JoAnna and Gail's Real Estate Thoughts

Who is Bob and why should you care what he thinks?  I'll tell ya!

Buyer Bob is a client, customer, prospect or depending on how you look at it, nemesis, of one of my colleagues.

Realtor Ron met Bob 3 years, and a completely different real estate market, ago!

As you would expect, Realtor Ron let Bob know what a great time it was to be a first time homebuyer!  He showed him prices were down substantially from their highs of 2005.  Interest rates were at 15 year lows!

Buyer Bob told Realtor Ron that this was a huge investment and he wouldn't take it lightly.  Bob felt prices still had room to come down and he didn't feel there was a great risk of rates rising any time soon.

And so began a tumultuous relationship that would span years and spur many, many, many debates and exchanges of charts, graphs and sordid emails that would make Tiger Woods blush! 

Through those years, the economy continued its recession-bound descent, home prices continued to drop and the words "interest rates at historic lows" became a favorite phrase of the media.

Realtor Ron hoped the first, first-time homebuyer tax credit (loan) of $4,500 would motivate Bob.  Nope, Bob felt/knew the government would have an even better incentive waiting in the wings!  That Bob is one shrewd cookie!

Realtor Ron thought the $8,000 gift from Uncle Sam would move Bob.  Nope, Bob felt interest rates would continue to drop AND any homes that didn't sell in time for the tax credit would be discounted to far surpass the $8,000!  Such confidence! 

Realtor Ron thought for sure Bob would be ready when in the late summer, Case-Shiller released data that demonstrated the market was probably at, or near, the bottom.  Bob remained steadfast that there was still room for prices to drop further as the holidays loomed.

Then it happened, out of the blue.  Buyer Bob sent Realtor Ron an email that simply said...

Don't get me wrong, I'm thrilled for my friend Ron who just might finally get paid, but the takeaway from this tale is....

If it is a GREAT time for Bob, then it really must be a GREAT time to buy a home!  Now if only the media would catch up!!

I saw a cute video the other day.

Cartoon realtor is talking to cartoon seller.  It was hysterical!!

Seller explains he wants to list his home and lets realtor know that his home is "the best house on the planet."

Realtor explains that seller bought at the height of the market and owes the bank $100,000 more than the home could sell for and that perhaps now is not the time to sell.

Seller reminds realtor that it IS the nicest home on the planet and proceeds to ask realtor to work for a reduced commission.

You get the idea!  Keeps going on and on with realtor making  relevant points and seller ignoring him completely and consuming the conversation with his needs and wants. 

Won't post the video or link here because, as you would imagine, the realtor gets extremely frustrated and eventually tells the seller exactly where he should stick his listing!  Send me an email and I will send you the link.

I couldn't help but think of this video when I received a call from a potential seller.

He wasn't willing to meet me in person.

He wasn't interested in learning about what I do or how I do it.

He didn't want to know my thoughts on pricing or the local real estate market.

He said, and I quote, "I know it all already."  LOL!  He really said that, you can't make this crap up! A real "know it all."

He said he was looking to hire a realtor who would work under the following conditions:

1) The seller would retain the right to sell the home himself at any point and will pay the realtor nothing if he finds his own buyer.

2) The seller will not pay 5% commission. 

Hmmmmmmmmmmmm... Is that all???

I thought about just saying no, hanging up and getting back to dinner with my family.  In hindsight, perhaps I should have!

Instead I replied with very serious, well thought out, intuitive responses.

I explained that a realtor who would agree to allow a seller to sell on his own wouldn't invest enough marketing dollars at the risk of the transaction resulting in a loss due to circumstances out of his control.

I explained what the going rate for commission in that neighborhood.  I explained that for a home with a potential value of $95,000 the difference between competitively commissioning and under-commissioning his listing would be approximately $475!  I represented that under-commissioning his home would almost certainly have a negative impact on the sale price of his home of much more than $475.  I further explained that with approximately 45 competing units for sale, he was being penny foolish to try to save $475.  Of course I also suggested hiring the "right" realtor would more than likely net him more $$ in his pocket as well.

Each time I made a point he said he understood.  He said "that makes sense."

Finally, I asked him if he would reconsider his position on the two conditions and he replied...

"I have the nicest home on the planet,"  or essentially the same thing!

I told the story the next day to my manager.  I told her I didn't know why I even bothered wasting my time and real estate knowledge on this guy.  She asked if I've ever changed someone's mind. 

I have.  Many times and I know that I will again.  Even if they do have the nicest home on the planet!