Home Selling in Los Angeles>Question Details

Richmond F., Real Estate Pro in Westlake, CA

Is it a good idea to focus your business on short sales since that's the majority of the market right now?

Asked by Richmond F., Westlake, CA Mon May 16, 2011

Help the community by answering this question:


If you want to be very busy, yes! The agents that give me their files are swamped.

Eli Givoni, Director
Short Sale Department, LLC
Serving all 50 states

MARS Disclosure for General Commercial Communications
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
0 votes Thank Flag Link Mon May 16, 2011
Don't put your eggs in one basket. You have received many great answers here and there are many different avenues to pursue. I agree with Deborah...find your passion and figure out which cliental you want to work with.

Short sales can be a big pain in the A--!

Good luck!

Kat Becker
Prudential California Realty
0 votes Thank Flag Link Tue May 24, 2011
Hi Greens;
Real Estate is a service industry. You need to decide where your passion lies. Who do you want to serve, and why?
Short sales are a specialty which requires a lot of extended training and certification on an ongoing basis to stay current and competitive. It takes great relationships nurtured with the lenders to get your sales through in a timely manner.
To find out if you like short sales, before investing in 12 months of trainings and certifications, shadow someone in your office/ company who does a lot of short sales. They are emotional, grinding transactions for which not all agents are suited. They take a great deal of time for very little remuneration. I call them "loss leaders"! In my office of 160 agents, there are two of us who handle short sales on a regular basis and as experts.
I agree with the others that there are regular retail sales happening as well, and you could put your focus on retail. But if this feels like it might be your niche, get educated, get professional and have at it! If not, it's still a moneymaker for you: for every short sale you come across, you can get a referral fee from someone like me who works them on a daily basis.
Best of luck,
Deborah Bremner
The Bremner Group at Coldwell Banker
REALTOR, 00588885, ABR, CDPE, eAgent, CSP, SFR, HRC, CRE
(O) 310-571-1364 DIRECT
(D) 818.564.6591
(C) 310-422-4288
Accredited Buyer Representative|Certified Distressed Property Expert |Pre-Foreclosure Specialist Certified
I want you to know that I appreciate any referrals from friends and associates who may be in the market to buy or sell real estate. You can count on me giving them the same high-quality service I provide to all of my clients.
0 votes Thank Flag Link Tue May 17, 2011
Never concentrate on just one part of the business, spread out, spread your wings, but my very best recommendation is always concentrate on those areas where you are BEST at. For example investors, or
first time home buyers, or relocating buyers, luxury home listings, or mid range home listings and
may be a good idea would be in this market to concentrate on areas you are particularly familiar with
and stay in touch with the homeowners - establish yourself as the expert in their area....

Good Luck to you and if every anyone comes your way moving to the larger Chicagoland area, by all means
let me help them...

All the best and Happy Selling
Edith YourRealtor4Life and chicagoland and Northern Illinois Expert
Working always in the very BEST interest of her clients...
0 votes Thank Flag Link Tue May 17, 2011
Depending on the neighborhoods/micro-markets you want to specialize in. Do an analysis to see if there is enough business out there. Or, committ to being a "short sale expert" creating that as a farm. I wouldn't make it your entire business because when the market changes so will your business model.
0 votes Thank Flag Link Mon May 16, 2011
Some agents have great success with this. I personally prefer listings as opposed to working with buyer's and I try to avoid short sales if I can.
The reason I dislike short sales is due to the fact that a lot of banks are clueless.

I had a short sale, had the buyers, and a good price. The bank sat on the property for a year, agreed to sell and agreed to a price and then stopped, decided they could make more money and canceled.
Then they hired another agent to list it, overprice and it would up selling for less than what I had it sold for.

In the end the buyer's were upset at me and are trying to make me look bad. I don't blame them either, we as agents are the messengers of the banks bad news, and who can the buyer blame other than the agent who told them everything was going well.

I am not going to say there is no gold in them hills, but I will say it's going to take a lot of work and patience.
0 votes Thank Flag Link Mon May 16, 2011
Focus your business in servicing the customer better than anyone else can.....regardless of the real estate product.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Mon May 16, 2011

Short sales are a big part of the market presently, but they won't be forever.

If you focus on market trends to build your business, you'll have a difficult time developing a long term strategy, designed to give you reliable and sustained results.
Web Reference: http://www.golftobeach.com
0 votes Thank Flag Link Mon May 16, 2011
In our market, 39% of the listings that closed last quarter were short sales so I do think that it is worth educating yourself on short sales and moving with the market since it has clearly gone there.

However, that being said, I've done deals with people on the other end who clearly have no idea what they are doing with a short sale and have seen it cost the homeowner their home so I do not think that short sales are for ever agent. If you are willing to really understand the process, hire a team to back and support your client and truly work with these types of clients, I think you can be successful in the name of helping people.

That is my two cents worth!

Brooke Hengst
Your Castle Real Estate
(720) 988 5952
Web Reference: http://www.brookehengst.com
0 votes Thank Flag Link Mon May 16, 2011
Focus your business on what gives you "juice". That is the only way to make it in life. If you are not doing what you love, you will be unhappy. And unhappy people don't make it in any economy, let alone this economy. There are plenty of all sorts of real estate deals out there. Find the Niche that you love and make it a big part of your business. That way you will be happy most of the time.

Dare to Dream.

Shel-lee Davis
0 votes Thank Flag Link Mon May 16, 2011

Spread yourself around...don't narrow yourself to one segment
0 votes Thank Flag Link Mon May 16, 2011
They are very difficult... it takes a very long time to negotiate and sometimes they fall thru, because of silly BPO's or appraisals... some banks are very difficult... I have c,losed over half a dozen, so I would say do it. Make sure you are prepared for the hard work... I have a person in my team that dedicates solely to gathering all the documents and negotiating with the banks. I get involved once a negotiator has been assigned or if it becomes difficult.

You still have to go out there and market and solicit to get the listings... is no walk in the park, but there is light at the end of the tunnel for those who endure the long path.

Best of luck!
0 votes Thank Flag Link Mon May 16, 2011
Only if that's really the niche you want to be in. Even in a bad market there are people with real estate needs: babies are born, jobs change, people die - - just keep prospecting.... Good luck!
0 votes Thank Flag Link Mon May 16, 2011
No. It takes a great deal of patience and experience. It takes minimum 90 days to close a short sale and can take up to a year. You will have to have $2M in the pipeline before making $60,000 a year in this line of business. Yes, I am short sale certified but only so if a buyer is dead set on a SS.

Per HUD, spend your time getting good at BPOs and be ready to become a listing agent for HUD. But, you must be a broker to do so. Good luck!
Web Reference: http://www.CathyBureau.com
0 votes Thank Flag Link Mon May 16, 2011
It would be wise since we are going to have a lot of foreclosures in the market for a while based on the current state of the RE market.
0 votes Thank Flag Link Mon May 16, 2011
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