Job relocation and how it is impacting selling homes in today’s market

I was reading an article in Market Watch the other day in regards to job seekers deciding to pack their bags and move for a new position, according to a report released at the end of July by Challenger, Gray and Christmas. At the first half of the year, about 9.4% of job seekers relocated for a job, up from 7.6% within the same window of time in 2010, according to the outplacement consultancy firm. That is from a survey of about 3000 job seekers; many of the respondents are Managers and Executives.


Since there has been little improvement in the housing market in 2011, one might say the increased relocation in the first half of the year is due to the fact that prolonged unemployment is compelling more job seekers to relocate DESPITE the challenges of selling a home in this market. At some point, the job seeker may decide that it is worth taking a loss on their home sale to be employed again.




What about the seller that has a home that has depreciated in value significantly due to the housing crisis and CANNOT be sold traditionally? Not all homes in today’s market are equity sales and I am sure you would all agree that there may be more homes out there in pre-foreclosure and underwater than there are equity sales and the numbers are rising at an increasingly high rate.



I had clients recently in a similar position. One of the seller's company had went bankrupt and she was forced to take a position in Los Angeles . Not only did she take a pay cut but now she had to drive back and forth every day with gas prices at its highest level. The couple realized that they would not be able to continue the way they were. They needed to relocate to Los Angeles. They could not afford to pay rent there and a mortgage here. They had no choice but to sell their home.




Here is the challenge; this home is in San Elijo Hills. As you all know that is one of the highest depreciating areas in San Diego and one of the largest default areas as well. This home would never be able to be sold as a traditional sale. I was able to negotiate this hardship with the bank and they accepted a short sale.




I wanted to remind everyone that job relocation is a hardship in this market. A home owner has to be able to take care of their family. If they are forced to take a position somewhere else and there is no equity in the home a short sale is possible.



Lenders are adamant more than ever to keep foreclosures off their books and a short sale would be the best option for all parties involved. I am not confident that all homeowners going through this type of hardship understand what all of their options are. We have an opportunity to help families who are about to make some difficult decisions to make the right one.




Some families may decide that walking away would be the best option. As a Real Estate professional, we can explain the importance of trying to short sale verses walking away. Clearly a foreclosure on their record will impact their credit much worse than a short sale would. Also, if a homeowner is trying to seek employment elsewhere and a foreclosure is on their record that may impact the employer’s decision to hire. Some companies run credit checks and foreclosure may be a determining factor in either termination or not hiring at all.




I believe with the high unemployment rate and the downturn in the market we are going to continue to see this type of hardship. I would be on the lookout for families you can help to make the right choices giving them all possibilities to help accomplish their goals. This is also a great way to market you as a Real Estate Professional in the short sale market targeting families that need to relocate for a job position but cannot sell their home traditionally.




(Quote) We are the creative force of our life, and through our own decisions rather than our conditions, if we carefully learn to do certain things, we can accomplish those goals.

Stephen Covey



REALTORS, what is in your business plan this year? What are you doing to create a system that will allow you to build your short sale business? How often are you out there prospecting and how do you know if you are taking the listings that are going to be successful and not a waste of your time?



Call us today and let us show you a system that works to help you expand your business and effectively and efficiently close short sale transactions.



LOTUS REALTY GROUP



PROFESSIONAL SHORT SALE NEGOTIATORS



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