Knowledge is power. I’m sure you’ve probably heard that somewhere before. Well, it’s certainly true in today’s changing real estate market.
Knowing how to maneuver the complexities of short sales as well as how to identify the distinct real estate opportunities in foreclosure are not merely good skills to have in today’s market—they are critical.
We’ve moved a long way from the boom days of 2003 through 2006. And to better understand the challenges of today’s market, it’s important for Realtors to move with the market. Change in any industry is inevitable. The ability to morph with the advancements is a powerful asset for any business endeavor.
CDPE – a key destination to really understand short sales
I’ve been working with short sales on Kauai for almost three years, and the market continues to expand. Last year I received my CPDE designation as a Certified Distressed Property Expert. The Distressed Property Institute has trained over 16,000 Realtors in its two years, making the CDPE the fastest growing designation in real estate history.
The National Association of Realtors (NAR) recently rolled out their version of designation called the SFR, which stands for Short Sales and Foreclosure Resource. The SFR course helps students evaluate all available options for distressed homeowners and identify the components of an effective short-sale package.
Well, now I’ve completed that training as well. Much of the information was similar to the CDPE course, but I did learn quite a few things. One of the viewpoints I enjoyed the most was the trainer’s description of the real estate market. I’ll share that with you because if you are a buyer or seller reading this, it’s a good contextual framework to have.
Mr./Mrs. Buyer—There are basically two types of properties in our market today. Well…., no actually three. They are:
- Opportunity Properties—These are properties listed by highly motivated sellers that are in very good condition. The properties don’t need much if any work and they are priced to sell. The seller understands the competition in the market place in their price range and prices accordingly. It’s clearly an opportunity and it gets snatched up quickly. These properties sell within 30 days and frequently with multiple offers.
- Deals—These are what most buyers want. Yes, the price is fantastic. BUT, they may be a short sale subject to delays of a bank, the follow through of the listing agent, and there may be many landmines. Perhaps there are tax liens, unpaid homeowner’s fees, a roof that needs replacing, etc, etc. These are the Kauai REO properties or Kauai short sales. Yes, it’s a deal, but, your patience can often be tried in purchasing one.
- What’s the third type of property you ask? Glad you did! It’s Everything Else, most of which is not selling.
When you enter the marketplace, it’s good to know which of these property types is for you. And as far as the SFR goes, I am very grateful that 70 Realtors, many from off-island, took the SFR course this week. The more Realtors understand short sales and foreclosures, the better it is for the owners, buyers, community, banks, everyone.
View Kauai Deals in my Kauai Foreclosure Gallery