Do you view contingent offers as nice safety nets, or do you see them as a vampire sees sunlight. I have seen agents recommend against properties that have contingencies or first rights of refusal and I have seen buyers request to not see them as they think that they will have to pay more than they would to supplant the offer in first position.
Do you have a feeling about homes with contingency contracts on them?
Do you think that the slow market that several areas have been experiencing is a red flag to acceptance of offers with a contingency?
I have a theory about some of the practicing real estate agents and their representation of themselves and the real estate market as a whole. I think that those practicing agents are giving some misinformation to the public and in some occasions, peers that they are mentoring are receiving a perception that becomes their reality. This misinformation usually starts in the following manner, "In this market, ...". Buyers chew this up and it becomes part of their mindset when looking for a home. Rookie Agents swallow this whole and begin to place their foundation as a salesperson (and yes friends, we are salespeople first and foremost) on these three dangerous words.
As Real Estate Professionals and not practicing real estate agents we owe our industry better than that. Just as a supervisor in a Corporate America job needs to only hear negativity once to approach it and nip it in the bud, we also need to make corrections to our peers and in some cases, subordinates as well as the general public.
A prime example is making a professional recommendation to a buyer client to present an offer that is 10% or even in excess of that less than the asking price. Now if the property is overpriced that is one thing, but to use "In this market, ..." as the justification for this is nonsensical.
Another example is a buying client wanting to make an offer that is 10% or greater below the asking price and you (or me) not counseling that buyer that an offer such as this can cause a straight rejection as opposed to acceptance or a counterproposal. Instead the way that the agent responds is "Well, In this Market, ..." and unknowingly is creating a buyer that is looking to steal properties as opposed to going out and purchasing real property that they love and want to own.
I'd like to see us Real Estate Professionals do better than this and help keep our markets healty, even during periods of correction.
This is just my observation. Any thoughts you would like to add?
Feel free to comment, email me at vince.kelly@kellyrg.com, or call me at 719-201-8580.
Thank you, Vince
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