Insanity is doing the same thing over and over again and expecting different results.
We all know and love the endless chase of Wile E. Coyote and the illusive Road Runner. Wile E. devises every foiled strategy possible to make his dreams of catching the Road Runner happen only to fall into another canyon or once again booby trap himself and blow himself up.
Today’s Buyers and Sellers often feel as though they are caught in a similar cycle of a seaming endless chase.
Buyers bemoaned low inventory, intense competition and rising prices for years. Now the highest interest rates since 2008 are dogging their footsteps and making that dream home still feel out of reach despite rising inventory.
Sellers watched the feeding frenzy of the past 2 1/2 years and heard “ka-ching” every time a home in their neighborhood sold. They are now being asked to reduce their price, list for less and be patient.
How can Buyers and Sellers once again meet at the table?
Einstein would perhaps suggest changing the way we are doing things… to once again pull up our bootstraps and PIVOT! Pivoting in today’s market involves finding empathy.
EMPATHY~ Meeting Others Where They Are
In his book “The 5 Graces of Life and Leadership,” author Gary Burnison defines empathy as “meeting others where they are to understand who they are.” In my humble opinion, empathy is key to successful negotiations. This doesn’t mean you need to hold hands and look into each other’s eyes. It means adapting our behavior to meet the other party where they are.
Buyers need to recognize the shock that Sellers are experiencing as well as their motivation to sell. Do not hesitate to make a below asking offer if necessary. Utilize the tool of interest rate buydowns to make the purchase fit your budget. Remember that real estate is a long term investment. Consider refinancing down the road and enjoy the investment and life-style of owning your own home.
Sellers need to recognize that the same buyer that would have purchased their home 3 months ago can no longer afford it today. Make your home more affordable by preparing it to be as move-in ready as possible. Price according to current pending homes or last month’s SOLDS and ignore outdated algorithms like Zillow. Offer a buyer interest rate buydown credit when you list so buyers can make the most of their cash flow.
WITH EMPATHY, WE CAN ALL WIN
Happy Buying and Selling!