Perspective is HUGE!

Sometimes we don’t see the whole picture. Case in point: I was having lunch with a lender the other day, and he told me about a client that had recently decided that he wasn’t going to use a Buyer’s Agent when dealing with a developer, so he could negotiate a lower sales price since the developer wouldn’t have to pay the agent a commission. That sounds logical. However, he became very frustrated when the developer refused to budge on the price. If the developer was saving the commission, why was he unwilling to share that savings with the buyer?

In most cases, developers are attempting to sell multiple properties. Had he discounted the property even just 2%, he likely would have made as much or even more on that single deal, than had a buyer’s agent been involved. However, that lower sales price would then be used in comparable sales information for appraisers, and it would have potentially caused him to have to sell his remaining properties at a discounted price. Appraisers use sales price, not net proceeds, when determining property values.

The buyer was looking at the transaction in a vacuum. His deal only. The developer was looking at the situation holistically…this deal and how it was going to affect his other 10 deals. The difference in perspective was everything.

When you are looking to buy or sell real estate, hire a professional to represent you. He/she will be more objective than you, and they will help you make the wisest decisions and obtain the best total value. Having a professional on your side, even when hiring a builder to build a new home, will help navigate the numerous negotiating spots throughout the transaction. Real estate is our business. Let us help you.