The Background:
This lesson dates back to 1994, while completing my 10th year practicing real estate. It also marked my first attempt to build my very own solo spec. house. While dabbling in both at the same time, I finally got enough nerve to take on a project with my own funds and skills. I have to say through a few set-backs, and cost overruns the home was completed without any major catastrophe. So far so good right?
Now, here is where it starts to take a slightly different turn, marketing the completed home. See the home was great, at least that is what I thought. Lesson 1: build to the area, not your desire. So, now we have a home a little different and priced, let say somewhat slightly higher for the area. Lesson 2: If you are going to build, it's better to be less than more. Those are just two quick lessons, but not not the real one I'm surrounding this story to.
The Outcome:
Through endless showings, marketing, open houses, and sitting vacant for months waiting for a buyer, my wife and I finally had to move into it. Of course that's not such a bad thing, being a brand new home and all. Though it does defeat the purpose of building, selling and making a profit as you know. Now what, well Plan B, right? Plan B, C, & now D take hold. 6-9 months go by, off the market, on the market, should we stay, should we keep trying to sell, a real dilemma. Fast forward still some more, we get an offer and a good one. But with any offer there is always one thing that becomes an issue right? This my friends are the simple lessons followed in the next paragraph.
Learning:
The lesson learned here is don't let your ego get in the way of your judgment. See I put my heart and soul in building this home. I did a lot of the construction personally, which included roofing, painting, site work, trim, work, setting cabinets, etc. How dare the buyers ask me to change my kitchen counter-tops because they didn't like the color. So here is the BIG LESSON: You stand the risk in a counter offer that the buyer walks. See my thought was I won't change it, I'll give them a credit towards what they want. Easy right, solution solved NOT!!!
They withdrew, and bought the home around the corner. It took me another 6 months to find a buyer, and guess what, yep a lowe r price ($22,567) than the first.
Moral of the story: Your first offer is your best offer 90% of thetime. Counter-offers generally run the risk of failure.
Comments(4)