The description in the Pasadena multiple listing service stated that the house was “corporate owned”. Could it be due to a job transfer and it was now being sold by the relocation company? Or maybe it was a corporate buyout allowing one of its key employees to rid themselves of their last ties to the area, enabling them to relocate and start fresh.

It was none of those. Just another house which had completed the foreclosure process and was now owned by the bank or more appropriately, Fannie Mae. Wow was this listing agent clever. I would have to trust my assumptions due to the fact that emails and phone calls to the agent and his company went unreturned. This must be the new consumer centric real estate models I have heard about. If consumer centric is defined as enhancing marketing practices to improve effectiveness in reaching consumers, this company represents the new paradigm in how real estate will evolve into the 21st century. I don’t know about you, but when I call a business and my phone call goes into a continuous voice mail loop, I know immediately this is a company I want to work with. Furthermore, my intentions are confirmed when emails and faxes do not receive a response.

I thought real estate was a service industry. To that I have to say “where’s the beef”? In this fast paced, bottom line, results oriented, electronic delivery text message world in which we do business these days, is it possible to reduce the 5 P’s of Marketing (product, price, promotion, place and people) down to only 1, which is price? This strategy can be effective if the price makes people take notice. A price that is about 20% below the other houses in the market area is an effective use of this strategy. Just like the old song from Badfinger……”If you want it here it is come and get it, but you better hurry because its going fast”.

Actually when you think about it hasn’t the number one retailer in the world used this low price strategy? To their credit, Wal Mart does do other promotional vehicles and a broad product assortment, but they have built their reputation on having the lowest price. Are we preparing to enter the Wal Martization of the housing industry as bank owned properties populate the landscape?

Bank owned or REO properties occupy a different thought process. Banks are taking huge loses on real estate and when a property is re-acquired through foreclosure they have one priority which is to sell it immediately if not sooner. No color flyer, no flowered painted picture description, no open houses, no staging, and no just baked cookie aroma. Just price it low and watch it go. Sans the emotional appeal.

Is it effective? Sure seems to be. Many of these properties receive multiple offers and bid up very close to the actual comps in the area. The bank gets a solid buyer with good financials and a quick escrow. Wal Mart gets a satisfied customer with a full shopping cart.

Tags: bank foreclosed homes in pasadena, pasadena bank owned properties, Pasadena foreclosures