Skip to main content

Real Estate's Healthy Engine

A friend of mine works for a major car manufacturer in his capacity as a mechanic and technician – he’s been with the same company for over 20 years, so it’s safe to say he knows a thing or two about how engines work, right?  Whenever I have a problem with my car that extends beyond needing new tires or an oil change, I always reach out to him to see if he can give me an idea of what’s going on and how much it’s going to cost to fix it. 

In the times he’s kindly come over to look at one of my ailing vehicles, I’ve learned a couple of things.  One is you don’t need nearly as many “things” to change your spark plugs as the folks at the auto parts store try to sell you.  The other little morsel of wisdom is in order for a car to start and run, it needs three things: air, spark, and fuel.  For an internal combustion engine, if you take one of these three things away, you don’t get the controlled explosion that makes the heart of your engine pump.  (Side note: this is not to be confused with Earth, Wind, and Fire – the band whose music you need as a vital part of a play list to make the heart of your party pump.)

As if you didn’t see this coming from a mile away, I’m now going to equate this to a successful real estate transaction – one that lives and breathes.  The air, spark, and fuel in a successful real estate transaction is, respectively, an agent, a buyer, and a mortgage person – if you take one of these three things away, you just have a couple of people trying to make pleasant but possibly awkward conversation. 

The agent supplies the oxygen – the vitality, if you will – with her/his knowledge, expertise, attention to detail, and zealous representation of the buyer’s best interests.  The buyer provides the spark – the excitement and drive – to acquire that first investment, a home in which to start a family, a vacation property or second home, or a home after relocation.  And the lender, of course, provides the right type of fuel and the correct amount to get everyone to that final destination.

There are specific things that each party MUST do that the other two parties can’t, of course.  In most instances, this is understood and doesn’t need to be discussed.  However, would it be a bad idea to get all three parties in one room before a property is previewed or a prequalification occurs to discuss the expectations everyone has of one another and have all three agree to live up to their parts?  If this were to occur (assuming everyone did, in fact, live up to what they promised to do), we would have smoother, shorter, and more seamless closings.  Why?  One word: accountability.  When someone is accountable (buyer included), they pay better attention.

Let’s return to our car analogy:  whether it’s a Mercedes-Benz S 560 (a luxury home) or a Fiat 500c (a one-bedroom condo), you still need air, spark, and fuel – you can’t substitute even one of those things, and each one has to do its part equally well, or all you have is a hunk of materials that no one wants to buy or own.

Comments

Post a Comment

Popular posts from this blog

Numbers Don't Lie, But Wherein Lies the Truth? (Posted November 21, 2016)

Said with enough conviction, you can make almost anything sound true.   Preface the fabrication with “according to a recent bi-partisan government study,” and you’re three quarters of the way to selling the lie to a lot of people.   Seriously, try this. The next time you’re at a dinner party or having coffee with friends, pepper this little tidbit into the conversation: “I read something really interesting the other day.   According to a recent bi-partisan government study – I think it took them three years to get it all done – middle-aged men who drive either a Toyota Camry or a Honda Odyssey have more testosterone than younger men who drive either a Ford F150 or a Dodge Charger.”   You’ll get some raised eyebrows and looks of mild disbelief, but don’t let that deter you.   Just lift up your hands, palms outward, and say, “I just think it’s interesting, and it makes sense when you think about it” – and then change the subject to something completely u...
Post a Comment
Read more

Dumb as (or Smart as) a Box of Rocks (Posted June 27, 2016)

Obviously, you all want to know what Brexit means to the economy and the housing market specifically.   So do I!   But since my crystal ball is at the cleaner’s, let’s give the Brits and the European Union a little time to work out the terms of their separation and look at something else.   What’s a “fad ”?   With the help of Google, this is what I got as a definition: “an intense and widely shared enthusiasm for something, especially one that is short-lived and without basis in the object's qualities; a craze.” In April 1975, an advertising executive by the name of Gary Dahl invented the Pet Rock.   The idea came from his sitting in a bar with some friends who were complaining about the cost and time required to take care of various types of pets.   He marketed his “pets” by placing a rock in a box cut and shaped like one you would get at the pet store to carry home a puppy or a kitten.   Along with the box and the rock, a booklet was included...
Post a Comment
Read more

The Naked Truth About Home Buying

It’s highly likely I’ve already written about this, but I’ll try to make it entertaining at least.   There’s a guy who works in ou r office who suffers from kidney stones – and from what he’s described, “suffers” might even be a little too tame a word for it.   As an aside, though, when you ask him how painful the experience is, he gets an odd smile and says, “It’s the most intense pain I’ve ever experienced, but it’s hard to describe.   I’ve heard a lot of people compare it to the pain a woman experiences while giving birth.   To that, I must say, those people are big, fat liars!   I’ve been in the presence of a woman giving birth, twice, and her pain has to be 100 times worse.   They’re passing the equivalent of a Buick.   I’m passing a pumpkin seed.”   He’s always been a colorful fellow. He’s had this wonderful condition for over a decade now, and the stones make their appearance about every 18 months or so.   Up until recently, ...
Post a Comment
Read more