How will the real estate market shift affect buyer agents in Maryland?
The residential real estate market in Montgomery County, Maryland has really changed in recent months. Home buyers and their buyer agents will definitely need to be well prepared for the market shift in order to generate successful transactions.
A big change is the size of the inventory. There is a shortage of active listings on the market. This means that the selection may be very limited in some price ranges and in popular communities. A smaller selection may lead to a longer search period which may not meet the time frame needs of the purchasers. Buyer agents need to become very familiar with the available inventory in order to be able to guide home buyers to the properties that will meet their needs. Previewing available listings has become a more important exercise.
Multiple contract competition is to be expected and buyer agents need to make sure their clients are prepared to make timely decisions during stressful negotiations. The buyer agents also need to have the additional skills needed to negotiate under the pressure of multiple contracts. Clearly written contracts with a minimum of conditions tend to rise to the top of the competition. The agents need to have an intimate knowledge of the market values in order to be able to advise their clients on pricing.
Cash is king when the market is tight. Home buyers that need to use mortgage financing need to understand what products will best meet their needs and will also need to have a pre-approval letter in hand before submitting a contract. Buyer agents need to understand the use of various mortgage loan products and should be involved in the selection of the loan officer and the mortgage lender.
Short sale and REO transactions require special knowledge on the part of the buyer agent. It is important for the buyer agent to understand the process of these transactions and to have the ability to properly advise their clients on how to cope with the process and how to increase the odds for a successful transaction.
Many properties on the market, and especially the short sale and REO offerings, have deferred maintenance or renovation needs. Buyer agents need to have a full understanding of programs such as FHA 203(k) financing to meet the needs of home buyers that wish to consider fix-up properties.
The selection of the right buyer agent is one of the keys to a successful transaction. Prospective home buyers should be very careful with the selection of the agent that will represent them. There is no substitute for knowledge, experience and communication skills.
We are prepared to advise home buyers and real estate investors in all types of conditions. Our buyer agents have many years of experience and are fully aware of current market conditions and the challenges that face purchasers.
Petunia, Kentlands, Spring Flowers IMG_9129
Photograph by Roy Kelley using a Canon PowerShot G11 camera.
Roy and Dolores Kelley Photographs
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