In most cities across the United States, there’s a dramatic shortage of homes for sale on the market and a great supply of buyers ready to purchase. A lot of buyers are taking advantage of the near-historic low interest rates. Yet, a conversation with one of the buyers will reveal that while they are ready and able to make a purchase, they can’t seem to get their offers accepted.
The majority of this problem is due to the dramatic change in our marketplace. We’ve gone from one of the worst economic downturns, where homes stood on the market for months or years, strapped by high interest rates and strict lending rules. Today, we’re loosing lending rules and taking advantage of great rates.
Unfortunately, for the victims of the housing crash, it might be hard to transition to today’s fast-paced market, where removing contingencies, paying more than asking price, and bending over backwards to get your offer accepted is the name of the game.
“I remember when veteran agents used to say to me ‘You just wait. The market will turn around,’” Amy Broghamer, a REALTOR® in Cincinnati, Ohio, says. Broghamer’s real estate business thrived even through the downturn of the market, and is continuing to advance in the recovering market today. “It’s easier to sell a house now, but the market still has many challenges for sellers and buyers alike.”
To be a buyer in today’s market, Amy encourages all of the families she meets to choose their agents carefully.
“A great agent will prepare his or her buyers and sellers for the current marketplace,” Broghamer says. “The biggest disappointments I see happen when clients have unrealistic expectations about offers, pricing, and terms of a sale.”
As part of the shift in today’s market, Broghamer cautions buyers and sellers to pick their agent based on three criteria that apply to all agents nationwide.
- The 24-home Rule. It is relatively easy to become licensed to sell real estate, but Broghamer warns buyers: proceed with caution. According to an article in The Balance, most agents sell an average of only 4 to 6 homes a year. To find a great buyers’ agent, Broghamer recommends looking for agents who sell an average of 24 homes a year and are in real estate as their full time job.
- Technology wins. A great buyers’ agent is also up-to-date with the latest technology in the real estate market. According to Broghamer, a well-equipped buyers’ agent will use an online document-signing system and they know how to use it well. Offers in a competitive market need to be offered quickly, and a great agent can compose a correct offer in minutes from their cell phone while still at the property. Broghamer was a beta tester for dotloop, the online signature platform that she continues to use today.
- Negotiation skills. A telltale sign of an inexperienced agent is an inability to effectively negotiate. An experienced, talented agent will know how to present the best offer, negotiate on the buyers’ behalf, and win. Broghamer notes that highly effective negotiators are often very well practiced and have great working relationships with their fellow colleagues.
“Agents with more experience know how to communicate with their counterpart on the other side. They know how to craft an offer that gets their buyers the things most important to them, all while providing for the seller those terms most important to them. It’s not always about the price. In fact, most of the time it’s something else entirely. At the end of the day in a multiple offer environment, you need an agent that can help you WIN, and winning in multiple offers takes a lot of practice and skill!”
Above all else, a great agent will be open to answering all of your questions, and they will take the time to get to know you and your goals. They will be open to sharing their tools, their skills, and their strategies for competing and winning in a fast market. Finding the agent that you trust with one of your biggest investments in your life is the first step to a successful real estate experience.
Amy can be reached at (513) 377-3637 or online at www.AmyBSells.com