How to Win in a Competitive Market
APRIL 11, 2017 WRITTEN BY  
MARYANN PETERS
A little over a year ago, I posted my thoughts on the impending buying season of 2016. Last year was a rather interesting year, at least for me. Buyers became more selective in their choices and desires. Sellers, for the most part, stood firm in their pricing. The ultra high-end of the market saw major price adjustments and had sluggish sales. Throwing these variables into mix made for an interesting negotiation process.

Now the buying season of 2017 has begun. The buyers are off to the races. A number of housing experts and economists are forecasting a robust season this year. That being said, most have expressed concern at the lack of inventory in what I call “The Sweet Spot,” essentially the $1-10 Million range. While inventory in this range may be limited in the rest of our country, this is not the case in Manhattan. New construction is still booming and the number of resales appears to be consistent with prior years. However, what I am seeing is that the number of active buyers has grown exponentially, which is ultimately driving up competition in spite of the abundant inventory. It’s not uncommon for me to receive multiple inquiries on a property and for that property to receive multiple offers. Sellers’ agents are reaping the benefits of this phenomenon as their listings are generating high interest. Buyers’ agents, like myself, have to be more creative and diligent against this tidal wave of competition.

Given the current state of the Manhattan market, it’s essential for buyers to have someone advocating for their interests and guiding them through what is an often daunting and complex process. When a buyer deals directly with a listing agent, that relationship is what’s called a ‘dual agency.’ The listing agent now represents both buyer and seller. What many buyers do not realize is that in this dual agency relationship, the listing agent has a primary fiduciary responsibility to the seller. The listing agent is legally obligated to consider the interests of the seller first, meaning their primary focus is getting the best price for the seller! Buyers’ agents are the opposite. Our primary fiduciary responsibility is to the buyer and servicing their best interests. My husband rationalizes the scenario as this: Would you hire the attorney of the person who is opposite you on a legal matter? Then why would you hire the agent who is opposite you when buying a home?

It's important to note that buyers’ agents receive no remuneration until the deal is closed and their commission is paid by the seller. Sellers’ agents have fixed costs such as advertising, and promotions (open houses) that have to be factored into the equation. As a buyer's agent, my costs are my time and effort in making sure the buyer gets the best possible price on the home of their dreams. Based on the volume of inquiries I am receiving on a daily basis, this buying season has left the gate and is approaching the first turn. Before you even come close to the homestretch, you need a buyer’s agent to be there every step of the way, giving you a competitive edge in this challenging market.
ABOUT THE AUTHOR
Maryann Peters
mpeters@lgfairmont.com
(917) 829-1499
Maryann Peters has been personally buying and selling properties for over 35 years, so the transition into real estate sales was a seamless one. Being on both sides of...
Maryann Peters has been personally buying and selling properties for over 35 years, so the transition into real estate sales was a seamless one. Being on both sides of the transaction, Maryann brings a unique skillset to the table that few agents in the industry can...
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Contact Maryann
Contact Maryann