Wednesday, May 30, 2012

The Line Between Friendship and Business Part 1

The Line Between Friendship and Business Part 1

(of a never ending series)

It sure does go a lot smoother when the Buyers and Sellers of a home sale transaction get along with each other.   But is there a point where they can harm their position by becoming too friendly?   hands

For years in my real estate career, Agents have historically kept Buyers and Sellers at arms length.

Is the climate changing?    Is it still a wise approach to take?   Is the reasoning in doing this still sound?  

It is natural to think that "if I could just talk to the other side, they will see my point of view and understand where I am coming from."   

That may be true.   Without an intermediary you might get your point across and offer insight into your thought process.    It works two ways.   There may be an understanding or you might also say things that inadvertently hurt your negotiating position or even worse say something that the other party might take the wrong way and hurt your chances in the transaction all together.    Emotions can get the best of us no matter what side of the fence we are sitting.    Buyers and Sellers have different perspectives.  One thing is for sure, both sides are highly charged.

Becoming too friendly can become a problem when an issue arises after home inspection, during the mortgage process or title examination.     Asking "a friend" to compensate you for a "defect" in their beloved home can have unintended consequences.  

So, is the climate changing where Buyers and Sellers should be talking to each other and letting their feelings be known?    Possibly.  I feel in the past couple of years that my clients do want to have conversation with the other side.

But, Is it wise?       I think that it is good for sellers and buyers to meet, talk and discuss the ins and outs of a the home.    They can share a wealth of knowledge about their home that the best home inspection can not turn up.    After all who better to know what goes bump in the night than the Seller?
But maybe it is smarter to have this conversation after the nuts and bolts of the transaction has been ironed out.    

Is the reasoning still sound?   I believe it is.

A real estate transaction is complicated and emotional.  

Just because it is your home, don't lose sight of the fact that it is really business.

Part 2 (coming soon)   My Friend, relative, etc, is a Realtor Should I Hire Her?

Carol-Ann Palmieri
Al and Cal Realty Group