Ocean Breezes Blog

Something got me thinking the other day about the difference between "price" and "value" and my mind has been nibbling around it since ... It's so easy to end up talking about "price" in real estate as if it were the only important element in a transaction. Even looking through my own web site I notice it's far and away the leading topic in terms of space ... but ... "Price" or the "contract price" is really just a number ... it's not why the property is for sale nor why somebody wants to buy it.

It's the dreams for a changed future for two very unique people or families that is WHY this property will change owners and it's the ability of a specific contract to help both of them realize those dreams that will cause the sign out front to change to SOLD... or stay FOR SALE. And it's the "value" of the offer, not it's "price", that determines which happens. "SOLD" is what happens when the "value" exceeds the "price" in both sets of eyes. Still "FOR SALE" is what happens when somebody (usually one or the other of the agents) was only looking at the price and not the people ... they simply didn't see the relative values correctly and have achieved nothing more than a monumental waste of everyone's time.

Let's look at it from the seller's point of view first. Assume we've done all that research stuff and it came out "a good price" is around $350,000. That's the easy part. If, as your Agent, I were to stop there I have no idea how to help you evaluate an offer for your home. What do you want to do with that $350,000? Buy another home? One you have already found and can't move into until after this one is sold and the baby is due in September? One you're going to start looking for after the money's in the bank? Finance a life saving operation for a loved one if they live long enough for you to get it sold? Put it in the bank to leave for the kids after you move in with them? Avoid a foreclosure? The point is when it comes time to look at an offer the "value" to you is can you accomplish with the proceeds what you are dreaming of doing in the first place. Let's face it, sometimes "$330,000 and we can close next Thursday" can have a lot higher value than $380,000 six months from now and sometimes those relative values are the reverse. So, if I haven't dug deep enough to find out which is the case in your life - FIRE ME - I'm not doing my job.

How can I establish value in the prospective buyer's view? I know what won't work... traipsing bus loads of "just shoppers" (most likely actually browsing for new decorating ideas) through a dozen homes every weekend on the odd chance one of them might happen to get serious for some mysterious reason ... and ... I know what will work ... Caring about prospective buyers enough as people. Getting to know them well enough to understand what they dream about, how much they can safely afford to invest right now in those dreams, and already having seen the places for myself that I want to take them - because their dream is hiding there and they can afford it. Look, when a good Agent brings someone to walk a property, and they've done their homework, it's more like escorting them on a blind date ... It's a lot of fun ... anticipating how glazed the eyes are going to get when they see that (room/view/whatever) or smell that salt air from the porch ... and, of course, trying to save the best part for last ... oh that's so neat. And when I've done enough my homework before we got there and show them they can afford to make an offer the seller needs to make their dream to come true ... "Oh, My. - Now, where did I put that SOLD sign ..."

Call me. Let's talk. Let's really get to know each other - Because you don't need a Dream Maker - you need a Dream Realizer ... and helping people achieve a dream ... Well, that's what I dream about ... and it's why I'm in this business.