Those doing short sale investing or who are real estate agents dealing with short sales must understand \”Shadow Inventory\” and what it\’s going to mean for your future in real estate.
There are many experts who are covering this Shadow Inventory, and they can\’t seem to agree. Many say that it will wreak havoc on the market, while many others claim that it will have minimal effect at best.
I\’ll cover exactly how shadow inventory will effect you and your business, whether you are short sale investing or doing short sales as a real estate agent, I\’ll uncover the facts.
1. There are millions of homeowners who are currently holding off on selling their property because they want to wait for the market prices to go up. These homeowners would otherwise sell, but because of the suppressed market are waiting. When they do sell, it will all be at once, because market indicators and the news will tell them that everything is great, and the time is \”right\” to sell. This will crush the housing market with inventory and take prices lower, which is just the opposite of what we want.
2. Let\’s talk about the six hundred thousand homes that lenders are holding in their REO inventory. Most people don\’t know that when a lender forecloses on a home, they don\’t have to sell it right away. They can hold it until they decide to sell. What are they doing? Well, they too are \”waiting\” for the market to go up so they can add their huge inventory to the market.
3. The staggering number of homes currently in default. This number is estimated at 7 million! These homeowners will be losing their homes to the lenders, who will then add them to their inventory that\’s on the market.
If you\’re a real estate agent working short sales, or if you\’re doing short sale investing, you are part of the solution. Without these solutions, the market will most likely get worse. Worse then we\’ve ever seen it. Now is the time to learn about short sales, if you\’re involved at all, you can help. It can also be very lucrative.
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