s the worst place in the world to buy real estate and the next, it’s the best.”

The end of Spain’s real estate boom left unfinished projects like chalets at Cala Romantica on the island of Majorca.Enrique Calvo/ReutersThe end of Spain’s real estate boom left unfinished projects like chalets at Cala Romantica on the island of Majorca.

Low interest rates, set by the European Central Bank to help buoy Germany’s market, helped to fuel Spain’s housing boom. Real estate developers teamed up with local savings banks to borrow and build over and over again. “We were a train going 200 kilometers an hour and it was hard to stop,” said Jaime Pascual-Sanchiz de la Serna, executive director at Aguirre Newman, a leading real estate consulting firm. Construction reached a staggering 12 percent of gross domestic product, more than double the proportion in Britain or France.

When the bubble burst in 2008, Spain became toxic. “Nobody wanted to invest a penny in real estate,” said Mr. Pascual-Sanchiz de la Serna. “Spain was overbuilt and it was going to take 10 years to work through.”

It hasn’t taken that long.

The real estate market started to revive in 2013. Government reforms, including a relaxation of labor laws and stricter rules for banks related to accounting for bad real estate, meant that banks could no longer ignore the assets on their balance sheets. Once the banks had to hold more capital — in some cases drastically more — they started to think it was better to sell, analysts and bankers said.

Spain’s “bad bank,” called Sareb, formed in 2012 with the real estate assets of the country’s bailed-out banks, started to close deals. Separately, last July, Blackstone bought 1,860 apartments for 125.5 million euros, then about $166 million, and in August, Goldman bought a block of public housing in central Madrid. This combination of deals set a floor price, analysts said.

The recovery is still nascent. About €5 billion worth of real estate transactions took place last year, according to the consulting firm CBRE Spain — more than double the amount of the previous year but still small compared with the €166 billion in commercial real estate deals made in Europe last year. At the peak, Spain issued 120,000 mortgages a quarter; in the fourth quarter of 2013, the figure was 15,000. Fitch Ratings recently issued a report saying that real estate prices would continue to fall through 2014, not rebounding until 2015.

A housing block in Cancelada, in southern Spain. Many such assets from bailed-out banks went to a so-called bad bank, Sareb, which is gradually selling them off.Jon Nazca/ReutersA housing block in Cancelada, in southern Spain. Many such assets from bailed-out banks went to a so-called bad bank, Sareb, which is gradually selling them off.

And Spain’s economy continues to struggle. The unemployment rate is 26 percent, and growth is estimated to be about 1 percent this year. The government contends things are better, said Pedro Gonzalez, a former shopkeeper who now drives a taxi, but the people haven’t seen it. “There are no jobs,” he added.

But that looks like an opportunity to investors who believe the market will truly take off and want to get in before it does.

“It’s crazy the number of investors coming in,” said Fernando Acuña, co-founder of Aura, a start-up real estate advisory firm in Spain, as he toggled between multiple screens dissecting data in the residential real estate market and showing the uptick in Google searches for “comprar piso” — “buy an apartment” — in his bustling office on Madrid’s fashionable Almirante Street.

Small firms like Mr. Acuña’s, midsize investment banks in Spain and global banks in London are buzzing with investors looking for different ways to play the real estate market, by buying apartments or office buildings, scooping up loans from Sareb or the banks themselves, creating pools of capital to buy real estate assets or buying servicing platforms, which give the private equity firms that own them the ability to manage their assets as well as critical market intelligence.

Belén Romana, chairwoman of Sareb, said the number of investors — around 50 — who turned up for the first auctions surprised her. They were aggressive, she said. “It was early and they thought they could make a killing.” They pushed her to move fast and do deals. “They wanted to sit in a dark room and do a bilateral deal,” she said. She refused. Auction processes were put in place, with data rooms for deal teams and deadlines for nonbinding and binding deals.

In 2013, Sareb sold €1.5 billion of the €51 billion in assets it was created to sell. Of the €51 billion, about 20 percent is real estate and 80 percent are loans. Ms. Romana said the agency bought the assets at discounts of 40 percent to 80 percent.

Unfinished homes in Cancelada, Spain. The nation’s economy continues to struggle, with the unemployment rate at 26 percent.Jon Nazca/ReutersUnfinished homes in Cancelada, Spain. The nation’s economy continues to struggle, with the unemployment rate at 26 percent.

There is a lot to sell. Sareb aims to sell nearly 10,500 assets this year, and the top six Spanish banks hold an additional €159 billion worth of real estate and development loans, according to a Goldman Sachs research report.

Catalunya Bank has just received bids for Project Hercules, a €6.95 billion portfolio of residential home loans, 43 percent of which are nonperforming, or overdue by at least 90 days. The bidders are a who’s who of private equity: Blackstone and TPG are competing against teams of Goldman Sachs and Cerberus; Apollo and Centerbridge; and Deutsche Bank, Pimco and Marathon, according to a person briefed on the sale.

Commerzbank recently sold €4.4 billion of loans backed by commercial real estate in a separate deal called Project Octopus, in which Lone Star and JPMorgan Chase beat out Blackstone and Deutsche Bank. The price was not disclosed but market participants said the sale was made at close to a 30 percent discount.

In February, a Socimi, or Spanish real estate investment trust, came to market, raising $547 million. Two weeks later, Hispania Activos, another pool of capital, raised $763 million, with Paulson & Company, George Soros’s Quantum fund and Moore Capital as anchor investors.

Before Grupo Azora, the Spanish real estate company behind Hispania, decided in the early fall on an initial public offering, some of the bankers its executives spoke with wondered whether there would be ample demand. But by the time the deal was marketed, investors were jockeying to get a piece of the action.

“We generated demand of $2.3 billion,” said Juan del Rivero, chairman of Grupo Azora and a former Goldman Sachs partner. “In my 30 years of experience in investment banking, I haven’t seen a lot of books like that,” he said, referring to the process in which investment bankers take orders for a deal before pricing it.

More Socimis are in the pipeline, with at least one set to raise more than €1 billion.

Already the deal landscape is changing. While many investors want trophy commercial real estate assets, extremely few are for sale in prime areas of Madrid and Barcelona. Investors who hoped for 20 percent internal rates of return are now expecting 12 percent to 15 percent, and shifting their focus to residential properties, analysts said.

That shift suits Mr. Acuña of Aura very well. He has ridden the boom and bust of the real estate cycle and is gearing up for the next boom.

In 2006, Deutsche Bank hired him to build its mortgage business. When the market collapsed, he added the title of head of collections. In 2009, he started a business trying to sell repossessed houses for the banks and formed a database with 450,000 properties from banks and more than a million from private clients. When investors started calling and asked him for valuations of land, houses, buildings and portfolios, he started Aura to advise them and also to invest in the sector. Its website is in English because, he said, “all my clients are in Mayfair.”

“I think 2014 is the year we will see a lot of transactions,” he added.

Many worry that the competition for some assets and excess liquidity is driving prices higher.

“People are starting to overpay on certain assets,” said one investment banker who spoke on the condition of anonymity because he works with many of the funds active in the market. “There’s pressure from investment committees in London to do deals.”

One private equity executive said a recent auction for a mediocre office building attracted 30 bids. His company’s bid — which he said was fully priced — did not even make it past the first round.

Are prices too high? “That’s the million-dollar question,” said Javier Martinez-Piqueras, co-head of equity capital markets at UBS. “Actually, it’s the billion-dollar question.”

 

REFERENCE THE NEW YORK TIMES PUBLICATION


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Hot Deal Or Hot Property – What Drives Your Buying Decision?

An Older Home On A Newer Street May be The Right Investment But Not The Right Choice For You

Talk about testing your emotions. And your relationship with your lifetime partner.

You set a certain budget and know more or less the general areas you’d like to move in to. What you can’t control all the time is the choices that follow. Your REALTOR sets out to find and filter out some possibilities, and you go on the usual online search spree to add to the basket of choices. You also find some foreclosures listed on a public real estate auctions site, and add them to the pot for good measure.

Next comes the drive-by adventure. You come across one of the homes you had liked online, and indeed it looks stunning. Brand new, near schools and transit, and it satisfies many of your other parameters. Most important of all, you know the brand new stainless appliances await, two fireplaces are in stock and the counter tops are beautiful granite and in your favourite colour. That’s the house indeed.

Something nags you though, as the other homes on the street seem quite old. You’re not certain if the general surroundings are exactly what you had hoped for. Surely you could grab one of those older properties for half the price if any went on sale. So the question becomes whether your investment is being made in the right place.

You drive to the next property on your list and lo and behold, you pull into this really nice area with great landscaping and a good community feel. Many new or newer homes on the street, but the one you were looking at still stands from the dear old days it was built. Obviously very well cared for though.

You guessed the dilemma. This house sits in a great neighborhood but is unlikely to offer many of the things you desire. Like the walk-in closet and the shiny new kitchen island. Or the open layout concept. The floors may also not be fresh hardwood. In fact you may have to contend with some weird colour carpeting and wall paper until the renovations you must do are completed. A year or two down the line.

Which of the two homes would you choose to invest your dollars and the next many years in? Which of the two would be the better investment and the better move?

The older street may be due for some tear downs and new build outs. In time, the entire street will get upgraded and the value of your property would be supported along the way. But that’s never a guarantee. Some neighbours may decide to sit on their childhood property, as is, for another 20 years. It’s a gamble. Meanwhile though your home is the best looking one on the street, and you get to live in the house of your dreams.

On the newer street, you get to live in a superb neighborhood where your investment is more likely to hold up and grow, especially if you completely renovate or rebuild the house in the future. In the interim however, you must compromise on the quality of the house you’ve always dreamed of, and you become known as the one who lives in the old house.

This is when I run away from both options and look for a happy medium. Or simply give up the entire thing and hunker down for another couple of years until I can afford a larger budget.

When buying a home, always discuss and decide on your top priorities first. Why are you moving to begin with? What drives you? When we last moved, we really needed to get away from the neighborhood.

Is it a newer neighborhood that you most desire where you may compromise on the home itself a bit, or is it the home that drives you and you’re willing to get into a slightly inferior neighborhood but in an overall good area? Knowing your priorities from the start should minimize surprises, control stress levels a bit, and set your expectations right.

Some investment gurus suggest the older home on the newer street is the better bet. But can you emotionally deal with that and put your dream home aspirations on hold?

Check out some properties in your area that are being sold through online auction. Which would you instinctively want to bid on? The hot deal or the hot property?

If you’re lucky, and patient, you’ll find some that offer the best of both worlds.

 

Why Some Agents Get All The Calls

Imagine that you have a Bentley you want to sell. The car has been parked for a year, kid stuff on the back seat. Cleats, some dirt, coloring pens and paper, and fast food wrappings. In the front, some used up tissue paper still sits in the console area, the sun glasses nearby and the phone charger dangles. Before you advertise it online, you walk into your garage with a your iPhone, and in the shade of the walls, the car having gathered decent amounts of dust and mud from the last few rides she had been on, you take a couple of photos. One of the inside, the other of the outside.

Back at your computer you upload that photograph and make your posting on your preferred sites.

Now help me understand how you’d expect a buyer to get excited about your car, with all this negligence put in to showing it off? If the concern is not the condition of the car, it is the upkeep of the car. That is if any of the images look clear enough, to begin with. Remember lighting was dim at best when you walked in.

Next to your car posting there are another 3 Bentleys, all sparkling clean, enticing. Each comes with 25 shiny photos of a polished, well cared gem, interior even cleaner. The prospective buyers get this uplifting feeling just flipping through the photos, zooming in to view things in detail, enabled through the well lit, high resolution shots. A video of the vehicle is also set up, to make things even more appealing. The buyers then get set to make a call to inquire further or come down for a test drive.

Meanwhile you sit for days or months wondering why your car isn’t selling. And, if you get the adhoc call, you get frustrated with wholesale agents only calling and trying to low ball you.

Well you answer that one yourself. This morning right on ListedBy I came across a 1.2 million dollar asset listing, with a single photo of the entire project, taken off of a another photo print sitting on the kitchen counter. You could easily tell, because part of the counter was showing in the posted image.

The description of the project was weak at best, yet the seller’s agent expects people to hound them with offers.

This is not the only listing on a real estate website with a single, bad photo, and worse descriptions and details. You see them all over the place on the Web.

Folks, this complacency simply does not work in the world of sales, never mind one that involved assets worth hundreds of thousands or millions of dollars and where the competition is, at best, fierce. Even if you’re marketing REO Auctions or public real estate auctions, marketing an asset adequately is the difference between selling it or not, the ultimate asset value, and your commissions.

We have posted research about the importance of photos several times in this Forum and on the ListedBy Blog. It’s a no brainer. Why I won’t link to these articles to make it easy for some, is for good reason.

For those feeling guilty right now, it’s time to get that camera out, and do your work like a professional. Things will change faster than you think. The effort will always prove to be worthwhile.

In fact right now, I feel a smidgen embarrassed to release an article such as this one. But it just feels like all else has failed and it’s time to tell it like it is. The actions, and non actions of every agent affect not only their sales and business, but the reputation of our industry. Everyone must pull their weight to move us forward. Professional representation is a mandatory step.

ListedBy Launches Real Estate Service Provider and Agent Ratings

ListedBy Service Provider Ratings

We’re quite excited to release the ListedBy Service Provider star and feedback ratings system. To those who excel in their profession, such systems put in the hands of the consumer is a welcome event and a new path to more business.

For those who do not desire such systems, it’s a path to challenging and boosting current practices.

As an industry as a whole, such systems will bring new levels of transparency that can only help further enhance public perception and professionalism.

Here is the full announcement issued to the press earlier today, for our readers’ convenience:

ListedBy Launches Real Estate Service Provider and Agent Ratings

ListedBy (www.ListedBy.com), the first free online real estate marketplace and social network with live bidding public real estate auctions and ‘Buy Now/Best Offer’ functionality now enables members to publish and share feedback, recommendations and rate service providers listed on ListedBy.com, in real time.

The system reflects ListedBy’s goal to provide its members with everything they need to be successful in real estate both before, and after the transaction. Registered users on ListedBy.com can use the site’s Service Providers area to research services and related companies by state, and now rate providers including real estate brokers and agents using a five star rating system.

Users can also offer detailed feedback and recommendations on the same page, and share their feedback through email and social media with a single click, including on Facebook, LinkedIn, Twitter and many others.

“From free access to rental and for sale property data, REO auctions and traditional listings, to clearly identifying the true listing agent and their contact information, to publicly displaying bids, bid history and bidders, to now agent and real estate related service provider ratings and feedback, ListedBy continues to move towards accelerating the real estate process through transparency and better access to information,” said Stephan Piscano, CEO and Founder, ListedBy.

“The time currently wasted at any stage of real estate buying and selling is unacceptable, as is the level of transparency on many real estate auction and traditional property portals, especially in this day and age. Everything that we do at ListedBy is designed to move the industry towards a higher level of efficiency,” added Piscano.

Concluded Piscano: “People who get exceptional service are always happy to spread the word. We’re introducing tools that make it easy for ListedBy members to share their experience and opinion, which benefits their service provider and works to drive higher levels of service in the industry.”

Service Provider pages on ListedBy have also been upgraded as virtual miniature Web sites, to further enhance service provider exposure and branding to ListedBy’s growing audience.

ListedBy launched its Service Providers module in January. The self-managed, self-populated free directory is designed to give ListedBy.com users convenient access to information on local real estate related services across the United States.

Traffic on ListedBy.com is expected to surpass 60,000 unique visitors for March 2013, with visitors spending an average of over five minutes on the site.

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When Property Advertising Gets Aggressive – Compliment or Curse?

Man fixing the knot of his striped blue tie.

Compliment Well Received. Problem Solved.

You know a site is hot when advertisers try to push the envelope. They run the same property ad multiple times so they’re always at the top of the views. Many also hire inexpensive overseas labour to stay on top of their listings and ensure they flood each site with their properties each day. Mainly those that generate the best and most leads.

New York got a special treatment from Craigslist a few years back, if you recall. It became the first city where Craigslist real estate posters would have to pay to advertise their listings. A reasonable and smart play by Craigslist, since listing duplication in New York got unbearable.

While the practice spoke tons to Craigslist’s power to generate leads, it affected user experience and annoyed honest brokers and agent – and consumers. Well, that happily turned into a new revenue stream for Craigslist. A nice turn of events indeed.

ListedBy.com today turned on a new tool that enables its admin staff to not only halt user accounts that push the envelope on the site, but also to delete all previously added listings by the entity. REO auctions, public real estate auctions and otherwise.

Since ListedBy is a free site, we opted to go this route to neutralize all the effort and expense the user goes through to create their account and post and re-post listings, than to start charging honest users for posting.

That’s how we chose to go about it and it seems to be working.

Shrewd advertiser #1 down, a few others to go. Thanks for the compliments anyhow.

Traffic to ListedBy hit 35,000 unique visitors in February and is on track to hit nearly 50,000 this month.  Anyone can and is invited to add their listings for free. Just start a free profile then click on Sell on the blue menu bar at the top of the page to add listings.

On behalf of our management team, I want to take this opportunity to thank all our loyal users and industry followers for their support as we too push the envelope in real estate.  But in a good way.

What’s Moving Us Towards A Seller’s Market?

Low Interest Rates Should Continue To Drive Inflation and Asset Prices Higher

An interesting conversation with the owner of a well established property management and turnkey investment property firm in Indiana struck a cord with me earlier today.

Not that his question was earth shattering or novel, but that it came from someone with that much experience in his market.

This gentleman said, happy to have recently managed to acquire one more property: “What is it that is turning the market into a seller’s market? Could it be the hedge funds scooping up inventory, or bank and government agency strategies manufacturing a supply / demand imbalance to drive prices higher?”

It could be both of course, his next thought was. Mine as well, like everyone else.

What is difficult to determine though is which of the two is the primary catalyst.

Add to those a sustained Federal reserve strategy of low interest rates, to ensure that this part of the equation poses no obstacle to what seems to many to be a structured recovery.

How long these low rates can be maintained before something awry happens is anyone’s guess. The Feds said till 2015, for now. Any solid indication of an improving economy, fundamentally, can change that. After all, the Fed’s only chance of raking it in on the billions and trillions of extra liquidity and asset purchases would be through a rise in interest rates.

Until the market can sustain a rate increase on its own, the Fed is stuck. It can’t increase rates because players would default. It would not only lose its profit potential, but its initial loans too. It can’t keep rates this low forever either, because inflation will gain further momentum, with potentially extreme repercussions and lasting, undesirable effects.

As long as the current rates strategy is maintained, inflation will drive real estate prices higher. Investors know this and are scooping everything they can get their hands on.

For the banks and large distressed asset holders, it’s a dream come true, as they slowly release inventory at more advantageous prices.

Whether it’s one or the other, all catalysts that seem to be driving the market also seem to be here to stay. For now. Keep it going for a while longer and we’d clearly be in a full fledged seller’s market.

For those looking to chime in and acquire assets, tough as it may be, there are still some out there, and the market remains relatively attractive. I suggest a quick drive by ListedBy.com for starters, or other similar sites, and look for REO auctions and other public real estate auctions. Even a few $1 starting bid deals, while harder to come by, still do come by.

 

The Making Of A Millionaire – How To Benefit From Public Real Estate Auctions

You Eat An Elephant One Bit At A Time

You eat an elephant one bite at a time.

Often, having a clear vision and the courage to start working towards an opportunity is what stands between man and his or her ultimate goal. With a little bit of study and appetite for some risk, the goal may in fact be closer than one might think.

The first order of business is to spot the opportunity. The next order of business is to remove anyone from sight who’s job seems to discourage us from moving forward. This is frequently the reason why most people freeze. In his famous The Law of Success in 16 Lessons book, the success bible, Napoleon Hill specifically discusses how you must keep your chief aim shielded from others who are likely to challenge or resist it. Even your spouse. Take this as law in achieving the success that you want, even though it is contrary to all the modern guru teachings that you must publish your goals far and wide so you may be more committed to achieving them.

In real estate, an opportunity of a lifetime came to those who saw a buying window when everyone ran the other way in 2008, 2009 and even up until last year. Those who made the move and acquired as much property as they could, boarded or not, with spouse approval or not, are on a different plane now. We all know where these investments stand today. Up some 20-25 percent in the past year alone, in many states and cities across the US. They hopped on the Web and onto online auction sites to grab REO auctions, government real estate auctions, residential real estate auctions, commercial real estate auctions, you name it. Some flipped them right away while others rehabbed and held the assets for rental income with high annual cash on cash returns unlike we’ve seen for decades.

The biggest complaint circling the sector today is lack of inventory, especially distressed assets. Whether that’s in Detroit, Las Vegas or any other market.

The next time I come across a hot deal in Detroit or otherwise, boarded or not, shabby or not, I’m jumping on it. That’s just what I did earlier today, when opportunity presented itself. I bid on five residential properties in Detroit on ListedBy.com, going for just tens or mere hundreds of dollars to anyone willing to take on just a few thousand dollars of back dues taxes. A great deal if you ask me. At worst, the land will always be there for me or my kids to farm someday. Each will have their profiting strategy. Some will resell the assets immediately for a bit of profit, taxes still unpaid. Others will hold till values increase, then sell at that time, still passing due taxes to the next investor. Yet others might pay due taxes in order to obtain title insurance, rehab the properties and rent them for regular cash flow. That is, if the neighborhood and overall conditions are adequate, an insurance provider is willing to provide the service in the area, and the risk of another round of vandalism of the property has been well considered. Risks are out there and professional advice and due diligence on any investment is always necessary.

But first I must win those bids. Some astute investors seem to have spotted the same properties. Until then, I’ll keep scouting the site for more. Here great deals still do come by.

I also like it here not just because of my obvious bias towards ListedBy, but because I also don’t need to pay registration and technology fees like on most other auction sites. Nor do I have to contend with buyer premiums like most everywhere else. Here it’s all free. So each bite I take at my goal, goes further. In English? More dollars in my pocket to go towards buying more assets (with or without spousal approval), instead of handing them to the auctioneer.

There you have it. That’s one of my paths. I’m pulling ahead in the game of real estate just one small bite at a time, until the elephant is in the bag.

 

 

 

 

The Freeway To Listing Data – Foreclosures, Auctions And Otherwise

Open Access To Data and Buyer/Seller Information

What is mind boggling is that we as an industry have struggled for years trying to figure how to move distressed inventory. Mind boggling because we have consistently hid the data behind cumbersome registration pages and access fees, and charged huge buyer premiums at auctions. To think that these are all strategies designed to move inventory is somewhat hard to believe. Open access rather, should be the path.

To top it all, many consumer portals and sites have made it tough for buyers to connect with listing agents or sellers, by giving preferred placement to their own internal agents next to the listing, if that’s their business model. Others featured and continue to feature alternative agents based on a paid advertising model, in the process keeping the true representing agent who knows the seller and the property best, and can answer questions more swiftly and accurately, at bay and harder to reach.

Such and other practices have either delayed or outright derailed potential transactions, and to this day continue to hinder wider, more efficient buyer participation so the assimilation of inventory may proceed at a more healthy pace.

We’re excited to announce that we have unlocked access to all listings on ListedBy, specifically because giving real estate buyers and sellers immediate and open access to listings and to each others’ contact information is core to ListedBy’s vision for the site and the industry as a whole. We see this as becoming the norm for all real estate property portals and real estate auction companies.

As always, we appreciate our users’ feedback and suggestions. Giving everyone instant access to all listings on ListedBy.com once again is the results of your valued input. Now anyone can research MLS listings across the country, residential and commercial. The same goes for all distressed properties including REO auctions, government real estate auctions, residential real estate auctions, commercial real estate auctions and all other public real estate auctions and Buy Now/Best Offer listings that are active on ListedBy.com.

 

Rock Star Closer Radio Interview With Listedby.com’s Stephan Piscano

 

Ryan Stewman

HardcoreClorser.com’s Ryan Stewman goes into details about ListedBy and public real estate auctions and residential real estate auction, in a radio interview with Stephan Piscano  first broadcast February 20, 2013.

Listen to the interview >>>>

 

Transparency In Real Estate – Key Message at SJREI Mid-Peninsula Meeting

The Three Pillars Of Change

The main message we delivered through our presentation (SJREI021313) at the SJREI (San Jose Real Estate Investors) two days ago was that transparency, or its lack thereof, is a critical catalyst that is preventing the industry from being what it can be, and the real estate professional, agent or investor, from being as efficient and productive as they should be. The underlying force being that a new paradigm shift in real estate is in underway, fueled by consumer insight, powered by technology and new business models.

We stressed and showed how these models will threaten the existence of organizations, large and small, that refuse to notice the oncoming change and tune in to new consumer expectations in how the real estate business is handled, especially online.

This would include real estate auction companies and real estate auction sites, sites that enable REO auctions and real estate government auctions, and organizations dealing in any shape or form with public real estate auctions or foreclosures and distressed property data and listings.

Notwithstanding, regular consumer portals were discussed in the same context, be it publicly traded companies or startup. That the threat is real.

The good news was that the undercurrent also brings with it potentially huge opportunities for those same organizations who tune in to the change and adapt, as many have magnificently done over the years.

Within the context of a session meant to explain to experienced real estate investors what ListedBy.com is, we took the path of focusing on industry concerns that when addressed by platforms and open environments such as ListedBy.com, should result in far greater efficiencies (operational and cost) and productivity for the investor and anyone engaged in the buying and selling of real assets. This, on the premise that all technology we elect to deploy in business is meant to enhance one or the other, in some shape or form.

The paradigm shift would consist of three key pillars with transparency at its core. From these new levels of transparency, the benefits far greater efficiencies and productivity will be drawn. Lack of transparency, today a detriment to economic growth and sales productivity will be replaced with an environment where full transparency is an expectation. Vis:

- Open access to listing data, REO, distressed and regular assets included. Hiding data behind cumbersome registration pages and fees will no longer be an option.
- Actual listing reps featured. The challenge of not being able to instantly see who the true seller or representative is, and not being able to access their contact information, will do more damage to the site or portal exercising such a strategy, than it would do them good.
- Bidding and bidder transparency. Shil bidding (bidding that is used to artificially inflate the price of a certain item), and transparency in being able to see who is bidding and who wins a bid, will become the norm.
Improved cost efficiencies would be delivered in a number of forms including:
- Free auctions
- Free access to listings
- No buyer premiums
- No registration fees
- No brokerage fees

We have a long way before everyone buying and selling real estate realize how deep the benefits of transparency would run within an organization, and how much of a boost in operational and sales productivity such transparency and access to information can drive.

If participant feedback at the session was any indication, the thinking behind ListedBy.com is definitely something more and more real estate professionals will be gravitating to.