Wednesday, February 7, 2007

Emotion in Real Estate

The Sellers are making me mad…but I want to buy their house. What should I do?

Emotions are prevalent in real estate…very prevalent. It is understandable considering the home purchase or sale is likely the biggest financial undertaking the parties have ever done. Buyers recognize that they will live with their choice for many years and are anxious to do the right thing. Sellers have a reason for selling and are anxious to get on with their life. With both parties having such “anxiety”, it is naturally human to experience emotion.

Emotion in the negotiations almost always comes down to money, or how people perceive they are being treated. When you understand that value is “what a willing buyer will pay and a willing seller will sell for” you will realize that it takes both of you achieving your objective to have an agreement. Without agreement, if you aren’t willing to adjust your position or mindset, you won’t likely come to terms. If that is the case, understand it and move on, but don’t go away mad or you will be buying the next house with an angry mindset. Ever strike up a relationship on the rebound? This time is just like that time.

You can keep emotion to a minimum by not letting it get to be only about money. Is it priced right…or not? What are the other reasons you would make, or accept, an offer on a given property? Time- a quick close can often buy a price down if it works for the Seller. Conversely, a long close, i.e.- lease option, can get a higher price. Are the property’s amenities being properly appreciated and valued … by both parties? Location, size, condition, neighborhood, views, etc. Is the property pristine, a “veritable cream puff”, or is it “a real bowser” and you have, or want, to accept it as is? There are as many intangible aspects to a real estate transaction as there are tangibles. Assessing every aspect is tedious, sometimes emotional, and important to achieving your objective.

Our Advice: Don’t let emotions control your purchase. Love the home if you are a buyer, but don’t fall in love with it. If you do you will be attached to the outcome and your agent won’t be able to negotiate to your best interest. When you feel emotion during negotiations consider why, and enjoy the experience. Be aware that too much exposed emotion in the transaction can result in paying too much, selling too low, or not achieving your objective if emotion drives your decisions. Have compassion for the other party’s position. Don’t let it become personal. Until they come to terms, Buyers and Sellers have polarized goals. Understand that while you and your agents advocate for your goal… and don’t get mad. After an agreement is reached then both parties have a common goal … the close of escrow … and will work together in their respective roles to achieve it.

Your seasoned agent should help you make good decisions despite the emotional attachment you have for a property provided she keeps her emotions in check. As you’ve read here before, if an agent is more attached to their outcome of a transaction, their commission, than you are the transaction will experience difficulties.

When it comes to choosing professionals to assist you with your real estate needs … Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781-5472.

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