Dave Panozzo is the co-founding owner of The Panozzo Team-HomeSmart, a real estate team in Phoenix, Arizona.
Can you imagine how frustrating it is to be a buyer in this sellers’ market, continuously having your offers on multiple listings beat out? This may have happened to you recently, especially if you happen to be a first-time buyer in today’s real estate market.
As a real estate professional myself, my team and I meet regularly; lately, I have noticed a trend in terms of homebuyer and even real estate agent frustrations due to the current market conditions. After heavily reflecting upon the current market and stories from my real estate team, I have formulated some do’s and don’ts for buyers and agents to handle these situations.
Don’t: Get Frustrated Or Fatigued
As a buyer in this market, especially a first-time homebuyer, you may be facing a “David and Goliath” scenario, where you’re getting beat out by cash offers or stronger finance offers on homes. Another factor is that there are a lot of investors out there buying homes, many of whom are buying in cash or putting money down and waiving inspections and appraisals, which can be frustrating. It is so important to remember that success is where preparation meets opportunity, and if it were meant to be, it would be.
Do: Step Into Your Power
Consider your options and whether it is time to look at homes that are without as many offers or have been on the market for a longer period of time. That way, you have a more controlled atmosphere where there aren’t many offers on the table. If you notice that a home has been on the market for a long time, even if you think it’s overpriced, make an offer because there’s a chance that you will be the only offer, and if that’s the case, you have better odds.
As an agent, talk to your client about what it looks like if you have to accept a home as-is, or potentially even waive the appraisal. Help them to weigh out the pros and cons of doing something like that.
Don’t: Fail To See The Potential In A Property
It is important as a buyer to be able to have a visionary’s eye for all the potential a property holds. There have been so many cases in which I see a buyer pass on a great home because their expectations did not match the current reality of the home perfectly to their vision. Yet, all the home needed was some TLC to look brand new or, even better, custom-made. You don’t necessarily have to fall in love with everything you see during inspections — it is okay to put a little sweat equity in the home to see its full potential revealed.
Do: Keep A Positive Attitude
With both buyers and real estate agents, it is important to maintain a positive attitude. Especially as the agent, you have to stay positive for your client. This is not the time to mirror your client. You have to be the voice of reason and you have to be the voice of help. You are there to help guide them through this process.
It’s very important to keep a positive attitude because when your client loses a couple of times, it’s tough! No matter what is going on, you never want them to see you sweat. Reassure them that you are going to find them the right home.
It is important for both the buyer and agent to stay in communication throughout the whole process. After all, as an agent, if you aren’t keeping your clients informed about the pros and cons of the market, they might feel misled, and you definitely don’t want that.
Stay positive. Communication is going to be key. Continue to facilitate a positive experience, and do your due diligence to follow these do’s and don’ts for overcoming buyer and agent frustrations.