A test of our integrity is always just around the corner in the real estate business. That statement is particularly true when our incomes have been cut in this market. Assuming you are holding the same market share you were a few years ago you are making less. Those who are making more have adjusted their business model to meet the challenges that were thrown in their path. Congratulations!
I had a buyer making an offer on a property. We both commented that it was over priced at the first showing. This buyer had procrastinated over another property that was a much better home and priced to market value. They lost it to another buyer. They then made an offer on the over priced property at a price that would never appraise. There were no comps to support their offer while several sales supported a price 30% lower. Since this was a purchase with bank financing it was doomed to fail.
This was to be a summer seasonal property so they have ample time to find the right deal. You could see the frustration when I told them that the preferred property was pending a sale. I had told them that at that great price and with few similar properties for sale in this desirable area, it would go fast. It did.
I wrote a lengthy eMail describing the appraisal process. I told them that if id did not appraise for the selling price they would have to make up the difference in cash, renegotiate the price, or kill the deal. They told me they had done their research and I, as a real estate professional, should have access to the same information that they did. I sent them accurate information about sold properties in the last six months in the subdivision. It supported my opinion of value. They withdrew the offer and said that the market was like playing financial Russian roulette. They are now suspending their buying search. They said they will stay in touch if they decide to purchase in the future.
This is a couple with great financial resources. It would have been easy to allow the over priced purchase to proceed and face the appraisal after they had emotionally become attached to the over priced home. They could have paid cash, given their financial strength, once they were emotionally tied to the property.
I like to sleep at night. We all do. Here is a case of our money or our integrity or the dreams of our clients taking charge. Which do we choose. Did I do the right thing and kill the over priced sale? Should I have kept my mouth shut and let the buyer get into a home that they really wanted and fit their lifestyle and wants? Yes, I can sleep, but did I do right by my clients? My sleep killed their dream. Help. Do you think they will really contact me if they decide to buy?
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