Greed and Fear: two top killers of successful Real Estate stories

Ten years ago when I started in this business one of the first bits of real estate wisdom passed down to me was this:  the two things that kill more real estate agreements than anything else are greed and fear.  I can say now, based on experience, this is so true!

Many people are self sabotaging.  While refusing to adjust a price to a point that will result in a sale from a "reasonable" buyer they stay stubborn and fixed.  Greed (and often a very unrealistic sense of possibility) rules the day and the home languishes on the market and becomes "old news" and often finally sells for FAR less than it would have had it come onto the market at a fair price.

Some people think they are going to benefit by investing as little as possible in having their home professionally marketed.  This seller greed usually plays out with a seller offering little to no incentive to professionals to show and sell their home.  As a result, often, they end up selling their home for less than its worth because they haven't had sufficient traffic through to find the right buyer.  By "saving" a few thousand in commission they all too often lose tens of thousands in sale price.  (Helpful hint of the day....if you chose a real estate company/representative who is constantly bragging about how many properties they sell beware that in order to keep notches on their belt they don't under price your home.)

Buyers side of greed looks like the perennial "low ball" buyer.  This is the buyer who wants to offer WAY less than market value.  More often than not, low ball offers blow up, insult the seller and if per chance the agreement ever does come together, the seller will hold out for far more money than they would have accepted if a respectable offer came in to begin with.

How about the number of transactions that fall apart because of an appliance exclusion?  Do you really want to stand on principle and let your dream house get away because the seller wouldn't leave the front loading washer?  My mom had an often repeated saying for such action:  "Don't cut off your nose to spite your face!"

Then there's the fear side!  And, all too often family, friends and neighbours help with this!  Picture a young couple so delighted with an accepted offer on a home they love....they even get a great mortgage rate.  When they share their happy news, imagine someone waiting in the wings with nightmare tales of skyrocketing interest rates, "why back in the late 80's interest rates went about 20%!"  Or other great encouraging tales of the one in ten thousand home sale nightmares.  Way to help the couple sleep and feel good about their choice!  In thinking they are "helping" usually by instilling fear, people are only dream killers.  Anyone working with a trustworthy and experienced Realtor is in good hands; and they have an advocate making sure they are kept out of harm's way with property procedures and inspections along the way.

A friend of mine has a great expression he uses when people start thinking about "worst case scenario,"  he reminds a person to "STOP AWFULIZING!"

There will always be, and should always be, the right amount of care and tension in making decisions about what is often your greatest financial asset.  You do need professional counsel to maximize your financial gain.  But you don't need greedy, dumb approaches.  You don't need to listen to the whisperings of fear mongers, you need solid guidance from a trusted pro.

You most certainly can and should have a peak experience when selling or buying a home!  Just remember the definition of fair market value:  "What a REASONABLE seller and a REASONABLE buyer will agree upon for price."  Let reason rule and you will be both happy AND right!

Professional is as professional does.

From one of the all time mother lodes of one liners, Forrest Gump, came this, "stupid is as stupid does."  No doubt his Mama always told him that!  Hence my word play with this blog's title.  Hence the abc's of what you want in a professional....and what you don't!

Realtors have the great honour of providing professional services, dealing with people's most valued possession, their home.  This is not just a material possession, the value is also in the memories and dreams infused in the very timbers.

So, as you might guess, it drives me batty when I hear of Realtors behaving like amateurs!  You can rate the following real life examples into one of two categories:

1.  True professional and caring behavior (professional is as professional does)
2.  Amateur hour at the goat circus (stupid is as stupid does)

a)  Realtor shows up late for ANY appointment
b)  Realtor shows up early and prepared for ANY appointment
c)  Realtor's vehicle is safe, sound and clean
d)  Realtor's vehicle is dirty, smelly and you wonder if it's road worthy
e)  Realtor gives you information updates on negotiations promptly
f)  Realtor forgets that they were supposed to call you
g)  Realtor is well respected by other Realtors and known to be a person of their word
h)  Realtor doesn't care how they're perceived by colleagues
i)  Realtor is more concerned about the right move for their client than their commission
j)  Realtor is just looking to "close the deal"
k)  Realtor advises client honestly about long range pluses or minuses of property
l)  Realtor speaks only of positives and sugarcoats any pitfalls
m) Realtor handles referrals received as the gold they are! Communicates regularly on progress
n)  Realtor takes referral for granted and is sloppy with communication
o)  Realtor considers carefully how to best aid and thank their clients in future
p)  Realtor figures once the "deal is done" that they have finished
q)  Realtor neglects to get necessary signatures or initials to create a binding contract
r)  Realtor goes at whatever time is necessary to get signatures to ensure a binding contract
s)  Realtor keeps great resource list for clients of other professionals they can call
t)  Realtor figures its up to the client to come up with their own inspector, legal or building leads
u)  Realtor has list of good ways to improve value for sale
v)  Realtor just decreases asking price rather than get involved with tips for better presentation
w)  Realtor is courageous enough to ask tough questions
x)  Realtor is timid and glosses over any tough discussions
y)  Realtor will meet you anywhere, anytime
z)  Realtor will meet you in a professional office and set a mutually agreeable time schedule

So....the ABC's of options!  Make sure you hire a professional and expect professional results!