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You still do all you can, but an offer has to be chosen first, so the negotiating happens, if any, at appraisal and inspections, not offer. However, the seller may leverage their backups against anything but a take it or leave it as-is sale, leaving you with few moves beyond buy or walk. This is the market they are buying in, these are the conditions. We had a market like this 1998-2000/2001 and again 2003-2006 and 2011-present, in CA. The only deals were in the distressed properties 2006-2011 and during the dot bomb of late 2000- early 2002 era in CA. So, the advice has been: get your offer accepted.
Pacific Palisades, CA
Ryan Huggins - Thousan...
Thousand Oaks, CA
Rancho Cucamonga, CA
Thomas J. Nelson, REAL...
La Jolla, CA
I have said " One of my duties is to Protect you in this transaction , even from yourself and potential bad decisions ! "
Michael J. Perry
I suppose it depends on your perspective. If getting the home for a fair amount less than asking price, then no, not in our market. But if you get them the home they want, with terms and conditions they are pleased with, and you work through any appraisal and inspectional issues if needed, then I'd say that's a deal in a strong seller's market. And the fact that they got the home rather than 1 of multiple other buyers who offered
A good deal can happen anytime. It is not determined necessarily on price alone. You never get them a house, you get them a home, and by getting them a home, you get them a good deal. It's just how you look at it.
Welcome to Active Rain.
Michael Thacker - Re/M...
Thomas J. Nelson, REAL...
La Jolla, CA
When houses were regularly selling in 0-2 days I found it was still important to make sure the buyers honored their priorites and did not abandon all parameters just to get something in the super-heated market.
I don't candy coat the facts. I show clients the data and prepare them to write winning offers. I've been working in an extreme sellers market for a good year now.
Colorado Springs, CO
and that agent was absolutely correct....forget the good deal....the only protection that buyer has is the appraisal....a loosey-goosey appraiser is not equivalent to a "good deal"....and there are many of those out there.... the feat is to "get the house"....and hope you didn't pay too much!!!!
Pacific Palisades, CA
"In this market a good agent doesn't get someone a good deal, they get them a house."
That is as true as 'Buyers are liars."
The reality is, it is a learning process. If an agent fails to allow their client to 'LEARN' the outcome will be resentment, the fruit of feeling manipulated.
When you know your buyer has mentally abandoned the idea is subtracting from the list price the cost of repainting or replacing a perfectly functional kitchen, now you've got someone ready to buy a house.
Sounds like an appropriate statement for that kind of market.
Hi Emily - We have the same market, and I can't really argue with the point of that statement. However, I'm still surprised that very few of our buyers feel like they had to settle for a home they aren't very happy with - the deals may not be fantastic for the buyers, but other than price, we're getting them what they want.
I'm seeing a lot of Southern California cities with average selling price between 99 and 101% of list price. So obviously it is a strong seller's market. That said, "get them a house" only makes sense if they need a house now. If the buyer can afford to wait, reasonable (likely not great, but reasonable) deals appear. Just like there are desperate buyers, there are desperate sellers that need to move a property quickly for any number of reasons. Even in the most competitive market with average 101% sell-to-listing price, there is someone with a good property that won't receive full list price. So the agent needs to understand the time constraints of their buyer before making a blanket statement about any purchase being a good deal.
In ANY market, we're there to help solve our clients' problems.
In a hardcore seller's market, when the solution is to get the home they want, accomplishing that IS a good deal. The alternative is no deal - and that's not a good deal if they can't afford to wait.
That sounds like a lazy agent to me...Even paying for a home above list price may be a good deal.
I agree with the statement - it can be tough and the buyers are delighted to win the battle
A honest agent will not overbid to get rid of his client. He pays enough to get the buyer a home at lowest price. The buyers need to be serious or miss out during this business cycle. In out area it has been this way for 5.5+ years. Those waited in the past are out of housing market for good.
I agree with Jeff Dowler CRS answer. A
You have the Denver market down. One of my buyers lost out, we were $50,000 over and still miss getting it.
Buyers will pay a premium for what they really want. Price is only part of the consideration.
Yes. As a Listing Broker primarily. It was a zoo. Then the market it tanked. It was still a zoo - but with different animals...
If a buyer finds and is able to buy their dream house, it is ALWAYS a good deal
I am with Kenneth J. Jones A deal is better than no deal.
This statement comes from someone who is insecure and or ignorant about their proffession.
Was like that before I started in real estate - order taking agents every where - at that time in 2005-2007 my area had over 4000 active agents registered and active in the MLS. Today we have less than 1600 - we're a mostly 20 square mile market!
I wish that were the case in my market. It has not happened in years.
Negotiating to win is the name of the game. Sometimes just landing a home regardless of a "good deal" is sometimes the winning objective.
Emily Wojtowicz - I believe, like many of us, this is a strong seller's market. So the answer to first part is - YES.
I always tell my buyers - my job it to get you a GOOD HOME at GOOD PRICE. Now if the home is not good, what do we do with a bargain price?
It's called Extreme Home Buying. Leading up to the fall of 2007, it got totally nutty - sometimes with 50 offers on a single house!
I am always aware of the deal the buyer is getting and even if it is a seller's market a buyer can still come out feelign like they did good.
There is no "just" about it. That is selling all real estate agents short.
We've experienced a sellers market for several years..prices keep going up..if your buyer wants to purchase which would be the right thing to do. I agree with Jeff Dowler CRS "if you get them the home they want, with terms and conditions they are pleased with, and you work through any appraisal and inspection issues if needed, then I'd say that's a deal!"
That held pretty true here during our oil boom.
this is where relationship selling and buying come into play. developing relationships with agents and trust will get your selected, even sometimes above others.. there are a few tricks also..lets say my buyer is qualified, very qualified. i might suggest (i have done it as a buyer myself) say a portion upon acceptance will pass thru of the earnest money deposit. say 1% or 5000. this tells the seller im serious. this is not contingent upon anything but delivering the house as is. if something goes wrong i fix it, the only gthing that can mess it up is not closing period. then i get my money back, if they refuse, i can file against them and win. lets say they decide not to sell period.. i cant make them but i want my $ back. they do or i hold them liable. sounds complicated but the last thing a seller wants is it to go back on market
In a strong seller's market I have seen buyers write an offer before the ink was dry on the listing agreement. They would buy almost anything just to have a roof over their heads.
Everything for the most part is seasonal which comes with its own dynamics. We call it going with the flow. In business, success is kept track by results
Emily - Sounds like 2006 all over again, and I can hardly believe it. However, I would never sell myself short by saying I just get them a house.
It's absolutely true. Some markets aren't meant 'for deals' if it's too fast. I agree that just getting one makes you a winner.
Welcome to the spring market - how will you compete?
I think it's a mistake that buyer directed agents often make - always trying to get their client a deal. Most of the time with that attitude it's no deal.
All very true statements made by you. We are in a very extreme Sellers' Market in San Diego County, and yes, we do see many buyers willing to make up shortfalls in appraisals with cash.
What Thomas J. Nelson, Realtor said! There are no deals in a seller's market, even the homes that need lots of work are going for close to retail.
I keep wishing for a Sellers market, with plenty of my own homes to sell, but we are still not seeing it here.
Emily Wojtowicz This is statement is based on an agent's benefit and not the benefit of the client.
Boom of the early to mid 2000's. Multiple offers on anything and everything. Prices were skyrocketing. That market crashed in 2006-2007. My markets in Tallahassee and Ocala have been Buyer's markets ever since.
I don't like the sentence "just get them a house". I would rent until the next crash comes; then pick up a deal.
Our market here in Fort Wayne is the same. Low inventory are driving prices up and there are plenty of multiple offer situations. I always tell my buyers that in today's market they are going to get a FAIR deal, not a great one. 9 out of 10 understand this upfront, the other 1 learns it after losing out.
Absolutely. I say it all the time - sometimes the BEST deal is just getting the house you want. It is NOT always about price.
Regardless of the market conditions, there are nuances that help buyers and sellers win. The nuances can vary by location, by client, by property and other factors. My goal is to find the right match and to be able to successfully close the transaction.
The seller is in the drivers seat when it comes to offers since inventory is low. Your job as buyer agent is for the seller to accept offer for the buyer.