From Beverly Hills and Beyond, These are Tough Times in Real Estate

It’s been high stress in the office these past few months. Every deal requires more work than ever. Most of it comes from the fact that buyers and sellers are nervous and uncertain about the market, and they’re counting on me to protect their interests.

I’ve said this many times, and I’ll say it again because I can’t overemphasize its importance. Part of providing client service above and beyond the competition is to be an expert.

Expert status comprises many different aspects. Today, I’ll focus on the following: Knowing the competition and acting accordingly.

In a recent deal, my client was selling his home for $5.5 million. No one submitted any offers. As a result, we reevaluated the price and dropped it to the lower 5’s.

We then had a buyer who put in an offer in the mid 4’s. My clients were eager to sell, but this offer wasn't exactly what they were expecting.

First, there’s the loss of profit.

Second, we had competition. A comparable home listed for around $5 million. What if we accepted the buyer’s $4.5 million offer, only to find out that another buyer purchased a similar home for $5 million?

I urged my client to accept the offer. It was a tough call. And one that risked making my client very, very unhappy if the comparable home ended up selling for its asking price.

But after being in the business for over 20 years, and experiencing my share of volatile markets, I believed the offer was worth taking.

Four days after my clients accepted, the competition dropped the price of their home to one that nearly matched ours.

When I told my clients to accept the mid-$4 million offer, they were reluctant. But they trusted my expertise. I was not only their real estate agent, but also a close friend who had helped them through many deals in the past. As a result, they followed through with my recommendation.

Once they heard the news of the other home’s drastic price cut, they were elated. They had clearly made the right choice.

These are tough times that require tenacity and wisdom. It’s markets like these that separate the real estate agents who jumped into this business when times were easy, from those who are passionate about what they do and are committed to succeed no matter what.

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