MALIBU, Calif. – Oct. 31, 2011 – Realtors find that the current market requires them to work harder to prevent deals from collapsing during initial negotiations or the escrow process.
These days, agent must often negotiate the terms of the purchase agreement twice – once when the buyer’s agent presents the offer to the seller’s agent, and again after the home inspection.
Negotiations are more tense and emotional these days, with buyers taking longer to make sure they’re getting a good deal, and sellers expressing frustration about low prices.
The National Association of Realtors reports that one out of six agents had signed contracts canceled in June, and cancellations rose 10 percent during the year-over-year period ended in August.
Experts say there is a lot of uncertainty surrounding the lending process, especially with more sellers owing more than their home is worth and lenders requiring them to make up any difference at settlement. They also recommend that buyers work with mortgage brokers instead of lenders.
Realtors can move transactions forward by educating buyers and sellers about changing market conditions and understanding their clients’ needs, motivations, fears and aspirations. They must emphasize flexibility and creativity, laying out alternatives to help clients meet their goals; and they must remain sensitive to the fears of buyers and sellers.