Let me tell you something about Real Estate …
According to most owners, the real estate agent is good when he evaluates his property “the right way”, while it is bad if he has made a rating too low or, according to him did not appreciate the positive features, but rather has seen and evaluated only the negative aspects of the property.
The phrases that we hear every day, good or bad, are the following: “At this figure I could sell it myself. I do not need a Realtor “,” But my neighbor has sold to a higher figure. If my neighbor has sold to this figure, for my I can achieve more “,” I do not want to sell off my property “or” If this is the number, I do not sell it. I rather hold it “.
If you read one of these phrases to a Realtor, you will probably laugh.
Every day the Realtor must fight a battle with an owner because the latter is convinced that his property is worth more than what has been assessed.
Years ago I had a statistic and the data emerged was that my assessment was always 10-20% lower than the owner’s expectations.
WHAT DOES AN OWNER PAY A HIGHEST VALUE FOR YOUR PROPERTY?
I have an answer and it’s called AFFECT.
Affection is a feeling that binds a person to someone or something.
The property is an economic good, where good means an object (available in limited quantities, available and useful) suitable to satisfy a need and economic instead, which is related to the economy and therefore to its laws or demand, offer and the market.
The question that arises spontaneously is: “Can you really get to feel such a strong emotion as affection for a set of prefabricated blocks that also have asbestos roof cover and therefore potentially carcinogenic?” 😃
A feeling like affection can be granted to a person, to his pet, but maybe even to that building if for you it represents the effort of a life spent working in it by paying the installments so that it becomes your real estate.
But let it be clear: the effort is yours and not of others; you can find people who understand your sacrifice because maybe they are also in your same situation, but you will not find anyone who can understand you to the bottom about your property because for them it is simply a set of prefabricated blocks as they were the other warehouses viewed .
That’s why seller and buyer have different ideas about the value of the property and why it is important and useful the Profession of Real Estate Agent: the latter tries to give an objective assessment of the economic good and not the affective good.
SMALL PERSONAL ANALYTICS.
As a testimony to how much the emotional bond influences the decisions in real estate, I tell a little anecdote happened just a few days ago.
I was in the office with an owner to whom I had just accepted the purchase proposal for the sale of his shed in the Miami.
He reluctantly told me that the accepted sales price was not what he obviously wanted, but that he was well aware that the terms, in this period of the market, were those obtained.
With the sale of the shed, the company will also close, given that the over-10-year-old business had already been closed by the end of 2017 and that the owner is of retirement age.
This owner (one like many …) has made a big mistake of entrepreneurial evaluation in the face of an emotional bond.
Knowing not to have a generational change and therefore a continuation of the activity, he preferred to close the business and sell the “today” shed instead of making the choice to sell the business and the “yesterday” shed to a competitor who probably, given the experience in the field, he would also have offered him a job until he reached retirement age.
This choice, if made even just 5 years ago, would have allowed him to retire with at least twice the money compared to that obtained today.
You can make many of these examples and maybe you yourself are just reflecting on some misjudgment that you have made by listening to the heart instead of the brain.