The downturn in this economy has been devastating to millions of homeowners who lost their homes to foreclosure and to those who are in danger of losing their homes in the near future. Fortunately, we are beginning to see some light at the end of the tunnel—and it’s not another train. This blog discusses several recent changes in the way some lenders are handling foreclosures and short sales, which in turn make the job of an agent more doable and realistic. We have a ways to go, but it seems to me we have turned the corner!
Here’s the Skinny: Good and Bad
1. CoreLogic recently reported that there were 830,000 completed foreclosures in 2011 compared with 1.1 million in 2010—a notable decrease. This doesn’t mean we’re seeing an end to the cycle, but we’re finally going in the right direction. With some of the changes listed below, we could possibly get there faster than we previously thought. They also reported that there were 1.4 million houses, or 3.4% of all homes with a mortgage, in the foreclosure inventory (this is not the American Dream). You can see more of the CoreLogic report here: www.tinyurl.com/6w9×4px.
2. In 2011, first-time homebuyers were the Read the rest of this entry »
An informed buyer is a good buyer, and short sale buyers need more and different information than buyers of conventional properties. One of the top two reasons why short sales fall through is that the buyer “WALKS.” Why do they walk? They walk because they get fed up and tired of waiting – regardless of how good the deal may be. This cannot always be avoided, but the chances of it happening with your buyers can be reduced by giving them the right information.
Just because a property is being offered for sale does not mean it will ever go to settlement, but a salesperson can certainly enhance the chances of settlement by gathering the facts before they offer the contract. Here are some facts to gather from the Listing Agent to help inform your buyer clients. Note: prior to asking these questions, it’s important to get permission from the buyer to ask them, and the Listing Agent will need to get permission from the seller to answer them. This is just the right way to do business.
1. How many offers are being “pended?” Would you get the buyer involved if there were 10 offers already being “pended?” It’s up to the buyer.
2. How long has the property been on the market?
3. How many short sale transactions has the Listing Agent completed?
4. What is the average price of the last five traditional listings that have sold in the marketing area? Why put a buyer through the process of buying a Short Sale property when you could find another property at the same relative price that is a traditional listing? One of the main attractions of a Short Sale property is the PRICE!
5. How many payments has the seller missed? It takes time to complete these sales, and foreclosure could take place prior to a short sale transaction being settled. It’s important to know how long it takes for a property to be foreclosed on from the time of the first missed payment until the “foreclosure sale.”
6. How many second or “junior mortgages” or liens are on the property? Junior mortgages can be a real deal killer.
7. What’s the contact number for a Home Inspector who can inspect the home on a short notice?
The major complaint I hear from REALTORS® about selling short sales is the lack of communication from the bank, and this has been the major complaint since short sales became commonplace. Many REALTORS® I know are now using the services of an attorney to negotiate with the bank, and their success has been noteworthy. Having the attorney write a letter on behalf of the buyer and the seller tends to have a very positive effect on the approval process. After all, “silence” can kill a deal as quick as anything I know, so why not give it a try? Good luck and let me know when I can help you in the future! Thanks for reading!
I am tired of hearing the complaining and griping about this Buyers Market. We have more opportunities than we know what to do with! A few years ago the griping and complaining was about the Sellers Market because there were not enough houses for the buyers we had. There is never a balance!! The market is what it is, but it does cause us some pause and is somewhat difficult to deal with if a person tries to employ the same skills and activities in a Buyers Market that they use in a Sellers Market.
Change is difficult for most people to deal with. In my opinion, we are dealing as much with an aversion to change as we are with difficulties presented by the current market. Every day I hear from someone concerned about the lack of business, and many confess that they just don’t know what to do anymore. They don’t understand Facebook, they have a website but never made a dime from it, their listings don’t sell, the sellers are crazy, and buyers are not loyal. They run ads that never get a call, and they hate Short Sales and REOs. Oh, almost forgot the BIGGIE: their computer skills are terrible and they need help. I’m getting sick writing this!
These problems are a perfect example of how life is. Life is a verb! It’s more than just breathing, eating and sleeping – it’s also learning, working, worrying, doing, loving, having fun, making money, and making a difference. Life is not about what happens to us; it’s about what we make happen. Here are some opportunities we have and ways to MAKE THINGS HAPPEN!!!!!
1. Learn The Technology! The #1 problem I hear over and over from people who Read the rest of this entry »