The real estate market has been a seller’s market for quite some time now. A combination of relatively low interest rates, low inventory, and a shift in generational needs – millennials are having children and moving up in their careers, while 76 million baby boomers retire at the same rate – has led to an imbalance in supply and demand.
Buyers are bidding at rates much higher than they otherwise would or much higher than the property might be worth at this point, possibly because the need or want is higher than the risk of a big mortgage.
Some buyers are going as far as waiving inspection requirements and contingencies and potentially making unwise decisions. If they are working with a good real estate professional, then they could be making a calculated decision that would benefit them in the long run. However, not all real estate agents are built the same, if the agent is just after a big pay day and not looking out for the best interest of the client, then they could be turning a blind eye to things they should, on a moral and ethical basis, advise the buyer against. A good agent does not allow the client to make an unreasonably high bid or a hasty decision without fully inspecting the property.
The property may be worth a higher bid or the decision to move fast but it is the responsibility of the agent to do his/her due diligence before those decisions are made. Transparent conversations, full and honest communication, and in-depth research are very important for a successful client/agent relationship.
This type of relationship is especially important for a potential buyer during such an unevenly skewed seller’s market. Do you feel like you have the right support? Are you able to distinguish between a property that is worth a high bid versus one who has no potential? Do you have someone who can help you with that? If you have the means to buy a great property, but are not sure what the right property is, then Amin Vali Real Estate Investment can give you the support you need. We work diligently to research properties, areas, and the market to make sure our clients make the right decisions.