My Toughest Deal
The year was 2010, right smack dab in the middle of the great recession. It was a challenging time to be in the real estate business. The median price had collapsed to $175,000 at that point and a majority of the sales were short sales or bank owned properties. Agents were getting out of the business left and right. A majority of agents were struggling mightily to make sales and be profitable. Including me!
One of my best clients referred me a prominent local doctor. We hit it off and set sail on the journey of finding him his "dream" home. He desired to throw some outlandish parties and a strip view was non-negotiable. He had a healthy budget in those days of $1,000,000. In today's market, that's equivalent to having a buyer looking to spend at least $2,500,000. A dream buyer! We are still friends today!
After some outings, it became clear that MacDonald Highlands was the ideal spot to call home. It wasn't long after we found that clarity that a short sale popped up in MacDonald Highlands that checked off all the boxes. Well over 5,000 sqft, an incredible pool, and a killer view of the entire valley! It was listed at a bargain price of only $800,000. The seller had paid well over $2,000,000 for it in 2007! Within days they had multiple offers even in a very soft market.
It was apparent early on that the seller was very manipulative. He requested a special meeting before he would sign off on our offer. He wanted to grill the buyer to make sure he was the "right" buyer for his home. An unusual request, but the buyer wanted the house so we went and boy did we realize it was going to be a long haul. He ended up signing the offer and that's when the party really got started. Every little thing was a chore and a fight with this seller. Special late night meetings and odd requests. Short sales are typically long and tedious transactions and this one was no exception. When the bank finally got back to us with their decision, concessions had to be made for it to work. The listing agent had made a major mistake by not ordering an HOA demand to determine the actual balance owed. Remember, the seller was behind on the mortgage AND the HOA. She had guessed the amount the HOA was owed for the estimated settlement statement that was submitted for short sale approval. It was grossly too low. The bank approved the sale, but with the wrong number. This led to another meeting with the seller/listing agent that was very heated. The seller made it clear that he wouldn't pay a dime to sell his home and that the only way he would sell it is if the agents/buyer made up the difference. To my surprise, the seller was receiving a $32,000 check from the bank to go along with the sale. Yet, he still wouldn't concede an inch. Finally, the buyer and both agents made concessions to make the deal work. Many of the details are fuzzy, but I've closed many real estate deals over the last 22 years and this one was by far the most stressful. It was almost constant tension through the entire escrow process. Even when the seller went to escrow to sign his closing documents, he would NOT sign the instrument stating it was OK to close the escrow. He held that over our head at the walk through purposely acting like he might not sign it. One last jab. When it finally closed, I took the commission check to Wells Fargo and I'll never forget what happened. The cashier stated, "All this for one sale?" I said, "Ya, but it wasn't worth it!" I meant it. I was beat up.
All these years later I have the advantage of reflection and experience. It's now clear to me that the seller's ego was hurt. He was embarrassed and experiencing extreme hardship. His way of coping was to take it out on everybody around him. It was brutal, but I learned so many lessons from that sale. Lessons that led to the progression of new boundaries in my business and adjusted expectations for my clients. I knew if I kept operating my business like I had for a decade, I wouldn't make it. The business was running me ragged. I needed more separation and peace in my life to recharge. Nearly a decade later my real estate business landed me in the top 1% in the valley working Monday-Friday from 9-5. And I took off 5 weeks for vacation with NO work. It's possible for you too!
One of the biggest blocks I see for the agents I coach is their work/life balance. Many are doing well financially, but they are burned out and emotionally drained. It starts with making adjustments to the boundaries and expectations you set with your clients AND other agents. The next progression is how to manage emotions more effectively. The best of the best have learned self control. They are less effected by hurdles and they bounce back faster. It's the combination of outer blocks like boundaries and inner blocks like mindset that lead to you performing at your best. I coach my clients towards growth in both areas. It's my passion!!!!