Who is the "emotional buyer?" By definition they are a buyer who is acting off of “pure emotion” and not necessarily logic. In this scenario one expects the "emotional buyer" to become attached to the home with such intensity that they will pay whatever is being asked. This is the buyer that every seller hopes will come along and, for some reason, many sellers expect it. I must admit I do not completely understand why that expectation exists. In interviewing with hundreds of sellers over the past 15 years I am a little perplexed that so many believe an emotional buyer is going to come along, fall completely in love with their property, and overpay for it.
In all my years of selling real estate I have come across one emotional buyer. One.
That is probably as good an indicator as any that the emotional buyer is as rare as hen’s teeth.
What happens in reality is that most buyers are accompanied by a spouse, best friend, or agent who is their voice of reason. That other party usually tempers some of that emotion and demands that their significant other, friend or client make an offer based on factual market statistics.
There are certainly exceptions to this. In a multiple offer situation where supply is less than demand a buyer may be willing to overpay within reason.
If there is a bank or other financial institution involved there will be an appraisal. The emotional buyer will be quickly brought back to reality and, more than likely, the contract will be renegotiated or fall apart if indeed the offer was significantly over market value.
The better scenario for the seller is to stop expecting that emotional buyer to appear. They simply do not come along very often and trying to consummate an overpriced deal and get it to closing is virtually impossible. The world wide web has given them a tremendous amount of market insight and often a wealth of purchasing options before they ever go out to look at properties. They are already familiar with comparative values when they arrive.
The bottom line is be realistic if you really want to sell. Having a market value appraisal and a pre-inspection done are a good idea. There are qualified appraisers that can help you and your agent with value. It also may be that you need that appraisal to defend your number against a bank appraisal on the other side. I have used appraisals to help close transactions that otherwise would have fallen apart. It is a third party objective opinion of value and if done well can be very helpful in a tough negotiation.
An inspection by a qualified home inspector will point out issues that need to be addressed. Why wait until you have a buyer to find out what needs to be repaired or worse yet be caught by surprise and potentially lose that hard earned buyer?
Don’t wait on the emotional buyer as the emotional buyer is very, very rare.
NOTE: It is our job as Realtors to help sellers determine an appropriate list price based on current market value and understand the benefit of having reasonable expectations when it comes to selling their home ... this ultimately will help them achieve their goal of selling their home quickly so that they can move on to the next step in their journey.
Download the "Ultimate Guide to Selling your Home" and find out why it's more important than ever to work with an experienced Realtor and let us know how we can help.
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