I recently spoke with one of the top luxury residential real estate agents in the country, who expressed total exasperation with the fact that her transaction volume plummeted from 50 million in 2006 to 7 million in 2008.
When asked how many of her transactions were short sales or foreclosures, she informed me that she has not participated in one such transaction. Given the fact that in most luxury markets around the country bank-owned and short sale properties represent over 50% of all closed transactions, it is easy to see the problem.
If you are former top producer searching for strategies to get your business on track, follow these steps:
1. Proactively seek short sale opportunities, as the pool is only getting bigger.
2. Develop a partnership with a competent local real estate attorney who is well versed in short sales.
3. Have your title vendor run a title search before each initial listing appointment.
4. Obtain copies of each listing client’s most recent mortgage statements to know the hurdles and severity of the issues you may encounter.
5. When you secure a short sale listing, prominently display that aspect in your advertising. Buyers want to know they are working with a seller who will accept market value.
6. Guarantee a full co-broke to cooperating agents even if it means you will take a lower overall percentage.
7. Once under contract leave nothing to chance, and manage the deal on a daily basis until closed. Absorb as much knowledge as you can about the process from the lender’s negotiation team, and develop relationships that may be of further benefit in the future.