The market is down! No question about it! Right? Well maybe. In many if not most neighborhoods prices are not what they were two years ago, but that doesn't necessarily mean people are losing money. It's likely most homes are worth more if not considerably more that what the owners paid for them.
Yes, there are major exceptions. If you bought a new home in Las Vegas in the last 3 or 4 years and have to leave don't look back you'll turn into a pillar of salt! It's likely you've been... (This is a family friendly blog.)
There is another name for a real estate market with an excess of listings! This is a Buyers Market!
Buyers Market, many are asking how can this be when the I admitted that the market is down? That's the reason if the seller wants to sell they are going to have to accept a deal that's good for the buyer.
Not everyone has to sell, so the buyer's with little or no flexibility will still have to pay full price! The buyer buying with their head instead of their heart can always get good deals. In a Buyers Market they can get great deals.
Not all REALTORS® are going to be able to help today's buyers. Traditionally home salesmen deal with the buyers emotions, show a house the buyers can fall in love with, and tell them what the seller wants.
It's going to take a major adjustment for the Home Buyer's Agent to prosper in a combined Down Market and Lending Crisis. To succeed and yes even soar in today's market you need to act like real estate opportunity investment salesman!
This is not CCIM type investing rather like the old Farm and Land Institute brokers. This forgotten group had a very simple creed: "Find two people with problems and solve them!" Think about it you've got a would be buyer in a down market with a gyrating loan market, that's one person with a problem. Your listing agent counter part has a 9 to 24 months supply of listings, that's bound to include many that really do need to sell soon. Those sellers have a problem! Solve it.
Instead of dream homes look for acceptable homes.
Instead of looking at list price look for the sellers prolmem. Vacant homes a big clue!
Think of the list price as irrelevant like the "Buy it now" price on E-Bay!
Make offers like you're on E-Bay offer what's good for your client regardless of list price. If the seller doesn't accept it move on.
Don't show houses your client can't have on his terms! Drive by then write an offer on your clients terms and make it contingent on inspection within 24 to 48 hours, after acceptance.
While your driving by houses write several offers have the client number them in order of preference. Present them one at a time until ones accepted.
Consider using short term options instead of your standard sales agreement, It's amazing what some sellers will accept to get the hundred or two you pay for a 2 day too 2 week option.
You're going to be told that's not the way we do things! So what? The only reason to stick to tradition is because it's still working for you!
You're going to be out of many peoples comfort zone. Again! So what? There are higher traditions! Things like honesty, integrity, fiduciary, service, and eating!
What investment salesmen know is that the profit is made when you purchase the property! If your client is worried about the market let his offers reflect his concern! The seller has the same concern, your client might be the proverbial "Bird in Hand!"
If a listing agent refuses to present an offer turn him into the state.
Despite all the head lines there is plenty of money available for home buyers, even investors. If your local mortgage broker can't help you there is at least one on-line lender that still works one on one, me.
Remember even if rates go up, rent is 100%!
Remind you clients of the advice from the anonymous sage:
"No matter whether
you rent or buy
you pay for the
space you occupy!"
Bill
William J Archambault Jr
The Real Estate Investment Institute
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