I should post more often. Sorry that I don’t. But when the weathervane keeps spinning as if in a hurricane, it’s difficult to gather one’s thoughts as to where the real estate market is headed.
January, with a couple of mild weeks of weather, showed promise. Then the snows in February shut the door just as it was beginning to open. In addition, and possibly more significant, one negative media release after another scared the heck out of most potential buyers. Who would buy a house while article headlines continuously fomented negativity. Reading each article in-depth, one could readily discern that the details told a different story from the headlines, one not nearly so dire. But who reads past the headlines besides real estate agents and mortgage lenders? Not many I’m afraid.
As the weather has eased a bit in March, it has felt like another January, slow, incremental improvements week by week. More showings on our listings. The few offers that have come in have been between stupid low, and insanely low. I have a theory about this.
Back in day when all agents represented the sellers only, it was our job to SELL houses. The transition to agents truly representing buyers was awkward at first. One had to be able to change hats readily when switching between clients that were house-hunting, and those that were trying to sell. After a couple of years we got better at it, and the transition became better defined. But there was always a degree of relative respect for sellers and their listing agents. They had, after all, presumably already done the research that helped the seller set their price. Listing agents in general have always been revered as the rainmakers in this business. It’s hard work and determination that earns listings. It is little bit more of a casual affair to “show” properties.
This is not to diminish the importance of the many so-called “buyers’ agents”, but it harkens to a professional norm that I have known for more than 25 years.
What is on my mind of late is my perception that “showing agents” or “buyers’ agents” have lost their ability to sell. That is, it appears that they have been reduced to taxi drivers with an MLS key. Perhaps it is simple economics, that paying business is so scarce that these agents have nothing else going except that one committed buyer. Perhaps they are afraid to give good counsel for fear they may lose that buyer to an agent that more readily agrees with the buyer’s scorched earth approach to finding the “best deal”, not necessarily the “best home”.
My suspicion is that buyers are driving the process so hard right now in search of the perfect deal, the agent is grateful to be along for the ride. Buyers are doing their own analysis of markets and values, oftentimes BEFORE they enlist a professional to help them. Then imploring their chosen pro to prepare multiple offers on different properties. The media told the buyers to do this, so they’re doing it. The agents are on the ropes, so they accepting of this behavior. The net result is chaos.
I have never had to explain more weird offers and agent and buyer behavior to seller in my career. This includes the tanked markets in 1991 [Desert Storm] and 2001. It was slow, yes. But it wasn’t uncivil in those days.
One recent low offer that my seller countered rendered NO response from the buyer. When I called the agent to ask what was up, he said, “oh yea, she’s done this on two other properties already.” I asked him many more times he was willing to indulge this silly practice of making offers and walking away. His answer? “As long as it takes.” Hmmm
I wanted to ask, “Have you had a conversation with your buyer about buying strategy and negotiation? Have you discussed with your buyer the tradition of respecting the homeowner at least enough to discuss middle ground? Have you thought about your responsibility to your cohorts to provide your buyer with enough professional advice that they have an idea of how to select, then purchase a home BEFORE you write an offer for them? Are you just a taxi driver? Have you no self-respect?”
But no, I didn’t ask these questions because frankly it wouldn’t make any difference. But these are the questions that the managing brokers and owners in every real estate office need to ask of every agent in their office. The sooner showing agents begin acting like professionals again, and not taxi drivers, the sooner the market will stabilize.
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