Being Negative or Being Honest?

In a recent conversation with a client who wanted to become involved in a transaction that I felt he did not have the wherewithal to close in today's current lending environment the client told me he wanted to stop hearing the negatives. I should focus on the positives. What can be done?

Priding myself in being a solution oriented Realtor, I thought about this. I called several real estate and lending professionals gave them this client's scenario. My first instinct was to refer my client to another agent who might be better able to help him with his purchase. The second group of calls where to lenders to verify that my thoughts on the viability of how he thought he could finance properties. Both the lenders and real estate agents confirmed what I had expressed to my client.

I read a blog this morning about no listing is a bad listing. One of his points was that the agent who says this is because they lost the listing to another agent just has sour grapes. I have lost very few listings to other agents. Of recent, many of the listing appointments I have gone on have decided not to list now because of they financial circumstances do make sense in this current market. We then focused on positioning themselves for the future. The few listings I have lost to other agents have been listed at considerable higher prices than I advised. The other agents either where more willing to take the listing at a price the market could not bear or told the sellers what they wanted to hear.

Whether the news is good or the news is bad, I never like to sound like a "Debbie Downer". I just try and relay my professional opinion and advice in the best way I know how for my clients. Many times it is looking at what they can do either in the short term or long term. It is finding the answers. Unlike in the past where money was flowing from the banks, there is not always immediate gratification.

As a Realtor, our clients hire us not to tell them what they want to hear but for our honest professional opinion. I guess it is all in the delivery but in some cases there are cannots and no solutions available unless the client can come up with the cash. Sometimes that is the only solution.

The Changing Dynamic of Negotiations: The Quality of the Seller

In the past real estate agents always entered into negotiations with the perspective that buyers and sellers have different points of view. For sellers who bought their homes in the last years, they are looking at the same issue that the buyers are looking at: How much is the check going to be that they have to bring to the closing table?

Home Sellers
It seemed to me that over the past year or so sellers where jumping on the short sale bandwagon. Recently it seems that if they have to sell they are opting to write a check at the closing and rent for a while until they regroup and position themselves to be homeowners again.

Home Buyers
In the past weeks home buyers have been going forward submitting offers. Very different than just a few months ago, they are not throwing out "low ball" offers. Buyers are working with their Realtors® and strategically putting together offers. More importantly than what the active comparable properties on the market are they are taking into consideration the last closed as well as pending sales. Those pending sales could very well be the closed comps when it comes time for that buyers appraisal. No one wants to get into the situation of a property not appraising for the agreed upon purchase price.

It is no longer what the price the seller wants to get for their home or what the buyer can afford. It is putting a qualified buyer together with a qualified seller at the closing table.

What These Means to Realtors
Rather than quickly getting to agreeable terms, real estate agents will be going up and back between the parties as each side carefully reevaluates their position with each counter. It will be our negotiating skills as professionals to get the buyers and the sellers together on price and terms that can both handle. We need to continue to be an active party to the transaction through the closing.

Chicago: Still A Great Investment

Over the past year or so the Chicago 2016 Olympic Committee under Mayor Daley's leadership has been running around putting a funding package together to move Chicago forward to make it "Olympic Ready". Being the knocked out in the International Olympic Committee's first round stunned most but everyone has to remember that Chicago is still the same great city that made it to the final rounds.

All the same reasons that so much private money was raised to fund the Olympics had they happened remain as to why Chicago is still the same great city for moving many of the plans forward. We obviously don't need the game venues but we look at the opportunities for jobs, housing and transportation. The redevelopment plans of many of the neighborhoods need to just be tweaked but are still viable.

Chicago already is one of the best cities. We need to continue to grow our commercial, residential and tourist opportunities. If you have never been here before, explore Chicago.

Chicagoans should remain as resourceful as they have been in the past and move forward, not stop. We need to leave the door open and work towards so many of the other global opportunities we can bring to the city.