Monday, October 29, 2012

No Such Thing as Buyer or Seller Markets...until someone gets nervous

There are buyers and there are sellers. One has the money, one has the real estate (let's say it's a house). There may be many houses for sale and very few buyers---that's a formula for the popular buyer's market. There is one other ingredient that is not in equal measure but it makes all the difference in the world in switching a buyer or seller advantage to the other side. It's fear and it looks like nervousness.

If you've got the house I want and I fear losing it to another buyer or I fear I won't get it on my terms, I become nervous. If you remain calm, in control of your emotions, and are willing to let my money walk away with me, you have the power. As the buyer, I have a lot to fear: other buyers who materialize out of thin air, you who I don't know, you who could decide to not negotiate with me, other people who I imagine could give you advice not favorable to me, interest rates that could move up before we get an accepted offer. Everything I fear is out of my control. As long as I can live with that nervousness I can keep from paying a fair price and terms to free myself from that fear.

As the homeowner who is without fear you are not going to over pay me for peace of mind. Of course, if you fear there may not be another me in your near future, your anxiety may rise and then....you give the power to me.