Several times a day, my phone rings and the caller on the other end is a seller with their home currently on the market. Why do these people choose to call me? Well, I have a unique view on the real estate market. You see, my primary occupation is residential real estate management, but I still practice listings and sales. I have a sister company that strictly practices residential listings and sales.
My primary occupation as a real estate manager is what provides me with a unique view. Yes, many real estate agents talk about renting a home versus selling it, but many of them also find themselves in a quandary. "Do I sabotage my listing and encourage my seller to rent? Do I try to manage it for them so I can get the listing down the road? Do I simply push for another price reduction?" Do you see how this can cause a conflict of interests? There is no ill will, just a limited understanding of the options.
When I get the chance to talk to sellers who have found themselves "stuck" in this market, what we do is discuss all of the options that I am familiar with. If there is an option that I am not familiar with, I will recommend bringing in another professional who is familiar, e.g. tax attorney or certified financial planner. Here are the options that we normally discuss:
Now, what we are trying to accomplish in our discussion is "what is the best decision for the client?". You see, when you find yourself "stuck" in a situation, sometimes the best thing you can do is get some fresh advice from someone who is not intimately involved. Have you ever found yourself in a disagreement with someone close to you, and you went outside the normal circle for advice? Sometimes, it just makes sense. Here are the steps I typically use to help someone decide the right solution:
Usually, by the time we have answered the above questions, we can start narrowing down the list of possible solutions and the discussion is progressing nicely. We keep the dialogue open and continue. Sometimes, time off from the discussion is required in order to "mull it over", or inform a spouse, or bring in another professional. However, the wheels are turning and a solution is much closer to being discovered.
Remember, the market is fluid, changing, dropping, and rising. In order to succeed in the market, you have to be willing to be flexible. Think outside the box. Get a fresh perspective. Bring in the appropriate professionals. List all the possible options, and then systematically eliminate the options until you are left the best options. Then, aggressively pursue them.
(photo of phones courtesy of typester at flickr and photo of jeep courtesy of tooms at flickr)
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Thanks for the info. It is nice to read a blog that is informative and adds value to the community.
Grant, thanks for stopping by! I appreciate the feedback.
very good John. It is very important that we keep our customer/client needs first. I don't od property management anymore but always make sure my sellers are aware of that option. Especially if they have vacant property. They either need to reduce it to sell it or rent it. Keeping it empty and making a mortgage payment is never the right option in my opinion.
Bryant, thanks for reading my post. Always an honor. Even more of an honor to get your positive feedback.
John, congrats on being '1st' in....
Thanks Rich. Don't know if its good or bad. But I already had that blog in my head.
John, believe me, it's good! This is a really informative post - thanks for sharing!
Awesome post John. As always you are a fountain of knowledge and wisdom. Fortunately, your perspective is still "fresh" enough for me.
John great post - I do have one question - please tell me you do not know the person that burried that jeep - that just makes my heart stop.... lol - I am a jeep gal
Great information. All agents should have sometime of questoinnaire to determine how best to help their clients.
Peggy, thaks for the encouraging words.
Jon, you're makin' me blush.
Thesa, there is another pic on flickr of the jeep after its been freed!
Steven, a questionnaire is definitely a plus. The question is, are the right questions on the questionnaire?
John, yes options are always available and should be thoroughly discussed so that the right solution can come to the surface. Very nicely done.
Gena, thanks for stopping by and thank you for the nice comment. Sadly, many people don't give their clients all the options, just the options that make them a commission!
John, it would be nice if those individuals found another line of work.
Gena, true. Eventually, they will. Probably car sales.
Excellent advice John! I like your idea of bringing in a tax attorney or financial planner. The better informed the seller is, teh smarter decision they can make for themselves. Good Luck in the contest!
Paula, thanks for the feedback! I do everything short of demanding that my clients meet with a financial planner prior to making any decisions. I mean, they meet with a financial planner to decide where to put a couple thousand a year for retirement, but not to decide on a several hundred thousand dollar loan?
I truly believe I always need a second opinion. And....you do it right...have to think in the best interests of our client...not our pocket...first.
Sally, I like your style. (BTW great post for the carnival!). Thanks for stopping by.
John, I like your advice. It's not the same old stuff. I like your approach to solving a problem. Very good post.
Excellent post! Being flexible in this market is so important.
TIm, thanks for the compliment. I think there are new rules for practicing real estate, and this is a part of it.
Monika, I couldn't agree more. Doing the same thing and hoping for different results, we know what that is.
John- Bless you .. I ran a property management dept for awhile and it's a tough job.. I think much depends on the market whether renting is a good solution or one that doesn't quit work.. if you must move.. but can take a little money out and rent the property with a small negative or .. with luck.. a positive then that may be a great option.. However in many markets renting will still leave you with a large negative so it may not be the best solution.. as with all things in real estate... what's happening in your local market is the key..
Very informative, very good, worthy of a star and to be featured in Propety Management!