Sad to say, the number of people trying to short sell their home to avoid mortgage default or foreclosure increases daily. One may think a savvy real estate agent would look upon this situation as an opportunity to specialize in the short sell process, and garner a fair amount of business by doing so. However, let’s take a look at the bigger picture…
The Short View on Short Sells
Basically, a short sale is a desperate measure for desperate times - for all parties involved. The person selling their house is obviously in severe financial distress, and the lender is just looking for a way to cut their losses on a loan gone bad. The sales prices on short sold properties are well below market value, requires a terribly complicated process, and the time involved for the deal to be completed is painfully long. These factors combined have to make you wonder if the time you need to invest is worth the payoff. Trying to make up for it though sheer volume will simply add the headache of tracking and maintaining all these deals to the heartache inherent in the situation. In other words, it’s a lot of work and hassle for little return. Wouldn’t it be better worth your time to focus on a niche that would garner less work and greater return?
The Long View Ain’t So Pretty Either
The realities of the short view on short sales aside, let’s take a look at the longer term view. If you’re like most agents, a fairly decent percentage of business comes from either returning customers or referrals from happy clients. Well, people who are forced to short sell their homes are neither happy, nor are they likely to be buying a home again for a long time given the hit their credit will take.
Also, although all prognostications say we have yet to hit the bottom of this mortgage crisis, the fact remains that it is ultimately a short-lived situation. In a year or two, the market will level out again and a new normal will be established. Short sells will be a beast of the past instead of the everyday occurrence they are now. Where will that leave your niche, the specialty for which you are known? You’d be coming’ up short, my friend!
Primary vs. Secondary Niche
Now, all this is not to say you can’t glean some benefit from the current situation. After all, most the people who have been backed into the short sell corner genuinely need the assistance of an experienced professional broker or agent to help them through this difficult time too. There is no reason you should not be ready for the opportunity. If you see enough value in short sells in your particular area, go ahead and develop short sales as a niche - BUT, do it as a secondary niche to your primary target market. It would be a short-sighted mistake to rely on short sells as a long-term business strategy.
