I confess, it isn't pretty and almost ruined my career. A friend asked me to help her daughter to sell her home. Sounds good so far. The daughter is bright, savvy, with marketing background. She was planning to be married and wanted to sell her home.
As I prepared my market analysis of the home, I felt that she would be satisfied because I knew what she paid, and how much she put into it. We cheerfully sat down to review the analysis, and marketing strategy. My cheer drained to dismay as she listed the debts she intended to pay off with the expected proceeds from the sale. We were $50,000 apart on where each of us thought the sale price should be. She and her mom had predetermined the price. My friendship was on the line, and I let her talk me into taking a listing that was way over priced. We talked about price reductions, but I saw in her eyes that she wasn't hearing me.
Despite open houses, online promos, umpteen brochures, and a virtual tour, it lingered with fewer and fewer showings. She inched down in price, and we got an offer. It was $30,000 under asking price, and just about where my market landed. They were both frustrated, and we waited for a second offer. That was even lower, they were not happy.
The bottom line is that months after I listed the property there was no sale. The part about price reductions fell on deaf ears. But it was I who was deaf. I wasn't hearing my friend's daughter shouting at me that she had unrealistic expectations. I heard that I couldn't disappoint them, and had to give them the price they wanted even though she had already stripped out her equity.
They had strong opinions based on hope, the media, and their friends at work. Once I had a buyer who wanted to make a low offer on a property with multiple offers already on the table. I asked him, "So, you want to offer $20,000 less than the asking price when there are two other offers because............?"
"The guys at the factory told me I have to start low." Four offers later, he did what I told him he needed to do to get the house he wanted. We all go through this scenario with clients, friends and family. I struggle for the magic words to tell them that their friends at the factory or the university do not have the pulse of the housing market. I am acutely aware that family from 200 miles outside an urban area has different price expectations than urban dwellers. We are all searching for a way to tell our clients and be heard, that the market is what it is.
In utter frustration with a fussy client I blurted out, "Last month I put 3,000 miles on my car, showed 120 homes. I know what's on the market at what price. I know what you want, how much you can spend, and I that's what I will find for you. Get in the car and bring your check book." I felt I earned it. She wrote an offer on the second showing. If you have magic words, and the courage to stand behind them, let me know.
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