The ritual of buying real estate

We as humans create our mystical means to understand a process.  This mystical means comes from our life experience. One needs to understand the perspective of your counterpart…whether you are Buyer, Seller or represent either or both.

To understand is to comprehend.  To comprehend allows for taking time to bring ideas and ideologies together to make a deal happen.

Mystical means understanding through life experience

We as humans create our mystical means to understand a process.  This mystical means comes from our life experience. 

To understand is to comprehend.  To comprehend allows for taking time to bring ideas and ideologies together to make a deal happen. Understand your own personal perspective, then see the world from all others involved as Buyers, Sellers or Agents.

The basic ritual of buying real estate is very simple:

A Buyer wants a piece of land that has a “bundle of rights” on, above and below what is defined as a place.  Within that place is a series of places…maybe a building, maybe trees…any and all “fruits” of labor.

Think of the bundle of rights like a good meal.  Depending on when or how the food is cooked will define how it smells.  You cannot see the smell but that smell may remind you of good times or bad. The same goes with colors and how that plate of food is presented to you.   A bundle of rights to one person may be acceptable to some and not to you.

Just like a bundle of rights, the food on the buffet has a period of time upon when the food looks and smells its best - when the taste, texture and flavors of the food is greatest.

The ultimate value of time in the buying process is when the Buyer’s attraction to that “bundle of rights” is most emotionally heightened and when one party is ready, willing and able to want to take over the whole buffet.

This value of time translates to the period in the offering process when both buyers and sellers want something, then someone concedes and both parties eventually reach an agreement.

We, as humans, have primal emotions that we translate to our gut feelings.  At the end of the day we are animals.  Being an animal from many moons ago we still thrive to understand what place and what spaces give us comfort.

It is within these emotions that we aim to get the most to satisfy our needs for physical and mental comfort and security.   At the end of the day we want to survive.  Our survival is based on taking resources to best help ourselves.

TIME as a FOOD GROUP in negotiating.

In the game of negotiating it is important to understand time.  Time to digest, time to understand and time to let all parties clear their minds before you clear your wallet.  

Buying real estate is not all about a piece of paper that we trust as our medium of exchange.  Buying real estate is more like buying a buffet of many things on many plates to be able to have a satisfying meal over a period of time.

The financing portion of an offer is actually being able to trust one party with the “bundle of rights” to start giving a Buyer one menu item at a time, as they trust to start the process of giving up their rights to a place or space.

If we wait too long to start the process, the food in that bundle starts to get cold.  Avoid the cold for that can be the beginning of the end of a contract and the beginning to the end of that trust.

This cold food is best seen when Buyers are trying to negotiate with Sellers of investment or income property.  Buyers often lose a deal because they fail to realize cash is king and cash flow is the queen.  

When a Seller already has the cash flow of a property she is less inclined to sell within a period of time and will walk away from an offer since no matter what - she still earns money whether someone purchases the property or not.

This is the biggest failure for Buyers, and sometimes their Agents, because they do not take time to understand the means and methods of a Seller with income-producing property.  The games of back and forth do not apply the same way as with a residential property (which is sitting empty and generating nothing), so by default, the Owner of an income producing property has the distinct advantage of time over a Buyer.