One of the things that I love and appreciate about the Training Program and Management support here at Seven Gables is all the brainstorming that takes place.

After a recent meeting we were discussing wins, struggles and shifts in the market.  One thing that we all noted was the challenge of getting an offer accepted on a short sale or REO.  

We're also seeing that a listing, even after being on the market for over 200 days with no offers and no activity, in the last few weeks now have had a flurry of activity with buyers running rampant and flooding the REO agent with 50 offers in a 3 day period. 

What's even more challenging is that the 50 offers already in place are SIGNIFICANTLY higher than asking price.

What does this mean exactly?  It means that real buyers are out there looking for a great deal. Are there such deals to be had?  Of course, but it is up to us as Real Estate Professionals to guide our clients in the process. 

Set your clients up to win by having clear, concise conversations.  Tell them the truth about what is happening in YOUR area. 

For example, in the past it was not unheard of to close an escrow in 30 days.  These days, with so many REO's, First Time Home Buyer Tax Incentives, AND interest rates so low, people are not only buying homes for themselves or as investment, but people are actually refinancing to a lower rate (4.35% for some). 

This leads to lots of applications! Keep in mind that the past several months, some mortgage companies have let go of underwriters, etc and were planning to survive with a skeleton crew. These days, they can't hire them back fast enough!  There is a definite strain on the mortgage industry to perform responsibly.

REO sales would like to close in 30 days, and even charge the buyer a Per Diem (sometimes as much 150.00) regardless if the delay is due to "Sellers Fault".

So what's a saavy agent to do?  Explain to your clients what they can expect.  Explain to them when you write on offer on a short sale or REO lisitng what REALLY happens. Explain to them that they can be  responsible for a Per Diem charge if they don't close in 30 days, EVEN IF YOUR CLIENT PERFORMED!

There are new rules in this Real Estate Market...Make sure that you know what they are and that you have the managment and team support to help you navigate the waters!