5 Times I Talked My Clients Out of Buying or Selling
It’s my job to sell you a home, or sell your home. It’s also my job to protect you, advise you and educate you. You are absolutely welcome to make any decision you’d like after I have provided you with all the information, expertise and advice I have available. These are 5 instances where I actually talked my clients out of selling or buying.
The One With The Sketchy Porch
In 2017, I had sweet clients under contract to purchase a two story home with a second story porch. The inspection came back with typical items, but the inspector flagged the porch as it was not in good shape. There were some structural concerns.
Per my recommendation, my clients ended up hiring a structural engineer to come out and get his eyes on it. After all, inspectors are not licensed plumbers, electricians, general contractors, or structural engineers. Their expertise is limited and they are there to look for and point out red flags and direct buyers to seek further advice from the professionals in each respective field.
The structural engineer advised for some extensive work to repair the porch. He deemed the porch “not structurally sound” as it was. Long story short: the seller wanted to hire their own engineer and contractor to repair to their standards and wouldn’t allow another engineer to review the work. I didn’t like this for my clients. Structural repairs are not to be messed with. I felt that my clients had the right to have someone on their “team” review these extensive repairs. They were torn on what to do, and I told them completely honestly, given this whole scenario: “I wouldn’t buy this house if I were you.”
And they didn’t. And they felt good about that decision. And I felt good about advising them in that decision. Could I have let them gamble with that other contractor? Yes. Could it have worked out fine? Yes. But my gut didn’t like the smell of it and I had to share my true opinion with my clients. They ended up buying a brand new house in Park Circle and they have been super happy there!
The One Where The Seller Didn’t Have Enough Equity
In 2019 a client reached out whom I had sold them the home in question. They were moving out of state and ideally wanted to offload that property before moving. (It was an investment property).
They had purchased it a little more than two years prior. I ran some numbers on what it might sell for, plus all closing costs, and it turned out they weren’t going make much money, if any at all. Could I have BS’d them and told them it would sell for more, just to get the listing? Sure, I suppose. Some agents might do that. But I straight up told them the truth: “I am happy to list it for you, if you choose to, but I believe you will not make any money if you sell this home right now. Let’s chat about other options and I’ll support you in whatever you decide either way.”
We went on to discuss some options including going over some rental numbers and they decided they would hold on to that property for a couple more years and rent it out in the meantime. Which, good thing they did, because we are listing it soon and they’re going to make a ton more than they would have in 2019!
The One With A Busy Road
This client was under 30 and about to purchase her third home #girlpower. She is an engineer and thus very analytical. She looks at purchasing a home as an investment first, and a home second. Resale value was extremely important to her.
I will add here, that, I always educate my clients on resale value. Some buyers don’t care that much - they just want whatever home works best for them. And that’s fine! It’s ultimately your decision and your decision only. With this client, I was sure to discuss resale value for every property we saw.
She really liked this one house. Checked all the boxes. Lovely two story home, great yard, fantastic location (um, 1 mile to the beach!). There was just one thing: it backed up to a busy road. I told her that it’s a beautiful home but that road will hurt your resale value because it ain’t goin’ anywhere. Location, location, location.
She ended up skipping on that one, and purchased another home 1.5 miles from the beach that has appreciated in value almost $200,000 in value in 2.5 years!
The One With The Really Shotty “Flip” Work
This buyer client had a really tight budget and really wanted to live in Park Circle or as close as possible. I found her a cute little flip that looked great in the photos and we went to go see it. This is a perfect example of how photos can be deceiving. Whew. The flip work was so messy. The tile job in the bathroom was atrocious. The backsplash was sloppy. The floors were cupping (likely from crawlspace moisture). Patchwork on the walls was half-a$$ed. Actually, everything was half-a$$ed.
She wanted it anyway, so we submitted an offer and she got it. Inspection came around, and the report was a nightmare. Something was leaking in the crawlspace so bad that the inspector could hear it, but he couldn’t find it, because he could barely get around down there amongst the debris the contractor left behind.
It was bad, y’all. My client was so torn. She wanted to buy in this location so badly, and this house was so cute from the outside. She even talked to her parents about borrowing money for the necessary repairs. Once again I uttered the words: “I would not buy this house if I were you.” I could not, in good conscience, not say this to her (more than once, I will add).
She slept on it, talked to her parents and me again, and decided against it. She ended up buying a brand new build in Mixson, very close to Park Circle. She is loving it and her neighbors there.
The One With Capital Gains Tax
This fella came to me wanting to sell his home that he had purchased just a year and a half prior. He got married and the couple was ready to upgrade to something bigger.
There is something called “capital gains tax”, in which a seller owes the government additional taxes on the money they earn when they sell a home. Typically this is if they sell before two years of ownership. I am not a CPA. Please speak to tax professional about your particular scenario.
In this case, after speaking with their CPA, this gentleman would have to pay a chunk of money in capital gains tax if he sold before the two year period. I discussed with him the pros and cons of this situation. The market is high right now and it’s an excellent time to sell. There is the chance that the market goes down in the next 5-6 months when you reach that two year mark and you won’t sell for as much as you could now. But, that’s not guaranteed. And hey, the market may go up even more. But what is guaranteed is that you will have to pay capital gains tax if you sell right now.
Ultimately, he decided to wait until that two year mark and he is certainly glad he did because the market has continued to climb.
Now, at the end of the day, all of these clients make their own educated decisions. I do not force my clients to make any decision. I work for them, and support them the best way I can, in whatever choices they make regarding the purchase or sale of their homes. I simply advise. But I am certainly honest. Know that when you hire me, I will always, always be honest with you. Maybe even to a fault! Maybe even if it costs me the sale. I don’t care — my name and reputation are on the line and I will always give you the best of my resources, professional opinion, knowledge and expertise.
Valerie Weber
Charleston Realtor, Blogger & Online Shop Owner
The Shahid Team @ The Boulevard Company
val@thecharlestonhome.co
843.973.2445