I was recently told that I needed to convince a seller, through their agent that a home was over-priced. When that is the case, I feel that I do a pretty good job of selling the right arguments. However, whether it is truly over-priced or not, chances are it will remain that way on the market.
Some observations from 14 years in real estate:
1. Sellers don't change their mind about the value of their home. They may acquiesce to the market, but if they do, they feel cheated.
2. Buyers don't change their mind about the value of the home they are buying. If they negotiate up, they almost always feel like they should have gotten it for less.
3. Most people buy for emotional reasons, logic takes a back seat.
4. Sellers have agents that usually study the market, and have an idea of the value of the home. Those agents are often proud and don't like to hear that they made a mistake.
5. Buyers that are represented, have agents that usually study the market and have an idea of the value of the home. Those agents are often proud and don't like to hear that they made a mistake.
6. Agents need to present information to their clients and let them make the decision.
7. Buyers that chase value, often find it.
8. Buyers that chase deals, in a market where there is competent representation on the other side, seldom find them.
9. Buyers that chase deals, often get no value.
10.REALTORS® subscribe to a code of ethics that includes “honesty” and “truth.” Most REALTORS® take it very seriously.
There are others, but the most important thing to remember when making an offer is that everyone has information and has come to their own conclusions based on their thought processes. Those thought processes are usually a mix of logic and emotion, and are often dominated by the emotional side of the equation.
I always welcome your comments.
