Today's Blog came about from a referral from my wife/partner (Debbie Sargent Coe). Debbie avails her self to Open Houses on most week-ends ... and always... seems to come back with new people - suspects & prospects for Representation for either seller's or buyer's or both!

What makes Debbie so Special at Open House's is her ability to relate..... and her 33 years of experience understanding the dilemma's that face people looking for a new or different places to live. Most "Realtors" see this business as a "Sales Business" when in reality it is not..nor should it be. Professional Real Estate should be a "People Problem Solving Business".

 The following account should clear up the mis-understanding between being a "Customer" or a "Client" and give you a glimpse into the life of our lives as Agents Representing Clients rather than Realtor's selling houses.

 Back to the story.....When Debbie met the couple they were interested in selling their older remodeled home that they had put a lot of money and time into making it just right.... and now they as aging Boomers were feeling like maybe they might enjoy a less physically stressful lifestyle.They came out to see some of the Patio Homes at Hazelewood Village and literally fell in love with one of the homes that had recently been reduced in price and had just been sold to another couple. The Husband liked the home as well however felt that it was too far from his employment on the far side of the town. They stated that if they could replicate the Sold Home for the same price they would be interested in going forward - Debbie made an appointment to see their home and the next week they were referred to me as a Buyer's agent and we looked at the intended home together, and again they reiterated they would be interested if we could duplicate the home for the same reduced price the other had sold for on a lot with a view of the mountains ( a difficult task)

The Monday after I met them, I called as I promised, and the Wife said they had decided that it just wasn't going to work because the house was: 1. Too far out 2. It was going to cost them $20k-$30k to upgrade and they didn't want to really spend more than their current home was worth. and 3. With the economy being so un-stable, they thought they should do nothing and just stay in their nice little home that was all paid for. ( I found out later that they had been on & off again, looking for nearly 2 years). The Wife( a lovely lady) said we were going to hate her because they were so indecisive and I replied not at all - there was a lot at stake and they should be very concerned about taking action of any kind without really understanding the options. I told her not to worry and that we would keep in touch if they changed their mind.

 Now I had a choice to make. Leave them alone making their decision based on emotion and pray for the best for them - or invest my time to represent their interest and identify their problem, and show them their options. As customers not clients at this point, we were not authorized to"Represent their Interests without a Representation agreement). - Remember: Customer = Selling.. and Agency = Representation.

 The part that bothered me wasn't that I was going to lose a sale. It was the fact that they had a do-able desire and they didn't Understand THEIR PROBLEM... and because they didn't understand that they had a problem... they couldn't possibly understand a solution. The problem that they didn't understand, was the dynamics of this market today - right here and right now! If they indeed stay in their very comfortable abode and don't change their mind after the advantages of this market have disappeared, then they did the right thing. However if a few months or a year from now, the wife finally decides she really wants a "New Home for their last home, and they try to go forward. they chance to lose the entire ability to facilitate the move.

 Here is why:

#1. They are trying to make a very difficult almost lateral move -from a $170k-$180k older smaller home to a New $200k larger home at near the same price ( a very tough task to say the least) 

#2.Today's interest rates are artificially low and at the lowest rate in my 35 year career! This abnormally low rate will not last much longer and especially with coming inflation which will affect not only the ability to buy - but the ability to sell as well-

#3. The type of home they are interested in has been reduced below the cost to build it.. and the only reason they can build it today at the under market value is because we may be able to find a developer in this market, who may consider selling a lot to us for less than he owes on it..and the bank may allow the lot sale in order to provide some debt relief. The builder will in turn offer his sub-contractors less in order to provide them a job.....and suppliers have already rolled back their prices to below 1993 pricing in order to move product. In other words, the home will NEVER be able to built for less than it can today!

#4. The type of lot they desire is the most valuable & desireable lot in any development (a rear East viewing lot with a view of the mountains). After 4 hours of preliminary research I found only 4 possible lots in the entire Valley) In a normal market they wouldn't have a chance of replacing it at $10k-$20k more- 

#5.Their home is under the magic $200k range which is the only price range that is still moving at near normal market time levels, and the ability to sell their home is at a high point of opportunity because of the Stimulus package for 1st time home buyers (this year only)as well as their price range.

#6. When comparing the appreciation advantage of a "New Modern Home" to keeping their remodeled older Home - the difference is decidedly overwhelming advantaged to the New Modern Home which should easily out distance their current home due to **functional obsolescence of thier current home. (**a term Appraisers use to adjust the value of an older home down from comparable sized newer homes)

#7. The New home will not need maintenance items for 8+ years - while the older home will continue to require more and more dollars to keep it in proper state of maintenance.

#8. Last but not least and probably the crowning factor - many if not most economists foresee a major wave of inflation in the near future as China refuses to loan any more Trillions of Dollars to the US, and the Treasury is forced to print money to pay for bloating Government Programs and Continued Government growth because they have no more money. INFLATION will likely cause Interest Rates to accelerate and the ability to purchase an undervalued New Modern Home will be ....well - history -

The choice I have to make as a professional is to decide if it is worth the time & effort to try and educate my customers to become clients so I can save them.... or if I am better off to just let them go and spend my time working with clients that are waiting to hear my counsel. As I said in the beginning - This is NOT a sales business.... it is a People Business. If your into it for the quick $$... then you should just be a "salesman" and try to sell customers before they change their mind. If your into it for the long term career, you take the time - do the research - and try to represent and educate your customers to become clients and Represent their" Best interest"...not your own. Not all customers will become clients,however, without the effort, one can only pretend to be a Professional!

 We will make a final attempt to show these customers their options and hopefully turn them into clients who trust our experience and ability to show them options that work to their advantage. The difficult part of the Boise Real Estate business at this time, is seeing people make decisions based on negative information and not realizing the advantages that are available that they may lose by not being informed.

Sales People prey on customer emotions. Realtors providing Agency should provide balance to clients emotions based on prevailing logic and past experience to try and forsee the future..and use that information for their clients best interests. In some instances it will be in clients best interst to not go forward. In other instances, it will be in their best interests to go forward. It should NEVER be about the Sale - It should be about what is in the best interest of the client period!

Dale Alverson
e-Pro Certified
Certified Buyer Broker (CBB) - (Only One in Idaho)
Certified Relocation Professional (CRP) (one of 4 in Idaho)
Accredited Buyer Representative (ABR) (#70 of 54,000 USA) 35+ years - Representing Clients - not Sales - 43 Degrees North Real Estate
www.teamboise.com
dale@teamboise.com
Direct Cell 208-863-3093
Toll Free 800-359-0855