This video is one I did for a buyer that contacted me that is having a hard time looking for a place to buy in Fort Collins around $400,000. He has another agent sending him stuff, so I wanted to show him what we are up against as agents in this market.
When the market is hot and inventory is low, life as a real estate buyers’ agent is not easy. Life is much better when homes are sitting on the market for a really long time and there is tons of inventory to look at….but that would be a Buyer’s market. We are currently in a Sellers’ market which, in my opinion, is one of the hardest to work in for an agent, but that is whole new blog article.
As a buyer in this type of market you need to keep in mind that the name of the game is to get the property under contract so quibbling about things like price, condition, smells, ugly countertops, etc. are only going to keep you from owning a home. Sound scary? It is, but there is an upside to this that you are probably missing.
|The good and bad of being a Buyer in a Sellers’ Market|
|Sellers’ Market Good||Sellers’Market Bad|
|Once under contract, the home will be increasing in value (5%/year on $400k is $20,000 or $1667/month)||You feel like you’re paying too much|
|The longer you wait, the higher it is going to go, so get the property under contract and lock in your payment!||The payment is kinda high|
|Even if the home needs repairs, you will probably be able to recoup the cost spent in a month or 2 of equity.||The home might need repairs|
|The name of the game is CONTROL. Accepted Contract = Control If your offer isn’t accepted, you’re not buying a house. If it is accepted, you have an appraisal that will tell you if you are paying too much or not.||I want to be able to negotiate and don’t feel comfortable paying asking price or more.|
|WRONG! Did you know that the market in Fort Collins didn’t crash when the rest of the country did? Currently, there are not indicators showing that our market will stop increasing in price.||I think prices are going to go down because, ‘what goes up must come down’.|
|Firstly, don’t write on anything that you don’t like, but otherwise, you have an inspection, appraisal, and a few other items to review before you have to close. These are called your contingencies. Again…CONTROL||Writing an offer is a big commitment and I’m worried I’ll have second thoughts.|
|There are agents out there that know how to find properties even in a low inventory market. Interview a few agents and ask them what extra efforts they make for their buyers.||I’m worried my agent isn’t any good. Could be, but give him/her a little bit of grace because there isn’t a lot to show you.|
I know, as a buyer, this might sound cliche, but a good agent is worth their weight in gold in any type of market. In a Seller’s market, you’ll ONLY want to be working with a Buyer’s Agent and NOT with a Transaction Broker. You want someone working for you to get you the price and terms that you want. You also want to find an agent that will tell you the TRUTH and not just kiss your ass.
To find out more about the difference between Agents and Transaction Brokers, check out the video below.