Honolulu’s Twin Brothers of Different Mothers!
June 4th, 2008 categories: For Buyers, For Sellers, Negotiating Contracts
To be politically correct, I need to say “Twin Sisters of Different Fathers.” I know what you’re thinking, where is Keahi going today. During yesterday’s workout, I began pondering the differences between buyers and sellers of real estate and I came to the conclusion that, though they are on opposite sides of the negotiating table, in many ways they are the same. The more I thought, the more I understood that sellers who price their homes to high are like buyers who make “low ball” offers.
Both of them have the following characteristics.
1. They ignore the facts. In most cases, recent comparable sales will set the value of a property within a certain range of value, yet they try to get a price well above or below this range. If gold is generally priced at $800 an ounce, what makes a buyer think they can buy it for $700 an ounce, a seller think that they can sell at $900 an ounce.
2. They ignore professional advice. If a client works with an experienced real estate agent or broker, that professional most likely has many years of experience and has sold hundreds of homes. Yet when a price is suggested, the client ignores that experience and wants to come in with an offer outside the current market. Attorneys have a saying, and I paraphrase, “An attorney that represents themselves has a client for a fool.”
3. They don’t trust their agent. I have seen situations where the agent/client agent client relationship is very adversarial. Both parties seem literally at one another’s throat. I don’t work in abusive relationships, so I haven’t experienced this bizarre happening, but why would the agent and/or client put themselves in that position. A word of advice for both of you, there are too many fish in the ocean to work with someone you don’t trust.
4. They are unrealistic. In any Honolulu real estate market, there is a price range for every property that will be widely supported by the majority of the buying community. If a seller is too far above that price they won’t sell, if a buyer tries to buy too far below that price, they won’t be able to buy. Go back to my previous post on offering prices (both buyers and sellers) and you will have a clear road map to arriving at a fair offering price.
In summary, the market is the market. If you are a buyer and prices are above your budget, than you are not a buyer in that market. If you are a seller and prices are too far below your expect price, than wait and on the next up cycle you might get there. The one difference between these two parties is that the seller can wait, because over time the market most likely will catch up to the desired price. However, by waiting, the buyer will become that much further priced out of the market. As my father says, “Choose wisely!”
Today’s picture is of great vintage home that can be found on Sierra Drive.
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