Agent keeps showing buyers below-budget homes, says ‘wiggle room’ required; is this OK?
Q: Our agent keeps showing us homes under our price range. He claims we need to have “wiggle room” to overbid other homebuyers. But what about all the properties up to our maximum price point? Is he correct in steering us $50,000 to $100,000 below our price range?
A: You’re both right. You should assess all properties within your purchasing power. Reason being, many times I’ve had an overpriced property that’s been sitting on the market drop into my buyer’s price category. Or a higherpriced property (originally priced well or not) had its sale fall apart, and when that happens it’s often begrudgingly relisted for less. And, if you and your agent are not the first to notice, you’ll be the last to buy.
Lest we forget, only in the Bay Area and especially Silicon Valley, does a first-time buyer need $50,000 to $100,000 to overbid. Consistently applying well-earned lessons and procedures market after market and decade after decade has served me well. Meaning, I don’t let the market change how I advocate for homebuyers or home sellers. Nor should you and your agent let a hot market dictate to you how, when and what you buy. You and your buyer’s agent have to be proactive, investigative and seize the initiative when a property drops into your price bracket. For instance, your agent should pick up a telephone and get voice-to-voice with the listing agent. (Nowadays, a crazy concept.) You, your agent and your co-buyer need to view the property before or during your lunch breaks. Provided the property is a good fit, write an offer on the spot or after lunch. Then, your agent sits down with your purchase offer and the listing agent (and seller if possible). All this unbeknownst to competing homebuyers who are still seated at their day jobs.
You’re the boss. The agent works for you. Whether you overbid other homebuyers or bid by yourselves with a deflated home seller, do it as a team. Otherwise, shopping for a home will become your part-time jobs.
Buying or selling real estate? Realtor Pat Kapowich provides turnkey services including relocation, staging, market analysis and strategic planning. 408-245-7700 or Pat@ SiliconValleyBroker.com