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The real estate market: buyer, seller and broker expectations

28/03/2016

Sometimes, in day to day life, you find yourself having different expectations from a situation, than your friends do. Some enjoy a certain movie, others don’t. It’s not a problem, but you have to be aware of this difference of perspective, especially if you’re trying to make a move on the real estate market.

So today, we’re going to put ourselves in the shoes of the buyer, the agent and the seller, and go through their expectations & viewpoints, when it comes to property transacting.

Seller

More often than not, as a seller, you want to sell your property at the best price. You could wait, if that’s what it takes, because after all, the prices keep going up. So, you’ll rent for a while, until you think the market’s good enough to offer the money you think your apartment’s worth.

There are, of course, times when you want to sell as soon as possible, at a price that’s below the market’s value, because you need quick cash.

In both cases, assuming that you’re working with a real estate agency, you want to know what are the hidden/undisclosed just yet costs for your sale.

Keep in mind that usually the buyer pays the agent’s fee. We hear about cases when after the sale, the agent came up to the sellers and requested his commission. Remember, without a contract, you are not obliged to pay him. And we also discourage this practice! Be frank from the beginning, and you will gain so much more.

On the other hand, with buyers, they would like you stand by a gentlemen’s agreement, and not mislead. Don’t try to later negotiate the amount, or change the payment dates, or not show up to sign the contract.

To sum it up, sellers want to:
sell their home quick, at a price above the market’s value OR wait, until the prices reach their lower limit
have an honest agent, that knows how to best sell a property
know if they’re expected to pay a fee to the agent
be told about all the notary fees and taxes that have to be paid
meet potential buyers in a certain time interval - sellers are not home all day long, just waiting
Rely on the buyers with whom they shake hands for the deal

Agent

Agents make a living basically from the commission they earn after each closed sale. So it’s in their best interest to help sell a property quick, at a high price. Depending on the agent, once you give him a price range, he’ll usually make according recommendations to the buyer, maybe sometimes more expensive, but seldom way out of budget.
Real estate agents discourage sellers to keep changing the price of their apartment or its availability. It can be tempting for sellers to sit in and wait for the best offer to come along, but they have to understand that’s very bad for the agent to keep calling potential buyers to tell them that the deal is off.

They would really like that buyers put in some effort when trying to sell an apartment. A basic decency level, with no mold or a dirty kitchen would make the property much more pleasant for potential buyers. Just clean up a bit, repaint the wall and let the rest to him.

It’s very unprofessional and time consuming when either the buyer, or the seller, or both change the viewing time. He’s here to assist you both, but you are not his only clients.

When it comes to buyers, after you sign the contract, don’t try to change the payment dates or the amount. It’s a business matter, out of the agent’s control, so for any changes in the contract he’ll have to ask the agency’s owner first. So it’s hardly any point to argue with him.

To sum it up, agents want:
sellers to have their mind set when they decide to sell their property
properties to have a decent environment, to help sell it
if you decide on particular details, stick by them
to offer a good understanding of what the contract for his services implies
to have an overall good flow with the property viewing and sell it in under a month

Buyer

To find a dream home is all that everybody wants, when they reach the point of buying a new place. But it gets pretty difficult, and they have to compromise a lot: if a property comes with a good view, it’s in a bad neighbourhood, or if it has a big bathroom, it’s above their price range. It becomes really difficult to find something, within the buyer’s price range and specifications.

Finally, when they do find something, it either becomes unavailable for some reason, or the sellers would rather have the money upfront.

Not everyone can afford this, and some need to apply for a loan in order to get a place. If they’re buying an apartment with a loan for 30 years, they really have to be sure about the apartment. Besides, there will always be a question in the back of their minds: what if something better comes along right after you sign the contract?

Of course, they can’t demand a seller to understand why they can’t pay all at once. And there are times when something unexpected happens that makes them to back off from a deal.

They would appreciate some understanding from both the agent and the seller.

To sum it up, buyers want:
to get the best they can buy with the amount they have
sellers to make their properties pleasant for viewing
agents to explain all the procedures, fees and taxes, and have their best interest in a negotiation
call them daily to schedule property viewings
to feel that the commission they pay is justified
have some understanding from the seller and the agent when a deal breaks

Definitely, it takes a lot of effort, from all the parties involved, to close a real estate deal. But it helps to put yourself in the other one’s shoes and get his point of view.

We hope this article bridged some gaps and helped you understand that if a deal doesn’t get closed, it’s not necessarily just one person’s fault. The issues above are interdependent, where one thing can lead to another, and it’s important to be aware of them, and control them as much as possible.

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