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.
Professionals are at odds in their agreement on shadow Inventory. It seems that they can't decide whether it's good, bad, or if it even exists at all. Will it destroy the real estate market?
This article will uncover secrets about the shadow inventory that many people don't want you to know about. After researching this topic in depth, I believe you should understand the concerns.
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. Here's the icing on the cake. There are 7 million homes now in default. these homes will go to foreclosure, and be added to the lenders' huge numbers, or they owners will try to sell them before the foreclosure, adding to the total number.
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. - 31862
Professionals are at odds in their agreement on shadow Inventory. It seems that they can't decide whether it's good, bad, or if it even exists at all. Will it destroy the real estate market?
This article will uncover secrets about the shadow inventory that many people don't want you to know about. After researching this topic in depth, I believe you should understand the concerns.
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. Here's the icing on the cake. There are 7 million homes now in default. these homes will go to foreclosure, and be added to the lenders' huge numbers, or they owners will try to sell them before the foreclosure, adding to the total number.
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. - 31862
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