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It's NOT A GREAT TIME TO BUY...

...unless a buyer picks the right real estate agent.

It's truly perplexing to me to see the positive market "spin" offered by many real estate agents, who may be EXACTLY RIGHT, in their market- but the information seems to become diluted with platitudes.

THAT ASSUMPTION NOW HAS TO BE QUANTIFIED.

By "exactly right", an agent must have access to (and comprehension of) local trends, and the availability of properties that take into account the future as we know it- often 15-20% under a specific asking price. Sometimes, more than that.

When buyers peruse blogs, my assumption is that they're seeking specifics- for example, if it's a "great market" or "great time to buy", that statement must be quantified with specific properties that are priced in such a way that makes urgency obvious; lacking that aspect, it simply is not a great time to buy, period, and we look like big fat liars (quite unintentionally).

It seems that many perfectly competent real estate agents provide information that is missing one thing: the proof of their ability to discern a reasonable price, and operate on the buyers behalf to achieve that price. The presence of the ability seek out "the right price" holds a whole lot more value than a simple statement that includes the words, "it's a great time to buy."

These real estate agents are shorting THEMSELVES- a blog is a perfect opportunity to offer reality mixed with a bit of personal panache- while it remains a take-it-or-leave-it proposition, and certainly requires more work, an understanding that the real estate market henceforth WILL require more work can't be ignored.

This blog was compelled by a recent prospective client. That he is high end is irrelevant (but somehow compelling). While he is seeking to buy a property, he has done MUCH in the way of research. There is absolutely no way that this person will work with a "sunny skies" real estate agent, and his entrance into our lives provided an opportunity to BE the company that he chooses, based on market knowledge, fiduciary to his own ultimate purchase, and an effort to offer WHAT IS, to the best of our ability. I like that he's adamant about raising the bar.

While he may well locate someone equally capable of offering reality, at least we'll know that what we offer to consumers is reality- not our own version of a hoped for outcome full of platitudes.

Besides...that's SO 2007, anyway...

Posted by Laurie Mindnich on 01/31/2009 04:08 PM

Comments (54)

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Post is included in group: POSITIVE ATTITUDE for the Weary Soul
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54 Comments on It's NOT A GREAT TIME TO BUY...

JAN

I heard that... I actually have the reverse buyers....the ones who have done no research, have listened to the news, and think, they can low ball every thing.....with little money down, in invester territory price range...what I would give for an educated buyer :)

Konnie, if an educated buyer is our "future"...GREAT!!

Thank you.

HI Laurie, very nice perspective on the "spin" word...Great Time To Buy, although it is for a variety of reasons...the biggest reason to use a specific agent or company is more than words. Nicely done.

Gary, THANK YOU, and great to "see" you- your own blogs offer reality, which is why I subscribe!

Thanks Laurie. I seem to be experiencing more and more "educated" buyers. It gives me a chance to do what I do best. There are actually a few markets in my vicinity that are "seller's" markets much to the surprise of some buyers. Multiple contracts on certain properties within 2 days of listing. All of which are priced correctly from the start. It's also great to have educated sellers!

Laurie, I'm really glad to hear there are buyers who are educating themselves first and then turning to a reliable realtor to help them in the process. I'm glad to hear this and happy you posted it, maybe it will encourage more people to learn more before they purchase--and expect the very best from their buyer's agent which I know you will give.

Glad that Gary linked to your blog Laurie. What you state here is very true. You can't simply state broad generalities and expect to be taken seriously as a market expert. The truth is in the details, and that's what professional consultants are hired to expose.

Laurie, if we aren't honest about the market, where is our credibility? But all real estate is local, and that is where our knowledge and expertise provide value to a buyer. That said, it is a good time to buy for some people with low interest rates and prices down to where they can afford them. Families want to settle in a home they own and they just don't feel settled if they are renting.

Laurie,

Thank you for your post. It looks to me like you are saying that "Wishing and Hoping and Praying" that it's a good time to buy does not necessarily make it true. A good realtor needs to have concrete evidence that it IS a good time to buy.

In my market here in Johnston county, NC we are seeing some homes priced much lower than they would have been priced even six months ago. However, we are also seeing some new home construction where the builder is refusing to lower prices and these homes are just sitting there on the market for more than a year.

It is indeed a very confusing time for buyers as well as us realtors. I appreciate your point of view and I will try to not just be generally positive if I don't have info to back it up.

Have a great day--Linda

Well said. It would have even been better without the gratuitous *bold* highlighting.

Laurie - In my market there are now many properties available in the lower ranges thus providing more of an opportunity for first time buyers. Because I regularly analyze the data I recently stated that it was a good time for first time buyers that is if they could get a loan, and pointed out how FHA was worth considering.

Yes I too find that the consumers are doing their own research, so if an agent is not at the top of his or her game this will be exposed.

I understand your point, making a blanket statement without the facts is certainly irresponsible.

Laurie, well you hit the nail on the head. There is a difference between a professional Realtor and a unprofessional one. Each buyer has different reasons for purchasing, but at the end we "The Realtor," need to educate the client.

Excellent post! Ths one deserves a feature. I agree. Real estate consumers need facts, not platitudes. And you didn't say anything against this. I just wanted to add it.

I think we should keep our personalities in our posts as well. Straight facts and figures are boring, and many times, when a new customer calls me, they've already decided to work with me, because they've been reading my blogs, and they feel like they know me.

FEB

Great post Laurie. I now have a listing that is priced "right" and is actually priced below the market. I have many showings and the house has been on the market for 4 days. Other agents are telling me how great the market is and I am like WHAT ARE YOU TALKING ABOUT????!!!

Well stated, Laurie! I love the educated buyer who OD'd on research. This allows us to position ourselves as a specialist who interprets the information and helps that buyer make better, informed decisions. From keeper of the info to interpreters of the info ........ at last we have a value propostion that justifies buyer advocacy (buyer brokerage) as well as our fee. WooHoo

Funny thing is ~ your client thinks it's a "great time to buy" or he wouldn't be seeking you... so your post is irrelevant.

Brian, no question about it- a seller that has done research is a person that will likely sell their house..

Carole, as much as we can provide in the way of facts- good facts included!- paint a picture that is realistic, and offer value to our positions in THEIR real estate world (opinion)- thank you!

Lola, I'd love to be in a "great" market, and there are likely reasons to call it that- if we can get more specific, it would seem that the knowledge level would be better understood by buyers/sellers-

Frank, there have been some surprisingly strong buys out this way, but it does not a "great" market make, without specifics, don't you think?

Linda, a positive attitude is exactly what probably makes people choose you- details from all of us (as opposed to wishful thinking) would translate better for each individual person considering buying (opinion)- thanks!

Bill, thank you- as a person that is lacking in the picture department (mine tend to be unpredictable on AR- my fault) the bold may well be overdone/overcompensating. Thank you for the input- never looked at it as gratuitous before.

Jennifer, you were specific with respect to the "good buys"- with the backup of pricing that works. THAT'S what consumers need- that back-up to our words, as you provide. If we all do that, things will become more clear, rather than a question mark!

Thanks, John, I agree- the more we can offer that's tangible, the better (good and bad).

Lisa, your blog offers much in the way of reality in Florida, and I'm sure that people reading really appreciate what boils down to more effort. How is it in the southern trenches these days? :) I've actually found myself suggesting to friends that it's a great time to buy in Florida- the pricing there is amazing- and my "facts" come from the Florida bloggers, and reading their market reports and observations, as well as the listings that seem amazingly well priced!

Miriam, we are certainly in an interesting "place" right now, with the cracks appearing- your direct approach is going to have a whole lot more value than that of the "it's a great market" crowd!

A VALUE PROPOSITION- now THAT'S what I'm talking about! Thanks for putting it so well, Roseann!

Anonymous, to the contrary- this buyer is waiting until all facts are in, and the market demonstrates some stability. WHEN he's ready, we are, as well. Thanks for commenting, though!

Well your post I am reading also has mixed feelings and reviews. I just wrote a post yesterday as a matter of fact showing the mortgage rates over the years and as far as interest rates are concerned, it is a great time to buy! They have not been lower since 1963. So do you think you are the only one qualified to represent a buyer (value proposition) because of your 'realist' market knowledge? So you don't run on the 'sunny side' of the street? Are you trying to make a statement against NAR and their own 'sunnyside' advertising to the public?

Hi, Lyn- it's actually a whole lot less complicated than your interpretation. Providing interest rates is tangible evidence of a market "positive"- you did that. Offering up a "great time" without such back up is, in my opinion, presuming that buyers/sellers are going to buy into a catch phrase that has seen its day come and go. The market is complicated; evidence accompanying an opinion is something that people are in need of, and coming to expect. We're just seeking to delve a whole lot deeper for answers to their questions. Except, I'd have to say "yes" to the notion that a realist attitude, whether it's ours or yours or someone else's, offers a higher value. I haven't seen recent NAR ads; the old ones did some serious damage, as I recall.

I totally respect an educated buyer. It brings out the best in me. I guess I get a little lazy(?) with some of my buyers because of their expectations but an educated buyer's expectations can be exceptionally high and I need to ensure I can step up to the plate because if I don't they'll move on to someone who can.

Kelsey, I'm with you on that- if buyers make us much better at our jobs, works for me! It's such a confusing time right now- too much information can't be a bad thing for any of us, or for those out navigating the rough waters. Our jobs are evolving!

Definitely an 'interesting' time in real estate. Who ever thought we would be saying that our clients are keeping us on our toes and making us better at what we do?! I am finding that what I tell someone today, may have changed drasitically in three month's time. The market in Indianapolis is still adjusting and for the first time in my career, sellers are sometimes asking me for the price reduction before I ask them!

Laurie, I'm not sure if I agree with you about the spin on 'the great time to buy'. Put in the appropriate context, the reality is that this very well might be an excellent time to buy. Depending on the particular client and his or her needs. Like everything in real estate, it's local and complicated depending on the needs of the end user.

Pat, talk about pressure- we've undergone the same change in reality, and it's appearing that we'll have an ongoing process of keeping ourselves informed daily for some time! When things return to "normal" (?) with a bit more consistency, how will we occupy our newly brilliant selves? :))

Thanks, Gabe- this is certainly a market that compels many opinions/thoughts- exciting times in real estate for all involved, for sure. Your mention of a clients needs, however, indicate that you're doing the homework that a year or two ago was a whole lot simpler.

Wow, talk about coincidence! I just posted something similar also on the 31st!

I hope I'm not committing any "sins" by listing it here:

http://activerain.com/blogs/dsygit

Please post a cross-reference to your blog if you go read mine:)

Drew

There's so much on the market here today, my last two contracts are about 88%.

If we can't get it at the right price, we move on.

Lending Edge/Drew: NO SINNERS ON MY BLOG! One (me) is enough!!

Lenn, that's the only thing to do, and in some cases, waiting makes PERFECT SENSE.

An educated consumer is the best consumer regardless of the product. Bit it is our responsibility to educate buyers to recent trends and to have realistic expectations. Right now with rates low and inventory up it is definitely a great time to buy..

Craig, agreed to this extent: if the price offered takes into consideration the local market and upcoming (in some cases, not the case) foreclosed properties hiding out that will impact regular homes for sale, it is indeed an opportunity. Tracking ALL aspects has been challenging in NY, but onward we go!

I agree, there are some good reasons to buy... but you have to quantify them and make sure they apply. Low interest rates are nice, but if you over pay for a home or lose your job a low interest rate does not matter much. Its about buying the right home at the right price with the right financing that makes it a good time to buy. Just because home prices are in general lower than last year does not make it great.... they could be lower next year!

Roland, that is exactly the position of this potential buyer (and ourselves)- the right pricing has to be in tandem with the rate, or there is no benefit to a purchase right now outside of a personal choice (which, in this case, is secondary to the "right" buy). To suggest otherwise without proof of reason will not create a relationship of mutual respect, with buyers perfectly capable of navigating the data. It's the "respect" thing that seems compromised with blanket statements. Thanks for your insight!

Yes....the interest rates are low so that is helpful......I do think that the market will go down further before it recovers. Yes, I agree unless the buyer finds "the righ property" perhaps it isn't such a good time. It's only good if it is "right for you, "the buyer") at the time.

Patricia Aulson/ portsmouth NH Real Estate

Patricia, I am finding this to be the most COMPLICATED of markets- thank you for your insight- you're exactly right.

I liked this Laurie :)

TLW...ROAR!

I like YOU, TLW- you guys are a great example of shooting straight, offering in depth reality, and making a success of the market (in addition to being completely charming people). Rare!

Being knowledgeable and having a client who has already researched the market is a great combination, then everybody has an idea of reality.

FEB

With all of the information available to everyone these days, the fact that Buyers are more educated about the process and the inventory is here to stay and that really does help us do our jobs. However, Buyers and Sellers still rely on their REALTORS for the nitty gritty. "It's a Great Time to Buy" is true right now - - because rates are low and there is plenty of inventory (in my market). Great for everyone? NO; the BEST time? What do you mean by that? Are prices as low as they will get? I don't know. I do know that print advertising is expensive so you boil it down to a few words - - maybe I should try "Call your REALTOR today for a dose of REALITY". I wonder what kind of calls I'd get from that? But we are so much more than we can convey in our ads - much, much more than just another pretty face (but we put that out there, too)!

Thought-provoking post, for sure!

I hear ya, great post. I get the feeling that most "sunny skies" realtors are just sort of putting on a brave face to play devil's advocate to the Debbie Downer Media. I agree that vauge statements need to be backed up with some substance and call me crazy but maybe a little bit of general market knowledge.

Hi, Christine- as more and more buyers demand more from us in the way of market reality, and we all begin to comply (as many already have) perhaps the perception of real estate agents will improve. Thank you for your input-

Terry, it is an absolute #*&@ to figure out how to positively present a negative (in NY at this juncture) market- but one thing that would seem like a sure fire way to discredit ourselves is to pretend (as some do) that "all is well"- the lis pendens demonstrate a very different upcoming chapter. In the past, we could all plead a degree of ignorance- no one intentionally got people into a bubble market; now, with knowledge of the harm that buyers face with a "bad buy", careful navigation is the only way to satisfy "fiduciary" (as required of buyer agency in NY). I'm no more certain on how to present the message without it sounding dreadful than you are, and appreciate your comment!!

Meris, thanks- it's all about knowing what IS, and figuring out how to translate those facts with as much certainty as the uncertain market provides, imo. Not an easy endeavor!

Well, Jim Weichert has said for over 6 months "now is a great time to buy" and I guess he really meant it by getting Congress to address a First Time Home Buyer's Tax Incentive (Credit is a misnomer) that was passed into legislation. I take your point, though. But instead of agents saying "it", it helps to be affiliated with a company that does "it".

Home lending? No worries, we see 9 of 10 potential homebuyers being pre-approved for mortgage loans. This is the power of a national home ownership services firm and its broker/owners, managers Gold Services members and agents that are on the front lines every day.

Hi, Synergy- if I were a buyer, even with the presence of an incentive, I'd ask you (or me) to provide figures justifying pricing that is sliding- as mentioned by several above, a 'great time to buy" involves a whole lot more than prequals and incentives offered. I'd have to understand "it"- if the listings provided by your company, or any, are priced "right" (a decline taken into consideration when a house is put on the market- significantly lower than competing properties), that would offer a powerful incentive to use that company. In a perfect world, right? :)

FEB

There is a difference between a truly educated buyer, and a buyer who thinks they are educated from watching the Home & Garden Channel or CNN... but I do think that it is a great time to buy, for many reasons, and that of course, specific propertie sare perhaps priced better, or the seller is motivated enough, to sell at a good price, but then, general trends are just that, general, and for qualified buyers, interest rates are near the lowest they have been in decades, and prices are generally low, with high inventory... a specific property may or may not translate into a good deal, but there are many out there, and most are NOT foreclosures... but I do think there is something to be said for general market conditions, and then again for specific properties... and the two are not mutually exclusive.

A good buyer agent is the best way to go... experience, knowledge of the region, knowledge of structure and rehab methods, and ability to negotiate with sellers and their agents, all contribute to "the good deal" -- my three cents.

RIRE, I have to agree- to have a real estate agent that isn't a buyers agent would be insanity in a market such as this one. Thank you!

I agree with you Laurie, eventually, things need to boil down to specifics, and not just an agent's opinion, but a truely knowledgeable position, pros, cons and the like.

That said, sometimes buyers/sellers need an agent who is also willing to stand up to them and say: you are crazier than a fox in a henhouse if a client is WAY off base, as that is always doing them a disservice. For example, we recently renovated, staged and completely brought an old, tired, dated, and run-down architectually significant home back to state-of-the-art (kitchen, baths, you name it) and it commanded multiple offers in a market where NONE of the competition was under contract and buyers knew it, and we ended up with a sold psf of $20 higher than the asking psf of all its competition (comparing sold psf to asking psf to boot)! So, the low-ballers don't work for every property, but in this market, may work for some, it truly depends on the home, the local market, and not all the media hype. Sometimes, it's just not price, but the marketing time will take longer, and educating sellers to this, even if they have a good product to sell, may take longer, but not affect the price as much. Truly knowing a market is key.

In general, I absolutely agree with you, regardless of the outcome in a specific instance.

Chris, you put it better than I did (and your example is PERFECT). THANK YOU!

FEB

Realtors are like parrot "It's a great time to buy!" RRRAAAKKK.

Mike, there's been a whole lot less of that refrain lately! :)

Did anyone else notice...

The subtle change in NAR's commercial? At the very end, a gentle voice tells us 'every market is different'.

So glad I pay them the big bucks to tell me and the Consumer that :)

TLW...ROAR!

TLW, I don't want to pay them any bucks, but did, once again...

Excellent advice. Buyers and sellers need to avoid the lure of the sunny sky approach. Sure, we can talk what is good, but we better darn well be talking about reality and problems to avoid and how we are going to avoid them and how to be a smart buyer or a smart seller in x market right now. Real estate in Austin, TX is a bit sunny compared with most of the country but it's not all rosy and you better be talking with confident and seasoned agents who are not afraid to shoot straight and risk losing your business because they are delivering sunny commentary. I find most sellers in Austin, TX appreciate the "I am not going to sugar coat this message" approach and they listen to the tough advice. The "I'd rather disappoint you now rather than disappoint you later" approach is refreshing to most. Another approach folks are listening to now is the simple "I will not list your house at that high price ... you can get some inexperienced agent to do that, then call me in 3-4 months when it hasn't sold ... I would be happy to the 2nd agent on your home."

MAR

Hi Laurie,

I've been away from AR for a minute, but I'm slowly getting back into the mix. I agree whole-heartily, we as professionally shouldn't put blanket statements out there like, "It's a great time to buy" without being able to show buyers why. I am guilty of making such statements, but when speaking to folks I explain why with area statistics and such. As others have said, real estate is local and situations are different, so it depends on a person's specific need at a particular time. In some cases, It's really not a good time to buy.

Eugene, through circumstances that are now HERE, you're absolutely right- great to "see" you!

MAY

Juile, exactly!

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