When is this market going to recover?
Friday, December 7, 2007 10:31 AM
It seems that most real estate professionals are asking themselves this question and even more banks and lenders are asking the same thing. I have searched high and low and no one has a crystal ball that works. So, instead of worrying about when the down market will end, I have changed my attitude and looked at ways of coping with and thriving in this market.
The question I asked myself was, "How can I help the most people in this market and how can I thrive instead of just 'get by' while things are slow?"
The answers I have come up with are:
1 - Create an incredible system for becoming the top buyer's agent and get qualified, ready to buy cleints to call me.
OR
2 - Create a system for acquiring all of "The Lowest Priced" listings in your area.
Now, in most cases and in my part of the country, in order to get a lot of buyers, I have found that having a ton of low priced listings does just that. I looked at the lowest priced listings in my area and saw that ALMOST ALL of them are short sales or REOs.
If you have been in the business long enough, you know that getting a lender to use you as their REO agent/broker is like parting the red sea (it can be done, but takes a lot time, preperation and faith : ). I don't want to do hundreds of BPOs for $50 bucks to end up getting a few REO listings in 12 months, I want business now!
I found that most of us hate short sales, and for good reason. They can be hard to get processed and accepted by the lender that is taking a loss (and even more fun when dealing with 2 lenders in a first/second loss scenario). However, I don't believe that the lender is entirely to blame for most failed short sales.
Lender's are swamped with requests to modify rates, terms and short sale properties. As an agent processing a short sale, we need to be PERSISTENT! I found that even that is not enough and went so far as paying a "short sale expert" to train my office of agents. We wasted thousands of dollars and months on a novice who had limited real world experience, but was great at convincing us to part with our money : )
Seeking out and inviting to lunch a 'senior loss mitigator' from a top 5 lender was what really helped me to 'crack the code'.
Over a Rubio's fish burrito, we chatted and this loss mitigator taught me 3 keys to beating the bank. (These were 3 techniques that the best agents had used to beat him, a lifelong asset manager and loss mitigator with 20 years industry experience)
The things he taught were simple and easy to implement, yet most agents have never done them and never do, even after I share them. Six months after that meeting, I have a system in place to automate marketing, listing, selling and negotiating the short sale.
I urge all agents that are struggling to get in the short sale game. Change your perspective and expectations and you will not be frustrated. In terms of getting the listing, the field is TOTALLY LEVEL. The bank doesn't decide who lists a house prior to foreclosure, the homeowner does. In most cases the homeowners are just looking for someone to relieve their stress and they don't care how much the house sells for.
As far as your skill at getting it sold FAST and negotiating with lenders; that is where you may need some help. What if you could talk to a senior loss mitigator and get all of that "inside the bank info"? Would that give you the 'upper hand' to rise above that 'level playing field'?
By the way, I mentioned getting buyers to call you in this market is one key to success. Just this week, one of the folks that grabbed a flyer from one of my short sale listings was one of those "buyer's without an agent". She has $200K to put down and is well qualified and eager to buy. She didn't care for any of my short sales, but we went by a local builder's sales office and she has found the perfect home for her. So, from Friday's phone call to today, Monday, I picked up a new buyer, because of my short sale listing and that will translate into $13,800 next month.
Not a bad 3 days work in this 'down market'.
11 Comments
Jose Fonseca said...
Dec 10, 2007 6:06 PM
Is a Line of credit personal such a Helloc. Do I get 1099 or Do I have to pay it all if I go into Sort Sale.
Dean Carlson said...
Dec 14, 2007 12:55 PM
Trent, I appreciate you on those calls and the information you provide. What are the 3 techniques you learned with lunch and the Sr. loss mitigator? Thanks again
Diane Beall Templin said...
Dec 19, 2007 12:02 PM
How do I find qualified buyers? Most think the market will go lower & they are waiting or don't qualify without stated income
Paul Ogden said...
Jan 16, 2008 2:59 PM
What are the techniques to convince a lender to agree to refrain from reporting the deed in lieu or short sale to the credit reporting agencies on the debtor's record?
Gary Lee said...
Jan 22, 2008 3:47 PM
On a short sale can you negotiate with the second lien holder, to take $5,000. 00 and leave the first in place and have a new buyer take over the first loan?
yvette sanchez said...
Feb 7, 2008 2:34 PM
Can i list a house for sale during the 2 week process and mention that the house is in foreclosure and that we are taking bids so that we may present the bank with the best offer? is this legal?
Frank Mendivil said...
Feb 22, 2008 11:52 AM
On an investment property in Arizona, what are the chances of the lender coming back at you for a deficiency judgement?
Mike Allen said...
Mar 6, 2008 7:17 AM
My realtors are telling me that banks on a short sale or requesting 35% referral fee back to them!!! what is this all about? 2ND QUESTION HOW DO YOU GET THE BANKS TO SIGN OUR IN STATE REAL ESTATE FORMS THEY ONLY WANT TO SIGN THEIRS?
Thomas Ieracitano said...
Mar 10, 2008 5:36 AM
I could not agree more. Well said, seems I just missed your event in Orlando!
Zoila Sanchez said...
Mar 14, 2008 2:09 PM
What are the answers to all these great questions?
Mary Randle said...
Apr 29, 2008 10:10 AM
Please send me info on your seminars - cost, etc. Thank you.
