In July of 2022, I had a meeting with a homeowner in Mission Viejo who wanted to sell his property. He had purchased the house less than a year ago and had already moved out due to dissatisfaction with the neighborhood. He had started some renovation projects in the home but had not been able to complete them. He reached out to me to see if I could help him finish the work before putting the property on the market. However, he also requested that I reduce my commission to 1.5%, which was lower than my usual fee of 2.5%.
I explained to him that I would not be able to reduce my commission if he wanted me and my team to handle the remodel using our vendors. He argued that other online brokers and vendors could manage the job for him, but I emphasized the superior quality of my individual stats and marketing compared to other agents. After a few weeks, the homeowner contacted me and agreed to hire my team. We began working on the property with our vendors by completing the paint job, installing new carpeting, finishing the laundry room, building a new closet, and replacing the master vanity. We also staged the house and put it on the market.
Unfortunately, the market in that particular neighborhood took a downturn, and all sales came to a halt. We listed the property at a higher price than what we should have initially, and it remained unsold for a long time. Despite multiple open houses, we received few offers, and the homeowner was unwilling to accept any of them. This cycle of marketing, showing, and hosting open houses continued for several months until we finally received an offer that the homeowner agreed upon.
However, another obstacle emerged when the buyer conducted an inspection on the property. The inspection revealed that the roof had many broken tiles and that the roofing material was discontinued, with a class-action lawsuit against it. We could not find any roofing company willing to undertake the repairs, and we were unable to obtain the necessary roofing material. As a result, the entire roof needed to be replaced.
Given the already high price of the property, which was higher than the other comps in the area, the homeowner's resistance to lower it, and the property's lengthy time on the market, we had a difficult situation on our hands. Nonetheless, I decided to negotiate with everyone involved and work towards a satisfactory outcome. We all agreed to contribute a portion to a credit for the roof repair, with myself, the buyer's agent, and the homeowner and the buyer sharing the burden.
Many agents may not discuss such issues, and some may even refuse to offer any credits. However, in my experience, it is sometimes necessary to make tough business decisions and negotiate commission rates based on those decisions. If I had negotiated my commission down in the beginning, I would not have been able to step in and offer a credit. In the end, even if this particular property was not profitable for me and after months of work, I would consider it a loss, but, the satisfaction of a happy homeowner and a pleased buyer made it all worth it. And with Maritza Bernard's assistance, we walked away with another satisfied client, regardless of the profit or loss.
This story illustrates that real estate transactions can be unpredictable and often involve unexpected challenges.
