There Are Two Different Sides In The Transaction
As you look to buy a house or sell a house, do you ever consider 
the objective of the other party in the transaction? This would be like walking a mile in somebody else's shoes.
My general experience is that neither of the principals thinks much about the other. Self-interest usually rules. I am not suggesting that there is anything wrong with that. If you don't look out for you, who will? However, if the positions of the principals become too rigid and are not based on market realities, a transaction will not occur, and neither side gets what they want.
As your agent, I have a responsibility to try my best to get you what you want. To do that, I must take into account the objectives of the other principal. So I must be able to not just look at the goal from the perspective of my client.
A few days ago, I read a post by Debe Maxwell, "3 Things to Which Sellers Shouldn't Say "No". I don't think you can argue against the points Debe made in her post. In fact, you probably can't find much wrong with anything Debe writes about real estate.
But Debe's post got me to thinking of my own experiences representing buyers and sellers. Debe suggested Seller's avoid denying certain reasonable requests from Buyers. The big three in her recent post were-Buyers Incentives, Home Showings, and Virtual Tours.
Seller's Position
| Impact on Seller | Incentive, Availability, or Marketing Technique |
Impact on Buyer |
| Reduction in net proceeds | Buyer Incentives | Reduces cost to purchase |
| Convenience | Home Showings-Reject or Attempt to Reschedule | Usually eliminates the home for considertation by the potential buyer |
| May add to cost of sale | Virtual Tour | Provides better opportunity to screen potential showings |
So cost of a financial incentive can lead to a no-sale. Making showings at times convenient for the Seller could be inconvenient for the Buyer. In San Antonio, there are enough homes available that most Buyers will not reschedule. Opportunity lost.
While the Seller may want to walk away with a profit of say $70,000 on the transaction, if other Buyers in the area are only paying at a price that provides a $50,000 profit, Buyer's following the suggestions of their competent Buyer's agent will not offer the $70,000 profit the Seller is seeking. If you need to sell, get in line with market pricing.
So now let's view things from Buyer's perspective.
Buyer's Position
| Impact on Seller | Buyer's Goals |
Impact on Buyer |
| Reduction in net proceeds | Reduce Sales Price | Reduces cost to purchase |
| Reduction in net proceeds | Buyer Incentives | Reduces cost to purchase |
| Usually Inconvenience | Closing Date | Convenience |
Each dollar the Seller concedes reduces their net proceeds. If a house is priced within the range of other homes in the area, most Seller's will not accept a big reduction in their net proceeds just to make the sale. If you really like the house, the offer needs to be reasonably in line with market pricing.
So what that leaves us with is we have to have a state of balance or equilibrium to get a transaction achieved. I suggest to my Seller's 
the best way to price your property is to match the market. What are Buyer's actually paying for properties in your neighborhood?
For my Buyer's, match your offer price to what other Buyer's are paying for recently purchased properties in the neighborhood. When both Buyers and Sellers are in tune with the market, deals can get done. When one party thinks they can steamroll the other side, both usually walk away unfulfilled.
Buyer's can and do offer less than market prices and generally do not get the house. Seller's can and do set prices above what the market will bear and are usually unsuccessful in selling at those prices. It takes two to Tango. By the way, does anybody still Tango?
If I can help you sort through the buying a home, or selling a house in the San Antonio area, call me, I'd love to help you. I can't Tango, but I have some nice real estate moves.
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Wayne Johnson Tel: 210.483.6329
18756 Stone Oak Parkway
San Antonio, Texas 78258
Texas Real Estate Lic # 0566780
email: wjohnson@cbharper.com
Texas Law requires all real estate licensees to provide the following inforation about brokerage services:http://www.trec.state.tx.us/pdf/contracts/OP-K.pdf
The views, opinions, and comments expressed in these blog posts are mine and mine alone. They are not necessarily the opinions or well reasoned analysis of Coldwell Banker or Coldwell Banker D'Ann Harper Realtors®, nor have they been approved, blessed, or sanctioned by any other person or persons, real or imagined, alive or dead. Blame me and only me.
©2010 By Wayne Johnson-All Rights Reserved *Walking A Mile In Somebody Else's Shoes*
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