In 2007, I came to the forgone conclusion that short sales and listing short sales was a goldmine. That is, the short sale listing is a great source of income for any Realtor® working the distressed property market.
Here are the top 5 reasons that short sales are still a goldmine in 2012:
- Easy listings to take. Short sale listings are easy to take because in most cases the purchase and list price are not a big topic of conversation in the listing appointment. Since the short sale seller will not net any money (except perhaps for relocation assistance), this takes the short sale listing appointment in a different direction then in previous years.
- Commission is a non-issue. Since the seller does not pay the short sale commission and since the commission comes from the sale proceeds and is approved by the lender, the conversation about the commission is a moot point during the listing appointment. Back in the day (read: mid 2000s), sellers always concerned themselves with commission because it would impact their bottom line. That’s not the case anymore.
- Fuel Your Real Estate Career. If you are a collector of data and you keep up with your sphere, you should be able to leverage your short sale listings and closings into significant real estate business over the next several years. Seek referrals from short sale sellers for other short sale sellers, and help short sale sellers and their friends to buy in the future. Helping someone who is facing tough times will pay it forward tenfold.
- Outsource and create a plan. Times are tough and many agents are cash poor. If you can see past your next closing and spend your time in the field doing what you do best (listing and selling property), then you will always be putting new deals into your pipeline. Don’t waste time on decisions and activities that can be done by others. President Obama does not make trivial decisions about his meals or his attire. He focuses on other things. You should also let other people do your dirty work while you focus on creating more business.
- Lots more to come. According to Barclays Capital and the Wall Street Journal, at the end of May of 2012, there were 3.25 million loans in default. Do you know what that means for your business? Lots and lots of people still need your help today.
So, think big and quit fixating on the minutiae. Focus on obtaining as many short sale listings as possible. The success of closing a short sale can be a goldmine in so many different ways.