No matter how far we distance ourselves from the depths of the housing crisis, foreclosures will always be a part of doing business in this industry. After all, whenever and wherever there are homes being bought, there’s always going to be the risk of pending default due to unforeseen circumstances.
With that in mind, it’s important for our industry to work together to make the most out of these suboptimal situations and protect the interests of those impacted, from the note holder and the servicer of a home in foreclosure to the neighborhood where it stands.
As the nation’s largest online real estate marketplace exclusively focused on the sale of bank-owned and foreclosure properties, Auction.com is dedicated to doing just that – and has been since 2007. And everything we do is rooted in these four guiding principles:
People and communities should be a central consideration for every decision we make.
We understand that neighborhood preservation is just as important as reducing loss severity – and that optimizing efficiency is central to achieving both. By shortening the time it takes between a property entering foreclosure to the time it is sold a to new owner, Auction.com can help stabilize the experience for everyone involved – the seller, the buyer, and the surrounding neighborhood. After all, nobody wants to live next door to a house that sits empty for several months, and nothing is worse for a struggling neighborhood than a vacant, dilapidated home.
The math is always going to be the math.
Whether you are trying to minimize the credit losses associated with a foreclosure, or trying to maximize the return on a real estate portfolio investment, the decision always comes down to one thing: Optimizing the balance between the asset’s sales price with the avoidance of holding expenses.
There is no such thing as a one-size-fits-all disposition strategy.
Determining the most appropriate disposition strategy for an asset requires a thorough understanding of the market, specifically whether the universe of potential buyers is more likely investors or owner-occupants.
For instance, the seller of a home likely to be purchased by an owner-occupant may want to invest in property renovations that appeal to such buyers, who typically look for move-in ready properties, whereas the same renovations would likely deliver a much lower return if the property is sold to someone in the investor community, which generally prefers to handle their own renovation decisions.
Offering a model that allows our clients to optimize their strategy on every home in every market is a huge part of the Auction.com advantage.
Technology is both a powerful enabler and a game changer.
As in many other industries, the power of technology and the internet has completely reshaped the way we do business – and will continue to do so for some time.
At Auction.com, we’ve effectively leveraged technology in a way that has allowed our clients to begin to optimize their disposition strategies long before properties go to foreclosure sales. Where we were previously limited in our access to pools of potential buyers, our reach has significantly expanded to a global audience through the internet, mobile technology, database marketing, email, social media and search engine marketing. All of these are fully leveraged by our team to create enhanced awareness of properties coming to sale, thereby driving demand that directly benefits our clients.
Grounded in these beliefs, we remain laser focused on consistently delivering value to our clients, making buying and selling residential real estate better for everyone, and playing our part in driving this industry forward through innovation.