I'm very excited to announce that I've just received my CDPE designation and am looking forward to working with home owners avoid foreclosure by facilitating their short sale. Not every distressed property is bank-owned, a short sale or in pre-foreclosure, though. In preparing my current clients for the 2010 real estate market in Utah, I sent the following email this morning. One client agreed with an aggressive price reduction. One withdrew her listing from the market. I am waiting to hear back from ten others.
Home-price
decline has good side, bad side
... Utah had the fourth-worst percentage drop in home prices among all states over the past year, which has improved affordability but also pushed more homeowners "underwater" on their mortgages ...
Good Morning, Everyone,
I have had a couple clients tell me that they have heard that the market is getting better (courtesy of news reports on CNN, FOX and MSNBC). Please remember that all real estate is local and "better" is a relative term. It will be 2011 before we see any sustained increase in home values in Northern Utah and that improvement will only be after another year of declining values.
I have additional information to share with you regarding the next round of defaults, short sales and foreclosures on the horizon. With the exception of a "breather" mid-2013, it will be 2015 or later until we achieve pre-2007 home values. I just received my CDPE (Certified Distressed Property Expert) certification and now have access to detailed, specific data regarding the coming tsunami.
If you are serious about selling your property, it must be priced like a distressed property (short sale, foreclosure, bank owned). This is your competition, and it is not going away. I shared the following with one of my clients yesterday:
... The bottom line is that, no matter how many people want to buy a home and/or take advantage of the $8,000/$6,500 tax credit, that they cannot qualify for a loan if they are not employed or are under employed. Even in a move up market home like yours, it is ofter the second or spouse income that is needed to qualify, and if either the primary or secondary wage earner isn't employed, then the buyers can't qualify. VA is currently the only 100% financing out there for your home. FHA is now at a 3.5% downpayment and is projected to increase to 4%+ effective January 1, 2010. Unemployment rates in Utah have been steadily increasing (up another 3.3% in October, month over month). There has been decreased relocation (military or civilian) at the base and I have personally had two relo referrals who decided to rent because of re-sale concerns in 3 years. All of this creates a recipe for fewer buyers, longer days on market and more and more decline in home values.
There has been an incredible shift in buyer price point expectations. Buyers used to expect to pay 5-10% more for a non-distressed property (those not short sales, bank repos, abandoned, etc.). Now, buyers expect ALL homes to be priced like distressed properties. They simply won't buy otherwise ...
What is a CDPE?
Excerpt from the Distressed Property Institute, LLC website
A Certified Distressed Property Expert® is a real estate professional with specific understanding of the complex issues confronting the real estate industry, and the foreclosure avoidance options available to homeowners. Through comprehensive training and experience, CDPEs are able to provide solutions for homeowners facing hardships in today’s market, specifically short sales.
The prospect of foreclosure can be financially and emotionally devastating, and often homeowners proceed without guidance of any kind. The developers of the CDPE Designation believe that the best course of action for a homeowner in distress is to speak with a well-informed, licensed real estate professional. They have the tools needed to help homeowners find the best solution for their situation. Often, when other options have been exhausted, CDPEs can help homeowners avoid foreclosure through the efficient execution of a short sale.
While enduring financial difficulties is challenging for any family, the process of finding a qualified real estate professional should not be. Selecting an agent with the CDPE Designation ensures you are dealing with a professional trained to address your specific needs.
CDPEs don’t merely assist in selling properties, they serve and help save their clients in need.
Kim Novak is a Broker Associate with RE/MAX Masters in Salt Lake City and Layton, Utah. She holds a BSBA with an emphasis in Sales & Marketing and has achieved the designations of ABR: Accredited Buyer Representative, CDPE: Certified Distressed Property Expert, CRS: Certified Residential Specialist, CSP: Certified New Home Sales Professional, GRI: Graduate of the Realtor® Institute, SRES: Seniors Real Estate Specialist and ePRO: Internet Professional. Licensed in 1995, Kim has closed over 500 sales during her full time real estate career.
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