June 08, 2019 at 8:56am | Thomas Love
     I have been working as a real estate professional for over 10 years now, and I have learned a great deal in all that time. Interestingly, one of the most important things I have learned is that real estate and the concepts involved with effectively selling real estate are really not all that complex. I believe that it is my understanding of this truth that allows me to bring value to my clients and customers, who sometimes tend to over complicate things, through no fault of their own.

What do I mean by this? Well, the act of a seller of real estate and a buyer of real estate comes down to a set of very simple principles. You need a seller who wishes to sell and a buyer who wishes to buy for starters. A real estate sales negotiation ensues when that seller and that buyer are able to begin a discussion the hopefully results in both parties agreeing on a price and terms that fit within the scope of what each party desires, resulting in an outcome in which both parties win - of a win/win scenario. 

Things tend to go awry and get a lot more complicated when either party deviates from this simple dynamic. I have worked with buyers for instance who have the mindset that they want to negotiate with a seller to the point of walking away from the table with something more, a win in which case the seller loses. They want a house at a price that is below market and are obsessed with this desire. They want a deal and may miss good opportunities if they feel it is not a steal. While I can understand an investor taking this approach, as this is what their livelihood often requires, I do not understand this approach from someone who is looking for a home – someplace that they will be for a number of years to raise family perhaps.

     Don’t get me wrong, everyone wants a deal, including me, but sometimes I think this desire overrides the true goal of finding a home that works. What is the goal – to find some place to call home that fulfills your needs and desires at a fair price, or to steal someone’s home? Are you looking for a home or an investment?
Purchasing a home in which to live, contrary to what some people think, should not be considered an investment. Now, I know that many have purchased a home, and have made large sums of money and generated real wealth with equity growth that they were able to cash out when they sold the home, but this alone does not qualify a home purchase as an investment. There is a wonderful article by Kevin Mercadante that accurately explains this mode of thinking. See it here.

On the other hand, there are sellers with whom I have worked who are obsessed with the notion that their house is worth a certain amount, and this belief is completely separated from the cold hard truth of reality. These sellers often do not understand the very basic concept that it is buyers as a collective that determine the value of real estate, not sellers. Something is worth what a buyer is willing to pay, not a number that a seller chooses to price it. It is the seller’s job (with the help of a skilled real estate professional) to understand buyers, in terms of what they are looking for, what trends will affect their home’s desirability, and what buyers are paying for similar homes in their area. Sellers must present an opportunity that buyers will want to take advantage of by combining the appeal of the home with the right price.

So in essence, one of the most important aspects for selling a home successfully is to understand the mindset of buyers who are active when sellers are trying to sell their home. Sellers need to start with that, and this is what many sellers fail to realize. Sellers need to objectively look at their home through the lens of how buyers are seeing it, and this can be very difficult to do for a seller that has lived in a home for a number of years. This is where a competent real estate professional comes in, and sellers can gain a lot of value from someone who is on the front lines of what is happening and trending in real estate on a daily basis.

     Contact us for more information about what we can do for you.


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