Monday, June 10, 2019

ACTIVE INVENTORY IN DENVER MARKET HITS HIGHEST LEVEL IN MORE THAN SIX YEARS

If you were thinking about putting your home on the market in 2019, you may have missed your best chance for a quick and easy sale.  The spring market is officially done and over.  

As I've chronicled before, the Denver spring market hits early, and the absolute best time for anyone to get a home on the market is between mid-January and Memorial Day.  The market traditionally downshifts after Memorial Day, and the summer slowdown is already very much underway, even though summer doesn't "officially" arrive until June 21.

With 9,149 active listings on the market, the number of homes for sale is up 29.3% from one year ago, and up 45% from the beginning of the year.  Listing inventory figures to continue increasing right through until Labor Day, when the number of homes on the market traditionally peaks.  

It's a very different world than what we have experienced over the past six years, and both buyers and sellers need to adjust their expectations going forward.  

A total of 7,969 homes did go under contract in the past 30 days, which actually reflects a 2% increase from a year ago, so demand is holding up.  That's key, because if demand were to crater, prices would be at risk of falling. 

As it is working out right now, the increase in listing inventory simply means buyers have more choices, less urgency and are less likely to write "over the moon" offers.  That will dampen, but not extinguish appreciation.  

But the days of 10% appreciation and multiple offers on any moderately attractive listing are over.  The era of extreme market velocity is over, and what that means is that sellers must realistically expect to spend a much longer period on the market before receiving an offer.  

It also means we're going to have to correct a lot of bad habits that have been allowed to take hold during this epic market run.  

The number of real estate licensees in the Denver metro area has doubled since 2011, which means more than half of the agents in this market have never experienced anything other than "sold in a weekend with multiple offers".  

That means they didn't need to devise marketing plans, they didn't need to promote listings and they have never experienced the joy of meeting with disgruntled and disappointed sellers week after week to explain why there's little or no activity on their home.  

The exodus of so-called agents is underway, and will only intensify going forward.

For sellers, the reality is clear.  You have one shot at a first impression, and if think your home "may" need carpet, paint or new appliances, it probably does.  And maybe a new roof as well.

When prices were going up $30k per year, buyers would overlook things just to get a property under contract.  Now, with prices at all-time highs and mortgage payments for lower down payment buyers clearly higher than rents, the incentive to take a bad deal is gone.

Buyers' remorse is also now a real thing.  I've listed seven homes in the first five months of the year and four of them lost buyers after going under contract.  That's not fun.  

In the "old" days (pre-2019), having a pile of offers in one weekend allowed a good listing agent to sift through the buyer pool and screen candidates like an employer reviewing job applications.  It was easy to go through the offers and assess which buyers were best qualified and which agents had a track record of success.  It was a game of odds and percentages, and your odds of getting to closing in one piece and without drama were obviously greatly enhanced when you could put the best qualified people on the bus. 

Now, it's much more random.  When offers are scarce, you simply can't be as picky.

That means sometimes saying "yes" to buyers and agents you would not have agreed to contract with in the past.  And more often than not, marginal agents have questionable buyers.  Which leaves sellers in a precarious position.  Do you take the only offer in front of you, and hope you can hold it together?  Or do you stick it out and endure the continued inconvenience of sporadic showings and an uncertain future in hopes a better buyer comes along?  

The decisions are not so easy, and the headaches are much more frequent.  To survive this process, you need wise counsel, strong communication skills and a real strategy that goes beyond putting a sign in the yard and getting out of the way.  

For years, the hard conversations in this market have been with buyers.  Starting now, the hard conversations are happening with sellers, and that's one reason why the agent pool is going to continue thinning as the listing inventory keeps increasing.     

Friday, April 5, 2019

THE DANGERS OF BOOTSTRAPPING

As April arrives and we hit peak selling season, the overall state of the Denver housing market is still relatively healthy.  Our local economy is strong and robust and our demography remains positive... but after several years of booming prices, it's my contention that values are flattening and the market is reaching a point where many first-time buyers are simply priced out.

This has ramifications, because demand "from the bottom up" has been the driver that has created the equity boom that has created the wealth effect which has made Denver one of the most economically vibrant cities in all of America. 

For as long as I have been in real estate (which is now going on 25 years), I have described market demand as a pyramid, which simply means there are always more buyers and more demand at the bottom of the market... and because of this, there is almost always built-in price protection for entry-level buyers because demand exceeds supply.

That premise - that demand is always most strong at the entry level - is now being tested.  

I measure demand in terms of "absorption rate", which is defined as how many months it would take, at the current pace of sales, to sell every home on the market, assuming there was no new inventory coming online. 

The real estate industry has long posited the axiom that six months of inventory reflects a balanced market, favoring neither buyers nor sellers.  

I personally feel that the real number for equilibrium is more like four months, because the way real estate is transacted in the digital era is very different than they way homes sold 15 years ago.  It used to be that open houses, sign calls, newspaper ads and postcard mailers were how people found out about homes.  Selling a home was like marinating a steak - it took time and results often came slowly.

In the digital age, everything happens quickly.  A new listing hits the market, and within minutes smart phones are pinging all over Denver.  Listing activity is front-loaded to the first few weekends a home is on the market, and if you can't sell a home within a few weeks, you have a problem.

The thought that six months of inventory reflects a balanced market is totally dated convention, but then much of the legacy thinking in our industry is aged and flawed.

For context, here are current absorption rates for all prices brackets I track in Denver:

$0 to $250k:  1.82 months of inventory
$250k to $400k:  0.76 months of inventory
$400k to $600k:  1.42 months of inventory
$600k to $1M:  2.21 months of inventory
$1M and up:  3.82 months of inventory

But back to the original premise... from the time I began selling real estate in Denver in 2006 until the end of 2016, we without fail had the quickest absorption rates in the sub-$250k price category.

Predictably, as you worked your way up the pricing ladder... the $250k - $400k range was the next tightest market segment... followed by the $400k - $600k range... followed by the $600k - $1M range... followed by homes priced at a million dollars and up, which often sit on the market (even in good times) for many months before selling.

More buyers at the bottom, fewer buyers at the top, the demand pyramid made perfect sense.

Starting in November of 2016, however, we saw a change.

At this point, homes in the $250k - $400k range actually began selling faster than the sub-$250k range, and the reason for this is that while the move-up buyers were flush with equity, the incoming crop of entry-level buyers was finding it harder and harder to both qualify and come up with down payment money.

While demand for homes at all price levels has remained strong during our housing boom, the stress on first-time buyers hit another last milestone last February (2018), when for the first time in all the years I have been tracking numbers demand was actually stronger in the $400k - $600k range that the sub-$250k entry level.

Increasingly, it has become apparent that the housing party in Denver is mostly reserved now for those who already have significant equity, which is the kind of elitist market dynamic I left when I departed California at the end of 2005.

Put another way, if you've owned a home since 2011, you're flush with equity and living a much more secure financial life than the younger people coming into our market today.

And for that generation of owners who won the housing lottery simply by taking action at the right time... they have significantly more options and opportunities than those recent college graduates coming out of school with $100k in student loans looking at median home prices pushing $500k.

That's one of the reasons Colorado Springs (historically much more affordable than Denver) is now ranked as the #1 housing market in American for 2019 by Trulia, and why Denver no longer appears on that Top 20 list.  

So while the established owners are able to use their equity toward down payments on larger move up homes, emboldened by their own balance sheets and the feel-good headlines we've grown accustomed to... the first-time buyers in our market have been falling further and further behind, or giving up on the dream of home ownership altogether.

The issue here, as I see it, is that push in our market has always come from the bottom up.  And now that housing is out of reach for many would-be first timers, you simply don't have the farm system in place to keep driving prices higher as you work your way up the pricing scale.  

The word I have used to describe our market, repeatedly, over the past nine months or so is "fragile".  When interest rates suddenly spiked into the 5's last fall, it hit our market hard and fast.  The types of homes that had sold in the spring in one weekend with multiple offers suddenly began sitting 15, 30, 45 days before any offer would materialize.

And without the frenzied bidding wars that characterized the spring market... sellers started seeing offers that were less than full price.  And then buyers (the nerve!) started asking for repairs.  And you started running into more valuation issues with appraisers.  And by the end of the year, there was grounds for reasonable doubt about whether you would see any appreciation in 2019 at all.  

The good news, at least from our standpoint, is that all of our political dysfunction and drama in Washington has caused interest rates to drop back down in to the low to mid 4's - for now - which significantly helps affordability and breathes life back into our market.

But active inventory is still up 36% from a year ago.  More homes which go under contract are coming back on the market than I have seen in many years.  Buyers' remorse is a real thing, and the "get a home at all costs" mentality that drove the market from 2012 - 2017 is transitioning into a mindset that is much more cautious and deliberative in nature.  

If you pay attention to other markets which have boomed in recent years (Seattle, San Francisco, San Diego, Austin, etc)... you see a steady thread of headlines.  Inventory is up and prices are flattening, not because people don't desire houses in high-cost markets.  They simply can't afford them any more. 

And that means you should be adjusting your thinking accordingly. 

I have become much more conservative with my buyer clients in 2019, to the chagrin of my managing broker and to the detriment of my bottom line.  I'm not interested in people bootstrapping their way to minimum down payments with monthly mortgages $300 to $600 higher than rents.  Why does that make sense, especially if prices are flattening?

If your reputation is the currency of your business, you always think in the long term, even when it costs you money.  My commitment has always been to the "happily ever after", and not the quick buck so many others are chasing.  

Owning a home is an expensive proposition.  Roofs age, furnaces quit, sewer lines break and exteriors need painting.  For most people, it's still worth it.

But if you don't have reserves... if you are fully dependent on two incomes... if you're not prepared for the unpleasant financial surprises that sometimes come with home ownership... you need to be thinking long and hard in a grown-up way about whether or not it really makes sense to commit to this market right now.  

If you have cash, equity, plenty of reserves and a good, stable job... by all means, buying is almost always logical and a financially-sound decision.  

But I spend a lot of my time these days having lengthy conversations with young people who seem intent on bootstrapping it, and for those who are not receiving solid advice, I worry that an uncomfortable percentage of today's bootstrappers may be tomorrow's short sales.  

Tuesday, March 5, 2019

THE HARD TRUTH ABOUT ZILLOW REVIEWS

Confession time.

Over the past eight-plus years, when the platform was first invented, I’ve made a lot of money off Zillow Reviews. Hard-earned money.  

In the summer of 2010, I was among the first to learn that Zillow was planning to set up a platform for clients to post reviews about agents.  Up until this point, the real estate industry had a love-hate relationship with transparency.  In fact, there’s another post out there somewhere about all the blown opportunities Realtor.com had to assume the market leadership position Zillow has today simply by being transparent with data and taking down all the paywalls and registrations it used to take to get the most basic real estate questions answered online when it was the only game in town. 


I’ve always said transparency is your best friend, or your worst enemy, depending on how you roll.

And so from the word “go”, I jumped in and decided Zillow Reviews would be my friend.  I quickly reached out to past clients and rapidly built a profile… first 20 reviews, then 30, then 40, then 60, then 80.  By 2014, I had the third most “five star” reviews of any agent in Colorado.

To date, I have 120 reviews. 118 of them are positive.

Today, potentially against my better judgment, I want to talk about the two that are not five star reviews.  And all the damage those two negative reviews have done, not only to my precious “reputation”, but also to my psyche.

I’ll let you in a secret. 

This job is not easy.  It comes at a price.  Ask my family about the countless missed dinners, late arrivals to my kids' events and occasional no-shows at family functions.  

Selling real estate in and of itself, per se, isn’t all that hard.

It’s selling 30 – 35 homes a year, being in the top 1% of agents in Colorado, being the number one producing agent in your office, and doing it all ethically and with your client’s best interests 100% at heart… that’s hard.

When I started collecting reviews on Zillow eight years ago, I was actually kind of naïve about it. 

You see, my business is and has always been referral based.  As a “96% of the time rule”, I only work with people I know, like and trust… who also know, like and trust me. 

It’s that 4% that trips you up.

Because every now and then you start down the path with someone and realize that it's a mistake.  Whether it's differing ethics, differing word views, or differing beliefs about what makes a "good" real estate transaction... I've always preached that if it doesn't feel right, you shouldn't be doing it.  

But every now and then, you find yourself dancing with someone when you should be running away.

Sometimes I will gently suggest those people partner with another agent.  Sometimes I ride it out to the bitter end, where either things get better or things get worse.

But it’s a complete fantasy to think you can sell 300+ homes in a 12-year period and not have an occasional flameout.

And that’s where this post gets sticky.

The truth is, when I began collecting reviews, my intention was not to attract strangers.  Far from it.  It was simply to create a single site where reviews, sales history and production could be aggregated… because as we declared earlier, transparency is your best friend or your worst enemy, depending on how you roll.

My naïve intent in 2010 was to collect reviews, add a QR code to my business card and marketing materials (a trendy idea at the time) and let people read for themselves how I sold more homes than 99% of the agents in Colorado, worked with people I loved and delivered results that are truly elite.

What happened, in addition to that, is a whole bunch of strangers I had no connection to started finding me online based on those exceptional reviews, and that’s where my troubles began.

Truth is, over the past eight years I have closed about 40 clients who found me off of Zillow reviews.  Conservatively, I’ve probably had 250 or more contact me. 

Eighty percent of the time, my response is pretty simple:  “I’m sorry, my business model is to work only in my network with people I’m already connected to.  Best of luck to you.”

But sometimes… whether it’s a slow week or a large home or a compelling narrative that seems worth connecting with… I’ve taken the bait. 

And when you stray from your values, your results may vary.

Of my 40 or so closed Zillow clients, I would say at least 25 - 30 had great working relationships with me.  Clients for life.  Raving fans.  All that good stuff that happens when you truly put your clients needs ahead of your own, work seven days a week, solve problems at a high level and know the market like nobody else. 

I’ve had another five to 10 I tolerated.  Didn’t dig their vibe, didn’t like their humor, didn’t appreciate their seek and destroy worldview.  But we got to the finish line and they were happy, as far as I know.

And then there are a handful of strangers I truly regretted working with.

It’s hard, when you start from scratch with people and go through a process as emotionally demanding as buying or selling a home in this crazy Denver market. 

There’s stress, anxiety, pressure and self-doubt. 

And the clients sometimes have troubles too.

But, seriously speaking, if you think it’s possible to have a 100% approval rating at scale over eight years in any field, you’re delusional.

And so tonight, I’m waiting for bad review number three. 

I fired clients today who found me on Zillow a few weeks ago.  It doesn’t matter what the details are… we just aren’t a good match.  This couple has had bad real estate experiences in other markets and arrived into the Denver market with baggage. 

Their view of “winning” is different than mine.  They think winning is sticking it to the other side, testing the boundaries of the contract contingencies and perpetually negotiating until the ink is dry at closing.

They’re not interested in what anyone thinks of them after closing, as long as they got the best of the deal.

And that’s fine.  For them.

I’ve dealt with plenty of seek and destroy personalities in real estate.  You can’t imagine the drama that actually goes on behind the scenes when people operate from scarcity using a roadmap of threats, demands and ultimatums.  

We all have biases and we all create narratives.  While all biases and narratives have gray margins, sometimes you swerve into people who are approaching things from an entirely different universe.

You need to cut bait with those people.

Problem is, these people can also post reviews.  And then they are hung around your neck like a millstone, and it sucks.

As we move deeper in to 2019, I’m transitioning away from Zillow Reviews as a branding tool.  Being addicted to the approval of others is a deadly trap, and when you breath in fawning reviews like oxygen, the words of a hater become like toxic gas.  

I’ve been trending away from aggregating reviews for the last year or so, just as I’ve trended away from social media and other bastions of fakeness in our culture today.

While 98%(+) of my reviewers love me, the 2% who don't have too much power.  

So I’m going to continue doubling down on relationships, going deeper instead of wider.  And I’m sure it’s going to work out just fine.

We live in a world where we are far too obsessed about what others think, often at the expense of what we should think about ourselves. 

I’m reconnecting with what I should think, and I think I’m done giving so much power and authority to people who mean me harm. 

Thursday, February 21, 2019

MILLENNIALS AND THE COMING GENERATIONAL CONFLICT OVER HOME OWNERSHIP

I've been giving a lot of thought lately to the future of home ownership.  

That sounds like a weighty philosophical statement, and it is, but when your business is based on transparency, honesty and thoughtful analysis of the numbers... you can't avoid looking at how societal and political trends will impact housing in the coming years.  

As you know if you've been following my narratives, either in this space or on Facebook or via the recent comprehensive 10 - 15 page market update reports I mailed out to past clients in September and again in January, our market is changing.

Here in Denver, we're on the tail end of multiple offer bidding wars, inventory shortages and what has essentially been one of the all-time great market runs for the Rocky Mountain region.  

The main reason our market is starting is to flatten out is that young people are simply tapped out.  

Years of rising prices, coupled more recently with rising interest rates, have made home ownership unattainable for a growing number of younger Coloradans.   

It's reflected in the home ownership rate, which has dropped from an all-time high of 71% in Denver 12 years ago to 62% today, and I believe it's headed for the mid 50's over the next few years as the American Dream of buying a home simply becomes a dream, period.  

It's too difficult for young people to get started now, with record amounts of college debt, a scarcity of good paying jobs and technology and globalization increasingly putting Millennials in direct competition with educated young people in India, China and a host of other countries where $5 an hour is a pretty attractive wage.

For decades in this country, tax policy and governance has been skewed in favor of the rich and the old.  And more recently, the Fed's interest rates policies allowed corporations access to unlimited capital at negligible rates, leveraging their returns and creating even more wealth at the top of the pyramid.

Change happens slowly, but change is gathering momentum.  And it's going to affect housing.  

For example, what happens if (when) the home ownership numbers dip below 50%, and we effectively become a nation of renters.  At what point do things like the mortgage interest deduction and tax-free capital gains for sellers of primary residences go away?  

Don't say that housing in this country isn't subsidized by tax policy, because it is.

For all the stupid and ineffective things NAR does with its ridiculous piles of dues-generated cash, the one thing they have done effectively is lobby.  Yes, NAR has 1.2 million members writing annual checks to fund a war chest that directed over $72 million to lobbyists and politicians in 2018.  And that fat cat system has been the first line of defense in holding the status quo.

But if the trendlines in our political culture mean anything these days, it's that the status quo is in the crosshairs.   

We have a housing affordability problem in this country, in part because a whole bunch of older people are sitting on trillions of dollars of equity that was created in large part through government subsidized housing perks and a very accommodating interest rate environment manufactured by the Federal Reserve that created an unbelievable post-Great Recession value surge.

It was great for incumbents, because it's the economy, stupid.  It was great for the Treasury, because soaring values for stocks and real estate mean higher tax revenues.  It was great for banks, because when the Fed gives you access to funds at 0% and you loan those dollars out at 4%, hey, that's a sweet deal.  And it was great for those who owned real estate because your home(s) just made your balance sheet look a whole lot happier.   

For Millennials, what did they get?  $20 trillion in debt, record student loan liabilities, rising rents, and a job market that is marked by diminishing opportunity and increased pressures caused by the twin hammers of technology and globalization.

It's not far-fetched at all that a younger, more mobilized political class would extract its revenge by taking aim at the home mortgage interest deduction.  And if a majority of the population ends up as renters, then it's a lot easier to start passing mill levy increases on those privileged snobs who own stuff to pay for public schools, roads and infrastructure.  

And affordable housing programs.

And rental subsidies.  

And maybe appliance tax credits, or transportation tax credits, or utility bill tax credits... or whatever other credits, gifts or incentives politicians can dream up to funnel toward the growing bloc of voters known as renter nation.  

If we become a nation of renters, then that bloc of voters who don't own homes might not have any problem raising taxes on and taking benefits away from that bloc of voters who do.   

While we have vulnerabilities here, it's far worse in my old home state of California, where Proposition 13 has been the untouchable third rail of politics since 1978.  This voter-passed initiative was intended to keep older Californians from being priced/taxed out of their homes by limiting annual property tax increases to 1%... which means a home that sold in 1980 for $50,000 may be worth $800,000 today, but if the owner has been there for 39 years he is taxed as if its actual value is less than $100,000.  

Guess who makes up for that funding shortfall?  

The younger guy who pays $800,000 for the home next door, who is taxed at eight times the rate of his elderly neighbor, that's who.  

If there's an affordability crisis and you want to blow up the system in a hurry, repeal Proposition 13, and overnight you'll have every senior citizen on a fixed income in the state putting their home up for sale and moving to (insert the name of any more affordable place here).  

Which means massive amounts of inventory flooding the market overnight, plunging prices due to the surging supply, and complete chaos in the housing market.  (That might work pretty well for young people, come to think of it)

That's the California example.  We have a senior property tax exemption here in Colorado, and although it's not nearly as punitive as the system in California, some revenue-hungry politicians might be inclined to look at it.  

My point is, over the next decade we are going to live through a politicized generational revolution both here in Colorado and in the United States in general, in my opinion.  As young voters mobilize and politicians pander to them, it will change the game.    

The fastest way to level the playing field between rich and poor, old and young, owners and renters... is to start taking the perks of ownership away from the have's and transferring them to the have not's.

Based on this framework of ideas, you would be naive not to at least consider the possibility that home ownership may soon become a politicized target, instead of a generational aspiration.  

We've got a broken system here.  Well, it's broken if you're young and not endowed with a trust fund or a pipeline to the Bank of Mom and Dad.  

The National Association of Realtors, the Colorado Association of Realtors and the real estate industry in general needs to stop doubling down on the status quo and needs to start having some real conversations about how housing policy can be done better.  Young people need affordable options.  And old people may have to forfeit some perks for it to happen.  

If we don't lead on this issue, politicians will.  We can lead, or we can be led.  But either way, don't expect the the world of tomorrow to look like the world of today.  

Tuesday, January 29, 2019

MULTIPLE OFFERS AND AGENT ETIQUITTE

The spring market is back.

Over the weekend, I listed two homes that drew a combined 58 showings and 13 offers.  I was, honestly, stunned to see how quickly this market came roaring back to life after things went silent during the 4th quarter of 2018.

Both contracts ended up beyond list price with other significant concessions.  Having just endured a weekend with 40-plus phone calls, frantic agents and desperate buyers (where were these people a month ago?), I’m still processing my thoughts about what just happened.

And I do have some deeper perspectives about the quality of the buyer pool, the future direction of our market and what went down over this crazy weekend… but I’m going to save them for another time.

Right now, I want to talk about professionalism. 

On one of my listings, I had seven offers more than $10,000 over list price… all great offers, at least as far as the numbers are concerned.  But when there is that much competition and that much frenzy, it comes down to details. 

Appraisal guarantees, lender phone calls, proof of funds, agent production history… all of that matters.  Because what you’re trying to do, as a listing agent shepherding that many offers, is find the buyer, agent and lender who give you the highest and best odds of closing on time, with minimal brain damage, under the best possible terms.

So yes, an agent with 10 years of experience and 200 deals is going to have a leg up on a newbie who is still trying to figure things out. 

After thoroughly evaluating our contracts and letting my sellers make their decision, I sent out an email to all of the other agents who had submitted offers.  I let them know how many showings we had, how many offers we received, and what a difficult decision it was.  I let them know (in this case) there were at least five offers that could have been chosen, but in the end, it came down to details.

Shortly after hitting the “send” button, my phone rang.  It was the agent who had submitted what probably was the second-best offer, well over list price with a free rentback and a small appraisal guarantee… but no proof of funds and no lender phone call to back it up.
 
We easily could have chosen this buyer, and I bet we could have made it to closing and everything would have been just fine.  But in the end, as I said, the goal is to take the most complete, airtight offer on the table. 

That wasn’t his, although it was close.

The point is, instead of saying congratulations and taking the high road, this so-called agent chose to berate me.  I could hear him huffing and puffing through the phone about how we never game them a second chance or called to ask for what was missing.

As I said to him, calmly, you get one shot to make a first impression.  Your offer was 90% buttoned down.  You got beat by someone whose offer was 95% buttoned down.  

The good news is, his outburst on the phone confirmed for me that we had made the right decision.  

In this type of market, who you work with matters, more than you can possibly imagine.

Reputation is the most important asset any agent owns, and I’m proud of where I stand and of how many agents want to work with me based on my track record of proven results.

Buyers often don’t understand this, and then wonder why when they chose to work with discount brokers and freshly licensed second cousins their offers end up in the trash. 

Reputation is the secret sauce of real estate.  And when you hire an agent, you are employing their reputation as much as their skillset and availability.

The screaming agent who called and chewed me out this morning blew any chance of being in second position if our first buyer bails out.  He took something that had a 20% chance of happening (moving into first position if our top contract falls) and effectively moved it to zero. 

Nice work, champ.

I understand that emotions are raw and it’s hard to work with buyers in a hot market.  Don’t you know I’ve been there myself, more times than I can count?  It’s maddening.

But the game is not over when the first contract is selected.  In fact, the game is not over until the deal closes and the process is complete.  Professionalism and basic intelligence dictate that you keep the door open, take the high road, say the right things and operate from a position of gratitude, even when you lose. 

But of course, I’ve been doing this for 25 years.. and maybe back in year two or year three or year four I was more like this guy, angry and embittered and huffing and puffing.  So I’m willing to extend some grace.

If you aren’t Captain Angry and you’re just a hard-working agent who happens to be reading this, I’m hoping you can see the wisdom in understanding how your own behavior plays a role in your ultimate success or failure. 

The best advice I can give you is, take the high road, every time.  Because I can’t tell you how many times I’ve been in a similar situation, when three days later, my phone rings and it’s the listing agent.

“The buyer got a little wobbly and the earnest money never showed up,” says the agent whom I treated with humility and respect after initially losing out in multiple offers.

“Is your buyer still interested in the property?”