How many deals has your EGO/GREED/PRIDE killed or ruined?

Question

I'm coming up to a year of being a Realtor in Cleveland and working with many residential and investor clients. Starting to see a pattern in some deals that have fallen through, minus the properties that had some title issues and they had to die

But greed has been a big one, personally I've bought 4 properties in the last year that when presented to me the returns, the price were all good and I said sure, I did try to negotiate but if they didn't agree to my terms I wasn't going to walk away. That's just how I do business, Im not going to argue over pennies when the long term goal is going to bring in 100's instead.

Other clients I've worked with come and seek deals that return X % or want a home under $Y, I seek out those deals according to the clients numbers/requests. A property was found but they would not pay the asking price, even thou it met what the client wanted. The client wanted a lower asking price to get greater returns. In some cases yes the price was negotiated but others NO and the deal never happened. How many times have you been in this situation? Where you just wanted more even thou you already had what you were seeking?

Every one says if the numbers make sense buy, but if the numbers are already good why are you being greedy and want more?

Anyone care to pitch in?

Jay Hinrichs · Answer

@Federico Gutierrez congrats on your first year and your choice to build a career that can last a lifetime.you have two very different things going on in your questionOne is what did you miss because your stubborn as a principal.and the other is Real Estate agents frustrations with buyers who say one thing then waffle. much of the waffling can be alleviated in your initial presentation to your buyer. There are very defiant sales techniques that you should employee that will nip that stuff in the bud.Now I have not sold to the public in 25 years.. but when I did I did it for 15 years.. I was to be very humble very good at this part.. NOT letting the client control me I controlled them without them Knowing it.. I was trained by some of the best salesmen in the business ( 60's land salesmen) watch the Movie GlennGarry Glenn ross..You need to set your ground rules the very first time you speak to them and once you do.. they won't back out and If they do its as @James DeRoest stated tire kickers and not real buyers.You learn these techniques from professional salesmen who honed there craft over time and years of experience. Its so simple that most just can't spit it out.. but if you do you will be a top producer and not waste any of your time.I am comfortable that I don't make deals as a principal for any of the reasons you mentioned. plenty of shoulda woulda coulda stories.. with the best one being I should never have sold anything I owend in the SF BAy Area and should have bought every thing I could have back in the late 70s and through the 80s and 90s... would be stupid rich and flying that jet I always wanted instead of a prop plane. :)

Dustin Beam · Answer

I don't think there's anything wrong with someone wanting a good price even if it already meets their qualifications. There are different motivations for doing so, and yes greed might be one of them. But what if they know they need to cash out refinance? What if they believe it's a fair price today, but they expect a market correction and want extra security? My point is that there are many reasons to want a better than fair price that aren't necessarily born out of greed.

Thomas S. · Answer

Personally I enjoy the art of negotiating. I spent many years engaged in corporate labour negotiations. Finding a property, or anything for sale, and negotiating the deal is the process I enjoy the most. Selling price is irrelevant to me as I always want to play the game. Because I do not use my own realtor I do not have to take that relationship into consideration. As a buyer dealing directly with a sellers agent cuts through the BS.Once I own it the game is over and no longer fun.

Zach Quick · Answer

@Justin Fox Lol, to each their own I guess.

Justin Fox · Answer

I will always use the 20% off coupon on sale items at Harbor Freight even if I have to wait until father's day. Doesn't matter how fair or reasonable the on-sale price was today.

Federico Gutierrez · Answer

@Jake Thomas I 100% agree with you. $2-3K in the long run is nothing.Right now have a client that wants a unicorn in todays market. Then I have clients that the house is sold because they spend a week thinking and running their numbers.

Jake Thomas · Answer

I have had deals die over $500 or $1,000 because the sellers didn't do everything the buyers requested. Those clients become one and done for me. If they are this big of a hassle to work with now they won't get any better. Also, if so few deals in my market for lack of inventory I have so many other buyers I can share my deals with. I always think about the future potential of any property and won't sweat over a few thousand dollars if the numbers still make sense. If $2-3K in purchase price makes the difference for you then you shouldn't be buying investment properties rather go play the stock market.

James DeRoest · Answer

Professional tire kickers. When someone does that I instinctively think that they don't have the money to back it up. They are able to do so few deals that each deal must be absolutely perfect and then some; because they lack funds.I take the personal view, you'll only kick a field goal if you're on the field.

Peter MacKercher · Answer

@Federico Gutierrez The examples you mention of clients setting forth a standard, you finding something that meets that, and then they move the proverbial goalposts -- that, to me, smells a bit life fear of finishing the deal, a lack of trust in their own decision making. While the usual graph of risk runs higher when profits increase, the perception is, of course, the opposite: that when you're making more money you're better able to handle problems, have more cushioning built-in. When you're about to sign contracts there's the gut check moment, and they might be tapping out right then.Then there's the whole side about capital availability. If the market has properties pulling 15% COC, then their deal's number slide to 10%, and they know those unicorns are out there, they might feel more inclined to pass and go for the extra yards if their working capital will be exhausted on this deal.I obviously can't know if your clients are seasoned investors or just starting out, but there are a few ideas about what might be going on, unless it's simply outright greed, like you suggest. Either way, they seem to be letting their emotions make their decisions for them -- and that's not necessarily bad since they're the ones who have to live with the choice in the end.

Manny Cirino · Answer

@Federico Gutierrez I have never personally had any issues with greed or ego because, well its just not in my nature. But you learn very quick how many people have an air about them in this business. most people don't like to help out others and refuse to JV with someone. I have brought cash buyers to the table and just because the deal would be split 50/50 they walk away just to not have to share any profit. It amazes me how many bad business men are out there. $2,500 today is better then $5,000 tomorrow. Greed is often an issue too most of the investors I work with I have to say are always looking to go straight to the source and cut you out. There are a few sharks I have met on BP that have burned me and I would out them but this is not a negative platform to do so.