Everyone in the real estate business is in the same boat. With the exception of foreclosure attorneys, this troubled market has taken a bite out of anyone who makes their living from real estate. A number of mortgage brokers have shut down; numerous agents have taken second jobs or left the real estate business all together. Visit http://www.ml-implode.com, this site tracks the national mortgage companies that have closed shop.
How does one continue to make a living in the current real estate market? The simple answer is Foreclosures. Not bank or corporate REO’s but foreclosures. I’m talking about the front end of the deal, months before it becomes an REO. If you have not already made the adjustment from a “sellers market” to a “buyers market” you need to do so soon. Short sale, distressed, foreclosure and pre foreclosure are the terms now used to describe the current market. It seems like everyday there is a news report detailing the falling real estate market.
Is there a more “truly motivated” seller than someone currently in foreclosure? You can certainly find singular situations where a seller is very motivated however as a group there are none more motivated than those in foreclosure. Not only are these homeowners motivated, they are reasonable. They are in trouble and need the advice and expertise of a realtor. Get to them sooner rather than later. Don’t wait until the home is scheduled for sale, get to them at the beginning of the foreclosure process.
Many people in foreclosure owe the mortgage company what the home is worth, if not more. This does not change the fact that the home is going to be sold by someone at some time in the near future. This will happen as a short sale, at foreclosure sale or as an REO. Eventually these homes are going to be sold. Are you going to be the one who determines how, when and collects that little thing at the end called a commission. Don’t currently work with owners in foreclosure? Might be time to start. Don’t know how to do short sales? Might be time to learn. Yes, short sales can be difficult and time consuming. Everything has a learning curve. The reward is there if you will put in the time.
Most real estate offices have at least one agent that knows short sales. An agent who has spent the time to learn the process and knows how to deal with the banks. An agent who now gets phone calls from the bank asking “we have a borrower in trouble, can you please give them a call”? An agent that is closing deals and collecting commission checks.
A huge group of motivated sellers and banks willing to take a discount to get the “troubled loan” off their books. Sounds to me like Opportunity.
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