Several times a day, my phone rings and the caller on the other end is a seller with their home currently on the market. Why do these people choose to call me? Well, I have a unique view on the real estate market. You see, my primary occupation is residential real estate management, but I still practice listings and sales. I have a sister company that strictly practices residential listings and sales.
My primary occupation as a real estate manager is what provides me with a unique view. Yes, many real estate agents talk about renting a home versus selling it, but many of them also find themselves in a quandary. "Do I sabotage my listing and encourage my seller to rent? Do I try to manage it for them so I can get the listing down the road? Do I simply push for another price reduction?" Do you see how this can cause a conflict of interests? There is no ill will, just a limited understanding of the options.
When I get the chance to talk to sellers who have found themselves "stuck" in this market, what we do is discuss all of the options that I am familiar with. If there is an option that I am not familiar with, I will recommend bringing in another professional who is familiar, e.g. tax attorney or certified financial planner. Here are the options that we normally discuss:
- Lowering the price aggressively and selling
- Renting for a short-term and then selling
- Renting for long-term
- Re-financing
- Owner carry-back financing or Lease-Options
- Not selling at all
Now, what we are trying to accomplish in our discussion is "what is the best decision for the client?". You see, when you find yourself "stuck" in a situation, sometimes the best thing you can do is get some fresh advice from someone who is not intimately involved. Have you ever found yourself in a disagreement with someone close to you, and you went outside the normal circle for advice? Sometimes, it just makes sense. Here are the steps I typically use to help someone decide the right solution:
- What is the goal(s) you are trying to accomplish by selling?
- Can this goal(s) be accomplished by doing something other than selling? (If the answer is no, then the solution is probably "lower the price aggressively")
- If the goal(s) cannot be accomplished by any of the options presented, then can we adjust the goal(s)? (Even temporarily)
- Do we need to bring in another professional for consultation?
Usually, by the time we have answered the above questions, we can start narrowing down the list of possible solutions and the discussion is progressing nicely. We keep the dialogue open and continue. Sometimes, time off from the discussion is required in order to "mull it over", or inform a spouse, or bring in another professional. However, the wheels are turning and a solution is much closer to being discovered.
Remember, the market is fluid, changing, dropping, and rising. In order to succeed in the market, you have to be willing to be flexible. Think outside the box. Get a fresh perspective. Bring in the appropriate professionals. List all the possible options, and then systematically eliminate the options until you are left the best options. Then, aggressively pursue them.
(photo of phones courtesy of typester at flickr and photo of jeep courtesy of tooms at flickr)
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