Emotions Never Belong in Negotiations! The Piedmont Perspective, Vol 60, July 30, 2008

What’s New?

Last week, while trying to negotiate a full price offer, I was struggling with a listing agent who kept insisting that my buyers bring back a higher purchase offer before she would be willing to present it.

“We don’t want to offend the seller,” she warned.

Frustrated by this tactic, I calmly explained, “This is a full price offer in a ‘challenging marketplace’ by very qualified and motivated buyers – they are not bidding against themselves. Take the offer to the seller and let them counter if they are so inclined. That’s the appropriate process.”

As professionals, it is not our job to get “offended” by an offer or a counter offer. It is our job to present any and all offers without opinion.

Do we often have insight as to how the seller might respond to an offer? Yes, we do. Are sellers often offended when the purchase offer doesn’t match their expectations? Yes, they are. Are buyers often insulted when their well-intentioned offer is abruptly rejected? Yes, they are. Do real estate transactions often become too emotional? Absolutely. Do personal feelings belong in the negotiation process?

No, they do not.

While emotions can run very high between sellers and buyers, emotions should never overshadow the agent’s negotiation process. To the contrary, our job is to “depersonalize” the sale of a home; to remind the sellers (and the buyers) that any disagreement is merely a disagreement about the value of a property between two competing parties. The seller wants as much money as possible for the home and the buyer wants to pay less. That’s all. No offense or insult is meant.

The good news is that the goal for both parties is identical – to transfer ownership of the property. To the extent that each party can find the middle ground, this mutual goal can often be accomplished.

Objectively defining that middle ground is where good agents often earn their keep. Employing an experienced REALTOR to handle third-party negotiations to separate fact from fiction is a smart decision when the stakes (and the emotions) run as high as they often do in real estate. While it feels VERY personal to you, it shouldn’t feel personal to us. As seasoned professionals, we recognize that it is the rare transaction that takes place without some back and forth and the less emotional we make this process, the better the results.

As empathetic professionals, are we aware that your feelings are important? Yes, we are. Are we often entering into emotionally delicate, highly charged situations? Yes we are. Are we attuned to your hopes, yours needs, your desires and your concerns? Yes, we are. Are we working for the best possible outcome in spite of them and because of them? Absolutely. Should OUR personal feelings come into play?

No, they should not!

That isn’t to say that as people, we don’t understand your frustration from time to time. The seller did counter back my buyers’ full price offer – he asked for $80,000 above asking! (Now maybe that’s just a wee bit offensive . . .)

What’s Coming?

Fifteen homes are currently on the market in Piedmont, ranging from the 2bdrm/1bth homeat 102 Oakmont Avenue for $745,000, to the 6bdrm/6bth grand residence on Sea View Avenue for $6,450,000. The newest home to hit the market is Anian Tunney’s latest listing at 400 Saint James Circle. This 4bdrm/3bth mid-century offers room to spare. Open this Sunday 2-4:30. Price: $1,850,000

Debra Dryden brings to market an extremely handsome new listing at 45 Monticello Avenue. With a private front entry courtyard, designer kitchen, formal dining room, rear garden with partial bay view, bonus rumpus room, convenient location, level street and 4-car garage (unheard of for Piedmont) this wonderful Traditional, featuring 3bdrms/2+bths, should go quickly. Open this Sunday 2-4:30. www.Grubbco.com

What’s Pending?

Sixteen homes in Piedmont have gone pending since the beginning of June and four transactions have already closed. These four homes averaged only eleven days on market (DOM) while the current “pending” sales from June and July averaged only twelve days on market. (Wow!) Well-priced homes continue to quickly find qualified buyers and that is significant news!

Contrast 11 – 12 days to the average days on market (DOM) for ALL “active” Piedmont listings which hovers at approximately 41 days.

Why? Pricing!

Homes that are perceived as a good value are selling immediately while those that are perceived as overpriced, are still struggling to find their buyers.

Which of these outcomes would you prefer?

If your home has been on the market for more than three weeks without an offer, a20price adjustment is in order!

(Remember – “perceived value” and “appraised value” may be two entirely different realities, but it is the “perceived value” that brings buyers to the table!)

What’s Happening?

The contemporary stunner at 9 Requa Place has been reduced and is now offered at $2,750,000 and the mid-century modern at 16 Saint James Drive is now being offered for $1,595,000.

This may be an ideal time to step in with an offer!

What’s Fun!

Call me addicted, but no matter where I am, real estate seems to catch my attention. Walking along the crystal clear Tahoe waterfront while vacationing in Dollar Point last week, I came across a stunning new home that’s currently under construction and drop dead gorgeous offering broad beamed ceilings, inviting front porch and stunning native rock and wood facade. The contractor was out front so I asked him if the house was replacing a previous home.

“Yes,” he said, “My clients elected to start from scratch” (clearly, a common practice as this home wasn’t the only one on the block currently being resurrected).

“How much does a person have to pay for a ‘tear down’ on the lake?” I asked.

“I don’t know,” the contractor replied, “maybe 2 or 3 million dollars?” =C 2

“Six point two million,” came a booming voice from across the street. “They paid six point two million dollars for the house and tore it down the next day!”

Wow, and we thought Piedmont real estate was expensive!

This ‘in-the-know’ Orinda resident has owned his own cabin for more than thirty years and was able to tell me all about the history of Dollar Point which was partially developed by then, Piedmont resident Hal Ellis, in the 70′s. (It’s a small world).

“I’m from Piedmont,” I proudly said, “and I work at The GRUBB Co. I’m renting the Kelly’s wonderful cabin down the street .”

“Yes, there are a lot of Piedmont families that still own here,” he winked, “but we’re trying to weed them out.”

Tahoe is always big time fun - both in winter and in summer – and we took full advantage of our opportunities – from boating, to hiking, to bicycling, to dining (lots of dining) to reading on the beach, to movies under the stars and yes, I even snuck in a little house hunting when my husband wasn’t looking (What can I say? That’s fun to me. A special thank you to Linda Granger and her team at Chase International <
/strong>in Tahoe City for arranging a showing at a moment’s notice). All of it was memorable. I wish I could have stayed another week, or two . . . Thank you Larry and Debbie for your generosity in sharing your own slice of heaven.