The other afternoon several of us were discussing the future of the real estate market and the various predictions for 2009 were all over the board. There doesn’t seem to be a consensus on the turnaround date but everyone agrees that it’s going to get worse before it gets better.
As we discussed the best way to approach the market someone mentioned a video clip they had seen on MSNBC that was part of an interview with housing analyst Ivy Zelman (CEO, Zelman & Associates). When I watched the clip a couple of comments she made really caught my attention:
· … we're expecting a tsunami of short sales and foreclosures over the next several years.
· … we think those modifications will fall short, unless there is something more dramatic done, like nationalizing the mortgage industry.
That second one really gave me pause as I reflected on her comment about “nationalizing the mortgage industry” – not what we need. However, in her first statement there is a real opportunity for those who have made the decision to move into the Short Sale niche.
Ivy feels that people are putting a lot of “hope” for stabilization in President Obama but her research indicates that 2009 will be worse than 2008 and 2010 depends upon how deep we go in 2009. She commented that as of January the national foreclosure rate stands at a rate of 4.9% and it will deepen during the year with housing prices off by 20% to 30%. You can see the short interview here.
If she were just one voice out there we might dismiss it as overly pessimistic but there are many others reflecting the same opinion. So that sort of puts a fork in the road for real estate professionals. Do you take the left fork that leads to sitting on the sidelines and see if you can wait it out or do you go to the right; the fork to action?
In this industry there has always been an opportunity to overcome adversity. Those opportunities have been there over the years in both buyers’ and sellers’ markets and the top agents have always grabbed them; viewing adversity as an opportunity. I can’t see why this moment in history is any different. There are thousands of homeowners out there that are facing the greatest financial difficulty in their lives and they desperately need someone to help them sort it all out.
Is the Short Sale the answer? Not always. However, the option needs to be explored and the average homeowner out there isn’t prepared either mentally or emotionally to answer the question. Let me suggest that whether or not you can assist them with a Short Sale your investment of time in helping them sort things out to find their best option is what being a professional is all about. Whether or not you choose to work in that market niche, if you are going to provide valuable service to your customers you need to understand the process, the options and the pitfalls. It’s all about putting the customer first.
It was reported that a record 1 in 10 American homeowners with a mortgage were either at least a month behind on their payments or in foreclosure at the end of last September as the source of housing market pressure shifted from risky loans to the struggling economy. That means there are many homeowners in your market that are desperate for advice and you need to be their resource. Now is the time for the brokers and agents in our industry to step up and take their place as true professionals.
If you don’t have the background you need concerning Short Sales you may want to consider the Certified Short-Sale Professional course from RealtyU. Even if you are not interested in working in that market niche you need to understand the process and be able to intelligently discuss it with your customers to get them on the right path. You can learn more about the course and the CSP designation by visiting www.cspdesignation.com. This is a great time for all of us to rise above the crowd and be the professionals we have always aspired to be.
