Posted by Brian Danney on Tuesday, June 19, 2018 at 2:10 PMBy Brian Danney / June 19, 2018Comment
As an experienced agent, I can confidently say that the real estate business is solely based on relationships. Many of these critical relationships are with our preferred vendors. Those of us in the real estate industry have learned that if we treat our vendors well, then they will reciprocate the efforts by bending over backward for our clients. Relationships made with our vendors are established over the course of a decade and because each relationship is reliant upon performance if the vendor does not accomplish or exceed our expectations, then, unfortunately, they will no longer be recommended for our clients in the future.
Recently, I closed a transaction with a buyer who opted to use a recommendation from a friend who is not in the home buying or selling business rather than our professional opinion, which ultimately caused much more stress and aggravation than anticipated. When the buyer and I first met at the end of this past year, I strongly encouraged them to speak to our preferred vendors—particularly my preferred lender. At that time, he had not previously aligned himself with a mortgage advisor; however, I continued to explain that "although they have competitive rates, it’s all about performance!"
Fast forwarding a few months, the buyer elected to use the lender the friend recommended and we eventually identified a home to move forward with. On the anticipated closing date, the lender was nowhere to be found and the communication between all parties went dark. The sellers became frantic, which naturally resulted in...
Today I wanted to bring you a quick market update because there have been substantial changes to the marketplace.
Typically my team likes to provide you other educational material, but there’s currently nothing more important than what’s going on in our market right now. The changes we’re currently experiencing have been long-anticipated, and they’re finally here.
Roughly 60 days ago, we had about 4,500 homes on the market across San Diego County. Since that time, 1,421 new listings have come onto the MLS. This means we currently have 5,921 properties available for sale in our area.
For whatever reason, not many are talking about this major increase in inventory. My personal opinion is that this is likely because the current number of available homes is still far below what would be considered a healthy level of inventory.
Yet, if you look beyond the current state of our market and consider the trajectory of this change as part of a larger trend, this increase is certainly worthy of note. It represents a 31% rise in inventory in just 60 days.
Posted by Brian Danney on Friday, June 1, 2018 at 5:11 PMBy Brian Danney / June 1, 2018Comment
The market continues to heat up for both buyers and sellers with aggressive interest rates and the limited supply and high demand. A lot of buyers out there do not fully understand the types of different agency relationships that exist and their relative importance.
There are essentially three types of agency relationships. The first is "Buyer Agency" which means that there are agents that exclusively represent a buyer's interest during the search and purchase process. The second the relationship is "Seller Agency" which is where listing agents exclusively represent sellers with the sale of their home. Lastly, the third relationship is "Dual Agency." “Dual Agency” is a very misconstrued relationship as these agents represent both buyers and sellers in the same transaction. In this situation, although an agent may have a listing to represent the homeowner for the sale of their home, they also are to advise and consult the prospective buyer in the same transaction. While they are professionally committed to do this, it is almost impossible.
The biggest concern that should be on the buyer’s mindset when working with the seller's agent to represent them in this "Dual Agency" is a conflict of interest. The listing agent’s responsibility is to get their sellers the highest price and best terms. What the buyer may not understand is that in order to put themselves in the best position for negotiation relative to price, repairs, and other terms, they need to have the best representation for their rights as a buyer that is in their interest exclusively. Please feel free to contact our office with any questions...