Foreclosure, Modification, deed in lieu, “cash for keys”, HARP, HOPE, short sale,etc…. These are the terms that have come to the forefront of the Real Estate vernacular and that of society as a whole. Common questions are ” How did we get here?”, “What do we do now?” and “What does the future hold?” As Real Estate professionals, we know that this is nothing more than another temporary market gyration, ephemeral at best but knowing something and conveying it to the uninitiated are unfortunately two different things.
If you’re looking for a great piece of advice to tell your clients, something that will assuage their concerns, a morsel so brilliant, it will have them believe that you are the greatest of geniuses and a true Guru’s Guru, I will give you 4 words………………” This too shall pass”. Too simple? Not the usual verbose explanation encompassing everything from the Hang Seng Index averages, to how many toothbrushes were sold at WalMart this quarter? The truth is that it IS just that simple. We saw it in the eighties, again in the nineties and now it’s once again our turn to suffer the consequence of our sustained lucre. At the end of the day, the piper is always awaiting payment.
So here we are, in the midst of a litany of client concerns. We try to mollify their fears by providing them with data. How many units have sold and at what price….How detrimental foreclosure can be to their financial well being and how bankruptcy is a permanent fix for a temporary problem but when it’s all said and done, the only thing they really need to know is that ” This too shall pass”. As we move forward in this tumultuous market, the message for our buyers, sellers and investors should be that the window of opportunity will not remain open forever. If you’re a short seller, you have to know that the banks will not be so forgiving, once the onslaught of foreclosures starts to taper off. If you’re thinking about buying, you should be aware that they’re not going to hold both interest rates and home prices at record lows for an eternity and if you’re n investor, you should be buying everything in sight! No one wants to be the investor who says ” if I knew then, what I know now, etc…. Investors have the rare opportunity to see hindsight…………….up ahead.
When you sit down in front of your client, remind them of the opportunities that this market creates. Remind your buyer of the homeowner who purchased in similar turmoil, only to emerge victorious upon market recovery. Remind your short sellers that while NOD’s and NOS’ are not the greatest addition to one’s credit profile, it will not be impossible for them to purchase a home in the future (irrespective of what the media is telling them), Give your investors a math/ history lesson so that they will understand that every penny they spend today, will return in the guise of a nickel 3-5 years from now.
It’s time for action! We have to inspire our customers to respond to today’s market conditions and convey concisely that inaction is the only bad move. Buyers, short sellers and investors all benefit from the current economic climate, and as we know, when hindsight is actually hindsight, it’s infinitely more difficult to act on…….
