Greed in real estate

From Wikipedia - Greed is the selfish desire for or pursuit of money, wealth, food, or other possessions, especially when this denies the same goods to others. Greed is selfish, excessive or uncontrolled desire for or pursuit of money, wealth, food, or other possessions It is generally considered a vice, and is one of the seven deadly sins in Catholicism. Now, I admit that greed is a part of what makes the American market-based economy work; however, that doesn’t make it any less of a sin. I would say that it’s certainly a deadly sin in real estate, too.

Greed is what makes sellers start out way to high in price for their house. And, greed is what is driving many buyers to offer way too little for homes these days. It was likely greed that drove many homes into foreclosure – sellers not willing to take what the market would bear. I’m sure that there is more than a little greed involved in the feeding frenzy of buyers going after foreclosed properties. In both cases I see the people involved not only wanting to get a “good deal”; but, many going beyond that level of self interest and trying to “stick it to” the other side a bit (sometimes a lot). In today’s market it is most likely the buyers who are the “stick-ers” and the sellers who are the “stick-ees”, but that will eventually change and the power to make the other side squirm will return to the sellers.

I really have a hard time with that. I always advise my clients that a good real estate deal has to be a win-win, with both sides coming out feeling good. Most sellers are already asking much less than they thought (or hoped) the property is worth. If they’ve listened to their listing agents, the house should be positioned to get offers in the 95-97% of asking price range. And, ruthless buyers who take pleasure in making those low-ball (80-90% of asking price) offers, just makes matters worse. They’re a part of our society and a part of the real estate landscape. I may have to deal with them on either side of a deal; but, I don’t have to like them.

So, when I have buyers ask me for pricing advice on a house, I always advise them what I believe to be a fair price for the house in this market – a fair price, not a low-ball price. Some take my advice and seem to be successful in buying the homes that they want. Some do not, preferring instead to make low-ball after low-ball offer, hoping that they can steal a house from some desperate seller. A few actually succeed; but, most fail and eventually just wander off, undoubtedly looking for the next opportunity to “stick it to” someone. I suppose that I could make more money by cultivating and aiding these vultures of the real estate world; but, then I have to live with myself long after they’ve flown off to start circling above the next wounded homeowner. I just quietly say good riddance!