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Robo, I may be mistaken, and if I am, I apologize in advance, but it sounds like you're on a mission to discredit realtors for some reason. So may I suggest that if you want to challenge my posts or the posts of others, that you read and understand the posts and quote exactly what the other poster said, and in context with what they are saying.
I want to further clarify that code of ethics statement. When a realtor represents a client, s/he has a fiduciary duty to that client which includes Loyalty, Confidentiality, Accountability, Obedience, Disclosure, and Reasonable skill and care.
The realtor owes Honesty to all persons in the transaction.
Nowhere in the realtors training, licensing, or code of ethics, does it say that the realtor must "predict the market", whether it is up or down. That is because we are not trained to predict the market, nor can the market be predicted to any degree of certainty by even the economists.
and to think that i highlighted the word IF and spelt it using capital letters. i will try and be clearer this time!!!
IF (if you look to your left you will see the word"IF")! Now we weren't all born yesterday but i think that we can accept that many realtors, not all, but many realtors when engaging with clients would give their clients a brief snapshot of the market. ie
"re in this area has been going up"
or
"the market's going crazy and i don't see it cooling off anytime soon"
or
"this market is going crazy, you buy today for X and tomorrow people are busting down the door to give you another 10 grand"
now i'm not trying to make a moral judgement on realtors for doing so. if i was a realtor watching the market at that time i would've said the same thing in a kind of "don't take my word for it" kinda way.
okay so the market's kinda turned now. unless you're one of those "the world is flat" types, we can take it as a given. so here's that big word again- IF you were one of those realtors that occasionally offered a bit of "off the record" advice, you now have a moral obligation to perhaps enlighten your more impressionable buyers as to the realities of THIS market. ie
"this is a great time to buy, prices have come off a little bit perhaps i would be a good idea to be a less aggressive in your bidding"
or
"the market has cooled, and might still cool a little, perhaps you should consider that"
or
"you are in a good position because buyers are struggling a little to move their properties"
If however you were one of those realtors who were totally impartial and dealt in present tense only, this post was not aimed at you!
Robo, I think we're in agreement that a realtor should give a client a snapshot of the market. I do this in the form of a CMA, and our company requires a CMA to be turned in with each transaction.
Also I believe we should, and I do, provide statistics showing the current market and the trend. This way the client sees the current picture and can make their own forecast and decide what is best for them.
We have to be very careful about predicting the direction of the market from those trends because that is where a client can be accidentally mislead and the realtor may be sued.
Here's an example in today's market:
The Metropolitan Phoenix statistics through April 30 show that the inventory for all types of housing throughout the valley has decreased since December from 19 months to 8 months; and sales have continued to increase in number. Usually the first quarter shows an increase in sales and then in April they back off. They kept increasing this April. However, the overall prices still declined.
These numbers come from Broker Metrics, a company that provides statistics by subscription.
All I can provide my client is these statistics. I can't state which way I think the market will go because that is forecasting, and if I forecast wrong and cause the client to make the wrong decision and lose money because of my forecast, then I may be held liable.
These statistics are sent to us by our broker, and then I usually go into the office and use the software to gather the statistics by using only single family residence, and some other criteria.
What I see from this latest statistics and from my personal experience with buyers is that there are a lot of buyers coming out now. Many are looking for the perceived bargains with short sales and REO's. Many have just made the decision to buy now and are looking for the right house.
The short sales and the REO's have been instrumental in bringing buyers out, and while there are new ones coming on the market every day, these are selling. They are also having the effect of bringing the prices down further.
However, since the inventory has declined, it is providing less options for buyers than they had in December. They're having to look harder to find the house they want. Also, they're finding that in the case of a short sale and REO if the home is in good condition, that they're facing multiple offers, and the banks know how to play the waiting game.
So, while I see what is currently happening in this market from the statistics, and from my interaction with my buyers, and I certainly see a 4 month trend developing, I really don't know what will happen next month. I can guess to myself, but if I offered a forecast to my client, I may be doing them a disservice, and setting myself up for a law suit.
So to give you all an update.
The house was listed at 389000
We got it for 355000 with half of closing.
Cheapest in the building (45 unit built in 2004) to date.
.
So to give you all an update.
The house was listed at 389000
We got it for 355000 with half of closing.
Cheapest in the building (45 unit built in 2004) to date.
.
good for you! I wish I could get a reasonable offer like that....about 90% would be nice. In my neighborhood, houses usually sell for 95-97% of asking. Someone needs to tell the buyers
good for you! I wish I could get a reasonable offer like that....about 90% would be nice. In my neighborhood, houses usually sell for 95-97% of asking. Someone needs to tell the buyers
Yes but when it comes time to sell, you'll appreciate the value of your home! We purchased for 98% of asking 5 years ago, and are about to close for 98% as well!
So to give you all an update.
The house was listed at 389000
We got it for 355000 with half of closing.
Cheapest in the building (45 unit built in 2004) to date.
.
I would concentrate on the homes you really want pick 2 -offer on both, let both sellers know you are offering on 2. Then the seller who is more anxious to sell will negotiate more.
Don't do the percentage less. Try to figure the balance price/value.
The value is all about what you want/need.
We were running into the same problem. People are way overpriced compared to the comps in their subdivisions. So the selling agents need to get real and tell their sellers that if they want top dollar their property better be in perfect shape. We took comps in the sub and gave the seller credit for updated things and took off amounts for things that were in need of updating and came up with a reasonable market value of the property. Then we based our offer on that price. It's unfortunate that an offer based on that would be viewed as "lowball". Sellers need to price their houses based on the market, not what they paid for it or invested in it. Most sellers are trying to recoup everything they put into it and then some.
Find an agent that will pull the comps and give you a suggested "value" on the house so you can make an educated offer.
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