Blend of information and member services provide marked improvements in short sale transactions.
AUSTIN, TEXAS – June 16, 2009 – Certified Distressed Property Experts (CDPEs) have reported a 49 percent decrease in the average time to complete a short sale after achieving the CDPE Designation, according to a new survey from the Distressed Property Institute. Before becoming a CDPE, the average time for these agents to close a short sale was 53.01 days, compared to 27.26 days after becoming a CDPE.
“No other real estate designation in the country can claim these results,” said Alex Charfen, co-founder and CEO of the Institute. “CDPEs are making a clear and definable difference in the real estate market by assisting distressed homeowners to stay in their homes or, when this is not possible, by helping them sell through a short sale.”
A short sale occurs when the lender accepts the selling price of the home, even if that is less than the mortgage balance. Recently announced program extensions of the government’s Making Home Affordable Program have supported short sales as an option to be considered for distressed homeowners.
“Long timeframes and the lack of success in closing deals are the top complaints among all parties involved in short sales,” Charfen said. “We’ve now shown that our systems and processes for real estate agents are proven to close these transactions more rapidly and help solve this issue.”
“This shortened timeframe will increase the amount of properties that sell, therefore decreasing the amount of homes being lost to foreclosure,” Charfen continued.
The survey also found that CDPEs have been able to keep distressed homeowners in their homes more than twice as often as lose a property to foreclosure. Among respondents, the average number of clients they had helped to keep their homes was 1.84, as opposed to 0.82 being lost to foreclosure.
“In these instances, there is no promise of income to the agent,” Charfen said. “This statistic shows how CDPEs are living the message of putting homeowners first, and creating success while doing it.”
Other key survey findings among CDPE-designated agents include:
• 40 percent of their active listings are distressed properties.
• Distressed properties comprised 41 percent of their sell-side transactions completed over the past 12 months. When looking at 2009, this percentage increases to 46 percent.
• For their buyer-side transactions over the past 12 months, 42 percent were distressed properties. In 2009, this percentage jumps to 56 percent.
• Over time, as part of the CDPE membership organization, CDPEs have continued success closing short sales. Agents who have been CDPEs for 11 or more months have closed an average of 10.72 short sale transactions.
“As banks and the Obama administration continue their efforts to solve the foreclosure crisis in America, CDPEs are on the ground, working with these new plans and regulations, striving to make a real difference to distressed homeowners nationwide,” Charfen said.
The Distressed Property Institute conducted the National CDPE Member Survey between June 3 and 12, 2009. Of the 7,972 members polled, 876 responded representing an 11 percent response rate.
About the Distressed Property Institute, LLC
The Distressed Property Institute trains real estate professionals to engage with and assist homeowners facing hardships. The Institute has developed a curriculum to provide the tools and knowledge to handle distressed properties, including short sales, deeds-in-lieu, mortgage modifications, forbearance, refinances, reinstatements and, if that fails, how to help homeowners through the foreclosure process. After completing a comprehensive on-site or online course, graduates are awarded the Certified Distressed Property Expert® (CDPE) Designation.
About the CDPE Designation
The CDPE Designation provides real estate industry professionals with detailed information on how to engage with and assist homeowners in distress. With more than 7,500 professionals trained across the United States, the CDPE is one of the fastest growing designations in real estate industry history. The CDPE designation has been endorsed by RE/MAX International and other major U.S. brokerages and industry icons, including: Dave Liniger, chairman and co-founder of RE/MAX; Howard Brinton, founder of STAR POWER® Systems; Bob Corcoran, founder of Corcoran Coaching and Consulting; Brian Buffini, founder of Buffini and Company; and David Knox, founder of Knox Productions.
For more information about The Distressed Property Institute and the CDPE Designation, visit www.cdpe.com.