For better or for worse, the current state of the real estate market has created a niche for real estate practitioners: the short sale. Between flat home prices, home-equity credit lines, 100-percent financing, and falling interest rates, shorts sales are on the rise. By the end of 1st quarter 2011, they made up more than 19 percent of sales nationwide.
The challenges involved in buying and selling short sales can be intimidating for real estate professionals and their clients. But given their rapid growth, it’s just a matter of time before these distressed sales affect your business. For some professionals, short sales and foreclosures have become the new normal. Make sure you’re prepared for this market trend with the extensive resources offered on REALTOR.org.
Here’s an overview of this housing market phenomenon:
- A short sale occurs when the seller’s mortgage lender agrees to accept a payoff less than the balance due on the loan.
- Short sales are far more widespread in certain areas of the country, where home prices have dropped significantly in the last two years.
- Among the challenges REALTORS® face when handling shorts sells are hard sells by lenders, aggressive investors who try to game the system, salespeople who encourage buyers to make offers on several short-sale properties, and ineffective third-party negotiators.
- The NATIONAL ASSOCIATION OF REALTORS® offers the SFR certification to provide professionals and their clients with the confidence to manage these tricky transactions.
The REALTOR.org Field Guide to Short Sales features many articles covering short sale basics, information on how to work with short sales, as well as links to eBooks and other online resources. The collection of articles, videos, eBooks and websites make it the most comprehensive site on the Internet for real estate professionals.
Your membership with the NATIONAL ASSOCIATION OF REALTORS® offers you access to these resources and many others. Our training and instructional materials will ensure your business stays a step ahead of the trends, whatever they may be.