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Marketing for Heavy Underwater Areas

Dave Campbell's Avatar

Dave Campbell

12 Dec, 2010 12:31 AM

Is there any advice you can give for marketing in areas that have been hit hard by the price reductions over the last few years? I'm in the Phoenix area where prices have fallen over 50% over the last few years and most homes on the market for sale with no equity are so far underwater that no one would be interested in doing a Mortgage Assignment on them (In a lot of areas, something that would have sold for 300K 3 years ago would now be selling for 125-150K).

What types of neighborhoods or areas would be best to target to find Sellers that are close to the value of the home, LTV wise, so that Mortgage Assignments would be attractive to Buyers? Just target areas where homes have been built in the last couple of years? Love this strategy, just need to refine the marketing for this area.

Thanks.

  1. Support Staff 1 Posted by Brittney Rogers on 07 Jan, 2011 02:09 AM

    Brittney Rogers's Avatar

    Hi Dave,
    Great question.
    In areas like Phoenix and other seriously depressed markets, you need to look for homeowners with deed dates in the last 1-2 years. These are buyers who got in AFTER the crash and probably have a good, low interest loan. Even these buyers need to sell their homes from time to time and don't have much, if any equity.
    So work with a direct mail company or a local printing or title company to get a list of those homeowners. Then market directly to them.
    Per your suggestion, I'd also go after the new neighborhoods. We have some students that have singlehandedly turned around neighborhoods and brought values back up by using the MA strategy and helping people avoid short sales and foreclosures, thereby reducing the inventory and especially the inventory of highly motivated sellers, which in turn can raise the prices in a neighborhood. Simple supply/demand economics.
    Sounds like you are on the right track. Happy Investing!
    Shenoah

  2. Brittney Rogers closed this discussion on 07 Jan, 2011 02:09 AM.

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