Home : Blogs : Jim Crawford ~ Atlanta Real Estate-ABR E-PRO : Atlanta Real Estate Blog - Jim Crawford REMAX Greater Atlanta

In Praise of Buyers

I think buyers these days get a bad rap. Too many Atlanta real estate agents complain that buyers are too cautious, they want to look at too many homes, they want to buy homes for pennies on the dollar, they are low balling sellers and walking away from the deal if they don't get thier way. Sound familiar? Well I think it is a good thing buyers are not rushing into the market. This is how bottoms are formed with quality sales. Many agents became spoiled in the last few years. Most agents just became 'order takers' and filled in the blanks in the contract. As an industry we sold homes to those wiht credit only to persons with no money down, or closing costs. Many of them we now see really should have remained renting. So IMHO cautious buyers is more they way things used to be in real estate when buyers spent their own money. Buyers that saved up a 20% down payment and their own closing costs years ago... also proceeded with caution. Why? Because it was their own money that was earned by working all the overtime that God sent them, saving money, and denying themslves those little luxuries in life to obtain thier goals. They aren't nerds. They are just practical and prudent. They will get ahead in life and it will be a pleasure to assist them obtain that goal.

So in today's Atlanta real estate market frugal buyers want to make sure they are getting the most bang for the buck. They want to make sure thier is value in the home they are buying should home prices and neighborhood values drop further. They will negotiate the price because they will not overpay. They want to make sure they can carry the monthly payment if they are laid off or downsized, and they don't want just any home they want the best home. When you think about it, you really can't blame them.

They will seldom pay full price.
They will look at a lot of homes before they come to a decision to move forward.
They will walk if they cannot buy it on their terms.
They want and need recent sales statistics, and a buyer CMA's.
Price will rule the deal.
Homes that are well priced, updated, and well maintained will get their attention.
They will negotiate down to the wire. Price, inspections and terms.

RE/MAX Greater Atlanta 770-238-0122 Direct

Or 888-992-5546 Toll Free Office

Atlanta Real Estate & Atlanta Homes for Sale

Posted by Jim Crawford ~ Atlanta Real Estate-ABR E-PRO on 03/13/2009 04:18 PM

Comments (31)

Atlanta Home Buyers - Cautious in the ActiveRain Channel

atlanta home buyers, caution, cautious, cautious home buyers, atlanta ga, atlanta, ga, georgia, showings, negotiations, terms

Originally posted at: Atlanta Real Estate | Atlanta Housing News for Real Estate: In Praise of Buyers

This post has been included in Georgia Information Gwinnett County, GA Information
Post is included in group: The Optimist
Post is included in group: The Ninety-ninth Percentile
Post is included in group: RE/MAX Active Rain Bloggers
Post is included in group: Realtors®
Post is included in group: Real Estate Rookie

31 Comments on In Praise of Buyers

MAR

I am sort of in the opppsite situation here in Orange County, CA. I have a lot of A buyers who are writing offer above asking and getting overbid.

sounds like a good idea that people are actually thinking about what they can or cannot afford, instead buying whatever they've been "approved" for...great post Jim

Jim,

Another great blog post! Actually, I have been trying to work with more buyers than sellers and yes they are cautious and that is good with me. I love an informed buyer!

Jim - We're still seeing a number of buyers standing by the wayside hoping that the market will tank a little further. Since the Northeast was one of the last parts of the country to feel the effects of the downturn, we may still see a further decline in values before all is said and done.

Agents who blame the buyers are in the wrong business.

Can you imagine being a prospective home buyer in this market????

We're lucky we have one damn buyer.

Adam Brett - Fullerton, California Realtor (RE/MAX NOC) That doens't sound like a complaint. As long as that is the norm...go for it.

Mike Frazier, Dyersburg Tn Real Estate (Carousel Realty of Dyer County) Informed buyers tend to be very loyal and also refer more business your way. They are grateful for sound advice.

Donna Bigda Realtor® CDPE ABR SRES e-PRO Branford Connecticut Real Estate (RE/MAX Alliance) I do not think you are alone. It is pretty much that way in most places.

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate If I were a buyer I would want as much information and assuances before moving forward. This is a risky yet an opportunity time for those willing to venture out. We must allo for that caution. That means more homes, more showings, more time, more contracts.

I totally agree wiht you , I would do the same why pay full price and not negotiate, why not be picky, you are paying for it.

You should be good to todays buyers as they must have good financials to be in that position and as such if you lose your job and run out of money, who do you think you may be able to turn to for help or GOOD financial advice????

Jesse Vasquez (REMAX- First In Real Estate) The buyers in the market are real hard workign folks just trying to look out for their interests.

phil The buyers have more sense than many agents.

I love quality buyers and I don't mind showing them as many homes as they need to see; after all, it gives me the opportunity to see the inventory that is out there, which is a win win. Quality buyers today seem to be well educated, well informed and appreciate being treated with the respect they deserve. I cannot complain a bit about that!

Jim, I have also found that buyersbelieve that Zillow rules as a Trustworthy Tool to get to the real price for a house they desire...

MAR

Susan Haughton Alexandria, VA REALTOR® (Long & Foster REALTORS® Old Town Alexandria) I love them too! However, they are a rare commodity these days.

Paul Henderson, Realtor ® Lacey & Dupont Washington homes (RE/MAX Professionals & Four Seasons Inc.) I agree, and it is sad. It is amazing how many buyers also beleive that Internet IDX is the MLS. A lot of agents don't know the difference either.

Jim: Overall, I agree with you. However, in our market -- which is primarily a second-home market -- there are definitely a lot of "vultures" who are looking to swoop in and snatch up a home for cents on the dollar. Those who make crazy offers just to see if the seller will bite.

They are true opportunists.

Not that there's anything wrong with that.

Jim - I hope that buyers remain cautious for a long time. The more due diligence they provide, the better off we will be.

Jim, Putting myself in the shoes of a buyer I don't blame them one iota - they need only look back to see what happened just a few short years ago, Karen

Kim Southern - Blue Ridge Real Estate (Century 21 Professional Realty Group) Second home markets in previous recessions were much harder hit than most...because the goal is to provide primary shelter. Buyers sometimes are too far ahead of the curve anticipating things are much worst than they are. They are sometimes too aggressive bidding where they assume things will be priced next year.

Mike Saunders (Keller Williams Realty - Greater Athens) Mike I whole heartedly agree with you.

Karen Kruschka - Fairfax Prince William Stafford County VA Real Estate Service (Long & Foster America's #1 Privately Owned Real Estate Co.) Karen in your market I would also assume that buyers that were locked out of the market several years ago because of the high prices may have a resentment and be hunting for bear in this market. They feel now it is their turn.

I've spent several days with one buyer recently, who spent one full day looking at a home and examining every square inch of it - seriously - the most intent home inspection by a non professional I've had! We are now in the process of writing an offer $15,000 below asking and $5,000 below my recommendation.

Joan Snodgrass Tri-Lakes Realtors, Shell Knob, MO (Tri- Lakes REALTORS) God bless the buyer! That is not too bad an offer. They want to see if the value is there.

Jim,

When the market is declining it is probably the hardest thing to do is to be a buyer. The first thing to expect is that what ever you buy today will be worth less tomorrow. Psychologically, it is very hard to buy under these conditions. On top of that they have all the doom and gloom to hear about all day. Many are afraid of their jobs.

Just like in a bull market, it is motivation of the seller weather or not you will make a deal, in a bear market it is motivation of the buyer. If they need to buy, they will apprehensively and cautiously. If they are just looking for something, but they don't need to move, they will be impossible.

These are the sign of the times. However, it will one day change again, in some parts of the country it has already started!

Best

Richard

Jim,

Buyers do know the market pretty good. Like here in Las Vegas they are making offers at the lower end of it, knowing that prices there are just about as low as they'll go. They are pretty cautious toward the upper half of the market, though.

Richard Stabile Bergen County New Homes Builder Realtor (REMAX real estate associates) Thank you Richard, you always have such great insights! I like the way you phrased it "These are the sign of the times. However, it will one day change again, in some parts of the country it has already started!'

Esko Kiuru - Las Vegas NV Mortgage Consultant (Sinifox Financial) I am seeing the same trends here. The lower end is the picked over portion of the market.

MAR

Hi Jim

Great overview of today's buyers. It's the same here in Canada. Here in Oakville sellers were used to selling for average 98% of list price. Now I tell sellers to treat every offer like gold. Many sellers still haven't grasped the fact that their house isn't worth what it was a year ago. I am happy to help buyers negotiate the price down. The percentage of sale price to list price will remain lower until sellers adjust their prices downward.

An agent here in town just listed a property and in the remarks it says "no lowball offers" What the heck does that mean? Is one buyer's lowball offer the same as the next?

Cheers

Jenny Kotulak Broker Oakville, On. (RE/MAX Aboutowne Realty Corp. Brokerage Oakville, Ontario) I love that. "No lowball offers!" Then "Don't over price!"

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?