In real estate nothing is ever set in stone ever and no deal is guaranteed until it closes. As a real estate professional each deal can be an emotional roller coaster with highs and lows that would scare even the avid theme park goer. There are some important things to keep in mind when hitting these situations that arise. One of the most important things to keep in mind is that this is business and emotion has no place here.
During a transaction often we are dealing with two parties who have the same common goal one to sell their home the other to buy the home. The hard part of this process is the seller wants the best terms for them with the most money. On the contrary the buyer wants the best terms for them for the least money. We as real estate pros then need to work the deal to keep them both happy with one another through each step of the process. There are several steps where challenges can arise for everyone in the transaction and it is crucial to getting the deal to the closing table to not insert emotion.
During the offer process a lot of the times a buyer will offer less than full price and can risk offending the seller. This is a place where the novice seller’s agent could say things like “you are not going to like this offer,” or “this offer is borderline offensively low”. The reality of this situation is you should present the offer to you clients and allow them to make that decision. For all you know they could have been ready to accept that offer till you spoke and if you said the wrong thing you may put a stick in the mud between the buyer and seller and never come into an agreement. While you are there to be a fiduciary and should act as such your emotion does not need to be included. A fine reply to an offer that is low is to say “We have an offer coming in and it is up to you if you would like to accept it, but I think we can get you more money”
Another place this happens often is when a buyer’s agent convinces a buyer not to make an offer because they feel it is too low. When you are in this situation you should not ever make a choice for the seller you should and must write the offer and submit it. Do not allow your emotion of what is a fair offer get in the way of writing an offer. If you do this, you can end up chasing away your own client to another agent who is not going to degrade their client and is willing to write an offer up for them.
The most common time that a deal is interrupted by emotion vs business action is when working through the home inspection process. Both parties are really tense during this time and there are a lot of real estate pros involved in the process who can mess this up for everyone involved. Here is a abridged list of ways a real estate professional’s emotion could kill the deal.
- The inspector decides to insert opinion on build quality or tells the buyer what they would have done differently even when nothing is wrong.
- The buyer’s agent when talking the inspection over with the buyer talks about what a reasonable seller would fix. Using the words reasonable seller allows the buyer to feel they are unreasonable if they do not agree to these fixes. There is nothing that is assumed to be fixed by the seller they are simply requests so make sure you leave it is that. Otherwise you risk the seller denying what seems to be simple fixes and the buyer getting mad because you told them the seller should be reasonable and do so.
- The seller’s agent gets a repair list and then inserts their opinion on the repairs. While you are a fiduciary and need to protect your client financially, keep in mind you are not the gate keeper. There is no reason to decide if a seller should or should not do the repairs and keep in mind if they do not and the deal dies because of your emotion it is your fault. In a disclosure state like Massachusetts you also now have known issues and must disclose them to future potential buyers, so chances are you are reducing price or making the fixes anyhow.
There are so many different places where emotion can be inserted into deals, but the key is to remember that this is business and there is no place for it here. In a highly emotional world, it is pinnacle to your success to keep the emotion out of your deals. If you can simply become a better business professional, you will be far less worried about the ups and downs of this roller coaster ride. Sit back and enjoy the ride and let your emotions out in something constructive like the gym or house cleaning. If you want to learn more about being a real estate professional, make sure to listen to our podcast “Real Facts on Real Estate” and join the Facebook group.