Beward of Hidden Agendas
Tuesday, October 21, 2008
Beware Of Hidden Agendas
Today, real estate agents, more than ever should appraise people just as diligently as they appraise properties. If the seller's motivation is not strong enough, they should be dissuaded from competing in markets with elevated inventories, repos, and short sales.
In early 2008 I listed a friend's residence. Randy received a promotion and transfer to California from Arizona. He was elated. His wife Linda did not share his enthusiasm. She was eligible for early retirement in the next 18 months. Her frown, tacit approval, and reluctant signature on the listing agreement would undermine the marketing activities.
The property was situated in a great location. The initial list price was at the high end of the range in a soft market. The first two reasonable offers were countered by the sellers and then rejected by the buyers. The property was appraised & reduced as the market softened. The sellers began to chase the market. Randy move to California and left Linda in Arizona until the house sold.
Randy delegated the selling decisions to Linda. She was opposed to reducing the price. The market was disinclined to pay a premium. In this modern day tragedy the real estate messenger was shot. The listing expired, a marital schism developed, and agent number two hoisted their for sale sign.
A few years ago a seller could simply say they were 'serious about selling'. Today, that same seller needs to 'put their money where their mouth is'. The initial price needs to be competitive with both recent comps and competitively priced active listings. If this price is not accepted by buyers, the price needs to be lowered every two weeks.
Real estate agents should ask each seller the reason for selling on several occasions. The answers should be examined for underlying feelings, unrealistic expectations, and hidden agendas.
Today, real estate agents, more than ever should appraise people just as diligently as they appraise properties. If the seller's motivation is not strong enough, they should be dissuaded from competing in markets with elevated inventories, repos, and short sales.
In early 2008 I listed a friend's residence. Randy received a promotion and transfer to California from Arizona. He was elated. His wife Linda did not share his enthusiasm. She was eligible for early retirement in the next 18 months. Her frown, tacit approval, and reluctant signature on the listing agreement would undermine the marketing activities.
The property was situated in a great location. The initial list price was at the high end of the range in a soft market. The first two reasonable offers were countered by the sellers and then rejected by the buyers. The property was appraised & reduced as the market softened. The sellers began to chase the market. Randy move to California and left Linda in Arizona until the house sold.
Randy delegated the selling decisions to Linda. She was opposed to reducing the price. The market was disinclined to pay a premium. In this modern day tragedy the real estate messenger was shot. The listing expired, a marital schism developed, and agent number two hoisted their for sale sign.
A few years ago a seller could simply say they were 'serious about selling'. Today, that same seller needs to 'put their money where their mouth is'. The initial price needs to be competitive with both recent comps and competitively priced active listings. If this price is not accepted by buyers, the price needs to be lowered every two weeks.
Real estate agents should ask each seller the reason for selling on several occasions. The answers should be examined for underlying feelings, unrealistic expectations, and hidden agendas.
