The Best Policy

 

Honesty is always the best policy. It is incumbent upon any professional to tell their clients what they need to know, not what they want to hear. At times it's helpful to get a person's permission before being brutally honest. A preface I enjoy is, "Mr. Seller, would you mind if I speak candidly with you?"

 

Recently, I spoke with a clinical psychologist about their home not selling. After we established a rapport, he told me that on occasion, he asks a patient to draw a circle on a sheet of paper. They are then asked to write their name in the circle. The psychologist then asks his client to, "Look at the problem". In other words, many times the problem is in the mirror looking back at us.

 

Our conversation then turned to the sale of his property. "Why is the property not selling", he asked. I told him to write a circle on a sheet of paper. In the circle draw a dollar sign, then tell me the reason the house was expired and unsold. He smiled, and appreciated the brevity, analogy, and honesty.

 

This seller purchased this home in late 2005 for $495,00. They put ten percent down to create a loan balance of about $450,000. The property currently comps out at around $400,000. They have closed on their new home and are serious about selling.  They have a difficult decision to make, and a large check to write at the close.

 

Article 2 in the Realtors code of ethics warns agents to avoid exaggeration. The days are gone where a listing agent could hope the market will bail them out of an aggressive price. Overpriced listings are a business expense, an unnecessary drag on the market in general, and a badge of cowardice on the chest of the listing agent.

 

In order to weather the storms in an age of turbulence, real estate agents need to recalibrate their pricing strategies, and remember honesty is always the best policy.