The Changing Role of a Realtor!

      Even five years ago, my role as your realtor was essentially to market your home in order to obtain the highest price OR most favorable terms available to a potential seller. In contrast, my role as a buyer’s agent was to obtain the lowest possible price and/or the most favorable terms for the buyers as well as concessions that would allow them to obtain the most
favorable financing. 

Oh how things have changed. In today’s market, I routinely find myself explaining to the sellers that even though the financed offer nets them more money, they may be better off taking a lower cash offer because it eliminates any appraisal or financing worries. The second most common conversation is generally explaining why we are going to be two weeks late on a closing because something ridiculous such as a new requirement to get W-2s direct from the IRS or they can’t track the funds from the buyers grandmother or parent is holding up the closing. Most of these issues defy common sense and therefore take a lot of skill and patience to explain to the average seller.

With a buyer it is even more difficult to explain. Yes I know that Mr. Buyer has written more than 60 contracts over the past 6 months and still does not have a property in escrow due to the extreme shortage of homes. Furthermore, try explaining to a buyer who you just met for the first time that they will have to bid slightly over if they are a cash buyer and significantly over the list price if they are a finance offer . . . . . just to have a chance and if it does not appraise probably have to pay the difference in cash to be able to keep the hard fought offer they won. Even the fact that it did not appraise is difficult to explain when they have looked at 100 homes and this is the best one for the lowest price and still it did not appraise.   They also commonly have to put up non-refundable earnest money at the conclusion of the inspection period so it is very important that financing be in place and very solid. Now compound that, with different rules for each kind of property such as a HUD home already has an FHA appraisal on it so any bid over list price requires the difference to be paid in cash or on numerous REO (repos) properties investors can’t bid for the first 10 or 15 or 30 days. And for the final twist, if you buy a Homepath home and use Homepath financing, it doesn’t have to appraise at all. How can this all be true? But it is. 

As far advising client thinking about doing a short sale, we are experts at it, but it is a real can of worms. Will I receive $20,000 in incentives or will I have to pay $20,000 to do a short sale? How long do I have to wait to purchase another home? How much will it affect my credit? HOW LONG WILL IT TAKE? (ONLY GOD TRULY KNOWS THE ANSWER TO THIS ONE). We have done many, many short sales and can generally answer these questions and we have a very high success percentage but we can only answer those questions after evaluating each individual’s situation. 
This sets the stage for why, choosing your real estate agent is one of the most important decisions you can make. Many, many successful realtors do not have experience negotiating with a real live seller rather than an asset manager at the bank according to a one sided dictation of a contract from a seller who formerly controlled enough of the market that they could dictate that every home was as-is and was closed according to their internal purchase contract. Now as we creep back over 50% of the market being finally regular sellers and soon real estate agents may actually have to effectively market their listings, it is important to choose an agent that has many years of experience in a regular market with regular sellers who need to get the most they can for their home. The point of my article is that today's realtor has to be educated and experienced in many different facets of the real estate business. Many agents have forgotten how to price a home to get it as high as possible because they have been working for an institutional client for many years who doesn't always know about the value in a certain neighborhood.My interests are in getting the values in our neighborhoods back to a reasonable amount and then maintaining them for the benefit of my fellow neighbors. With over 1000 homes sold just in Avondale and more than 25 years of full time experience, I can get the job done for you and your family for the highest possible price in the shortest amount of time.