Posted On: October 9th, 2018 6:50AM
I’ve been wanting to start blogging for quite some time now. I’d have thoughts or ideas of what to write, but I guess I was never really motivated enough to put my thoughts and opinions into writing for all of the world to see. Today, I was sparked to write because I have heard the above phrase one too many times and it rubs me the wrong way.
For starters, a bank will not loan more than what an appraiser values the house to be. If the appraiser agrees that the value is that much over the list price, than the listing agent may have underpriced the property (take into account the final pricing decision is that of the Seller (s) ). However, the buyer may have ‘verifiable’ cash that they can make up the difference. Or, it can be an all cash offer, leaving a bank and appraiser out of the picture altogether. Paying way, way over the current market value of a home, just to get a home…..now that’s another blog in itself.
Don’t get me wrong. A great agent will do thorough research and advise/ assist a Seller in pricing the home correctly. They may know tactics that may promote competitive offers. But, a Buyer will not just pay over list price because the agent was such an awesome negotiator. Let’s be real. Everyone wants to get the better end of the deal. In a Sellers’ market, where inventory is low and there are numerous buyers trying to get into a home, there is a lot of competition. It’s the basic law of supply and demand. This kind of market makes an agent look like a HERO to a Seller. “My agent sold my home in 2 days!” Technically, it was under contract in 2 days. In reality, it takes several weeks to get it closed. This kind of Sellers’ market makes even the laziest agent look like a hero. Not a lot of marketing is needed. In a Buyers’ market, most likely, you won’t hear these comments. The true challenge of a good agent is being able to switch your marketing tactics with the ebb and flow of the fluctuating market.
In a Sellers’ market, it seems all too easy to be a listing agent. You have buyers’ agents calling you off the hook to convince your seller why they should pick their buyer client over the others. As you may guess, it is paramount for a buyer to have excellent agent representation. Negotiation skills, knowledge of various contract clauses and techniques that the average or newer agent may not know proves an agent invaluable to a buyer client. This type of agent is a hero to the buyer, whose offer won over several others. The best offer is not always the one offering the most money.
Increasing interest rates, inflated home prices and the changing season are several causes of our market beginning to change. We continue to be short on inventory. However, buyers appear to be in hiding. The inventory we do have is staying on the market longer. This is advantageous to buyers who were unable to buy in the competitive months. It’s a great time for renters to consider looking towards buying, as their rental agreements get closer to expiration.
If you find yourself in need of buying or selling and don’t know your next steps, I’d be honored to help. All you have to do is call, text, email or message me on Facebook. Also, a good friend helps someone they care about find a great agent ;)