Thanks to everyone for writing to me and asking lots of great questions. I'll try my best to continue to answer them in these mailbags! Here we go...
Q: I see headlines and articles talking about the undersupply of homes, and yet I also see stories about oversupply of homes — what gives?
A: This is largely dependent on where the news is coming from specifically. I have read some articles that discuss large amounts of new construction coming on the market in various states, namely Texas, Arizona and Florida. So, it may be possible that in some areas, they have a larger supply of homes and so their local market is shifted more toward what we consider a "buyers' market." While certainly worth noting, real estate is a very market specific. Here in Bend, we have a bit more inventory when compared to the last couple of years, but overall, we are still in a slight sellers' market, but even that depends on specific price points and neighborhoods. That is a long way of saying that it is possible to read factually true articles about both the oversupply and undersupply of homes, in different markets.
Q: How do agents get started in the business?
A: That varies from person to person. For instance, I worked in banking for several years prior to being an agent, from operations to commercial lending, so I was familiar with several aspects of real estate, but even when I was first licensed there was a lot to learn. Once you have earned your license and become associated with a brokerage, that's where the rubber really meets the road. Every brokerage is different and what they provide their agents with is different, so make sure to talk to a few different brokerages and ask a lot of questions. Some provide lots of training, some provide lots of marketing, some provide very little, and all offer different terms, splits and fees. As far as day-to-day business, most agents do things quite differently; some agents can capitalize on large social circles they've developed, others are great marketers, some rely on cold calling and door knocking and yet others pay various services for lead generation. The key is to figure out as quickly as possible what will work best for you in terms of finding and retaining clientele.
Q: How does a buyer's agent effectively get a deal below the list price for their clients?
A: Buyer's agents use their deep market knowledge to challenge the initial asking price, presenting data on comparable properties to justify a lower offer. This can be done verbally prior to submitting an offer or an agent can provide a written analysis with their offer. They highlight issues or necessary repairs to the property, using such points to argue for a price reduction. Skilled in communication, they build rapport with the seller's agent to create a cooperative atmosphere, often employing strategic time and patience to make counter offers. The buyer's agent creates leverage, persuading the seller to agree to a more favorable price. Their negotiation tactics are aimed at securing the best possible deal for their clients.
—If you have any real estate related questions or are looking to buy or sell in Central Oregon, please reach out to me at [email protected], thanks!
