Tuesday, February 21, 2012

I’m Not Gonna Pay A Lot For This Muffler

Remember that 1980’s Meineke Muffler commercial, ‘I’m not gonna pay a lot for this muffler’. That’s how every real estate buyer enters the market. Okay, I get that; we all want the most for the least, me included. So, when I meet with a new Buyer Client prospect and we are discussing a working relationship, one of the first things I want to know is how much do they want to spend? I already know the answer is as little as possible, but please be more specific.

After I know how much my Buyer Client prospect wants to spend, I need to know if they have it to spend. Are they pre-approved? We can’t go shopping if my new Client won’t be able to pay the bill. Once all that is out of the way and we have decided to work together we start the search process. We look at all types of properties that could fit the profile my Client has outlined for me. I never try to ‘Up Sell’, so that is why it is important for my Client to be truthful with me, as well as with themselves. This is really important.

Unilateral full disclosure and transparency is very important and I believe it is an integral part of my fiduciary commitment to my Client, even though there have been times I did not get that disclosure and transparency back in return up front. I do understand why some Buyers remain guarded at the beginning of our relationship. It is not unusual for Buyers to come to me after having a bad experience with another real estate Licensee somewhere along the line. Therefore, they are gun shy and very guarded. I know if given a chance I will quickly earn my Client’s trust. Besides, the more time we waste getting synchronized and the more time it takes for me to really understand what I need to know in order to help my Client, the longer it will take to make that dream home in their mind become a reality.

There is an old real estate expression that sometimes rings true, although I don’t like it: “Buyers are Liars and Sellers are Worse”. I know, now you are thinking not only is he insulting me, he is insulting the seller too. What the heck does this mean? Let me explain. It is a common fact that sometimes Buyers may think they know what they want, but they really don’t know. Believe me, I have seen it many times. As I go through the education and research process with a Client their awareness increases and they start to flesh out what they really want and what it is really worth to them to have it. On the other side, that Meineke guy has been saying he is not going to ‘give away’ this muffler – so to speak. The Seller may already have emphatically insisted to his Seller Agent, ‘I don’t have to sell’. Buying and selling not only requires awareness, it requires a cool head, an open mind, identifying motivations and the willingness to bend. Not everything is as it seems and as I always say, nothing is ever eaten as hot as it is cooked.

So if you’ve made a decision that it is time to go shopping, put on some comfortable shoes, get ready to enjoy the journey -- no matter how long it takes, and lets’ go for a ride. You know what they say about journeys, they begin with the first step.

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