Real Estate: Finding solutions in real estate

Read and understand your contract. Most of the time, the answer, or at least guidance, to an issue can be found in your contract of sale. Frequently, people forget about what it says in the contract and start to freelance it as the process moves forward. As agents, we try to keep folks on track with what the contract requires, but at times events occur that inspire people to stray from the document they've signed. Regardless, once you've put your signature to paper, you're legally bound to follow through. So, the best first step is to always go back to the contract and reacquaint yourself with what it says.

The contract is sometimes 50 pages or longer, and it's been written by a bunch of lawyers, often making it difficult to understand and interpret. If you aren't really sure about what something in there says, don't be afraid to talk it over with your agent for clarification about what's required. And if you get the feeling that your agent doesn't really understand, go right ahead and press for a further explanation. Some agents are newer to the business than others, so they might not have dealt with every provision in a contract of sale. Plus, real estate contracts are constantly updated with new terminology and addendums. These changes can trip up even an experienced agent. No matter, the resources are always available to help get you an answer.

Avoid the blame game. When a problem crops up, it's human nature to first go looking for the person responsible for the mess. Assigning fault to someone else might give you momentary relief, but it seldom does much to get the issue resolved. Everyone makes mistakes. It might be the other party, it might be one of the agents, or it might be you. There can be times when there's some premeditated skullduggery, but usually it's an innocent error or a case of misunderstanding the process. Agents don't always fully know their client's modus operandi, or the degree to which they comprehend the buying and selling process. Consequently, we've all been blindsided by some event or bit of information that can potentially derail the deal. Whatever the reason, it's best to quickly direct your energy toward finding a work-around. Once the milk has been spilled, just focus on cleaning it up.

Don't cut off your nose to spite your face. A real estate deal involves the sale of an item that's worth hundreds of thousands of dollars. Even so, you'd be surprised at how many contracts nearly bite the dust over something that might cost $100 to resolve. In the tension of it all, people frequently lose perspective. It could be over just about anything, and you hear people say, "I'm not going to pay for that; they should pay for it." It usually comes out of some minor problem that comes up in a home inspection. By the time buyers and sellers get to that part of the process, they've already been through what may have been a tough negotiation on the price of the house. As a result, both sides often feel that they've made substantial financial concessions, and that $100 fix just puts them over the top. It's an understandable emotion, but not always rational thinking.

If the other guy just won't give in, take a deep breath. Don't let some insignificant thing deter you from the greater goal. There are situations where both sides just come to loggerheads, and you might see a buyer or seller ask the agent to take that $100 (sometimes much more) out of their commission. Or, some agents might offer that up as a solution just to get on with the deal. As a policy, we don't do that, nor do we suggest that buyers or sellers look to their agents as way to break the impasse. Agents work incredibly hard for their commission; it's not appropriate to ask them for part of their personal paycheck as a means of getting the deal you want. In the stock market, you may not always realize the gain you're looking for; you may even need to sell at a loss. But, you'd never think about going to your stock broker and asking him for a thousand or so to cushion the blow. It's no different with real estate agents. They're helping to facilitate the transaction. In the end, the buyers and sellers are solely responsible for making the decisions and living with the outcome.

Everyone has the same goal. As you work your way through the process of buying or selling, remember that the people on the other side of the table are looking to achieve the same end result as you - everyone wants to get the deal done. By concentrating on this common goal, it creates an atmosphere of cooperation. Negotiating the sale of a home is obviously somewhat of an adversarial process, but if you focus on the doughnut instead of the hole, you will naturally approach problems with an eye toward solutions and not let the little stuff get in your way. Occasionally, we need to remind people of the big picture, and once they take a step back, they usually realize that what's been bugging them isn't really a dealbreaker. There's an incredible amount of detail work that must be done to reach the settlement table, and it's easy to get engulfed in the minutia. If you feel yourself getting a bit overwhelmed, lean on your agent. They'll help you clear the way, and if nothing else, they're always available to lend an ear.

In conclusion, seldom does something as complicated as selling a house go off without a hitch. But, as someone wiser than us once said, "it's not the problems you have, it's how you approach them." If you work as a team with your agent, mortgage banker and title company, you can almost always find acceptable solutions to the bumps along the road. And, after you get the place sold, or as a buyer find yourself in a great new home, those annoyances that came up during the process will quickly be relegated to the dust bin of insignificance.

Tip of the week

Far and away, what makes people the most upset in a real estate deal is when they get surprised by something. Keep the lines of communication open with your agent, and don't ever be afraid to ask questions. Plus, the process of buying and selling requires that you make a lot of decisions. As you make those decisions, always ask the professionals involved, whether it's your agent, mortgage banker or others, "What are the possible outcomes of my decision?"...