Why you want need a buyers agent
Under Bidding
The key to winning in this market is knowing what true Fair Market Value is, if you’ve read some other articles of mine you’ll note I drill this point in often. If you don’t have a GREAT concept of what true F.M.V is, you shouldn’t even be placing an offer on a property. I’ve seen a ton of it this year; buyers losing deals and getting completely frustrated “no one will accept my offer, don’t the banks just want to unload these homes?” These are the buyers who are trying to Trump (double entendre) the banks by UNDER bidding at ridiculous amounts. Some with offers up to 50% below current asking price. You can do this all day long; it’s a free country, but your wasting a lot of time.
When banks finally approve a short sale they issue what is called a “demand letter”. This “demand letter” (are you thinking of Austin Powers?) states what the bank has decided they are willing to accept. These are often very fair numbers, though not always “steals”, they are often good deals. Any future closing is generally going to be within a small percentage of this demand letter number. Now as always, there are exceptions to the rule, but in general it’s a good barometer. Without having a full understanding of not only how the process works but also what true F.M.V is for that particular property, you put yourself at risk. That is if you truly want to acquire the property.
Where’s the Beef?
“Hey Rick, where are all the deals?” -- why do people ask me this all the time? Because I know! Good Real Estate agents are the heartbeat of the Real Estate industry. Knowing not only where a deal is, but also why it is a deal is an aptitude grown from experience and a strong understanding of current market conditions. Making moves without access to this knowledge and understanding is akin to putting $50,000 on 14 the second you walk into a casino. There’s a chance, but......
An agent on your side will provide the critical info you didn’t even know you needed. Kind of like someone telling you that 14’s already hit twice the last 9 turns.
Pro advice is always nice…
This can be a very stressful market for anyone in the Real Estate market. If you’re selling your worried you won’t get the maximum amount possible and if you’re buying you are having a difficult time sifting through excess inventory. However, when you find an agent that offers the service you need and deserve the stress of this market will dissipate immediately. Having access to a professional 24/7 is similar to having an attorney on your side in court. Agents are here to guide and protect you in your transaction. Take use of that, it’s well worth it.
If you have any questions or topics that you’d like discussed in this blog please email me at rick@rickrapp.com
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