REAL ESTATE
by Jim Coleman, REALTOR®
BUYERS TAKE STEPS TO BENEFIT FROM MARKET
How much has the buying behavior of consumers changed over the past couple of decades? Or has it changed? Looking back and thinking of today, it is interesting to reflect upon how the business was being done during the mid 70's when I began my career in real estate (1975 to be exact), and contrasting it with today.
Buyers relied heavily on licensees to help in the property selection process. At that time, virtually all agents were agents of a seller; buyers had no one representing them. The listing inventory was pretty much protected by the Brokers. Today, access is broadly available to the consumer to review or learn about "on line" before contacting a licensee. (In fact, to note the drastic change in approach, what would a person think if one were to ask 30 years ago, "Have you seen anything online of interest to you?" The term was not even part of the vocabulary then.)
Back then, the role of the agent was important for finding the right property and then helping the buyer to obtain financing. These are still two of the important activities of Buyer's Representatives. But now days, the advancement of agency has extended the relationship to buyers and the duty of agents to work for the good and benefit of the buyer has become part of the package of responsibilities to the buyer. Consequently, negotiating and advocating for the buyer are obligations imposed on the agent of the buyer.
So in this market, the buyer will typically exercise the following steps as part of the buying process: (1) Select a competent, experienced, well-trained REALTOR® to work for the buyer; and (2) Know with certainty the buyer's buying power, meaning the financial capacity, to know what can be afforded and allow the buyer to live comfortably. (This is a huge concern today in light of the financing, mortgage and foreclosure mess we are experiencing.) This, however, is where the buyer of today who is playing by the book needs to be wise as to affordability, but may also be in a position to benefit from situations where sellers are desperate. So in this step, take advantage of bargain opportunities. (3) Look carefully at the inventory and be careful to have inspections performed and complete an appropriate due diligence investigation of the property. (4) Make offers that will meet the needs of the seller and not just totally the buyer's selfish interest. After all, unless the offer provides the means for the seller to further his/her objectives, acceptance won't be achieved. (5) Carefully consider the terms and conditions of the offer to be made. Be wise with the "subject-to" clauses or contingencies placed in the offer. Make the offer as smooth and clean as possible. Make an offer that makes sense and provides the vehicle to reach a settlement of the transaction for both parties.
The climate of this market is in favor of the buyer. But not all sellers will immediately and automatically role over and play dead to receive the buyer's low-ball offer. Some sellers take the stance that unless a certain price can be achieved, they will hold on, and hold out, even if it means no sale and let the property go to the bank.
St. George REALTOR® Jim Coleman is Associate Broker and Partner/Owner of ERA Brokers Consolidated. He Specializes in Residential, Investment and Commercial Real Estate, holding National Designations of Accredited Buyers Representative (ABR), Certified Residential Specialist (CRS), Resort and Second Home Property Specialist (RSPS) and Seniors Real Estate Specialist (SRES). You can contact him by e-mail at Jim@RealtorJimC.com. Call: (435) 674-0600; or write: Jim Coleman, 201 East St. George Boulevard, St. George, Utah 84770. This and other columns are available at www.RealtorJimC.com/articles.