Leave Emotion Out Of It
August 26th, 2009 categories: Buyer Resource, Seller Resource
When it comes to Real Estate, there are always people who like to give advice. I am going to give you some advice today, and hope that it does not fall on deaf ears. Jerry Seinfeld’s parents said a condo in Del Boca Vista was the best Real Estate buy…so much so, that the Costanza’s wanted to buy there only to be told there were none left and they all went like hotcakes. Then, fueled more by spite of a possible Seinfeld lie, than an actual thorough review of whether or not a condo in Del Boca Vista was a good buy, the Costanza’s want to buy a condo in Del Boca Vista. This situation was made again, just to spite the Seinfeld’s…would this type of purchase be smart for our clients? Would this situation be smart for you? Clearly not!
Some more useful advice that can stand the test of time: “Leave Emotion Out Of It.”
What exactly does that mean? Emotion can affect sellers AND buyers. In slower markets, sellers can become frustrated at offers that are lower than list price, or worse yet, at the lack of offers. In Hot markets, buyers may want to pay more than market value as they feel inventory disappear, usually fueled by low home prices, low mortgage interest rates, and low inventory.
The best thing to do when making decisions…leave emotion out of it.
For SELLERS, set a price you want to receive. Any offers that come in with a lower price, the seller should treat as a Business decision, no emotion…either counter the offer with exactly what you want, or reject the offer. We ALWAYS suggest a counter as opposed to a rejection, as it keeps a potential deal alive, but we want to make sure you do know that is an option.
For BUYERS, keep a maximum price range you are able to pay. Stay true to this price range, and let all offers be governed by Business principles…NOT emotion.
Once set…can these levels change? YES! Either the price floor for sellers or the price ceiling for buyers can be revisited if things change…changes would be such things as comparable market prices, interest rates, inventory levels, or financial position. If any of these change, things SHOULD be revisited, or else the market will pass you buy.
This advice does not just hold for Sonoma County, but should hold for most Real Estate markets around the county. If you want some more Real Estate advice, please feel free to contact us, and do not ask Frank Costanza.
