Every real estate transaction has two sides: a buyer and a seller.
On both sides of the transaction, interlopers, fear-mongers, lawyers, lenders, home inspectors, and appraisers bombard you with noise.
Then come the uninvited opinions of parents, children, the next-door neighbour, the coworker, the know-it-all at the golf course, and the social club busybody.
When you let outside noise influence your decisions, you risk your wealth. Industry data shows that emotional decision-making and stalled negotiations can cost participants 5-7% of a property's value—either by leaving money on the table or by causing a buyer to miss out and ultimately overpay elsewhere.
To illustrate the stark realities of buying or selling a home, I have prepared two case studies:
Case Study 1: The home seller who prices their home correctly, shows it well, and receives a lowball offer. Focused on preserving their net worth, the seller holds firm on their price and refuses to even counteroffer.
Case Study 2: The home buyer who puts in a low offer on an overpriced home, only to find the seller and their Realtor not being too happy.
After reviewing these breakdowns, you can take sides, agree, disagree, or ignore them completely.
But here is the undeniable truth of every successful transaction: at the end of the day, both the buyer and the seller agree to the transaction; you decide and live with it. There is always a price to pay; pay it now or pay it later.
Happy or sad, remorse or satisfaction, you move on.
Here are the two market breakdowns:
Listed at $850,000, Offered $755,000: And Then the Buyer Walked Away
Listed at $850,000, Offered $755,000: Why Saying Nothing Was the Smartest Move
The Two Sides Of Every Real Estate Coin (Transaction)
