Blog Stories Gaining Perspective

Gaining Perspective

By Shannon Baird, August 31, 2018

It is not often that I find an article that compels me to to share but this one from Forbes stood out – it felt like they had pulled the advice directly from my own mind. These key points about buying and selling a home are crucial in a successful transaction. SELLERS- read this article and listen to the advice your agent gives you. I hear myself repeating these 5 topics constantly.

A Home Seller’s Perception Vs. The Homebuyer’s Reality

POST WRITTEN BY

Aaron Kirman

President of the International Estates Division at Pacific Union International. Founding Partner of Aaron Kirman Partners.

Shutterstock

Buying or selling a home is one of the most important transactions in a person’s life. And at times it is also the most stressful, particularly because the seller’s perceptions often differ greatly from those of the buyer. It is important for each party to try to see both sides of the coin, so that all of the parties are realistic on their path to successful negotiations and, ultimately, a deal.

After representing clients for more than 15 years, I have observed some industry truths that will help us better understand the process of selling a home, whether it’s a multimillion-dollar mansion or a modest family home for a first-time buyer. Over the years I’ve made a few observations of both buyers and sellers and their vast differences in perspectives as we work toward finalizing a sale. Whichever side of the transaction you’re on, it helps to have a full understanding of the big picture.

1. Sellers always think that they can get the highest offer for a home, while buyers always believe that they can pay the lowest price. With this in mind, it is critical for sellers to price their home correctly from the first day, do their due diligence and not overvalue their home. In fact, I often recommend to underprice the property, as this is sure to adjust during the selling process, and more often than not, the seller will obtain multiple offers and ultimately receive above their asking price.

2. Buyers tend to take a more critical approach to buying a home, while sellers will always take a more optimistic approach. A buyer will look very critically at the property before making their offer, requesting concessions for even minor issues. A seller does not always want to see the potential problems with his/her home that could call for a request for a price reduction.

3. Try to look at the selling and buying process objectively. The second you decide on the home for you or make the decision to sell, it is imperative that you remove yourself from the situation and allow your real estate professional to take the reins. This process is consistently difficult, and the more involved you become, the more it can affect your life negatively. This is why it is so important to choose your real estate agent so carefully. This individual is responsible for keeping your best interests in mind during a transaction.

4. When you are looking at sales comparables, costs can go either way. Markets tend to change quickly, especially in a luxury market like Los Angeles. in which pricing is rather subjective. There’s no real mathematical equation for selling a home, and that’s why we see such a wide variety of price points throughout the marketplace. Based on this, buyers and sellers tend to have very different perspectives on the mathematics of a comp, and balancing the two is often difficult. While it begins with the mathematics of cost, everything else — from street to style to location — all becomes subjective.

5. Whether they’re representing the seller or the buyer dictates the real estate agent’s representation of the exact same house. It is the seller’s job to get as much money as possible, and thus, agents will analyze the data to get the most money out of their client’s house. And vice versa for the buyer, who is looking at the data from a perspective of getting the best value in the property.

When all is said and done, the key to a successful sale is for the buyers and sellers to be in tune with one another. Much of the stress can be relieved if we try to understand both parties’ viewpoints.

 

Shannon Baird

Earth Advantage Broker

About Shannon As a native of Portland, Shannon is well acquainted with all areas of the city, the surrounding suburbs, and what the various neighborhoods have to offer. Her 14 years of experience working in the real estate industry has helped to develop a true understanding of how a house has to function to become a home and knowledge of architecture and design, which can help in the evaluation and potential enjoyment of a home. Shannon has the ability to provide solid counsel. Her knowledge of real estate matters and absolute trustworthiness are invaluable in the process of any transaction. Having worked for 15 years as a manager of assets for executives living locally and in Europe, Shannon has developed and maintained the trust, organization, professionalism, and effective negotiating skills inherent to the business of real estate. Recipient of the Elizabeth Potter award from the State of Oregon Historic Preservation Office for work in restoration, remodeling and design in residential homes and commercial buildings in Oregon. The award provided for the attendance to a week long historic preservation conference in Mobile, Alabama where the art of preservation was taught by national and internationally renowned craftsman. A member of the National Association of Realtors (NAR), the Oregon Association of Realtors (OAR) and the Portland Metropolitan Association of Realtors (PMAR), Shannon also holds a Diamond-Platinum designation in the Million Dollar Club of the Portland Metropolitan Association of Realtors. Other designations include: Seniors Real Estate Specialist
For a look into the history of Shannon's real estate business before she joined Living Room Realty, you can view her blog that documented her sales, press exposure, testimonials and insights as an agent from 2009-2016.
sbairdrealestate.wordpress.com Arts + Culture New involvement in the arts, along with music projects completed this year. My 25 years of experience and knowledge in design and project management were directly related to the following. Founder and Principal of SBaird Design - A locally based boutique design firm with a global soul. Serving clients locally + internationally in a diverse range of projects: smaller and large residential remodels, commercial design, furniture design, home staging consultation, color consultations and branding. sbairddesign.com One of the founding members of YU Contemporary – A visionary art center empowering artistic imagination and cultural life, destined to become the most provocative supporter of the arts that the region has ever seen. https://yaleunion.org/ Co – Executive producer – From the Land of Ice and Snow, a compilation CD, 6 years in the making. Led Zeppelin covered by eminent NW musicians. I co-produced the live show ( it sold out ) and the release of the album at Doug Fir Lounge. Press from National Public Radio and all of the local print media. Websites/blogs wrote stories on an  international level. Co-producer – of the final  live concert held at the venerable Berbati’s Pan, venue opened in 1994, closing show on New Years Eve 2010. Hired publicity, managing band necessities, managed merchandise sales, venue and supporting staff’s expectations.
Read More
  • T: 503-799-5095
  • F: 503-961-8224
  • shannon@livingroomre.com

Shannon Baird

Earth Advantage Broker


You might also enjoy

Breaking and entering (your new home)

Brad Twiss

Julia was referred to us by a couple of friends who have bought homes with us....

Well maintained home with beautiful landscaping

Leah Dowling

This beautifully cared for home is what you have been waiting for. It has the most...

Condo cutie in Jantzen Beach

Leah Dowling

The owner lives in Montana and he called me and said he wanted to sell one...

Oregon City Quickie!

Ben Samson

  This townhouse turned out to be a sale that real estate dreams are made of. ...