Selling Can Be Emotional

This week, I came across a deal that opened my eyes even further into the psyche of a seller potentially losing their home.

In this case I represented a cash buyer. We found a home with a beautiful view of the golf course at Hamilton Mill. The home was a and was about to be listed at $350,000. My buyers loved so much about the house and we decided to make an offer. The home needed some work, so we got quotes mainly for paint and flooring (carpet and hardwoods). Next I did an analysis of homes in this particular section of Hamilton Mill. Considering the lot and view, the price of homes in the area, and the work needing to be done, coming up with a price was a tough proposition.  The real question boiled down to this: How much was the house worth if it wasn’t on that beautiful lot? How much did this lot actually add in value considering supply and demand? This market analysis was one of my more challenging yet.

In the end, we offered $300,000, knowing that we had $25,000 in quotes for repairs.  My fear was that the seller would be insulted at this offer. In the boom of the market, the house was probably worth $500,000. Our goal was not to make a  low-ball an offer, but to present an offer that was based on market value. My buyers are not emotionally attached to the home and they were concerned about over paying in today’s market. My fears were confirmed as the seller didn’t accept our offer and didn’t feel it was even worth a counteroffer.

This experience made me realize that even when facing a short sale, some sellers still take pride in the home they are about to lose.  The seller’s  home has far more value in memories and dreams than the market can bear in some cases. If you are seller considering a short sale, the passion and pride has got to be removed and the sale has to be looked at like a business transaction. I see it every day with my sellers as well. Every seller has heard how bad the market is, but they think their house is different -- that their house is special. The truth is, they were all special to the person living in them. That didn’t stop that special home from being a short sale. That didn’t stop that special home from foreclosing.

This week made me realize that while each transaction is a business deal, for many, the product and the selling of that product is very emotional event. A good solid market analysis is a must and an independent appraisal may be a good idea as well.