Tuesday, March 05, 2013

What a Frustrating Real Estate Market !

March 5, 2013
"What a frustrating real estate market!" This is the phrase repeated time and again by real estate agents and potential buyers. I have agents who come to me and ask what can be done. These are some of the frustrations:
1) Listing agent does not respond to a buyer's offer.
2) Listing agents receive multiple offers and ignore the time frame given on the offers to respond. For listing agents "Time is of the Essence" is no longer a consideration. If a buyer withdraws the offer, there are other buyers waiting.
3) Buyers are being asked to remove appraisal contingencies.
4) Buyers are given a short time to complete inspections, loan approvals, and appraisals.
5) If a buyer is fortunate enough to receive a counter offer from the seller, the counter offer often requests a buyer's "highest and best" offer. Buyers looking at the comps are frustrated that they must pick a price that may be "over the top".
It is understandable that there is frustration. No one knows when a response will com, if it ever comes.
For sure, buyers in today's real estate market must be prepared. They must choose a lender as soon as they plan to look for houses. They must, not just be pre qualified, but be pre approved subject only to the appraisal of the property on which they submit an offer.
Above all, a buyer needs to decide how much they really would like to live in a particular property and at what price. With the prices of residential real estate on upward trends, sellers are demanding many concessions from potential buyers. Buyers who have submitted many offers over the past several months and not been successful bidders have become willing to do whatever it takes if they really would like to make a purchase. Frustrating to be in such weak negotiating positions.

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