Anyone living in the United States has probably heard of this buzz phrase a thousand times when considering the purchase of Real Estate – “Location, Location, Location”.
Right?
Consider this! Have you ever listened to a speech or lecture and hear someone use the same word repeatedly? After hearing a word for so many times, it seems as though the brain begins to block all other thoughts from our attention, and focuses only on that one word. It doesn’t take very much time until you find yourself repeating the word by its syllables, or trying to say it backwards, or you begin singing it silently to yourself until you start to tell yourself to shut-up, shut-up, shut-up. Then you begin to play games like, I bet you can’t go 10 seconds without thinking of that word. C’mon admit it – you’ve done it.
Well, every week on Wednesdays, I attend a morning meeting of local Real Estate agents and brokers. The purpose is to listen to the pitches by other agents and brokers for all new properties being listed on the market. And … in many cases, especially in this whacky market, agents boldly and proudly announce that they have finally beat down their sellers, to obtain concessions on price reductions. Yeah, well that’s great, however, it usually means that the agent took an over-priced listing to begin with – meaning they did not do a good job to fully convey the market conditions to their client, and to get an agreement on a listing price that would cause the home to sell. So anyhow, what I hear week … after week … after week, is that sellers are motivated to sell. Motivation is the repeat word here.
The reasons are cautiously humorous, ranging from “the seller is motivated to sell in order to avoid foreclosure”, - well, yeah that would probably motivate most of us. Or “the seller has just purchased a new home for $11,000,000 and is now motivated to sell”, - like we should all have such troubles in our lives. Or “my client is 93 years old and is motivated to sell before they die”, - well … ok, but sounds like poor planning to me. Or “my client finally realized that the market value declined by 30% from 5 years ago and is now motivated to lower the price to sell”, - they could not possibly have been in denial could they. Or “my client just bought a new house and now realizes they have 2 mortgage payments to make” – now there is a financial genius.
So … I began to focus in on this word “motivation”. What does it really mean to be motivated. A classic definition is “the driving force which causes us to achieve our goals”. Well … ok, in this whacky and crazy market, I can understand some of the motivating or driving forces that inspire sellers … but what about buyers?
My business partner, Natasha, and I, have hosted oodles and doodles of open houses for other listing agents. And in the process, we have spoken to literally thousands of people who have visited our open houses. Now, there-in-lies another comedy routine that I wish I could write books about. There is no more rewarding feeling in the world next to schlepping these damned open house signs around in the car, posting them on sidewalks to direct traffic to the open house, staging the house like turning on lights, opening windows, placing odor eaters, cleaning and flushing remnants in the toilet, etc., setting up all the junk which includes tables, flyers, maps, etc., putting on a suit and tie, running to the front door with a smile on your face and a firm handshake to greet people, only for them to say … “oh no, thanks, I am just looking”, or “I had nothing else to do today so I brought my dog and 12 kids to run around in your open house”, or “gosh my 118 year old mother is in the car with my newborn, and I just wanted to peek”, or “ I hated the people who lived here and I just wanted to see what kind of trash they had for decorating taste”. Ok! Some points are slightly exaggerated, but more interesting is when we ask people questions. We, as Americans have what is referred as, the “reflex no”. Some researchers claim that beginning from the time we are born, we are told “no”, by parents, teachers and the like, up to 147,000 times, or on average, once for every single hour of our lives, until we reach 21years of age. So… the question of … can we explain the features of this house to you – answer – “no” … so, can we give you a flyer – answer – “no” … so, what are you looking for – answer – “I don’t know, but I will know it when I see it” … so, do you know how much house you can afford – answer – “no” … so, my name is Charles, what is yours – answer – “no”… so, are you looking for a house in this neighborhood – answer – “I don’t know … so, are you looking for a house in this area – answer – “I don’t know” … so, are you looking for a house in this county – answer – “I don’t know” … so, are you looking for a house in this State – answer – “I don’t know”. Real Estate life is rather glamorous, isn’t it!
So … I could draw the conclusion that buyers are not motivated. Rather I am convinced that there is a hidden motivation, however, they are unwilling to reveal. Why? Answer - “I don’t know”. I suspect it is because we as Americans are taught that the better negotiating tactic … is silence. In many other countries throughout the world, bargaining and bartering is a way of commerce. Yet, another possible explanation is that, we are so vigilant to prevent identity theft and spamming that we choose as a defense, to keep all of our thoughts from strangers. While somewhat admirable, the social detachment caused by our modern day technology like Internet, iPod, iPad, iPhone, iThis, iThat – see the pattern … it is becoming an iWorld, as in me, me, me, and further, along with this behavior of conversational alienation, the gap only widens in our society and the ways in which we choose to deal with one another. As it is, it is very difficult to negotiate deals when a broker is involved – I can’t imagine why anyone would want to sell a house as a For Sale By Owner. Just shoot yourself now.
Another interesting factoid in Real Estate life is that, less than 2% of all open house visitors actually buy the open house. So … as an alternative purpose, besides wasting the Real Estate agents’ time, why do we visit open houses? Answer - curiosity! Americans are also gossipers, window shoppers, and now we are in love with reality this, and reality that. But sometimes we shield our real intentions, because hidden behind all of those “nos” and “I don’t nos” , buyers do have motivation. What buyers are not telling us, although obvious, is that their motivation is price. Low interest rates are nice, but they are not causing buyers to herd off to the market.
The wants of the seller and buyer are the same, meaning they both want to trade on the same item … however, motivation, that driving force I previously mentioned, will likely always be at odds. Real Estate agents are not typically qualified as Psychologists. We do not have the time to patiently unravel the mysteries of childhood dysfunctions, nor do we know the right questions to ask from that field, nor do we get paid $250 an hour to listen. We are motivated to assist people to achieve their goals – and yes, our driving force is the expectation to get paid at the completion of our work. However, none of this can happen, if sellers and buyers refuse to reveal their true and honest intentions, and then allow us to be an integral part of finding a solution … a better solution … a comfortable solution.
Our goal is to help and guide people to buy and sell San Diego Homes: Contact us soon - and let us apply for the job of being your Real Estate agent.
Charles M. Schevker (CPA)
DRE # 01875556
Broker Associate
Prudential California Realty
1299 Prospect St.
La Jolla, CA. 92037
Google Keyword = Homes in La Jolla CA
Charles M. Schevker (CPA)
DRE # 01875556
Broker Associate
Prudential California Realty
1299 Prospect St.
La Jolla, CA. 92037
Google Keyword = Homes in La Jolla CA
Main Office: (858) 357-9814
Satellite Office: (858) 459-0501 ext. 319
Home Office # 1: (858) 750-2578
Home Office # 1: (858) 750-2578
Home Office # 2: (858) 412-6082
Mobile: (858) 449-8250
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