Lee Honish, Short Sale Market

I believe in what I see

Do I need to go into a completely LONG, DULL and DRAWN-OUT explanation of how the market really is?

The real estate market itself is in a bucket of crap because the structure of the dollar is based on a loan, it is further inflated through the process of fractional banking. CLICK HERE and watch the movie

This is not an explanation of the dollar moment, this is an explanation of how long this 'storm’ will last…

So two years ago I was informed by Freddie/Fannie representatives that 33% of the homes that went to foreclosure sale would actually see the open market for listing and sale. This conundrum didn’t seem to slow down would-be REO agents seeking listings at (fill in the blank) events and spending THOUSANDS of dollars trying to get them. Recently at (fill in the blank) would-be REO agents were informed on the first day of the expo that REO's were NOT going to show up this year at all, that in fact they were going to dwindle and in many cases completely dry up. The advice was given to "go do short sales!” However agents still quest for everything but short sales. EVEN some of the largest names in REO's are now creating boot camps to teach people REO's.

I would think that those who had their wits about them and didn’t waiver from the original onslaught of the short sale market would be in the best position in today's market…

SOME DID, SOME DIDN’T…

There was a huge opportunity for many agents to gain a market position and they failed to capitalize on the positioning.

THE BOTTOM LINE: There will NOT be a sudden release of REO's in the current real estate market. The LARGEST market share for real estate agents to be successful is in short sales.

Back at the end of the first quarter of 2007 'alt-a’ and 'subprime’ loan products were pulled from the market AND if we use the basic math formula of 5 years to reach the maturation of these products, this year would put us at what should have been the bottom (or near the bottom). However thanks to the amazing loan modification products that have flooded the market and allowed banks to amortize their toxic debts over a longer period, the bottom is still far away.

BUT LET'S ASSUME WE HIT A BOTTOM: That would mean a minimum of 5 more years just to climb out with a positive appreciation rate of 3%-5% per year for the next 5 years.

That’s simply not going to happen!

Anyone with their wits about them realizes (AGAIN) that short sales are the only game in town and it has become a new 'renaissance’ period for people trying to get into the short sale market. The failure for many was purchasing (FILL IN THE BLANK) coaching or purchasing (FILL IN THE BLANK) designation, so NOW agents are mostly skeptical of anything with the short sale market. To further compound the issue agents are subjected to (FILL IN THE BLANK) courses on 'how to avoid fraud when doing a short sale’.

WHAT (EXPLETIVE) FRAUD!?

Would somebody please show me the case law…

Not since the Salem Witch trials have we seen something so egregiously lopsided and anti-anything! Agents are persecuted if they advantage ANY sale for the buyer or seller and NOT the banks.

There is really no fraud, ONLY a bunch of banks and investor sources who want a maximized return for the next 5-10 years of this market. The top producers in this market are my 'associates’ and the asset managers who are aware of every stat and statistic when it comes to market trends and conditions.

Never fool yourself into believing what is being preached and KNOW fundamentally: NO REO's and THIS market will last a minimum 5 more years with defaulted short sale properties.

If you want HELP jumpstarting your business recovery, join my coaching group or contact me at lee.honish@yahoo.com and I will spend 3 months psychoanalyzing you and rebuilding your business with direct and in office ONE ON ONE coaching. OR JOIN MY ONE TIME FEE COACHING

MORE INFORMATION: www.honish.com