Episode 015: Prepared VS Prequalified - Navigating This Crazy Real Estate Market

<p>It used to be very natural for a new buyer entering the real estate market to only be pre-qualified before diving into listings. But in today’s market knowing how much you can afford is only the first step into deciding if your client is mentally prepared for the realities of the Arizona home market right now. In this episode we go into some of the hardships buyers need to prepare for to stay positive in their home buying experience.</p> <p> </p> <p><strong>—Today’s Market is Bananas—</strong></p> <p><strong> </strong></p> <p>One of Bernie’s favorite sayings is that the market right now is bananas, and that’s a good way of putting it. Some of the characteristics of today’s crazy real estate market are things we’ve covered before:</p> <p> </p> <p>-    Listings can show up and go down in minutes</p> <p>-    Asking prices are undervalued for what the house ends up going for</p> <p>-    Negotiations over appraisals, repairs, closing costs, etc. are almost non-existent</p> <p>-    Securing VA loans and down payment assistance can possibly be barriers</p> <p><strong> </strong></p> <p>A pre-qual really is only a starting point on what might be possible. More than likely, buyers are going to need more in terms of financials just to be competitive, and even then success isn’t guaranteed.</p> <p> </p> <p><strong>—Be Mentally Prepared and Increase Success—</strong></p> <p><strong> </strong></p> <p>Understanding that pre-qual is only the beginning and knowing that you might have to settle for less house or more in the way of repairs or upgrades makes it less surprising when it does end up happening. In the housing market, we don’t want or like surprises, and because of that your client’s attitude can sour the longer it takes to get into a home. As their agent and representative, you need to be having those hard conversations to prepare them and to give them confidence that you’re working for their best interests.</p> <p> </p> <p>Remember, as their agents we’re responsible for more than just a simple housing transaction; o