Why walk away??
I work with many agents who will tell me that they walk away from listings when there is a high probability of there being a short sale.
They are walking away from business, leaving money on the table, so I am prompted to ask, “why?”.
This is what they tell me:
#1- I don’t understand how short sales work. It is too confusing.
#2- I don’t want to work all that time and have my commission lost in the expenses at the end.
#3- Short sales take too long.
#4- I sold one once and it was too frustrating.
WHY LEAVE MONEY ON THE TABLE?
Now, of course, we would ALL prefer to sell a ton of traditional real estate, but in this marketplace the odds are very high that you will be called in to evaluate a short sale. Since we can all agree that short sales are here to stay for awhile, doesn’t it make good business sense to learn how to work with them?
To answer these most mentioned issues above:
#1- Educate yourself about short sale process. There are great resources on the internet or ask an attorney who works with them to meet with you for a primer.
#2- There is a small chance that your commission might end up reduced at the end of the transaction. Much of this depends on your broker’s stand on payment of commissions and how hard they bargain with the lenders. Even when the commission is reduced, isn’t a reduced commission better than none at all?
#3- Short sales can take longer. Not every short sale will, but it is common. Prepare your seller and the buyer or buyer’s agent with reasonable timelines handed down from the lender. Keeping everyone informed will afford more patience in the transaction.
#4- If you were involved on the buyer side of a short sale and didn’t understand the process, I am sure you were frustrated. Education is key here.
It is a good idea to have a short sale attorney involved from the very beginning of the listing process. Massachusetts Attorney Nyles Courchesne offers this tip to real estate agents working on a short sale: “I would suggest that Realtors gather the usual requirements (2 years’ tax returns, 12 months bank statements, last two paystubs, hardship letter, etc. . .) before the property is sold so that we are prepared to submit the entire package without delay when we have a contract.”.
Realtor.org has a wealth of information for agents needing assistance in short sale training.
Realtor Magazine has covered the topic at length, as well. This is a helpful article about disclosures in short sales.
The Huffington Post is weighing in on the topic with Dispatches from the Displaced.
NAR posted this helpful short sale flyer with good information about the work NAR is doing with lenders.
I wrote a post called Short Sale vs Short Payoff with a link to an e-book that explains a lot, too.
This is just a drop in the bucket of information that is out there for agents and sellers who are facing the realities of short sales. There is an opportunity out there for agents to specialize in helping people out of this distress. The business is out there, the sellers need help and you are perfectly suited to give them the guidance and care that might save them from foreclosure or huge personal loss.
Boomers retirement may be the true reason behind the labor shortage
(ECONOMY) Millennials and Gen Z were quick to be blamed for the labor shortage, citing lazy work ethic- the cause could actually be Boomers retirement.
In July, we reported on the Great Resignation. With record numbers of resignations, there’s a huge labor shortage in the United States. Although there were many speculations about the reasons why, from “lazy” millennials to the number of deaths from Covid. Just recently, CNN reported that in November another 3.6 million Americans left the labor force. It’s been suggested that the younger generations don’t want to work but retiring Boomers might be the bigger culprit.
Why Boomers are leaving the labor force
CNN Business reports that 90% of the Americans who left the workplace were over 55 years old. It’s now being suggested that many of the people who have left the labor force since the beginning of the pandemic were older Americans, not Millennials or Gen Z, as we originally thought. Here are the reasons why:
- Boomers are more concerned about catching COVID-19 than their younger counterparts, so they aren’t returning to work. Boomers are less willing to risk their health.
- The robust real estate market has benefitted Boomers, who have more equity in their homes. Boomers have more options on the table than just returning to work.
- Employers aren’t creating or posting jobs that lure people out of retirement or those near retirement age.
As Boomers retire, how does this impact the overall labor economy?
According to CNN Business, there are signs that the labor shortage is abating. Employers are starting to see record number of applicants to most posted jobs. FedEx, for example, just got 111,000 applications in one week, the highest it has ever recorded. The U.S. Bureau of Labor Statistics projects that the pandemic-induced increase in retirement is only temporary. People who retired due to the risk of the pandemic will return to work as new strategies emerge to reduce the risk to their health. With new varients popping up, we will have to keep an eye on how the trend ultimately plays out.
Is the real estate industry endorsing Carson’s nomination to HUD?
(BUSINESS NEWS) Ben Carson’s initial appointment to HUD was controversial given his lack of experience in housing, but what is the pulse now?
NAR strongly backs Dr. Carson’s nomination
When President-Elect Donald Trump put forth Dr. Ben Carson’s name as the nominee for Secretary of Housing and Urban Development, NAR President William E. Brown said, “While we’ve made great strides in recent years, far more can be done to put the dream of homeownership in reach for more Americans.”
At the time of nomination, the National Association of Realtors (the largest trade organization in the nation) offered a positive tone regarding Dr. Carson and said the industry looks forward to working with him. But does that hold true today?
The confirmation hearings yesterday were far less controversial than one would expect, especially in light of how many initially reacted to his nomination. Given his lack of experience in housing, questions seemed to often center around protecting the LGBT community and veterans, both of which he pledged to support.
In fact, Dr. Carson said the Fair Housing Act is “one of the best pieces of legislation we’ve ever had in this country,” promising to issue a “world-class plan” for housing upon his confirmation…
Job openings hit 14-year high, signaling economic improvement
The volume of job openings is improving, but not across all industries. The overall economy is improving, but not evenly across all career paths.
Job openings hit a high point
To understand the overall business climate, the U.S. Labor Department studies employment, today releasing data specific to job vacancies. According to the department’s Job Openings and Labor Turnover Survey (JOLT) for April, job openings rose to 5.38 million, the highest seen since December 2000, and a significant jump from March’s 5.11 million vacancies. Although a lagging indicator, it shows strength in the labor market.
The Labor Department reports that the number of hires in April fell to 5 million, which indicates a weak point in the strong report, and although the volume remains near recent highs, this indicates a talent gap and highlights the number of people who have left the labor market and given up on looking for a job.
Good news, bad news, depending on your profession
That said, another recent Department report notes that employers added 221,000 jobs in April and 280,000 in May, but the additions are not evenly spread across industries. Construction jobs rose in April, but dipped in professional and business services, hospitality, trade, and transportation utilities. In other words, white collar jobs are down, blue collar jobs are up, which is good or bad news depending on your profession.
Additionally, the volume of people quitting their jobs was 2.7 million in April compared to the seven-year high of 2.8 million in March. Economists follow this number as a metric for gauging employee confidence in finding their next job.
If you’re in the market for a job, there are an increasing number of openings, so your chance of getting hired is improving, but there is a caveat – not all industries are enjoying improvement.
If you’re hiring talent, you’ll still get endless resumes, but there appears to be a growing talent gap for non-labor jobs, so you’re not alone in struggling to find the right candidate.
Economists suspect the jobs market will continue to improve as a whole, but this data does not pertain to every industry.
Business Entrepreneur1 week ago
Entrepreneurs face higher rates of mental illness [part one]
Business Entrepreneur7 days ago
Many entrepreneurs facing mental health issues don’t get help [part two]
Business Marketing4 days ago
The use of offline marketing can still be advantageous in a digital world
Business News3 days ago
How to apply to be on a Board of Directors
Business Finance1 week ago
Follow these 7 steps to get outstanding invoices paid to you ASAP
Opinion Editorials2 days ago
3 reasons to motivate yourself to declutter your workspace (and mind)
Tech News2 weeks ago
Sometimes tech is a sight for sore eyes – others it’s the cause of them
Business Entrepreneur1 day ago
Having client difficulties? Protect yourself with an exit strategy clause