WHY DO WE "BEAT OURSELVES UP" WHEN A DEAL GOES SOUTH???
It's happening more and more now:
Are you noticing a different tone to the way a seller or landlord speaks to you? Do you have buyers who are angry with you when the house they want so badly is no longer available because another buyer came along and paid all cash?
When a deal dies do you take a pro-active postition or do you just let it go and find yourself in state of mind that is hard to get over? Do you feel like the deal fell apart because you did not do your job properly?...that if only you had remembered to say such and such you woud not have lost the deal! If only you had used another technique in handling the whole affair, maybe you could saved the deal???
All of these feelings and reactions come naturally in a normal market and disappear quickly when the next deal comes together. In this real estate market however, those next deals are just not coming into the pipeline like they used to and it becomes harder and harder to "get over" a lost deal and move on.
Here are a couple of situations that I faced just recently:
- A deal is ready to go to contract and the buyer gets bad news about their financing--they may not even be turned down but the bank has scared them sufficiently to keep them from wanting to sign on the dotted line! The bank now requires that the buyer buys PMI, or Private Mortgage Insurance.
- An appraisal comes in significantly under the price the buyer is about to pay for a house--the bank has told the buyer to pay the difference and the buyer decides to stop looking.
- A seller has second thoughts about completing a transaction on his accepted offer after talking to a neighbor and finding out that they are getting a lot more for their newer house than this owner is getting.
- It is impossible to resolve the conflicting feelings that a seller has that maybe he took an offer too quickly; or maybe even priced his house too low!
STOP BEATING YOURSELF UP!!!
What do You do when these things happen to you? I have worked very hard on creating a certain way now to keep myself from re-acting in a way that is harmful to me, both from the negative treatment I may receive from someone and from the upset that naturally comes from not being able to complete a deal for someone. I have stopped literally beating myself up when a deal goes South!!!
- First of all I always have a list of options for a buyer when I am working with one--I make sure it is prepared in the very beginning so that the buyer knows about it and can quickly review it.
- The list will include all other properties that are available in the price range and area--this includes the houses we looked at that were potentially going to fit the bill. The list will lay out a series of instructions to the buyer to prevent or to prepare themselves for a turn-down on their financing--I always have 3 mortgage professionals who are ready to step in to save the day.
- I go overboard to give the seller of my listings the comps for their home in their neighborhood...I also drive them by these comps so they get a real sense of what I mean when I talk about comparables. This gives the seller a confidence that they need so they feel they are getting the very best price possible when a buyer or buyer's representative begins the bidding process.
- By diligently informing and guiding a buyer, I have not "lost" anything because they are still there working with me; these are the future buyers who will eventually buy a house and will buy it through me because of my persistence and diligence.
- The final and most important thing I do now before I work with another person is to meditate; I need to clear the air of all negative energy and bad feelings that may have arisen during the difficult process of listing or selling a property. I ask to be shown the correct way to handle this individual and this particular situation and I am sure to show gratitude for abundance that is now available to me...and then I follow my instincts carefully--I listen to the urgings of my intuition more than ever now, and it works very well for me.
Buyers and sellers today are worlds apart:
Sellers are usually NOT very happy--in most cases they do NOT want to sell their home. This is happening at ALL price points too! There is a whole new level of "hurt" when it comes to those who NEED to sell!
Buyers can be ruthless in trying to get the lowest price possible--gone are the days when a buyer would reluctantly offer a ridiculously low price because they didn't want to "insult the homeowner"....In today's real estate market, there is no shame when it comes to bargaining for a low price. The only exception I have found is in the case of a buyer who wants a "new build".
When I have someone who wants to get the house they love for a "song" I work with them very carefully to give them the right ammunition with the facts about the actual current value of a property. I do this so that the buyer has a comfort level and does not expect that the owner, pushed into desperation will throw in the towel and give in to an unrealistic offer. I do this as soon as a buyer has identified the house they like.
TODAYS REAL ESTATE MARKET IS A PLACE OF HIGH EMOTIONS AND THERE IS NO REASON THAT WE, AS THE PROFESSIONALS WE ALL ARE, SHOULD EVER "BEAT OURSELVES UP" OVER THE VAGARIES OF DEALS GONE WRONG...Deals are coming together; but it is taking so much longer and so much more work to get them done!