Hello again! I hope your life is going well for you and that you are finding time to do things which bring you joy.
As you know, I am a real estate agent, and somewhere along the recent past I made a comment about what to be aware of in the coming months, with regard to the crazy real estate market. Well, some of the things I feared are showing up, just as I predicted. For example, heightened emotions due to multiple offers are definitely in play. Emotion is not a great idea in a business transaction. Hard to eliminate, to be sure, but never should emotion lead the way. I cautioned real estate agents to advise their clients well in that regard, to prepare them for the inevitability of multiple offers and even offers above list price.
I tell my clients to know their limits, discuss them with one another, and be prepared to walk away from an overheated offer situation. They know before we get in the car, what they are facing and how they will probably react.
It’s funny how people might be ambivalent about a particular home until they know someone else is interested. If you, as an agent, see that phenomenon, it’s up to you to be the good advisor and make sure your client hasn’t gotten caught up in the competition, that they truly want the house.
And let me also add this: real estate agents are not immune to getting caught up in emotions. It’s your job to guide, not lose control.
The other issue I cautioned about was homes not appraising for the elevated offer prices. And now that’s also happening. Listen, it is up to the realtor to know the market and know when an offer just won’t fly when it comes to the lending part of the equation. Yes, it feels good to have your offer accepted over the others, but you had better know what to do and how to explain to your excited clients what happened, when the appraisal comes in low and the deal falls apart. And if you get crazy with the offer price, it will.
Of course sellers want to get every penny they can from the sale of their house…and they should… but listing agents, you need to make sure they understand the implications of an above-list-price offer if it falls through at appraisal. In other words, it’s not just buyers who need to be prepared.
Okay, here’s another issue. EVERYBODY is busy. So inspections take more time, repairs take more time, and underwriters take more time. If your realtor tells you he can sell your house in 3 weeks and a mortgage is involved, or repairs are involved? Fire him. Any good agent knows that service providers are no longer sitting around waiting for the phone to ring. They are busy and your request will be put into their queue. DON’T RUSH THE TRANSACTION. Nobody benefits from that.
This market is going to be hot for a while; it takes a while for the pendulum to swing. Knowledge is power. Know what to expect and plan ahead.