Skip to main content

Maybe High School DID Prepare Us for Life (Posted July 18, 2016)

This is nothing earth-shattering for any realtor who’s been around the block a couple of times and seen the market go up and down once or twice.  Even though it’s not information that’s going to make you shoot soda (or any other beverage of your choice) through your nose, I thought it would be good to include it here as a gentle reminder – and perhaps allow you to share this with your clients.  And if you’re new to the real estate world, this might have been covered in school, but it’s possible you might have been preoccupied with Pokémon Go or what our presidential candidates were saying about one another out on the campaign trail.  I’m not asking that you provide me with a reason or excuse: I’m just going to share it with you for your own personal illumination. 

The folks at Realtor.com were kind enough recently to offer up a cheat sheet for surviving a seller’s market.  Times like these are not for the faint-of-heart buyers, nor are they ideal for sellers who don’t take the time to get educated (or get a really good agent – know any?). 

Tip #1 to Buyers: Be on call. Many will say, “If you're only looking now and then when it's convenient, you're probably wasting your time." They suggest treating house hunting like job hunting. If someone calls with a lead, follow up promptly to gauge whether it could be a good fit – above all, don't linger.

Tip #2 to Buyers: Bring the paperwork. To be taken seriously, buyers should get a mortgage pre-approval letter – we have something better – as well as a "proof of funds" form from their bank to show they have enough to cover a down payment. Timing is everything.

Tips #3 to Buyers: Limit the contingencies. In a seller's market, buyers may need to drop some of the contingencies. Sellers want the fewest hurdles to closing as possible. If your buyers come in with several contingencies — such as "if" they secure financing — the sellers will likely bypass their offer and take another with less hassle. Also, don't waste your time low-balling a seller – always put in an aggressive offer.

Tip #4 to Buyers: Cast a wide net. Search for homes outside prime locations if faced with limited or high-priced choices. Buyers need to carefully consider those things on which they're willing to compromise. Sometimes properties sit, even in a seller's market, because of a problem that is scaring other buyers away such as some renovation work that may need to be done. Those "flaws," however, might not be a big deal to your buyers. Finding a house this way can also cut down on the amount of competition you will face. 


Again, I know I’m not telling you anything you don’t already know, but it bears reminding: you’re the key to getting the buyers to follow these four tips.  It might make you feel like you’re back at the kitchen table and you’re telling your high school child (or you’re the one being told by your parent) that the future rides on getting this project or homework done on time, but the payoff when it got done was well worth it, right?

Comments

Post a Comment

Popular posts from this blog

An Age-Old Concept Reaping Future Rewards

W hy are social media like Facebook and Instagram so darn popular among real estate and mortgage folks?   Hint: the top reason might be an endless supply of memes, cat videos, and the chance to be snarky, but the other reason runs a VERY CLOSE second.   Give up?   Answer:   They’re free – and they really help even the playing field by enabling a one-person shop look and market like an organization who employs an army of wordsmiths and graphic artists. This new century is glorious, right?   With that in mind, let me re-introduce you to a centuries-old concept that is equally glorious – and can help IMPROVE the playing field for you, regardless of the size of your team: karma.   On the subject of “free”, I’m not suggesting that you work for free, but when you freely give of yourself and your knowledge, you’ll see a greater payoff, I promise! Recently, an agent came to us with a question: she has a client who is looking to sell his condo.   It...
Post a Comment
Read more

Get to the Point (Posted February 29, 2016)

As you may have already noticed, there’s some amateur art included in this week’s newsletter.   While it’s certainly better than a crayon drawing that might grace a refrigerator that’s supposed to be “mommy” but looks more like a B-movie creature, we all acknowledge there’s a reason the guy in our office who drew this . . . i s still working in our office rather than making a living elsewhere.   Be that as it may, there’s a point to the picture: is this how you’re allowing your client to choose their mortgage company?   In many cases, it’s probably not too far off.   Agreed, it’s wise to stay on the right side of the law and be sure you’re never accused of “steering”.   With that in mind, many agents tell their clients that it’s completely their decision as to what mortgage company they use (and it is, of course) and effectively step back from the entire conversation – using the illustration to the left, they’re putting the blindfold ...
Post a Comment
Read more

Bubbles: History or Hysteria?

Whether you’re a flipper of TV channels or a die-hard fan of one particular news source (television, radio, internet, or some weird thing called a newspaper), you can’t help but come across a story or twelve on a semi-regular basis about the housing market and whether we’re on a “bubble”.   There are thos e pundits who claim everything points toward the market being on a bubble and how close we are to it bursting, and there’s an equal number who blow off the idea like that’s the most ridiculous thing they’ve ever heard.   What you don’t hear, though, is actual data supporting their arguments concerning a “bubble” in the housing market because it makes for a better story to watch people wring their hands and make emotional pleas and/or flash artificially whitened and perfectly aligned teeth at the camera and say these end-of-days kooks have it all wrong.   Well, buckle up, kids!   THIS is about to become your favorite news source (at least for the next two or thre...
Post a Comment
Read more