Unless you’re nestled under a rock somewhere, you already know how crazy the real estate market is right now. For buyers, the limited inventory is causing bidding wars, creative negotiations including escalation and as-is clauses, love letters, family pictures, and in many cases offering more than a home is actually worth. For sellers, it’s weeding through all the fluff to figure out who is sincere in their offer and not just trying to win. It is important to see who is committed to purchasing your property even when challenges arise and who will ultimately appreciate all that you have grown to love.
As brokers, the outsider perspective assumes we must “love this market.” Let me be the first to tell you; it is not all it’s cracked up to be. We are thrilled to see property owners getting top dollar for their homes but on the flip side of that, unrealistic expectations are also being established, all the non-prevailing buyers are broken-hearted and all the brokers are left to pick up the pieces and fill in the gaps.
Just because a property received multiple offers, and in most cases, ends up in contract for more than the listing price in the end it doesn’t always mean it is “worth it.” We have always said a home is worth what someone is willing to pay but that isn’t the whole story. If the appraiser can’t justify it, keeping in mind only about 20% of the buyers are paying cash, then the property isn’t necessarily worth what someone is willing to pay. As the gatekeeper, the appraiser’s opinion of value is held in high regard and ultimately they have to justify value with hard data – not just the crazy figure the winning bidder came up with.
In working with other agents, we can feel the tension, exhaustion, and weariness. We know first-hand how tough it is to deliver bad news, let alone multiple times. We see your early mornings and your late nights that never seem to end. We know all too well the negotiations that feel one-sided and incredibly unfair because heck, “someone will buy it without a sound roof, safe deck, or stable foundation.” After all, what do you expect for $650k?
A super hardworking broker in our office has written eight offers for her clients who lost their homes in the fire. They don’t have a ton of money in savings so their down payment is minimal, yet they have solid income and credit. Time and time again they are outbid. It’s a family of five living in their RV. The broker’s heart is broken and so is ours, though we have never met them. We find ourselves scouring for listings just to tell her about them, hoping they can secure something before everyone else in the world knows about it.
It takes a lot of mental strength to continually think outside of the box both for sellers and for buyers while working 12+ hour days, seven days a week, never mind being contributing members of society, parents, and spouses. It can be flat exhausting. Hang in there. We see you, we are here to help, and this too shall pass. Now is the time that separates the men from the boys (trust me, I seriously googled this for an alternative saying… and it’s just what makes the point so clear).
In all the crazy, the hustle and bustle we beg you not to lose sight of your real purpose. It is not about the housing and it should never be about the money. Success in this business creates opportunity for all of us to do our real work…. For us, it’s about being loving, being kind, investing in our community, and under no circumstances letting other’s behavior influence the way we conduct ourselves.