Whether you’re a listing agent or buyer’s agent in today’s market you know and understand how hard it is at times to bring both parties together. I have seen offers come in on properties ten’s of thousands to over $100,000 below asking on a $600,000 home that was already priced well compared to sold and active listings nearby. I agree not all buyers, sellers and agents have such low offers come their way but it does seem to be getting more common. I believe that buyers do not always have a clear picture of what the market is truly doing in the specific area they are looking, whose to blame? I believe we as Realtor’s are as much to blame as anyone.
We have been finding a typical buyer will look at 10-12 homes when in the past they may have looked at 2-4 homes before making a purchase, normal? yes. You see there are so many more homes for sale and buyers, understandably so would like to weigh their options and that’s our jobs as Realtor’s. However it is getting more and more common ground to have buyers look at a $250,000 property and suggest an offer of 70% of asking or list price. The theory is all sellers are foreclosures, all sellers are desperate and it’s a full blown buyers market. Not true. Not all homes are foreclosure and bank owned properties, now are their some deals, absolutely there are, but that does not mean it’s every property listed.
Foreclosures and bank owned properties in our area as of now have been obtaining about 95% of asking price. I work very hard to represent our buyers and present their offer whatever it is on a property they choose to take a run at, however may I suggest take the time to educate the buyer you are working with and learn the market. It’s easy, look back on the system you use in your area and look at the average list price vs. sales price, days on market etc. Yes their are deals and if foreclosures are what you’re looking for, great, but that does not mean it’s fair to your client to give a false hope that all properties are in the same boat. I had one guy tell me recently he has been working with a buyer for 4 1/2 months now and they have wrote 8 offers that were all denied. I went on to ask him how that was possible? He replied and said his buyer wants a home for 50-60 cents on the dollar so he is taking his buyer around to all the homes in the area and tossing offers against the wall to see what stick’s, is that really smart and fair to a buyer I wonder?
Some homes may bring that kind of payoff but we as professionals must do our job better to educate not only our clients and their best interest but also ourselves, we need to be better at our jobs and not blindly open doors and show property for sport. This is a great business and a wonderful market for buyers right now but let’s make sure we are doing what’s best for our clients. A buyer will respect a pro more than he or she will someone leading them astray.
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