Recently a Real Times reader, consumer Zareen Umair, asked a simple question, "When is the right time to buy in the Bay area?"   As my "by the book" answer trimmed the usual indicator suspects of inventory, days on market, mortgage rates and local economy, I began to wonder about "the right time" and "the right deal".   Yes, the situation here is currently shifting, but slowly.  The inventory of available properties is still near empty.  Prices are at an all time high.  Competition between buyers has resulted in fierce bidding wars.  Many homes never even make it to market, with competing offers coming in just from the sellers having made mere listing agent inquires.

On the other hand, mortgage rates are as good as it gets and holding steady.  As Zareen pointed out though, the possibility of a Y2 recession, the Asian crisis, and an economic tsunami level Presidential trust problem might change that. Thinking through these larger issues, I ended up advising Zareen that "the deals are always out there, but finding them and being ready to act requires preparation and patience."  To find those deals, I think there are three basic steps a consumer must walk through.   First, find a good Realtor and prepare yourself financially and emotionally to "act" at a moments notice. Second, be patient.  This is most difficult to do, especially when the financial and emotional preparation has been realized.  Third, stay in contact with your Realtor.  Even better, have a weekly contact plan in place, one that you are likely to follow.

The first piece of advice is common sense.  Of course one needs to be financially prepared to achieve a purchase objective.  That goes without saying.   The selection of a good Realtor to assist in creating a "purchase profile" though can reconcile a wide variety of financial possibilities with likely "lifestyle" objectives derived from such things as home, neighborhood and school needs.   Keep in mind though that the purchase profile is a changing thing.  The market is moving, the cost of money is changing, and, the financial mix of one's debts and assets are as fluid as the plastic credit cards we all carry.

The second factor is perhaps the most difficult.  Patience.  Ready, set.....wait... is just plain hard to do.   Once qualified financially, most buyers want to move and, unfortunately, most Realtors want them to move also.  The agents motivation here isn't simply to convert their efforts into a next paycheck either.  The problem is that when a relationship with a client is shall we say "spun up", all factors concerning the marketplace, the client's purchase profile, the client's emotional commitment, and, the agents "awareness" of where market and client need meet, are factors resonating at the moment.   For your agent it's like juggling.  The hard part is getting all the balls up in the air.  When an active "ready to transact" client wants to wait for the really good deal, those balls are not going to stay up for long.  A good agents has many clients demanding attention.

So not only must the client have patience, but so must the agent!  We need a relationship based on commitment and trust here, the kind that goes beyond business as usual.

Perfecting a shared patience based on trust is not a trivial task.  The agent must be confident that the client will transact through them, and the client must be confident that the agent will be able to hold their particular "purchase profile" in what I would like to call a state of "active market awareness".  The truth is that active client's, those in the market to purchase at the moment, get first claim on an agent's awareness.  And that usually translates into first claim to the best deals of the moment.

There is something to be said also about the way one finds "good deals".   The only way to find them is to be there almost before they become available.   When a good deal does make it to market, their availability window is short and swift.  Good Realtors make their living being in the loop of rapidly changing ownership factors and events.   Probate, defaults, sudden divorce, problematic corporate relocation's (especially within company  towns), and of course new or "pending" listing leads, are all ways agents keep their finger on the pulse of property transactions.   Through their many networks of contacts and the occupational necessity of having to have a wide angle peripheral vision of marketplace movements, agents know the deals when they first peep, both how to find them and sometimes even how to creatively activate them.

Third, my final bit of advice to Zareen, and all others searching for and needing a good deal on the table before they can transact, is to not only work out a trusted relationship with your Realtor, but to also keep an open and active line of communication with your agent.  Most agents have perfected the use of very advanced contact management programs.  But rather than leave your fate to the whims and workings of very busy agents, and the good ones are indeed in high demand, take the initiative to  maintain contact.  Take all the steps necessary towards being an "active" client to your agent, even as you patiently wait.

When they know you're there, and they know you're ready, the good deals most certainly will come.  Hot market or not.

Published: September 1, 1998

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Gary Edwards writes an occasional opinion column. He specializes in real estate technology trends. Gary is known for his far reaching perspectives. You can e-mail Gary at gary.edwards@OpenStack.us.