Everywhere you look their is somebody speaking about a Short Sale!  Simply stated I am going to give you in this blog post everything you ever wanted to know about short sales.  Why you may ask?  So that you can be successful in short sales - whether it be to purchase them for investment, as your own home or to go out and be a real estate agent that specializes in short sales.

How viable are short sales and can you make money on short sales?  Well according to the National Association of Realtors the following are the statistics:

•   54% Involved in a short sale in the last 12 months

•   87% Faced impediments by lenders or loan servicers

•   94% Cited lack of response by lender or servicer as a chief impediment

Source: NAR Research, online survey of 3,530 practitioners

1) Due to me not knowing what your level of knowledge is for short sales I want you to first watch this webinar conducted by Freddie Mac on short sales.  It is a very simple explaination on short sales, and I will be honest the guy who is speaking can be boring, but he does a good job of explaining the basics of both short sales and the process.  It is made for real estate professionals, but really it is for any individual.  Here is the webinar

2) So you want to understand more about the process and what occurs from the beginning to end?  NAR just came out with this great document which does a good job of explaining what can occur throughout the process.  I would strongly suggest downloading and reading through it from beginning to end and understand this document.  Short Sale Process.pdf

3) Are you confused as to what should be put into a Short Sale Package?  Well you are going to love me for this.  I want you to download the following handout.  It explains everything you need to know about what to have in the package as well as dealing with the short sale.  You have to have this handout to do a short sale!  Short Sale Package.pdf

4)  Want a Successful Short Sale Letter!  Here is the one that I used successfully that allowed my client to do a short sale with no issue! short_sale_letter.pdf

Have tons of fun with these downloads and please email me at psingh@rempower.com if you need anything!

I will look forward to seeing you all in a future workshop!

Thanks so much

Prabhjit Singh

Psingh@rempower.com

The truth of the matter is that there are more properties on the market, fewer buyers, and prices continue to drop due to foreclosures. As a real estate motivational speaker, I speak to thousands of real estate agents and the number one question I receive is “So how do I sell a house in this market?” The way a house gets sold in this market is exactly identical to any previous market, and they are the following:

1) Pricing the property for the market: This is by far the most important decision a seller needs to make to sell a house. No matter what the problem with the house, if it is priced right it will sell. If on the other hand the property is not priced appropriately, statistically speaking, it will stay on the market longer and sell for less than if it had been priced right in the beginning. So, how do you do it?

a. Work with an agent that has access to the MLS system
b. Pull properties that are in closest proximity and are similar in age, square footage, number of bedrooms, and bathrooms.
c. Pull properties that are currently active, sold, and under contract properties.
d. Only look at the above type of properties within the previous 6 months.
e. Once you have found the competing properties, list your property a bit lower than the lowest priced competing property. The reason you do this is so that you can have the most amount of offers, and therefore sell your property in less time and get the best price. Buyers, in general, first put offers on the properties with the lowest list price within a category of properties and then work their way up.

2) Great Curb Appeal: It is vital to have the exterior of the property looking its best, so that when individuals are driving by or coming to look at the property they are automatically attracted to the property.

a. First, make sure that any plants that any potted plants that are currently dead due to the winter have been brought inside
b. Second, make sure that the sidewalks and the front of the property have been properly swept
c. Third, assure that all leaves have been raked from the lawn
d. Fourth, repair any railings that are currently broken

3) Great Interior Appeal: make sure the interior of the property is in move-in condition. Currently, there are quite a few properties are in a horrible mess from the inside, and yet individuals are wondering when they are going to get sold! People fall in love with homes that are clean.

a. First, make sure that the property is sparkling clean
b. Second, de-clutter the house – take as many knickknacks and tons of furniture out of the house.
c. Third, take your personalization away – take the items out of the house such as pictures of the family, leopard skins, and anything that makes it you.
d. Fourth, try to use colors in your house that are accepted by a majority – whether it be on your walls, your carpet or the furniture you choose to keep there.
e. Fifth, if there are appliances or items in the hose that need to be repaired or replaced, go ahead and repair or replace them as purchasers generally cannot imagine how it will look in the future.
f. Sixth, make your house feel like anyone would want to move in and live in your house, similar to a model home at a new home development.

I get this question in my classes all the time. Agents tell me about clients that don’t want to purchase, and they are scared about the market. They tell me about clients that they have shown a ton of houses to, but they are too picky. They tell me about clients that should be motivated to buy, because they need a place to live and are already selling their house. So they ask - how do we sell a house to them?

The truth of the matter is that what we as real estate agents do is not sell houses. The buyer either wants to buy or not buy. What we do is facilitate the process - so it is smoother and in the best interest of the buyer. We use all of our knowledge and experience to educate the client throughout the process, so in that way they make the most educated decisions they can. At the same time, we inform them of everything they will need to do so that there are no surprises.

So if we don’t sell houses to clients, how do we get them to buy? You don’t. What you do is determine if they are interested or not. Certainly there are ways to overcome some of the objections that they have, but at the end of the day the agent should never try to sell the client on the house. Why? This generally comes off making the agent look bad. It seems as though the agent is only interested in their own best interest. You advise the client what they should do based upon all of their information. When you speak to the client get to know everything you can about them. What is their family, job, life situation? What is the reason they want to buy a home, and specifically now? Only if you look at the client in a full picture will you be in a place to advise your client as to what they should be doing.

So how do you overcome objections then? Overcoming objections are pretty simple if you are strong and do not waiver. Simply stated you look at what they are telling you, and you change the view and give support. For example, if they say they are looking for a property that is the cheapest house you need to help them define what cheapest house means. If they are currently renting, and they live in an apartment for 5 years looking for the cheapest house, how cheap is that house when you add all the rent that was paid out? As well, how many houses really fulfill the desires of the buyer? There are very few. The best house and cheapest house is the one that fulfills their needs. Of course the agent will be there to help the client negotiate and get the best price possible for that house.

You need to be strong when you have clients that aren’t sure of what they want. You need to be able to overcome the objection, and then step back. Allow the buyer to tell you what they think based upon what you have told them. Allow them to make that decision for themselves, so they do not feel like they have been pressured. At the same time, if that client is just wasting your time you need to be able to say - no! Do not be mean and arrogant about it, but be honest about how you make a living and that this is not working for you.

In the long run the agents that are most successful are those that understand how to gauge their clients. They understand where they are coming from and they get them ready to buy a house by maintaining their expectations. They then educate them throughout the process so they make the buyer make all the decisions. By doing this it allows one to really become a great real estate agent.

This is a different post then any of the previous ones which I have written before.  Why?  Unlike the other posts which were about law, this one has to do with a skill that I believe every real estate must have.  To be a good real estate agent means to know how to listen.  Listen how you may ask?

First, a individual must understand how to listen to their gut.  Your gut does not lie to you - it tells you the truth.  If you meet a client and it seems strange, either an unsafe situation or that you have a nonmotivated seller/buyer your gut will will tell you.  You also have to be able to listen to what they are saying, behind what is coming out of their mouth.

Second, one has to trust what they are listening.  Your instincts do not lie to you - no matter what anyone tells you.  Determine if they are really serious or not - if you know they are not you have to have the guts to say “No thanks.”  Being able to say no by far is the largest lesson any real estate agent can say.

I will talk to you all soon - please keep an eye on this blog

Please email me with any comments/concerns/questions at info@rempower.com