Market Insights: Your emotions can thwart a sale
May 20, 2013
The $1,000,000+ sale that terminated over a $5,000 hot tub.
The condo sale that came to a standstill because a stove thermostat that measured 350 when the temperature was measured by the inspector at 330.
The $250,000 vacant lot that did not sell because the seller would not pay a few hundred bucks for a survey.
All are true Summit County stories. None are logical. All decisions were driven by emotion. Want some even more bizarre examples? Read the article titled "Negotiating with Emotion" in the January/February 2013 issue of The Harvard Business Review.
Your emotions are a great thing and something to nurture, unless they get in the way of sound judgment and smite a sale. Last week I talked about how some sellers think buyers will pay a higher price because of the seller's memories. Crazy but true. This week's Market Insight advice is for buyers and sellers: keep your emotions out of your negotiations.
Over and over again over the past decade I have said to clients, "Remember to focus on what you want, not what you are feeling about the other party." In the midst of negotiations the other party can see completely unreasonable. Two years ago I had a seller say to me, "I hate these buyers so much I would rather sell to anyone else at a lower price than have my home occupied by these people." I promise you this is true. I could not make a statement like this up. You don't need the details.
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Beware: emotions cause buyers to pay too much and seller to accept too little.
Crazy but true. And it doesn't have to happen. Here are my three rules that will ensure you stay logical.
1. Focus on the facts. Use the data of comparable that have sold to guide your pricing decisions.
2. Concentrate on your goal. The goal is to make the sale; not to punish someone you have never met.
3. Sleep on it. Rushed decisions are usually bad decisions that can be laden with emotion.
The home in these photos at 24 Lacy Drive in Silverthorne that just came on the market is owned by a seller who is following these rules. The asking price of $599,000 for a three-bedroom home with these views and finishes plus a two-car garage is based on the current market, not the seller's emotions.
See you next week. Love life, Daniel
Reach Daniel Webster Johnson at (970) 393-3300 or him drop him a line at Daniel@YourMountainBroker.com. He is a very active, full-time Realtor in Breckenridge, who has earned the national Quality Service Certified Platinum award, recognition of 100 percent client satisfaction. He is one of the team at Resort Brokers Real Estate located at 100 S Main St, Breckenridge.