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RSS FeedNow is the Time to Buy! |
Posted at Helpful Tips by Marty Bautista
May. 5, 2008
Tagged with: buy real estate with experienced agent broker
“Now is the time to Buy!” I’m sure you have heard this from many a real estate agent. But what are they really saying? The ones who are in the “now”, who are actively working the market, a professional in their profession, will explain the time is now for several reasons. I like to think of it as a combination of events and cycles.
The big picture real estate cycles have historically shown us late spring - early summer has the most and best inventory of homes. This is due in most part to the school cycle and the subconscious feeling of spring, growth and expansion with good weather. Many agents see most of their business conducted during these three months, May, June and July. Traditionally, the interest rate cycle shows us that interest rates are higher in June and lowest in December. This is an obvious result of the home buyer cycle. Consequently the bargain buyers are out in force during the fourth quarter market.
Sellers are generally 6 months behind in their thinking or processing of market data. Look at what happened 6 months ago… Subprime crash, financing restrictions, media reports on foreclosures, etc. Now, those that over priced have felt the pain of the last 6 months and are reducing to reality. People talk, they spread the word, The Buzz. There are some good deals out there but more importantly there are some good homes realistically priced.
Now is the time to work with an experienced agent/broker. Nothing replaces real experience. A good Buyer's Agent will know how to properly represent a buyer in this market and be able to negotiate on many levels. During these markets are when deferred maintenance items like; section 1 pest inspection report items, roofs, heaters, failed windows, carpet, pool resurfacing, etc. can be negotiated to a highly successful degree. A few years ago everything was “AS-IS”, take it or leave it. Sellers had developed a mind set of passing off deferred maintenance items to the buyers, they weren’t responsible for anything.
Don’t get me wrong, the A+ properties, well maintained, priced right and in good locations (location, location, location) are selling well and I am seeing some multiple bids. Not as frenzied as before but without the right agent representation and advice, one could still lose the home they want. It is time for Buyers to be “Proactive”. If you are serious about buying property, ask your agent or broker for a Buyer Broker Agreement. This will elicit the experienced agent/broker to work for you. This will show the agent that you are serious and committed to them. Almost every agent and broker I know will go the extra mile for the client who is committed to working only with them.
The buyer who thinks it is wise to have several agents looking for the “deal” has another thing coming. Agents talk with many people who say, “I’m looking for the deal. Call me if you see anything.” Reality Check… The Buyer who is committed to their agent or broker (with a Buyer Broker Agreement) will get the First call of any deal or hot property they see. Who would you rather be? The one who gets the call from and experienced agent who will then be able to negotiate from experience for you to a smooth close of escrow or some random call from a desperate agent who doesn’t have committed clients?
Now is the time to buy. We often see foreign investors at open houses looking for Holiday Homes here in America. We are in a global economy and even people from half way around the world are coming here to buy. They are sophisticated buyers who predominately pay “all cash”. What do they see in our backyard that we don’t?
Now is also the time for Sellers to be working with good experienced agents and brokers. Gone are the days of passing off deferred maintenance and of short term real estate speculation. It is so important in this market (Real Estate 101) to have a good experienced agent working for you, not only in marketing but seeing the sale through to close. The art of negotiating is in full swing. A good agent will be able to advise you on proper preparation of the property in real estate terms of today’s market, not yesterdays.
Sellers should ask any prospective listing agent what their SP/LP average is (Sales Price versus List Price). This will show the agent’s commitment to knowing their markets. Be aware of the agent who is “Buying the Listing” by telling a seller “what they want to hear” and over pricing the property. They might claim not to know what their SP/LP is (usually because it is low). An experienced agent will advise to get reports in advance, stage the home and set the price based off current competition and market conditions. After all, the goal here is to sell the property for the most amount of money in the shortest amount of time.
