What a great event – the broker owner conference in Denver – turned out to be for all of those who attended. The networking was excellent as always but it was the content of all of the sessions that had the most impact on us. Michael Abrashoff delivered the key note address on leading your company. Many of us are coming out of the survival mode and into the “new normal” economy so his message on leadership was very timely. Each of the breakout sessions covered aspects that are relative to our industry today. Topics included: how to take advantage of the market we are experiencing, how to increase your exposure on the internet as well as marketing ideas to help you generate more business.
It is important to attend events such as these to get an understanding of what other agents and brokers are experiencing today, to hear what industry experts are forecasting for our market going forward and to get tips on making you a better agent to become a more professional business person.
Here are a few ideas that were discussed:
· Banks have only released 30% of their inventory up to this point
· Short sales on average are sold at 15% discount – foreclosures are sold at a 35% discount so banks are going to adapt and begin to accept more short sales and are even considering principal reductions on loans of 10% because they will save money in the end
· Interest rates are going remain at this level for several more months
· The job market is stabilizing
· The US Dollar is stabilizing
· The bulk of the Stimulus money is being released in 2010-2011
· There should be 5.5 million home sales in 2010 – 5.2 to 5.3 million in 2011
· 14.75 million houses are underwater – 9.1 million have negative equity of 20% and 4.1 million are have negative equity of 50%
· Foreclosures will continue through 2012 and will begin to slow in 2013
· 70% of all loans are being handled by 4 banks
· 1.7 million GSE loans are 60+ days past due
· Government agencies hold almost half of all REO inventory
· Strategic defaults may have peaked
· Chase is no longer doing short sales so be sure to let your clients know!
· Foreclosures accounted for 31% of Q1 sales – distressed properties accounted for over 50% of all sales
· Investors make up 20% of the market today and will represent 50% over the next 3 years, so it’s time to get educated on working with them to capture this piece of our market
So what do you think the moral of the convention was for most of us? Get busy understanding distressed properties, how to handle short sales, and the options sellers have going forward. Get it? Got it? Good!