I will bet you wish you had a dollar for every time a real estate agent has told you… “This one won’t last long”. Inexperienced agents use this cliche to create urgency regardless of whether it is appropriate or not. The result is that professional agents, wanting to give their best advice to purchasers in circumstances where the comment is in fact justified, hold back or risk disbelief.
Purchasers need to do their own research to determine whether they are buying in a sellers’ or a buyers’ market. What is the easy way to pick the market? If there are more buyers than sellers, then there are probably not enough properties to go around – a bit like musical chairs. In a sellers market, the sellers – and by default their agents – have the control.
In this situation buyers who spend too much time deciding whether to make an offer end up losing the property to another more aware buyer. In an oversupplied market, where there are more properties than buyers – a buyers market – the power is in the hands of a buyer. That is when a good sellers agent will shine.
Certain types of properties are more sought after than others, no matter what the state of the market. Popular property categories vary from location to location, but a property that is keenly priced will always sell faster than one that is grossly overpriced. Another statement that needs explaining is “They won’t take anything under $X”.
An agent worth their salt would never say that because they are not the one to make the final decision about the eventual selling price. That is up to the seller and in some ways the buyer – but more so the seller. Let me explain. Every seller wants more for their property than it is really worth – they love it so why not?
For that reason, they will try to ‘condition’ the agent to get them an above market price and as a result, inexperienced agents may take it upon themselves to ‘protect’ the seller. A big mistake. Sellers need to hear the good the bad and the ugly. The agent may even refuse to submit a low offer which, by the way, they can’t do. Agents are required to submit all offers.