The great George Carlin once said...

Mortgage and Lending with Your Financial Coach

"My stuff is valuable stuff, your stuff is junk!"

The meaning of this was that people like to buy camp trailers and motor homes to take there stuff with them. They have good stuff, but why are you taking your stuff with you? It's just junk.

Now as a Realtor, your trying to determine the Fair Market Value of the home....just the home.

But the home owner has a different view of the home. To them, it is their personal stuff, where their children are growing, they have mowed the lawn and taken care of the yard, struggled every day to take care of the house. Their is alot of sweat equity that is in the owners mind.

When a Realtor tells them it is worth less than they think, you might as well insult them first and get thrown out of the house anyway. Once they have heard that, they can not listen to anything else because their mind is now cluttered with "what the He..! You don't know what your talking about!

I always start off a sales pitch with something like "what are you looking to get out of all this?" and Why?

They will usually tell you and explain what they need. Like enough money to pay off the loan, their credit cards, maybe a high car payment and at least 3% for a down payment on a new house. If they went to get preapproved first, the lender would suggest they pay off some things to help the DTI ratio. It may be that they can afford payments of $1500, but with the other payments, they don't qualify at all.

It would never be good to assume that "the client has an unrealistic view of what the market is". Yes they do, it's not their job, it's yours. And of course their home is always better than the neighbors, because "It's their stuff!"

Comments (2)

Jim Frimmer
HomeSmart Realty West - San Diego, CA
Realtor & CDPE, Mission Valley specialist

Isn't he also the one who said that a house is just a place where you store your junk while you go to work to make money to buy more junk? Or something like that.

Dec 03, 2008 06:41 PM
Chuck Christensen
Your Financial Coach - Bellingham, WA

Yes, he did a bit with it on that too.

Dec 05, 2008 08:09 AM