Short sales have become a major segment of residential real estate sales. As an old timer in the business (licensed in 1982), I know I held back on doing short sales for about a year until it was apparent that they were going to be a major part of the business for the coming years. Below are 5 reasons you might want to consider doing short sales:
- In our area, Reno and Sparks, NV, there have been 4355 residential sales this year (as of October 5, 2009). 782 of those were short sales, or about 18%. There are a total of 4273 active residential listings of which 2129 are pending. Of those pending, 1279 of them are short sales. (60%). So, statistically it makes sense to do short sale business.
- I have always believed that a Realtor’s focus should be on doing the best they can for home sellers and buyers. A short sale is often the best alternative to foreclosure. Yes, there is damage to your credit. According to national experts, after a short sale, a person’s credit will go down by about 300 points and prevent them from buying or using a government backed mortgage for up to 24 months. With a foreclosure, the credit is damaged for up to 4 years preventing someone from obtaining a government-backed mortgage. A short sale is just better for the owner.
- We are helping the neighborhood. Getting a property sold by a short sale might save the property from sitting empty for 6 months to 2 years waiting for the home to come on the market with the lender. You can drive in any neighborhood and see homes that are awaiting coming on the market with the banks. We can literally help “save the neighborhood” when we expedite a short sale.
- Most of the time the owners facing foreclosure have been through hell. They did not want to loose their home and they are ashamed. They should not be. They should not be and we get the opportunity to assist them. We do not give legal or financial advice but we are obligated to help them dispose of their property. If a short sale seems the best, then there is satisfaction knowing you have done your very best for your client.
- We are in very difficult times. It is not for me to blame the banks, insurance companies, government or real estate buyers or sellers. Short sales are part of the solution to the problems owners are now facing. I find it rewarding to be a part of the solution. I thing most Realtors feel about the same. They are just in the business of helping buyers and sellers. Short sales are a major part of the industry. Who knows what tomorrow brings. We change with the times and will tackle the future as it unfolds.
David has been a licensed Realtor since 1982, selling over 2,000 residential properties during that time. In 2007 David started specializing in selling REO assets and short sale properties. He is a native of Nevada and lives in Reno with his wife Shaun (a barber for over 35 years). He has a daughter and 2 granddaughters.
Executive Member REO Masters Network
Member of RECyber Society
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