Kristal Kraft had posted today, about Realtors being problem solvers, not sales people. I have to say, I could not agree more. As usual Kristal is right on. If you are working Real Estate, as a salesperson, you are probably missing the boat.
In this more difficult market, being able to solve problems is crucial, if you want to stay afloat. As an example, I have two Sellers with three problems. My job today has been trying to come up with a solution that will work for both of them and hopefully help me achieve my goal too, which is getting paid for a job well done. Let’s face it, I love solving problems and I love getting paid. If I don’t get paid, “The Lovely Wife” can’t go shopping and then there is no peace in my life. Peace is good. I like peace.
So, Seller #1 has a real nice house that we have been trying to sell for about 3 months. He has three children, with another one on the way and desperately needs a larger house. He can’t buy until we sell. So he has two problems, needing to sell and needing to find an affordable house to buy.
Seller #2 just listed with me this week. He is an out of town investor and has a house that was previously on the market for 6 months with another Realtor. I have now priced the property below market value and it will sell fairly quickly. The problem is, continuing to make mortgage payments is causing him a hardship and if it doesn’t sell very quickly he will need to rent it out. He really doesn’t want to do this. His payments aren’t too high but he is retired and is on a fixed income. This house was bought to flip but his flip has flopped.
After I listed Seller #2’s house, it dawned on me that this would be the perfect home for Seller #1 and his growing family. So like the good little Realtor that I am, I had Seller #1 look at it and he agrees this would be the perfect home for his family and it is the lowest priced 4 bedroom home around and only 11 months old. The perfect house, for a great price.
He can’t buy it though without first selling his house. Now as you know, getting a Seller to accept an offer contingent upon a property selling is very, very difficult. Especially when it is not even under contract yet. And to complicate matters more, Seller #2 needs a quick sale and will probably get it, with his house being priced the way it is.
So, I have been pondering this and have decided to jump out of the box and see what I can do to solve these problems for my Sellers. This is what I came up with.
Seller #1 is going to make an offer on this house contingent upon his property selling. We are going to ask for a “on or before” 120 day closing. This will give me more than enough time to sell his house, since we just reduced the price. I know what you are going to say, “Broker Bryant, how are you going to sell this deal to Seller #2 who has already told you he needs a quick sale or he is going to rent his property out.” Ok, so here is our game plan. Seller #2 does need a quick sell. Why? Well, he said he could not afford the payments. But you know what? Seller #1 can. The offer we are going to write will state that the Buyer(Seller #1) will make Seller #2’s mortgage payments during the 120 contingency period. How’s that for solving two problems in one stroke. Seller #1 can get the house he needs at a great price. Seller #2 can stop making payments and have his house under contract. Also, his capital gains will now be a 2007 event instead of a 2006 event. Broker Bryant will get 3 transaction sides and now I only have to concentrate on selling the one house, instead of both.
Both Sellers will be happy and “The Lovely Wife” can go shopping. All in all a great day’s work. And I must say, the view outside of the box is really nice. Very peaceful. So folks, forget about selling houses this week and solve some problems instead. Who knows, you may just be rewarded for your efforts.
Broker Bryant jumped out of his box again!