Short Sales Bottoming Out? - Seriously?

By
Services for Real Estate Pros with Great Lakes Home Solutions, Inc.

I'm starting to see a few articles in the news lately that short sales are starting to bottom out.  Many of our optimistic Inner Circle and Elite REALTORS® have suggested the same thing.  My response?  "Are you serious? In Michigan?"

I just searched both West Michigan MLS systems and found 1,166 active short sale listings.  What's that as a percentage of active listings?  It's a little over 11%. To me, the best indication of the trend for short sales is the default rate.  According to this recent article (where I got the following graph)

Loan Pileupthe default rate has growing rapidly.  At the current pace, about 5% of Freddie's loans, 6% of Fannie's loans and 10% of all loans will be in default over the next 12-18 months.

Michigan continues to be hit the hardest.  RealtyTrac® is reporting Michigan at #8 in the country.

What does this mean for you as a REALTOR®.  If you're going to continue to survive in the next 24 months in this business, it's time you learned how to effectively work short sales or delegate it to someone that has already figured it out.  The sooner you do, the better.  Why?  Because the sellers that you work with and sell their short sale houses will be your best word of month advertisement.  The testimonials we see at closings are amazing and will lead to significantly more business for you for years to come.

Are you interested in becoming a short sale magnet? Give me a call - I'm happy to help.

Dedicated To Your Success,
Joel

Short Sale Negotiations: you earn FULL COMMISSION and no fee to buyer/seller - www.GreatLakesShortSales.com

Comments (5)

Corey Chase
Silvercreek Realty Group - Meridian, ID

This next year will be a lot of those home owners that did pay option arms.  So we will see another trend of people putting their homes on the market and of course it will be a short sale.

Mar 06, 2010 12:43 AM
John Ryan
Century 21 Alliance - Havertown, PA

I really think it depends on where you are located.  Being in a market, South Eastern Pa, that didn't see the large swings in prices that some of the country did we definitely see the shorts sales as huge obstacles.  I have made friends with an attorney who is happy to deal with these transactions, and I am happy to pay him to do so as there is too much time involved and I am finding that an attorney gets better results as they talk with the banks attorneys directly. 

For my investors I am finding it is better to wait til the bank forecloses and they get off of their third party approval hang ups.  As a Realtor I think the bank once again makes many of the same mistakes they made in the first place with short sales.  Time to unload the dead wood!!!

Mar 06, 2010 12:50 AM
Bob Willis
Berkshire Hathaway HomeServices California Properties - Orange, CA
Orange County & L.A. County Real Estate Agent

Your headline said it all.  We have a long way to go to get through all the underwater homes.

Mar 06, 2010 01:38 AM
Stephen Arnold
HomeSmart Elite Group - Scottsdale, AZ
CRS, GRI, SFR

Hello Joel!  We have over 9K active short sale listing right now in Arizona!!  It is not bottoming out and more homeowners are becoming aware of their options!

Mar 06, 2010 02:12 AM
Steve, Joel & Steve A. Chain
Chain Real Estate Investments & Mortgage, Steve & Joel Chain - Cottonwood, CA

Joel,

I can't believe banks are going to set on their hands this year.  I also don't think the Treasury will cease making "recommendations" to lender/servicers on workouts.  No matter there will be plenty of real estate listings to go around and a certain number of SS's will be part of that. JMHO

Steve

Mar 06, 2010 02:53 AM