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Trulia Atlan…, Home Buyer in Atlanta, GA

In today's market, what are the biggest challenges facing an agent?

Asked by Trulia Atlanta, Atlanta, GA Tue Apr 30, 2013

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Working with buyers and sellers, I find that in this rapidly changing market it's very difficult for either side to get a sense that they are on solid ground. Low inventory has caused a seller's market but the appraisers are looking back while the demand is driving forward. Pricing is incredibly difficult. If a home is priced correctly it will sell quickly and often for higher than asking price with multiple offers. If the seller prices it off the mark, it will languish and become stale. Buyers want to see comps but the comps are so far from the asking price that if they make an offer reasonably close to comps they don't get the house. After being burned a couple of times the buyer makes his full price offer, gets a property under contract and then we sweat the appraisal. Many sellers who have been waiting to sell still hold low equity positions - an appraisal that is closer to those low comps that you showed your buyer can cause a sale to crash very easily right now. The biggest fallout for agents: turn time on transactions. Low inventory has caused me to spend more time getting each client to the closing table which means I am unable to work the number of transactions that I have in recent years. I am crazy busy but it is going to be an interesting years for the bottom line!
0 votes Thank Flag Link Wed May 1, 2013
Well,

If you are a listing agent you are king of the hill. Low inventory and high demand means you do not have to spend much on advertising. Heck, you do not even have to service your listings. Just throw them on the MLS and sit back and watch the offers flow in.

Now, For the poor buyers agents:

You are challenged : Multi offers make getting an offer accepted very difficult.
The current climate makes it hard to keep buyers engaged. After losing a few offers many buyers loose heart. They may even BLAME their agent if they do not get a property.

I love this business, there is NOTHING else I would want to do, but it is not all fun and games. It is SERIOUS WORK.

Kawain Payne, Realtor
0 votes Thank Flag Link Tue Apr 30, 2013
A huge challenge is being able to tell your client what they need to hear, not what they want to hear. Sometimes this takes courage, but making sure your client is well informed is paramount in our business. Both buyers and sellers need to know what to expect so there are no surprises along the way.
0 votes Thank Flag Link Tue Apr 30, 2013
I think the challenge in today's market is being brave enough to tell your client the truth about what they need to expect if borrowing money. They need to know that the loan may not close on time; the appraisal may come in low; that CMA's are not always going to value the same as an appraisal; that there may be title issues; that they may not qualify for the loan even if they receive an approval letter; that they'll need to pay for this, that and the other thing; that they shouldn't rent the rental truck until they have the keys in their pockets; that they may lose their earnest money; that they can't buy a house with no money; that they can't buy a house without savings after closing; that they can't buy a house with bad credit because it represents an inability to maintain on time payments; that they can't afford their dream house; that they can't keep their $800 car payment and buy a house too; that they can't amend their tax returns this year to qualify; that they can't borrow their newborn's social security number; that they can't expect to close fast on government programs that give them down payment assistance.

As much as Betty may be right on this one, the issue we still face is that buyers don't want to wait BECAUSE they are being told that the market is shrinking, rates are going up and prices are too. Hey, we can't all buy low in the stock market. Who will we sell to?
0 votes Thank Flag Link Tue Apr 30, 2013
Being able to balance one's schedule to meet the needs of those we serve. It seems that folks are trying to decide on areas, buy versus rent..etc. I believe a lot of buyers are going to miss the boat, I really think interest rates and prices will rise rapidly. I am seeing it in appraisals now. and quite frankly prices. Betty
0 votes Thank Flag Link Tue Apr 30, 2013
Providing Fiduciary excellence at all consumer touch points

Dealing with morons and numbskulls, particularly those with a real estate license
Web Reference: Http://intowninsider.com
0 votes Thank Flag Link Tue Apr 30, 2013
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