The Foreclosure Mess and What It Means to Your Business

by Brad Hanks on October 15, 2010

I’ve been through tough markets before.  1990-1996. Northern California.  The reason the front of my head is flat is due in large part to the head banging I did to get me through that challenging period.

Back then we had Desert Storm (I), base closures and massive layoffs in the California market.  And while we had our fair share of short sales and REO’s to deal with, it was a minor blip compared to what we have now.  Not only do we have unprecedented numbers of short sale and foreclosure transactions to deal with; we’ve got a buying public that has no confidence in their ability to keep their jobs, let alone believe in an economic recovery.

I don’t believe we’re left “up a creek without a paddle,” but I do believe our paddle has been split, leaving us to work harder to move ourselves (and our clients) further downstream.  Or is it upstream?  I guess it’s a matter of perspective…

Not for the Faint of Heart

To be certain, this is a challenging time to be in the the real estate sales business.  Much more challenging than when I was selling.  A period of time that is not for the faint of heart to be sure.  But it is still a market that presents opportunity – opportunity for us to assist our clients in need: sellers that are looking to sell and buyers wishing to buy.

If you got into this business in 2005 or 2006, it appeared back then to be an easy business.  Just show up to work and you were nearly guaranteed to close some sales.  Buyers were everywhere and financing was easy.  But it was a “fantasy” market – created by unrealistic expectations.  Expectations that real estate would continue to appreciate and that money would continue to flow to the mortgage industry regardless of mortgagors’ abilities to pay.

Time to Roll Up Our Sleeves

Now it’s time to get to work. Get back to the basics, and the hard work we used to have to do to get business.  Network like crazy.  Knock on doors.  Market the heck out of our services through direct mail, social media and referral networks.  A time to work smarter AND harder.

Sorry to be the bearer of bad news, but the days on easy street are over.  It’s time to roll up our sleeves and get to work.

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