Ep 9: Being a Discerning Buyer in a Seller's Market

If you are a fan of HGTV, then you know and have seen with your own eyes what buyers tend to look for and desire in today’s housing market: the chef’s kitchen, the soaker bathtub, the large backyard, room for a home office, a workout room, plenty of space to entertain… and of course, all of it completely fresh, modern, clean, updated and turnkey….  MOST of us are savvy enough to know that most TV is scripted, even and especially what they call “Reality TV” - totally scripted - so the question we are posing today has more to do with the buyer mentality that these shows are (perhaps unknowingly) creating in today’s marketplace. Which is to say, buyers with more discerning palettes are finding themselves in quite the dilemma as they find themselves coming up against other buyers who place far greater weight and importance on simply winning the deal at all costs. Can beggars even afford to be choosers in today’s seller’s market? Well all of this and more is what we are talking about today on this episode of Real Talk with Big Red.Episode Takeaways:Why being picky can sometimes do more harm than good in the modern real estate marketWhen to stick to your guns on the dream home wish list and when to set stuff aside for the sake of a positive outcomeHow to hold your real estate agent accountable in helping you find what you want and, more importantly, deserveBull market. Bear market. Buyers market. Sellers market. Sounds like a Dr. Seuss book... They come, they go, or so they say… because the current seller’s market appears to be here to stay with no signs of slowing down, at least not in the foreseeable future… but who among us has a crystal ball and how can we even predict what might happen… the more pressing matter is not what is GOING to happen but what IS currently happening and how to smoothly navigate the process amid so much chaos.Mega Real Estate Extraordinaire, Sam Lepore, is here in the studio with us today… He is the fearless leader of The Sam Lepore Group, a team of powerhouse agents working in and around South Jersey, down at the Jersey Shore and over the bridge, in Philadelphia. He has been in the real estate industry for close to two decades now, getting his launch in the mortgage industry, then transferring over to the sales side not long after the 2008 housing bubble burst. I myself have had the distinct honor and pleasure of working shoulder to shoulder with Sam in recent years, and I can say with authority, confidence and gratitude, that Sam is truly the man. That said, please join me in welcoming my co-host and guest today, Sam Lepore! Welcome Sam!So we’re talking about home buyers today…. First, let’s get your background before we launch into some of the listeners’ more common questions on this topic.Tell me, Sam, HOW… perhaps more importantly WHY did you get into this business and what would you say ignited your passion for real estate?Common questions:1.) So Sam, I’m sure you get asked this all the time… I know I do…. And we talked about this on the last episode with lender, Matt Boyce, who you and I both work closely with… What do you think, is this bubble gonna burst? 2.)  Let’s talk about housing inventory… as most fans and followers listening can attest… there’s so few homes for sale, so little time. How are you preparing your buyers to go into battle… and do you consider it a battle to compete and win bids in this current climate?As it relates to a winning formula, do you have a particular strategy or style that you like to stick to when working with buyers? I mean, it’s no small thing, guiding our clients, navigating them throughout the process, encouraging them, supporting them, offering suggestions to overcome transaction challenges… one could argue that it’s not enough to simply be an agile and experienced full time agent…. You also need to have, like, the Midas touch… what are your thoughts?And can we also talk about the challenges surrounding buyer financing? Naturally, buyers today with pre-approved FHA and USDA, VA and even Conventional loans are up against quite the race as they compete with all cash offers. Then you’ve got contingencies and appraisal issues…. What are you telling your buyers to help them stay on the positive and proactive side of things?Hey Big Red, my name is Scott and I have a question for you about getting ready to buy a house. I keep telling myself that I refuse to buy at the top of the market, and yet I currently own three properties and am strongly considering cashing out on all three and making a more decisive purchase in advance of retirement. My issue is that although I know I’ll make out quite well on the proceeds of my three sales, I am reluctant to overpay while values are so inflated. I am considering renting for the short term, just to see how things play out. My hope is that within the next few months or so, values will come down and inventory will improve. What is ...