Short Sale for Cheese

An ongoing series, From One Agent to Another

Do you avoid short sales? I did. Several months ago, while working with buyers, I would avoid a short sale at all costs. Now, having a few listings of my own (short sales included) I am faced with the frustration of agents calling me to show a listing-then retreating once they realize it’s a short sale. So why should I be frustrated when faced with the real estate agent that I once acted like? I had a wake up call. I began to study our inventory and came to the startling conclusion that Short Sale listings are slowly beginning to dominate the market. I could continue to run from the fear of the unknown, or educate myself on the market that I am determined to succeed in.

So, I took some classes and asked questions. I have discovered companies who specialize in the short sale process. Here is a person (or company) that has made it their job to understand and master this process, the very process that is directly related to my own business. Although I have not yet read the book “Who Moved my Cheese” it is on my to do list. The premise is simple…how will you deal with change? Hide behind your familiar cheese and when you turn your head for a moment, only to look back and find your cheese is gone. If you do not embrace this changing market and learn that short sales are the new “cheese” you will soon be hungry.

Short Sales are not for all buyers, we all realize that. There is some risk involved, but usually it’s only an emotional risk. If you have a buyer that has no real time constraint on getting into a property (and that can tolerate the waiting game) there is some real reward in obtaining a short sale. If you are an agent working with a buyer, embrace the possibility of a short sale. Contact the listing agent, find out if that agent has obtained the sellers bank packet. If the agent does not know what that is, then skip it (we do face issues of listing agents taking short sale listings with no knowledge of the process). However, asking a few questions from the listing agent can truly put your fears to rest.

Have you contacted the loss mitigation specialist? Do you have a professional Short Sale company doing the negotiations in your behalf? Are there any other offers in and if so, how long ago were they submitted to the bank, and have you had any response yet? How close is it to going to auction?

Simple questions like these will allow an agent to gain perspective on the listing and insight into the short sale process.

It’s true, you can work hard for very little reward (not closing the deal) but any job has its challenges. Learn the process and do not avoid short sales. In the coming months, you may realize that a good 60% of your inventory (or more) in going to fall into a short sale situation. Accept change and follow the cheese, or remain in your comfort zone and risk starving.

Success in a Failing Market

Is it possible to succeed as a real estate agent, in the mist of a failing housing market? Absolutely! Not only is the ability to succeed possible, but also complete success can be achieved, and the chances for success can even be higher. How is this possible? Consider the McDonalds franchise. This little company began during the 50’s, which is historically similar to economic times of today. Okay, so they are not exactly real estate agents, but the strategy for success is similar. They were a burger stand in a time where burger stands were everywhere.

Two years ago, we were real estate agents when there were real estate agents everywhere! So where is the opportunity?

Consumer spending is down, credit standards are more stringent, home inventory is at a surplus, and the foreclosure bubble is increasing. Real estate agents are leaving the business in record numbers. How is this good news for the agents that remain in the business? Buyers will always buy homes, people are forever moving. The secret of success is to continue to be visible to these buyers, and make yourself standout. Creative ingenuity…like the multimixer of McDonalds.

I recently had a conversation with Bill from The Real Estate Book here in St George Utah. Due to the market downturn, he is unfortunately suffering the consequences of agent advertising and spending cut backs. In an effort to save money during these difficult economic times, agents are understandably tightening their wallets to save money. Although this theory is understandable, given the economic conditions, I believe it’s the wrong move. This is a prime opportunity to place yourself in front of buyers with far less competition. When real estate was moving, most agents were placing advertisements in every publication available, now these same publications are reduced to half of the advertisements. Good for me, I’ve continued to advertise and now the statistics receiving the calls is greater. In the past 2 months alone I have acquired 7 listings.

Website set up and enhancements are also a huge opportunity. If you have ever wanted to dominate your market, here is your change to gain huge amounts of momentum. Sure, fewer buyers are buying…but they ARE buying. If you are going to catch anything you must have your line in the water. The Internet also offers many free venues for advertising. Find them! If you are not Internet savvy, then now is your chance. Ray Kroc, a founding member of the McDonalds corporation is quoted as saying, “If you’ve got time to lean, you’ve got time to clean”. You now have this free time now with the slower market, get back to the basics: reach out to your sphere of influence, call on FSBO’s and expired leads, most importantly advertise…get your name out there. Now is the time to think outside of the box. Can you offer something that no one else is offering? Give something back to the prospective buyers-sure you may lose potential profits but what you will lose in one transaction you will gain profit in sheer volume. Most importantly, now more than ever, treat your clients with more care and respect. Follow up with past clients and listen to current leads. The agents that will achieve success are the ones that realize what makes any business successful…the Customer.  The agents who are maintaining success within this slowing market, are the agents who have always understood that without the Customer…there is no business.

Take advantage of the fact that you now have less competition.  It’s easy to win the race when you are the only one running.
Visit my website to learn more about the St George Utah area.  www.StGeorgeUTproperty.com