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Heightened Tensions

Once a week our office, along with invited industry experts, meets to discuss trends, contract nuances, and arcane matters in all things real estate. The conversation is always interesting and often gets very lively. Last week a young agent complained, “Everyone is so mean to each other these days!” which prompted a round of stories from several agents. I silently commiserated. The market has definitely shifted.

The period of heightened tensions in real estate occurs when the market begins to move into the margins of housing availability. The illustration below shows that when there is a steady supply of homes available to sell to a steady supply buyers, contract negotiations tend to be balanced; neither buyer nor seller has an emotional edge over the other.

However, when the housing supply becomes too high or too low, creating a clear advantage for one side, then negotiations become tense. The favored party becomes more aggressive which naturally has the effect of driving the disadvantaged one into a corner. That’s when things can get mean. Spring 2014 is bringing about a Seller’s market in many areas of Atlanta.

I have great advice for my clients during these periods when the market is imbalanced which I will cover in my May 2014 email. There are some strong defensive weapons that both buyers and sellers have in their arsenal as long as they aren’t afraid to use them.