Getting RE License for Myself

[urbanrealtor]

hey Rus

The irony in the situation that you describe is the importance most people (agents included) put on asking price. The asking price of a property only serves one purpose. It is an advertising tool. If it is not drawing offers, it is a non-functioning tool and needs to be adjusted.

The strategy you describe is most effective when there is a relative disconnect between buyers and sellers. In that case sellers can become frustrated more easily and be willing to opt for speed over financial prudence. In the case I described there was some element of that happening.

Some buyers really think that because the market favors them, they should just knock 10% off any asking price. This is dumb. Sometimes knocking 20% off is a good idea and sometimes adding 10% is a good idea.
For example, a 2 br condo in North Park listed for 300 is a case of the former and a house in Kensington listed for the same is a case of the latter.
A buyer really needs to call his own shots and make decisions based on fundamentals.

On a personal (and cynical) note:
Everyone thinks they will be the one who gets the crazy deal. This is always unlikely. The vast majority of deal are within 1 standard deviation of sheer market. Hoping to be outside that deviation is like hoping to be the one freshman assigned to the girls’ dorm.

[NotCranky]

Hello Dan,
I agree with most everything you posted.I enjoy your posting in general in RE and OT.

Most buyers,especially of owner occupied homes do not shop in a manner consistent with increasing the possibility or getting a “crazy deal” relative to the market. Fortunately, some understand this and take responsibility for it.

I hate to know that so many agents are trying to show three and close, with any kind of BS they can come up with.

I do think that the agent should have or get his/her finger on the pulse of the market sufficient to understand offer price vs. asking price.I don’t expect the client to be responsible for this knowlege. It is usually a process I handle with kid gloves though, until my client comes up to speed, if they are not already. It is pretty hard to tell a client to write multiple offers, site unseen, or overbid on the first day out, even though sometimes, that might be what is necessary to accomplish their goals. It is hard to tell them that they are offering too much when they are already getting emotional. That one is tricky.

It is true though, that today, many more houses are over priced relative to what a buyer is going to be willing to pay and reductions are the norm.In my opinion it is an invitation to force the situation if my client wants a property that has some elements that make it vulnerable.Also, nothing wrong with taking the, very unscientific, “It can’t hurt to try” approach. It think it is good for client relations and the education process.

The element of specificity, that you point out is always true either on a particular properties or sub-markets.

[NotCranky]

Hello Dan,
I agree with most everything you posted.I enjoy your posting in general in RE and OT.

Most buyers,especially of owner occupied homes do not shop in a manner consistent with increasing the possibility or getting a “crazy deal” relative to the market. Fortunately, some understand this and take responsibility for it.

I hate to know that so many agents are trying to show three and close, with any kind of BS they can come up with.

I do think that the agent should have or get his/her finger on the pulse of the market sufficient to understand offer price vs. asking price.I don’t expect the client to be responsible for this knowlege. It is usually a process I handle with kid gloves though, until my client comes up to speed, if they are not already. It is pretty hard to tell a client to write multiple offers, site unseen, or overbid on the first day out, even though sometimes, that might be what is necessary to accomplish their goals. It is hard to tell them that they are offering too much when they are already getting emotional. That one is tricky.

It is true though, that today, many more houses are over priced relative to what a buyer is going to be willing to pay and reductions are the norm.In my opinion it is an invitation to force the situation if my client wants a property that has some elements that make it vulnerable.Also, nothing wrong with taking the, very unscientific, “It can’t hurt to try” approach. It think it is good for client relations and the education process.

The element of specificity, that you point out is always true either on a particular properties or sub-markets.

[NotCranky]

Hello Dan,
I agree with most everything you posted.I enjoy your posting in general in RE and OT.

Most buyers,especially of owner occupied homes do not shop in a manner consistent with increasing the possibility or getting a “crazy deal” relative to the market. Fortunately, some understand this and take responsibility for it.

I hate to know that so many agents are trying to show three and close, with any kind of BS they can come up with.

I do think that the agent should have or get his/her finger on the pulse of the market sufficient to understand offer price vs. asking price.I don’t expect the client to be responsible for this knowlege. It is usually a process I handle with kid gloves though, until my client comes up to speed, if they are not already. It is pretty hard to tell a client to write multiple offers, site unseen, or overbid on the first day out, even though sometimes, that might be what is necessary to accomplish their goals. It is hard to tell them that they are offering too much when they are already getting emotional. That one is tricky.

It is true though, that today, many more houses are over priced relative to what a buyer is going to be willing to pay and reductions are the norm.In my opinion it is an invitation to force the situation if my client wants a property that has some elements that make it vulnerable.Also, nothing wrong with taking the, very unscientific, “It can’t hurt to try” approach. It think it is good for client relations and the education process.

The element of specificity, that you point out is always true either on a particular properties or sub-markets.

[NotCranky]

Hello Dan,
I agree with most everything you posted.I enjoy your posting in general in RE and OT.

Most buyers,especially of owner occupied homes do not shop in a manner consistent with increasing the possibility or getting a “crazy deal” relative to the market. Fortunately, some understand this and take responsibility for it.

I hate to know that so many agents are trying to show three and close, with any kind of BS they can come up with.

I do think that the agent should have or get his/her finger on the pulse of the market sufficient to understand offer price vs. asking price.I don’t expect the client to be responsible for this knowlege. It is usually a process I handle with kid gloves though, until my client comes up to speed, if they are not already. It is pretty hard to tell a client to write multiple offers, site unseen, or overbid on the first day out, even though sometimes, that might be what is necessary to accomplish their goals. It is hard to tell them that they are offering too much when they are already getting emotional. That one is tricky.

It is true though, that today, many more houses are over priced relative to what a buyer is going to be willing to pay and reductions are the norm.In my opinion it is an invitation to force the situation if my client wants a property that has some elements that make it vulnerable.Also, nothing wrong with taking the, very unscientific, “It can’t hurt to try” approach. It think it is good for client relations and the education process.

The element of specificity, that you point out is always true either on a particular properties or sub-markets.

[NotCranky]

Hello Dan,
I agree with most everything you posted.I enjoy your posting in general in RE and OT.

Most buyers,especially of owner occupied homes do not shop in a manner consistent with increasing the possibility or getting a “crazy deal” relative to the market. Fortunately, some understand this and take responsibility for it.

I hate to know that so many agents are trying to show three and close, with any kind of BS they can come up with.

I do think that the agent should have or get his/her finger on the pulse of the market sufficient to understand offer price vs. asking price.I don’t expect the client to be responsible for this knowlege. It is usually a process I handle with kid gloves though, until my client comes up to speed, if they are not already. It is pretty hard to tell a client to write multiple offers, site unseen, or overbid on the first day out, even though sometimes, that might be what is necessary to accomplish their goals. It is hard to tell them that they are offering too much when they are already getting emotional. That one is tricky.

It is true though, that today, many more houses are over priced relative to what a buyer is going to be willing to pay and reductions are the norm.In my opinion it is an invitation to force the situation if my client wants a property that has some elements that make it vulnerable.Also, nothing wrong with taking the, very unscientific, “It can’t hurt to try” approach. It think it is good for client relations and the education process.

The element of specificity, that you point out is always true either on a particular properties or sub-markets.

[urbanrealtor]

You have a good point with that bit about education.
I have found with first-timers that often it is illustrative to let them low ball and lose the first few places.

Its painful for them and its painful to see as an agent (and as a friend). However, I think it is a necessary evil. If they are making offers that are below what the market will bear or what they really are willing to value it at, then changing that behavior really has to be endogenous.

I never want to be the agent who pushes someone to offer more than they are comfortable with. Losing a place can help some buyers really take their own temp as far as their interest.

[urbanrealtor]

You have a good point with that bit about education.
I have found with first-timers that often it is illustrative to let them low ball and lose the first few places.

Its painful for them and its painful to see as an agent (and as a friend). However, I think it is a necessary evil. If they are making offers that are below what the market will bear or what they really are willing to value it at, then changing that behavior really has to be endogenous.

I never want to be the agent who pushes someone to offer more than they are comfortable with. Losing a place can help some buyers really take their own temp as far as their interest.

[urbanrealtor]

You have a good point with that bit about education.
I have found with first-timers that often it is illustrative to let them low ball and lose the first few places.

Its painful for them and its painful to see as an agent (and as a friend). However, I think it is a necessary evil. If they are making offers that are below what the market will bear or what they really are willing to value it at, then changing that behavior really has to be endogenous.

I never want to be the agent who pushes someone to offer more than they are comfortable with. Losing a place can help some buyers really take their own temp as far as their interest.

[urbanrealtor]

You have a good point with that bit about education.
I have found with first-timers that often it is illustrative to let them low ball and lose the first few places.

Its painful for them and its painful to see as an agent (and as a friend). However, I think it is a necessary evil. If they are making offers that are below what the market will bear or what they really are willing to value it at, then changing that behavior really has to be endogenous.

I never want to be the agent who pushes someone to offer more than they are comfortable with. Losing a place can help some buyers really take their own temp as far as their interest.

[urbanrealtor]

You have a good point with that bit about education.
I have found with first-timers that often it is illustrative to let them low ball and lose the first few places.

Its painful for them and its painful to see as an agent (and as a friend). However, I think it is a necessary evil. If they are making offers that are below what the market will bear or what they really are willing to value it at, then changing that behavior really has to be endogenous.

I never want to be the agent who pushes someone to offer more than they are comfortable with. Losing a place can help some buyers really take their own temp as far as their interest.

[Author]

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