Real Estate Short Sale Strategy

Increase Your Income With Short Sale Strategy By Donna Robinson, TREA Director
In todays market, with foreclosures reaching record highs, and many sellers owing more money than their property is even worth, it is time for a strategic change in business strategy.

With a fundamental situation that presents us with literally thousands of properties being "dumped" on the market with each passing month, and most of those properties having little or no equity, it is getting more difficult to sell any properties for full value.

Listings are sitting on the market for months, and many of those listings on which we have spent valuable time and effort are going into foreclosure, leaving many agents with less income and no way to sell their listings for what the seller actually owes.

Anyone may negotiate a short sale. You do not have to be licensed to negotiate with a lender or bank. You merely need to follow the specific procedures necessary to complete a successful short sale.

But this situation is creating a need more than ever for agents and brokers to understand how to use short sales to help their sellers sell and their buyers buy. If you are an agent you can use short sale strategy to save your listing commissions and help homeowners avoid foreclosure.

Short Sale means getting the lender to sell a property for a discount below the amount the owner owes for the property. With the growing number of foreclosures, more and more lenders are having to resort to short sales in order to move inventory that cannot be sold for enough to cover the payoff.

We are seeing more short sales and hearing incredible stories from around the US about short sales in some areas where the lenders are discounting properties by as much as 30 to 70 percent! This results in a very profitable deal when done correctly.

Whether you have overpriced listings that aren't selling, investor clients who want the best possible deals, or you are representing aspiring home buyers who want a good buy in a personal residence, short sales could be your ticket to more production in a slowing market that still has a long way to fall before things start to improve.

But short sales require a certain amount of expertise, not to mention specific forms, letters and procedures. You have to know what you are doing. But if you do, you can create opportunities for your clients by getting discounts amounting to tens of thousands of dollars, that can turn "no sale" into a great opportunity for your clients.

If you are also an investor you need to know how to use short sales strategy to add bigger equity spreads to your own investments. Buying at a discount will help insure strong positive cash flow on rentals, with higher equity spreads. It's the "safe" way to go in an eroding market.

But the trick is, how to get this crucial information without spending $1000 or more on a seminar or course? They are out there - anywhere from $500 to more than $1500 for information on what will surely be the hottest buying / selling strategy of 2007-2008

But we at TREA have been working on a very cost effective solution for you. If you are serious about making money in real estate in 2007, you absolutely must know how to execute short sales in a professional manner.

I am currently using this same short sales process to help increase my personal production as an agent to help sell overpriced listings, as well as help my investor buyers find better deals and I am confident short sales can do the same for you too.

There is no need to languish in this market - you must adapt to the changing market conditions with strategies that take the fundamental market conditions into account.

I predict that this market will continue to worsen for months to come, making short sales even more necessary than they are now. By 2008 the banks may be desperate for any way out possible.

Because of the obvious need for this strategy, I am very happy to announce that The Real Estate Arena is recommending a new and timely course called "Short Sales Short & Sweet", written by Real Estate Broker, Marie Whitton. Marie is my personal real estate broker. Together we use short sales to increase production for both sellers and buyer clients.

The course is easy to read, and designed to help you get up and running with short sales as quickly as possible. And frankly the price is so low that it's a "no brainer" for those of us who want to adjust our strategy to take advantage of the market conditions.

If you are looking for ways to make more money in a tough real estate market, this could be your ticket.

Short sales help homeowners avoid foreclosure, and it may be the only way to make a particular deal work for an investor or home buyer. In todays market short sales are a timely and important strategy to have in your toolbox.

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