Seth Godin leads a recent blog post with:
“Sometimes, we’re so eager to have an opinion that we skip the step of working to understand.“
The title of the post?
He does a good job of ‘splainin’ just how bad some of us are at effectively communicating.
20 years ago, I saw Stephen Covey speak in a fairly small crowd . . . I walked out of that room with 4 words top of mind:
Seek FIRST to Understand!
then to be understood!
- Supply and demand fluctuations – As supply decreases, demand increases and prices trend UP
- Community factors – Growth and development (or lack thereof) can significantly affect house values positively or negatively – Even news of future growth and development can influence Home Buyer and Seller behavior
- Distressed sales or Investor Package Deals – can squirrel even the most meticulous market analysis
- Personal wants and needs of the Buyers and Sellers. The REAL “Value” of ANY house is the price that any Buyer is willing to pay AND the seller is willing to accept – NOW! (Some folks will argue with me on this one because of the probable appraisal requirement, and I will answer that Appraisers don’t establish value . . . they give opinions of value – Buyers and Sellers establish value by consummating deals)
- Economic factors – Local, State, regional, and National
- Public policy – Community, City, County, State, National laws
- Mortgage Lending trends and regulation – rates and lending guidelines
ALL of these (and probably more) are “contributing factors” in EVERY real estate negotiation, and it is up the REALTORS to successfully navigate this “Tween space” without anyone getting hurt so as to determine whether the Buyer is willing to pay a price (any price) with terms acceptable to Seller.
- Consider the listing History of the house and build a story
- Dig into whatever Historical data is available (MLS and Tax records) and determine a “BallPark” Price Range within which the client (Buyer or Seller) will actually perform
- Revisit the client’s VISION
- For Buyers: Does the house meet your needs? Is the location right? Can you see yourself living here? Does this fit your vision for the next few (or several) years?
- For Sellers: Where are you going when this house sells? Are you excited about this move? What are your GOALS? What are you willing to do to prepare your house for the market to improve your odds of getting “there”?