Exercises in real estate futility.
Part 1: the savvy home seller.
One of the fascinating things about selling real estate is that you get an up-close look at people who can shoot themselves in the foot and smile.
Of course, none of my clients do that, but one of the fascinating things about hanging around the office is that I get to hear other agents talk about their clients. Here's an agent, for example, whose seller is firmly convinced that the local real estate community has banded together to keep buyers from buying his house. We've conceived and executed this dastardly scheme to force him to reduce his list price (after much begging, pleading and show-and-tell by his agent) which means, of course, that one of our buyers will get a screamin' deal at his expense.
"I know how you realtors are", Seller tells his agent. And I know that Seller says "realtors", not "Realtors®".
The beauty of this theory, as with all conspiracy theory, is that there's no solid proof that the local real estate community isn't keeping its buyers away from Seller's house. No one, except perhaps the feds on one of their periodic snipe hunts, has the will or horsepower to depose five hundred agents over a question as improbable as this. On the other hand, there's no proof that the local real estate community is acting to Seller's detriment in a concerted manner, except perhaps that his house hasn't sold, and that might be because buyers are unanimous in believing it's over-priced. But, no, Seller knows his house is worth what he's asking, and the fact that no buyer has made an offer is due either to the conspiracy and coercion that realtors are fabled for, or to his own agent's incompetence, or both. In either case, the fault isn't with Seller, for failing to adapt to the marketplace, or with that highly personal extension of Seller, his house.
Beauty. Once more conspiracy theory makes a complicated, challenging and puzzling world as simple as a Dick and Jane Reader. Just ask any Stone Age man why lightening strikes or why the sun goes bye-bye, and his response will be remarkably similar: evil forces. Which is just another way of saying, "What? Do I look like I know?"
And it doesn't matter one whit that Seller's theory falls apart logically at each step. Because for the local agent community's nefarious plan to succeed:
You also have to wonder why any agent, especially these days, would keep any buyer from looking at, falling in love with, and making an offer on, a house. I guess we're coasting on all that money we made during the boom by persuading buyers to pay too much. But wait, aren't we boycotting Seller's house so that one of our buyers—to be selected by satanic ritual in the back room of the local Board of Realtors—can pay too little?
I guess consistency isn't the hallmark of reality-denying thinking.
So is Seller engaging in self-defeating behavior, or simply seeing through the machinations of his agent? Let's put Seller in a few situations and see how well conspiracy theory works for him.
His doctor: "The meds I'm giving you aren't working. I think you should consider surgery." Seller: "I know how you doctors are."
His stockbroker: "I think you should sell. I know this stock has been in the family since your great great grandfather was bilking Indians out of their beaver pelts, but it's down to a buck a share, and pretty soon it'll be worthless." Seller: "I know how you stockbrokers are."
His agent: "You're home hasn't sold, even with a $100k price reduction. And while you're still getting good traffic through the open houses, you're not getting showings during the week when the serious buyers look. I know this offer isn't what you'd hoped for, but it's the only offer you've gotten, and I think it's worth considering."
But by now you know Seller's response: "I'm in over my head, and I'll hold onto 'they're all crooks' like a drowning man to a stick."
In two weeks, part 2: notable trends in "realtor" and home buyer futility.