In a challenged real estate market, it’s a little bit of a dog eat dog world out there. We’ve really got to understand the lay of the land as a consumer, make sure you get the right advocate and the process, make sure they know how to wine their way through an opportunity for you when there’s multiple offers or fewer homes and there are people that want them.
Featuring:
Bob Nelson, Eugene real estate investment broker
Marcia Edwards, Eugene residential real estate broker
Bob Nelson: It’s a tough situation because there is a lot of people with capacity to buy, restated. They have borrowing capacity, and they have saved up enough money. Now, with FHA, that’s like what? 3% down?
Marcia Edwards: Right. Three and a half percent down.
Bob Nelson: Yeah, three and a half percent down. That’s not a great amount to have saved, but you’ve had several years of outstanding economy to do it, so you are now in a position where you are a buyer if you opted to be one, and you head out into the “inventory” to select the castle of your dreams, and you notice there’s not many castles around. That becomes very frustrating. If you’re doing it on your own, it’s extremely frustrating because about the time that you think you found the perfect thing, if you don’t move really quickly, I mean instantaneously, it’s gone. Somebody will have it under contract.
Marcia Edwards: They’ll have it under contract possibly if they didn’t have representation prior with the listing agent, with the agent who’s working hard to get the best price in terms for the seller. As a buyer in this market, we’re really strong advocates for a buyer’s agent. Have someone who understands your circumstance, has an eye on your resale. When you purchase, the die is cast in regards to how it will go when you sell it and what your return will be, so the buyer’s agent has a significant role in this marketplace.
Bob Nelson: The buyer’s agent is by far the most important player in the game. I’ve been on that position. I’ve been in business for 50 and a half years, and I would say for probably 46 of those years, I’ve been more of a buyer’s agent than anything else.
Marcia Edwards: In this market, it’s great to have someone that’s not their first rodeo as a buyer’s agent.
Bob Nelson: Right. It’s an interesting situation because as a buyer’s broker, there is much higher liability than a listing broker, in all candor.
Marcia Edwards: You’re bringing someone into a commitment instead of helping them out of a commitment in the relationship with the real estate.
Bob Nelson: A lot of things can “go wrong” especially when gauged in hindsight. If anything went wrong, by definition, the buyer’s broker error in spotting the situation keep you away from the cliff.
Marcia Edwards: That’s right, so you’ve got to interview folks as much as you do as a seller’s agent. You need to talk to them about working together. Make sure you understand how they represent you and if they’ve done it in the past with similar circumstances.
Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30 on KPNW for the “Real Estate Today” radio show.
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