You will be aware now of three consequences of foreclosures on the real estate market. The first consequence is that the entire segment of real estate and foreclosures transactions that were done without the rigorous justification that there is always someone to buy your property is gone! It is an absolutely normal and predictable consequence. There is nothing abnormal about it and it is explained quite clearly in the manual for economics high schools. Now we can formulate a corollary. Who used to make money from such transactions does not have money resources anymore because there is no material for work.
The second consequence is that to conclude a transaction in real estate today, you need serious investment justification. Useful arguments are, for example, trends of development in certain areas or public investment plans, the level of prices at which other transactions are made (even if you manage to find only one), etc. In this case, the corollary is that the information in its own portfolio of clients and transactions is not enough to be able to convince an investor. You have to be helped by external sources.
The third consequence is that in the absence of a rigorous justification for investment in properties, prices will drop until it is no longer needed. In other words, if we have money to invest today, we need to know very well why to use it in the project X at Y Euro / sqm when there is plenty of other opportunities around us (not only in our country but also abroad, not only in the real estate area but also in other industries). If Y drops by Z percent, we may invest without any rigorous justification. It is easy! There is no secret!
To continue with, the tragedy of the real estate and foreclosures market is that, we want to offer an opinion that is thoroughly documented and you cannot! Information is very fragmented, collaboration collapsed and no one knows with certainty how many transactions are happening, at what price, etc. In such dramatic situations the tendency is to blame to each other, (banks do not give money! Developers keep profits too high! Estate agents are not able to sell etc.) After a period, you can see that no one is to blame per se and that it is only a natural consequence of the chain of producers (supply chain) in a market economy.
At this point it is necessary a revolution on the scale! Before you can fight for clients as a participant in the real estate and foreclosures market, the industry itself has to prove to investors that it is viable. In such situations, you need to quickly gather and work together with colleagues (which in another context may be even competitors) because you risk losing credibility in mass as industry. With the credibility, money also goes to other sectors: without customers and without trading foreclosures industry has no way to survive (at least not to the size reached after the boom).
Related posts:
- Considering Fighting Case Against your Bank for Foreclosure? on September 23rd, 2009
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- How much time do I have before they foreclose on my home? on May 22nd, 2009
The foreclosure process is a direct approach and can move very swiftly.
- Why You Should not Buy a Short Sale House on June 10th, 2009
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- Actions to stop Mortgage Foreclosure on May 26th, 2009
Due to the existing Financial Crisis of the world, now most people having various financial difficulties.
- Oil and Foreclosures on February 19th, 2009
Under the foreclosures crisis, investors are very cautious and they are acting emotionally reported to emerging markets, so that a shelter of funds from the West or Asia in developing countries is not excluded.
