Buying and selling real estate is a very emotional and psychological experience. Perhaps you’ve been on one of the two sides at some point in your life. You know when you’ve had to either decide on a minimum number to sell your home or maximum number to buy a home? Yes, that fun game of going back and forth for weeks negotiating just to end up at a stalemate feeling frustrated, deflated and back at square one.
It rarely comes as a surprise when I meet with a Boston seller and upon our first consultation they make an irrational statement about what their home is worth. Their chest sort of puffs out and they become animated explaining just why their home is worth what they say it’s worth. None of it is based on market data. It’s all about what they think it’s worth. The dialogue is actually good to hear as it allows me to gauge the person and their level of emotional connection and commitment to the transaction. I’ve had sellers insist on pricing their homes up to 40% above fair market price regardless of having seen data that advises them against doing so. When this happens, I graciously walk away because in the end the experience is like swimming rip tide the wrong way. You just end up getting swallowed up and die. These folks are not ready to move on with their lives, but perhaps are looking to make the lives of others miserable. No thanks.
Okay, so by nature I’m somewhat of an idealist, but my experience has made me a realist. First and foremost, my role is to educate and consult clients to the best of my ability so that they may make a decision, an educated decision. The information I provide may not always be welcome news, but, it is information based on fact and in essence therefore a snapshot of reality. Unfortunately, not everyone is ready to deal with their reality. My goal is to come up with the best outcome for my clients and at times that means breaking even or plugging up the projectile bleeding before foreclosure. So what can a seller do to avoid psychological obstacles of selling real estate that will lead them to stalemate?
- Be Committed: Assess your life and decide if you are really ready to sell your property. If not, do not waste your time nor anyone else’s.
- Separate Your Psychological Self from Your Physical Home: Sure, you’ve owned your home for so many years or cared for your investment property for a long time, and have natural emotional attachments to it, but try to disassociate yourself from the home. Perhaps envision yourself in an upgrade or another neighborhood, as a next step in your life.
- Stay Present: Focus on your finances today, not the money you spent yesterday. You may not be able to recoup your loses, but consider that delaying a decision to sell today may put you in worse financial circumstances tomorrow.
- Be Real About What to Recoup: After going through your inventory of various projects, such as painting the walls, building that special California style closet, or opening up a room for that open layout feel, consider what you may be able to pass on to a buyer and what you may not. For example, if your condo association recently had a special assessment to repair the roof, you may not be able to pass the cost on since it is upgrading the building, not your individual unit. You can’t expect to get back dollar for dollar on some investments like painting and sweat equity, but upgrading the windows, front door, kitchen, bathroom or deck is a different story. Have a trained and reputable Realtor® assist with evaluating your “inventory”.
As you begin the process of selling your home, work with a Realtor® who will guide you through psychological obstacles – some obvious and some not so much. Their role should be to help you so that you don’t find yourself at a stalemate. Selling and buying is really about moving on with your life. Accepting reality sooner rather than later may save you some money in your pocket, but more importantly, it will save time on your heart. And in the end isn’t that what it’s all about?
Keith Munsell 
