Real Estate: The Emotional Side of the Deal
January 28, 2016 | Richard Sites
You often hear the phrase that buying a home that it will be “the biggest investment you will ever make”. Maybe.
I run into folks all the time who have bought and sold homes many times. Right now, I have a client who has owned 11 homes and I just listed a home over the weekend where the seller has owned 10.
But this phrase is referring to the monetary cost alone, not the emotional side of the transaction. I would suggest that the emotional investment is at least as big as the monetary one. Why?
Because you are dealing with possibly “the biggest investment you will ever make”.
Emotions can get strained between buyer or seller and within parties on the same side of the transaction during the contract period. After a home goes under contract, buyers always think they paid too much and sellers think they should have gotten more. So to make up for the perceived difference, the parties will often bicker over the little things.
This is one reason when making an offer on a home it is important to make sure all the personal items you want, that is items which are not attached to the walls, are included in the offer. One way to make sure this happens is to take pictures, lots of them, when you are considering any home. With today’s digital technology there is no reason not to have a picture of every room in every house you are considering buying. This way you can remember any personal items you wish to ask for when writing up your offer.
Are you working with an agent who is taking pictures? No? Maybe you should be.
One particular item that can cause trouble is the mounting bracket for flat screen TVs. Technically, they are screwed into the wall and should remain with the house. But the argument could also be made that it belongs to the TV and should go with the TV if the seller is taking it. Which is the right way?
Simple. If your agent took pictures of every room in every house, you just ask for the TV and mounting bracket or just the bracket.
Even in multi-million dollar transactions both buyer and seller will want just a little more out of the deal. So, to avoid trouble during the negotiations, just make things really clear in your offer. Don’t include the phrase “Per MLS”, but be specific.
Another big issue that can cause emotions to run high is getting financing. First, most agents do not require buyers to get a bonafide commitment in place before looking at houses and therefore do not allow adequate time to close. With the new CFPB rules sufficient time is even more critical. So, there can be a panic to get the financing in place by the date of commitment or closing. I once had buyers get furious at me once because the lender (their choice) was making things very difficult. And they compounded the situation by moving money around without informing the lender first which then required a written explanation.
I had nothing to do with the situation but when emotions run high it is easy to transfer them onto another party who is really not involved. End of the story? I got them into their new home in 30 days which was what they asked for when they started looking. If you want a free copy of my 10 Commandments of Lending, send me an email using the form below.
Appraisals can also be a big, really big headache. Why? Because the seller “knows” what the house is worth regardless of what the appraiser says. Really? I have new for you Mr. & Mrs. Seller the lender does not care what you think the house is worth only what the certified appraiser says it is worth. Period.
I once had a seller on the other side of the deal call and tell me it would be a cold day in hell before she sold her house at the appraised value. After she cooled off, and my buyers offered to pay more than the appraised value, we moved forward with the deal. Turning a cold shoulder to the appraisal will not make your house worth anymore, it just means you lose your buyer and have to start the selling process all over again.
So what does this mean? When buying or selling, try to use a real estate professional who demonstrates a calm manner, who communicates easily and frequently and who manages your expectations.
If you think it makes sense to have a no hassle conversation about your real estate needs, please contact me at 561-762-4073.