By: Dennis Norman
A couple of days ago I wrote a post about a company called Agoraseto, LLC that is trying a unique approach to selling homes they own as well as providing financing for their buyers.
To find out more about this innovative approach to selling homes I conducted an E-View TM with Peter Atsiknoudas from Agoraseto, LLC:
Q-How long has your company been using this approach to sell homes?
A-This will be our first sale using this approach. We have been planning the release for quite some time and wanted to be sure we had the legalities in order and support in place.
Q-Where did the idea come from?
A-The idea was conceived by myself and my business partner and brother, Angelo. We have been involved in real estate in one capacity or another since 1986. We have never had such a difficult time with potential buyers who are not able to qualify for financing even though in our opinion their credit scores are very good, they are gainfully employed and they are using substantial amount of cash as a down payment. Lenders are understandably over-cautious and it is costing us sales. We needed a method where we did not have to rely on the lenders and their strict underwriting guidelines. Also we spoke to many buyers that told us that even though the prices in this area had declined, they had appreciated so much in the last 6 years that even with the reduction in prices they still could not afford a home. So, we figured we could solve both problems.
Q-How many homes do you expect to sell this year using this new approach?
A-We hope to market and sell 4 to 5 of our properties this year. We have also been approached by many sellers who want us to market their properties. They believe our method will result in an expedited sale rather than have their property linger on the MLS with hundreds of other homes. Therefore we may add private properties to our inventory.
Q-How has the response from the public been?
A-The response by the public has been very positive and we have received many requests for bid packages which is encouraging since our first open house is not scheduled until early April. The response has been overwhelming to say the least.
Q-I noticed on your web site it says there is a patent pending. What have you applied for a patent on?
A-We have retained an intellectual property attorney and he has advised us that this is a patentable process. We have put the wheels in motion to get this accomplished.Q-Do you have plans to franchise the concept or do this in other markets?
A-Yes. Our goal is to offer the service nationally and we have already had inquiries from people in Miami that would like to set up an office. Franchising is also a goal. We would like to offer exclusive territories and our support to franchisees.
It will be interesting to see how these guys do with their first auction. One thing is for sure: they are thinking outside the box!
A little quick CYA before I go…..This post is not intended to be an endorsement of this company, their principals or their concept. I do not know them but was fascinated by the innovation in their concept and wanted to write about that. I would also love to hear from other investors with innovative things they are doing to help survive in this market.
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