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Buyers: All Sellers Are NOT Desperate!

By
Real Estate Agent with Envision Real Estate Group, LLC.

Turn DownThe Housing Market has Crashed!  More woes for Sellers in this horrible housing market!  More bad news for the Real Estate Market!  You've seen articles or news reports like these.  They are all over the Internet.  I can't remember pulling up my homepage and there NOT being an article talking about how bad the housing market is currently.

Truth:  The housing market has taken a hit this year.

Myth:  It's not that drastic everywhere.

As a Buyer, you owe it to yourself to be as knowledgeable as possible about your new purchase.  Yes, it does feel great to get an awesome deal, and I am not saying that great deals aren't out there.  But, I've recently seen offers of 20K, 40K, and more off of the asking price.  Then to make matters worse.  They've included in the offer, large repair limits, and thousands of dollars of Seller Concessions in Closing Costs.  Then to the Buyers amazement, the offer is often rejected.

This is a more difficult market than those of previous years.  Some homes are on the market for longer days, and some sellers have come to understand this and are willing to wait the storm out.

As a Buyer in this market you should do a couple of things.

1.  Get Pre Qualified for a loan.  Doing this helps to increase your credibility and your purchasing power.  Ask yourself this question.  Would I accept an offer from someone that doesn't even know if they can get a loan?  If you would, why should Mr. or Mrs. Seller? Some sellers don't want their homes shown without the buyer being pre qualified.

2.  Get a Realtor that you can work with.  I see so many buyers that don't have an agent and drive around town just calling the name on the sign.  Thats OK, but you could be missing out on very valuable information about the market by jumping from Jim Agent to Jill Agent.  Make a list of things that's important to you and find an agent that shares those same values.

3.  Do Your Homework.  Powered with your Pre Qualification Letter in hand, you and your Realtor can hit the ground running.  Your Realtor should be able to give you insight to the home of your interest and the current market conditions.  I like to give my Buyers a Market Analysis.  This gives them the information about the market in black and white.  Then they can make an educated and statistical decision.

Ft. Smith Real Estate

All Sellers are not willing to take just anything for one of the largest purchases they've ever made.  Even if CNN says the market is terrible.  It is important to understand that each and every market is different.  That being said,  the same applies for Sellers.

Purchasing a home is a great investment.  Get a Realtor that actually knows your market to help you.  The fact of the matter is:  All Sellers Are NOT Desperate!   If you are looking to Buy or Sell Property remember this, "To Buy or Sell'um, Call Ray Nellum"  479-414-1894!!!

 

 

Ft. Smith Real Estate

 

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Fort Smith Real Estate

 

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Jason Schweiger
Modus Mortgage - Auburn, WA
Loan Originator: Modus Mortgage

I agree. Some markets though, are in deep trouble, such as Las Vegas. They are down 12% from last year and predicted to go down another 8% this year. I am a savvy investor and know there are bargains there, but I would nervous about buying there now. Our market here in Seattle is much stronger and growth is still good.

Oct 14, 2007 04:27 AM
Marlene Bridges
Village Real Estate Services, Inc. - Laguna Hills, CA
Laguna Homes|Laguna Condos|Laguna Real Estate

Ray - Excellent post.  It sounds like your some of your Fort Smith buyers are having the same thoughts that many buyers in Southern Calfiornia are thinking.  You couldn't have said it better - All Sellers Are NOT Desperate!  There are certainly some that are in difficult situations.  We have homes going to Short Sale and Foreclosure, but that doesn't necessarily mean that a buyer can get a fire sale discount.  Here in Orange County, we're seeing about 4-5% offers to list price.  Unfortunately, many buyers are thinking that 10-20% less is a good starting offer...that's where we need to step in to give them the facts, right?

Thanks for your post.

Oct 14, 2007 04:29 AM
Gordon Sloan
Group1 Real Estate, selling houses in Salt Lake City Utah - Salt Lake City, UT
Salt Lake Homes For Sale, Salt Lake Real Estate

Ray, Good post, .... As a buyers agent though, I think in the interest of my client, I should spend the time looking for the ones that are. Teach the buyers to not be in a hurry, take their time, wait for the right product at the right price.

Good Luck

Oct 14, 2007 04:39 AM
Daniel Sundberg
Crystal Springs Real Estate - Kentwood, MI
Very well written Ray, just because prices fall, doesn't mean people are willing to give away their homes.  A good agent to guide you is well worth the time and money invested.
Oct 14, 2007 05:30 AM
Gary Miljour
American Financial Network, Inc. NMLS#207208 - Southern Pines, NC
Mortgage Originator NMLS Licensed in AZ and NC

Ray,

Thank you for this post.  I cannot tell you how many clients that I have approved recently for housing and they cannot get an offer to come together.  When we talk further, I find out that they have been low-balling sellers on all their offers.  Their agent and I keep explaining that most sellers will not accept a desperation offer, but they think one will.  I guess when they get tired of writing offers that get rejected, that then they will write a good offer.

Oct 14, 2007 01:58 PM
Ray Nellum
Envision Real Estate Group, LLC. - Fort Smith, AR
Fort Smith Real Estate

Jason, Thank you for your comment.  The mass media has hit us on a very generic scale, and not more specific to our particular area.

Marlene, Thank you for your kind words.  Our job in this situation should be from an educational stand point.

Corie, Thanks for your kind words as well.  I work both sides and understand, but I explain to buyers the difference in other markets and our own.

Daniel, I appreciate you stopping by and for your encouragement and you are exactly correct.

Gary, Thank you.  Some listen and some don't.  Sometimes you just have to keep working on them.  Eventually they will see the difference in the market.

 

Oct 15, 2007 01:45 AM
Lynda Eisenmann
Preferred Home Brokers - Brea, CA
Broker Associate ,CRS,GRI,SRES, Brea,CA, Orange Co

Hey Ray my Ft. Smith Friend,

You've done a great job proving an accurate overview of the marketplace for your area. All three points are excellent.

Oct 15, 2007 03:10 PM
Diane Rice
Rice Prprty Mgmnt & Rlty, LLC, South Holland, IL - Lansing, IL
SFR, SRES, CNC
Hi Ray!  YOU keep tellin 'em!  And in the midst of what you SEE.... still keep your continuance without veering..... because like you said, all sellers are NOT desperate.... and all Agents aren't either!  Right? Right!  Excellent article Ray! 
Oct 18, 2007 04:08 PM
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection
Ray - Good point not all sellers are desperate.  Although the market is down buyers still need to follow certain steps if they desire a great closing.  First step find a good realtor.
Oct 20, 2007 06:13 PM
Ray Nellum
Envision Real Estate Group, LLC. - Fort Smith, AR
Fort Smith Real Estate

Lynda, Thank you so much.  I try to stay on top of what is going on within my market.  It's vital to all of our success.

Diane,  Thanks for your encouragement.  You know I'm going to keep moving forward.

Jennifer,Thanks for you kind words.  The Realtor is such an important part of the transaction from beginning to end.

Oct 21, 2007 04:42 AM
Anonymous
Real Estate Blogger

Ray,

Well said.  It's crazy how much we've all gotten caught up in the doom and gloom without really looking at the bright spots of the real estate market.  Yeah, last year was the big bubble burst, then it was the subprime mortgage meltdown, now it appears to be the large scale effects on the entire stock market and economy, but guess what?  By the middle of next year, all of the negatives will be blown way out of proportion by the media and we'll be back to the realistic positives again.

Nov 12, 2007 05:06 AM
#11
Elizabeth King
King Realty Group - Fort Smith, AR
ABR,CRS

Great Post Ray.  I was just talking about this the other day with a client who was in a panic about whether it was a good time to buy or not.  DUH!  I am so sick of national media painting such a bleak picture of the market.  It becomes a self-fulfilling prophecy if we allow our clients to buy into the lies.  Yes, things are not as rosy as the last few years, but, for heavens sake, those were record years.  We can't continue to go up and up with the intensity of the last few years without some correction.  But, even with some correction, I think that we are still going to have a great 2008!

 Just my 2 cents

 

Feb 28, 2008 05:28 AM