Letting Deals Go

A few weeks ago I mentioned a deal that we didn’t get in on the first time, but that I was convinced would come back to us.  Yesterday the deal came back to us.  I should probably disclose that even though I was right that we would get another shot at it, I was wrong on the reasoning.  Oh well… batting .500 on your predictions isn’t bad right?

Anyway, that deal is now back in our court and we’re probably getting a price reduction from our previous offer.  The seller’s failed escrow has turned out to be expensive for them.  I think that underlines the importance of choosing the right buyer from day one.  It’s not a perfect science, but that doesn’t make it any less important.

I was also thinking the other day that the mere knowledge that deals can come back to you is the difference between real estate pros and amateurs.  My girlfriend watches a lot of house hunting shows and I’m always amazed that the house hunters in the shows end up letting their realtors game them with the claim that the seller is expecting another offer.

No one ever tells these people what a disadvantage they are at if they get in a bidding war, especially if they are emotionally invested in winning.  No one ever tells them to look around until they find a bargain they can’t turn down.  No one ever tells them that they can make an offer well below listing price, see what happens even if it gets rejected, look at some other real estate, check back with the seller to see if their motivation has increased, and THEN do the deal when the seller is begging them to.

We treat housing as an investment, and yet most housing buyers aren’t versed in the most elementary skill needed to do the first thing when they invest, which is to buy it well.

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