Real Estate and Politics - How the Game is Played

Real Estate and Politics - How the Game is Played

Realtors like politicians are faced with limitless possibility. I realize limitless may seem extreme, yet what other career fields can offer a one time soccer mom the ability to grow a multi-million dollar business in a few years time. No disrespect to soccer moms because that is an accomplishment for any individual; educated, experienced, or not.

The fact of the matter is simple; real estate offers competent people the ability to live up to their potential. Now although you may not feel all politicians are competent, politics also offers everyday people the ability to make a difference.

The interesting aspect about both politics and real estate is that there is not one way to the top. Some politicians are corrupt and lie and cheat to get to the top. This is similar to some Realtors who put their own interests above that of the client. Then there are those politicians who remain morally incorruptible and still achieve great things just like there are those Realtors who do what is right for the client first and attain a good reputation. I guess the biggest question then becomes how do you play the game?

Before I continue to delve into my correlation between politics and real estate, I think it is important to understand what triggered this thinking. Last night I watched the Republican National Convention and listened as Vice President hopeful, Sarah Palin, gave her speech. Regardless of political affiliation, I feel certain that anyone watching could agree on the fact that she gave a powerful speech and nailed it. What I found interesting is how she was a self proclaimed "hockey mom" and gracefully rose into a position of power. Now she stands before our country as the next potential Vice President.

To me this is symbolic of our great nation and the opportunity we are given daily. What I also liked about her speech was her ability to "play" the game. Whether right or wrong, politicians are masters at telling people what they want to hear in order to gain support. Now don't get me wrong, I am not suggesting Sarah Palin is just talking without plans to back it up. In fact, I don't want to even express my feelings towards her politics because it is irrelevant to my writing this article. The important part is that I watched a woman who stands for what she feels is right become a force in today's politics.

Now that I have explained the political setting, I need to talk about my real estate mind state. In the past eighteen months, I have lost nine listings due to my price being lower then the sellers wanted to hear. I cannot tell you how frustrating this becomes because in eight of the nine instances the sellers eventually sold lower then the price I gave them after sitting on the market for months and months. The only remaining home, of the nine, was actually a listing I lost last week and will undoubtedly sit due to overpricing.

With all of this being said I have come to the conclusion that I am a good Realtor but a really bad politician. Haha.

I feel as though I am terrible at playing the game because playing the game directly contradicts what I believe to be the right thing to do. What I mean is that I could easily have gone into these nine listings with an inflated number and walked out with a signed listing. Once that listing is signed I could then string my sellers along until they get frustrated and eventually drop the price to the point that the property sells. Then I can walk to the bank and cash my check. Instead I watch other Realtors do exactly that and walk away with a pot of gold. What am I left with then? Simple, I'm left with frustration and aggravation.

The sad part is I know how to price a home to sell. I know how to study a market better then most agents out there. I also have studied my market long enough to know that homes priced slightly under the market will sell quickly and sell higher. Those homes priced high will sit and the sellers not only get frustrated but will inevitably sell for a much lower price. I not only know this, but I can prove it with countless real life examples.

And now for the kicker; not only do I know all this, but I'm honest enough to be real with sellers about price. I risk thousands of dollars every listing presentation I go on because I know that correct pricing is best for the client.

The worst part about all of this is that sellers don't care. Sellers hear what they want to hear and get greedy. Even if it means losing thousands of dollars in the long run they will take that risk and sign with a less competent agent willing to list their home for more.

What's truly scary is that these same principles apply to politics. There are politicians out there that throw around grand ideas without the substance to back them up. Whether democrat or republican there are many people that get caught up in the games these politicians play with words rather then the integrity of the individual or even the plan they hope to act out.

It's crazy but our society has created a system where it pays to tell people what they want to hear rather then what they need to hear. The unfortunate reality is that by setting the standards higher in theory, people will accept it as reality, even without the facts to substantiate the theory.

The problem I have is that I disagree with the game because I care about the clients I serve. I want to give them the benefit of the doubt and ensure that they obtain top dollar for their home. It disappoints me to hear that I was the best candidate for the job, yet was not selected because someone else lied to win.

If nothing else, I think this coming Presidential election and my recent real estate disappointments have taught me a valuable lesson. I always wondered why politicians would say one thing and act out another, yet real estate has taught me that this is a very successful strategy in gaining a vote of approval. This is a very difficult lesson to learn and would probably change the outlook of most individuals. Fortunately, I refuse to allow this world of politics and real estate effect my integrity as a person. If anything this experience has taught me to grow thicker skin and not allow those who choose not to be saved from affecting how I conduct my business. Thankfully, the disappointments in those nine instances have been drowned out by my many positive real estate achievements. It all comes out in the wash and even those people who did not select me know that my advice was accurate to begin with.

I keep in mind that real estate, like politics, is all about public sentiment. If you continue to hurt your clients they will not continue to support you and eventually it will take its toll on your career. The reverse is also true because if you continue to do what is right, people will begin to recognize your expertise and value your input.

So how do you play the game? How do you interpret what you are being told? Do you listen to the facts or is it politics as usual?

Sincerely,

Michael Pennisi

908.656.3858

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