Come on In...The Water's Fine!

By
Services for Real Estate Pros with Wilde Law Firm, PLLC

So there is an impression among some of the populace that our economic troubles are over, the real estate market is back on track and all of the distressed properties have been taken care of. We all know that none of these assumptions are true.The Federal Reserve is still pumping money into the economy to keep it up, the real estate market is limping along and there are still an enormous amount of distressed properties that must be dealt with.

 

The interesting thing that I have observed is that there are a growing number of agents that are saying they stay completely away from short sales now. As we have discussed previously, short sales can be difficult even if all “8 Steps of a Successful Short Sale” are followed and near impossible if they are not. So, I get it……I just don’t agree that this is a wise position to take. Let me explain.

 

In most areas in North Carolina and South Carolina there has not been a dominant agent in the short sale market. Now that short sales are a smaller part of the overall real estate inventory (but still 15%!), agents are leaving this space in droves. With this trend there is not only a lack of dominance but there are even fewer agents remaining in the pool to compete with. What an opportunity! **

 

There is a book called Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant. [1] Blue Ocean Strategy suggests that an organization should create new demand in an uncontested market space, or a "Blue Ocean," rather than compete head-to-head with other suppliers in an existing industry.[2] In other words, swim in a blue ocean full of opportunity rather than the crowed red waters made bloody by the vast numbers competing for the limited numbers of Sellers. The author uses Cirque du Soleil as a prime example. They are a circus but they don’t care what Barnum and Bailey does because they have created a new product with a completely different clientele. What Barnum and Bailey does is irrelevant to the success of Cirque du Soleil. So when an agent tells me that they avoid short sales, what I hear is that they would rather compete with all the agents in their market for a share of the “normal” sales as opposed to competing with very few agent in this wide open area.


Short sales can be annoying. However, with the correct understanding of the rules and requirements, the right team in place (i.e. short sale attorney that has a clue, hint, hint) and some patience, a short sale can work for all parties…and it usually comes with 6% commission like the other properties.

 

Remember, every foreclosure is a missed short sale opportunity. Be safe out there.

 

**Watch my new YouTube video on short sales for a laugh. Warning: Uncensored (Mostly), but watch past the credits. https://www.youtube.com/watch?v=8XGitdLx4yI

 

 

 

[1] Kim, W. Chan; Mauborgne, Renée (1 February 2005). Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant. Harvard Business Press.

[2] "Blue Ocean Strategy Overview". Flevy. Retrieved 20 November 2012.

Comments (0)