Press Release

Making Real Estate Short Sales Profitable

(Boonton, NJ, February 2, 2009) — Short sales are the transactions realtors love to hate — but with the market's doldrums deepening, many agents might have little choice but to embrace these difficult deals.

That's certainly the point of view espoused by Alex Charfen, co-founder of The Depressed Property Institute. In the February 1 issue of industry newsletter Real Estate Broker's Insider, he offers these tips for agents looking to make money from short sales:

1. Know the numbers.
   At every listing appointment, arm yourself with a battery of data. Not only do you need to know how much homes are selling for, but you also need to know how many properties are distressed, how many are in default, and how many are in foreclosure. "This is a different kind of business," Charfen says. "This is a time for agents and brokers to know their numbers like they never have before."
   
2. Have a system.
   Short sales require more administrative headaches and more paperwork than you're accustomed to. Accept it and figure out how to handle the new demands. "Whatever system realtors have had in the past, they have to adapt that system to the current market," Charfen says.
   
3. Know how to do short sales.
   Short sales have a bad rap because they're complicated and unfamiliar, and many agents don't know how to complete the deals. Charfen's advice: Understand the process backwards and forwards. "We have single agents who are handling 40 to 50 deals a year by themselves," he says.
   
4. Know the myths.
   "There's so much misinformation," Charfen says. "One of the myths is that deals are impossible. They are if you've never done one before and you don't understand the market."
   
5. Rework your listing presentation.
   If you're doing short sales, forget about your standard listing presentation. "It's not about how great the agent is," Charfen says. "It's about, 'How do we get you out of this problem.'" Expect to spend 90 minutes in the short sale listing presentation. You need time to determine if the seller is eligible for a short sale.

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