Jim Valentine on Real Estate
Real estate decisions are usually made from past experience and immediate desires. Good decisions, however, are made with consideration and perspective enhancement. Perspective assistance is one of the most important things you can get from your real estate agent.
It isn’t only how things affect you in a transaction that make it work, it’s how it affects everybody involved and how it fits into the overall scheme of things in your area.
Most people focus on price when they think of real estate. How much did you get? How much didn’t you get? Was it a good deal, great deal, or did you visit the proverbial “cleaners?” Price is only one component of a real estate transaction and not always the most important. If the property is located next to a friend or family member, how much is it worth to you as opposed to somebody else in the market to live next to someone so dear for the next segment of your life? The emotional return on that investment is hard to measure, but certainly you would pay a bit more for that pleasure than the next person.
If you are carrying a note as a seller and you get your price, is it as important to get 7 percent interest vs. 5 percent? Either is better than the low interest return from a bank on the cash you would have received from a cash sale, and you still have the large principal balance. If you reduce the price and get a 7 percent note and they pay it off in 6 months, what have you gained. If you get 5 percent and they pay it off you have less interest, but you’ve the larger balance.
Time can be important to some people. They can be in arrears on their payments, having to move for a job, need to be near family due to a crisis, etc. If time is important, where will you concede in the negotiations? There is an old saying in negotiations, “He who has the most time wins.”
In these days of harried marketing and purchasing, negotiations are not as protracted as they have been in the past, but the principle is the same even if it is accelerated. If you aren’t in a hurry, let time work for you. Conversely, you can speed things up to enhance your position if that helps you. Your agent will help you decide which course of action to take.
Wear the other person’s “hat.” What are they thinking, feeling, desiring? How can you best match that to your goals and objectives and stand out in the crowd of buyers? It isn’t always what it appears to be. One time our buyer needed time on a multi-million-dollar transaction to get some things done so we wrote in a six-month escrow. It was a risk, but it was all we could do. It turned out that the long escrow was the key factor in the seller selecting our offer over the others and our customer bought the property. Don’t always give for the sake of giving, write what works for you and see if it matches what works for the seller. You could be surprised.
Where is the pressure in the transaction and how can you relieve it? Sometimes the pool table, hot tub, or Conex Box shed become too much to move. If you let the seller leave them you can get a good deal on them, or even get them at no cost to save them the hassle factor. You can always find somebody to take things like that off your hands if they are in OK condition. Don’t worry about the temporary inconvenience, look at the bigger picture.
Perspective is everything in real estate. Yours, the other party’s, the agent’s, etc. Everyone has a perspective on things. Beware of that at all times and you will find your transactions occur sooner, go smoother and have a higher rate of success.
Think of everyone involved, not just yourself. If you limit your options, you will find yourself struggling for happiness in real estate. Establish your wants and needs, focus on them and you will reach your goals and enjoy the results.
When it comes to choosing professionals to assist you with your Real Estate needs… Experience is Priceless! Jim Valentine, RE/MAX Realty Affiliates, 775-781-3704. dpwtigers@hotmail.com.