When we read about todays real estate market lately all we are hearing is that it's a buyer's market.  Not really, but it is also not a seller's market.  Buyers are under the impression that a "buyer's market" puts them in control of the deal and they call all the shots.  That is true to a point but when it comes to negoiation, the seller has to have a bottom line and telling buyers itsa buyers market you can come in $50000 under is doing a disservice to both sides.  Sellers are not always in a position to take a large reduction in price, they have been advised of a marketable price and they should have been advised of an approximate apprasial value.  Sellers also have some control.  So what kind of a market are we working in??   I prefer to call it a Lender's  market.  the lenders are controlling the deals.  In the past 2 weeks I have heard of 4 and experienced 1 deal that fell apart within in days of closint because the lender changed their mind.  I am talking about deals where everything is done, a commitment is in, seller's are packed, buyer's gave notice at their apartment and everyone is a loser.  When will this craziness end!

They go really wrong!  I had a listing that went under contract within the first week on the market.  The contract price was less then the seller's wanted (when isn't it) but we negoitated an as is clause meaning NO repairs at inspection and everything seemed to move forward smoothly.  The buyer's attorney didn't care for the no repair clause but the attorneys worked through that and we moved on.  Home inspection showed some minor problems but seller's attorney reminded the buyers that repairs were basicly built into the sales contract price so take it or leave it, the seller's were making no repairs.  Buyers want the house.  Fast forward to one day before commitment, 1 week before closing, we receive a letter stating that the buyers want to be compensated for repairs with a $4,000 reduction in purchase price.  When the seller's attorney responded that they would consider doing some repairs but would not discuss the situation until we had a commitment we received a letter killing the deal.  I am left with unhappy seller's and a house that has been off the market for 6 weeks.  My personal opinion is that this buyer was buying over their head and had hoped for a low appraisal , their agent had suggested appraisal issues many times during negoitations but the appraisal was done without a hitch (as the seller's agent I am only privy to the appraisal figure if it does not appraise) The buyer's agent assured me that #1 they had an existing commitment from a deal they lost to appraisal issues #2 they were using the first time homebuyer credit to pay their closing costs.  (This can only be done in this area through a lone from your mortgage company) and I think that this loan put the mortgage out of their reach. 

Personal Marketing is key to keeping your name in front of potential clients especially during a slow market.  You need to get your name in front of as many people as possible as often as possible.  Will a potential buyer see your name in a high school sports program and think I'm going to call that agent? Probably not but if a potential buyer sees an agent's name at school functions, postcard mailings and various internet searches when they are looking for an agent your name will seem familiar and that may produce a phone call.  Now more then ever you have to spend money to make money.

Agents are becoming very frustrated by movement of listings in this area.  Listings are shown over and over, feedback is all positive but no offers.  The problem may be related to the number of short sales on the market.  When a home is listed as a short sale it is listed below market value and are a better buy, what the buyer dosen't understand is that an offer on a short sale can take months to get a response and may not be accepted after that lengh of time.  This makes the buyer suspect that they are being "jerked around" and, frequently, look for another agent.  Not only are we risking losing clients when we offer on short sales but the bank can come back as late as the closing day and say they don't have the money to pay the broker's commission, no real estate deal is cancelled because the broker can't be paid.  So, after you work a whole deal, get to closing you don't get paid.  Until the short sale market straightens out and the banks start to respond in a timely fashion to offers made on them all listings will be affected.

In this market it's hard to know if our pricing and descriptions are doing their job, agents can help each other and themselves by filling out the feedback forms often sent by listing agents.  We may have overlooked somthing that your clients point out or you may have shown a comparable home at a different price point.  By pooling our knowledge we can get most of the listings in a specific area on the same page and possibly save each other some time.  Our buyers are depending on us to show them homes that meet their needs and if the pricing is wrong or description inaccurate we may be showing properties that our client would not have put on their list.  Feedback is also useful when we have a property that the owner has demanded be overpriced.  If 5 agents show a property and supply feed back stating that their buyer's liked the house but felt the price was wrong and we can show that feedback to the seller we may have a chance at a price correction before the listing expires. In this market we all need all the help we can get.

The first time homebuyer should be out there buying right now.  Mortgage rates are still low and prices are at the lowest in 3 years.  The biggest problem I'm seeing with first timers is that there is so much to look at it's difficult to make a decision.  Buyer's agent's working with these buyers should be ready to answer plenty of questions about the market, mortgages and pricing.  We need to encourage our clients to make an informed decision without pushing them and the buyers need to commit.  I have run into a few situations where multiple low ball offers have forced my clients out of the running for a home they really want because they are afraid that if they come in near asking they will pay more than they have too.  It's important to note the days on market when reviewing listings with our buyers and make sure they understand that homes new on the market are close to what they can be expected to sell for. Buyer education is our most valuable sales tool right now.

I know quit a few agents feel that Flat Fee MLS Listings are not worth the trouble, but I've found that for sale by owners frequently don't want anything to do with a traditional listing but are willing to pay  a commission to a buyer's agent.  By participating in a flat fee the listing agent is not only in a position to encourage the seller to a full service listing, but also is on the receiving end of all buyer leads generated by that property.  In this difficult market any lead generating source should be carefully considered.

I'm finding the real estate market in North Jersey, specifically Bergen and Passaic Counties very slow.  I think all of our listings are being affected by the unexpected number of short sale homes that are suddenly flooding the market.  I currently have a listing in Saddle Brook, NJ, priced as the 9th lowest priced home in the MLS and 7 of the 8 lower priced homes are short sales.  For more information about Real Estate in your area visit my website at

http://www.HomesInNorthernNJ.com