Realis CEO Lauren Roberts Sheds Light on Common Foreclosure Myths

DENVER, CO, January 11, 2013 (Press-News.org) Lauren Roberts, creator of Maestro and Prelude REO management software, debunks five foreclosure myths.

Everyone who works in the real estate industry faces myths about buying or selling all types of properties. Some myths seem logical, based on misinformation and complexity, while others are simply obscure. Since 2007, consumers have been grappling with information overload and seeking to understand how the housing market has changed. Lauren Roberts intends to help them by shedding some light on some common myths associated with buying and selling foreclosed homes.

Myth 1: Only the bottom end of the market is affected by foreclosures.

Recent information from RealtyTrac shows that the market share of foreclosed homes under $1 million is shrinking, but properties valued over $1 million are rising. It's false to say that only the lower end of the market has been affected by foreclosures. Known celebrities have lost everything in the public eye and other high rollers are strategically defaulting. Bottom line: foreclosures have affected all types of people, nationwide.

Myth 2: Compared to other homes, foreclosures always sell at massive discounts.

Almost everyone looking to purchase a foreclosed home expects a discount, but some have more realistic expectations than others. Those who expect a less than 25 percent discount will not be disappointed when the real estate agent lists the price. No one should expect discounts of 50 percent or more on a foreclosed home though. It may be heavily discounted compared to what the original owner paid but likely will not be largely discounted due to its current value in comparison to similar homes on the market.

Myth 3: Submitting lowball offers on foreclosures is the way to get the best deal

This myth has been swimming around for far too long. Lowball offers are often ignored and waste time and effort on both the buying and selling ends. Banks want REO properties sold in 30 days or less, but that doesn't make them desperate enough to accept low offers in that window. If you want to lowball a property, it's best to wait 90 days before making the offer and remember there's probably a reason the foreclosure has been on the market for a long time.

Myth 4: Foreclosures are more likely to lose their value than "regular" homes.

Many buyers believe this myth. However, since foreclosures offer a discount on the home's current market value, this offers some degree of insulation from further decrease in value. Whether a home loses its value or not has to do with the dynamics of the local market, including the area's supply and demand for real estate, interest rates and the health of the employment market.

Myth 5: The foreclosure process is a long, drawn-out process that will take months to complete.

Each home's specific situation determines the validity of this myth. There are many tools available to help agents assist sellers and buyers of foreclosure to make the process as pain-free as possible. Realis creates software specific to the buying and selling of REO and short sale properties called Maestro and Prelude, for example. Resources like these give consumers and sellers various ways to navigate the foreclosure process.

For more information about Lauren Roberts, Realis and the software they offer, please visit realissoftware.com. And don't forget to read Realis' blog, which includes advice and information for the REO community: http://www.realissoftware.com/Blog.aspx.

About Realis Real Estate Software
Based in Denver, Realis Real Estate Software (formerly REO Maestro) provides and supports workflow management software for real estate professionals. In 2001, Realis Founder and CEO Lauren Roberts was a REO (Real Estate Owned) broker who wanted to streamline her operations, and broaden the talents and productivity of her agent team when she created REO Maestro. For almost a decade, REO Maestro - the first REO management software built by and for real estate professionals - has set the standard for simplifying and organizing all workflows associated with marketing and managing REO properties. In today's unpredictable market, the way agents can earn more is to diversify their services and portfolios, and work more efficiently - not manage more properties. Today Realis provides software solutions for REO properties, with software tailored for short sales. For more information, please visit http://www.RealisSoftware.com.