I’ve been in the real estate market almost 15 years now and I’ve never witnessed a market like Kansas City is experiencing this year. We’ve been talking for months about the inventory shortage and low interest rates. What this has created is a plethora of difficulties in the real estate world. I feel like so many people are still trying to ‘go it alone’ when it comes to buying and selling and I worry, especially right now, they may be in over their heads. When people that aren’t being represented run into issues, the first person they tend to call is a REALTOR to ask their advice. This has been happening more and more, and most often, the agent will give a small piece of advice and then bow out unless they’re going to be hired to represent the deal. These situations have been common lately—are you prepared to handle them on your own?
1. Buyer bidding wars. Are you ready with your offer on paper? What will the market bear in this neighborhood, how high can you bid? What are the risks involved with going over asking price? What items can help strengthen your offer?
2. Seller remorse. A seller puts their home on the market and sells it on the first day. Some sellers are ecstatic, others are unprepared to move quickly and may think they under-priced their home. How do you deal with this? How can you help the seller feel more comfortable?
3. Low appraisal. What can happen when the appraisal comes in under contract price after a bidding war? What are your options as a buyer? What are the sellers options?
4. Backup offers and inspections. When there’s a bidding war and the ‘losing’ party still wants the house, they have the option of putting in a backup offer that will take over if the winning offer falls through. This can usually happen during inspections. What can the winning party do to keep the offer together instead of having the seller just balk and go to the next buyer?
5. Buyer remorse. Buyers today can feel like they were rushed into making an offer because of the low inventory, then feel like they overpaid. What can sellers do to keep the buyer on the line when they’re feeling some of that remorse creep in?
As you can see….You’re (most likely) Going to Need Help when buying or selling right now. Hiring a REALTOR skilled in negotiations with a calm demeanor can make all the difference. It’s an interesting market out there and I really would advise everyone to seriously consider hiring someone to help guide you through your transaction.