How Much Do Emotions Cost?
How Much Do Emotions Cost?
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Mar 23,2023

How Much Do Emotions Cost?

We don’t often stop to think about emotions and money together. Inherently, during times of high emotion money is the farthest thing from our minds. I’m reminded of when my wife and I were planning our wedding. When we were looking at reception venues I was surprised at the cost. As an experiment I called several and inquired about the same date but instead of a wedding reception I said it was for a family reunion. The cost was significantly less, half in some cases. I suspect the same would have held true if I experimented with the various other vendors. Marketing firms play the same game. That is why a lot of ads target our emotions more than offering a value proposition for the product. 

Real estate is no different. I was recently showing houses in Roswell, Georgia to buyers that will owner occupy. As I often do, I noticed they are less concerned with the price and more concerned with how the house makes them feel. Sellers are not immune. I work with sellers who feel like their property should sell for more just because they spent a lot to renovate. Or it has a lot of emotional value to them.

Not all renovations are equal. If you are renovating for lifestyle and your personal enjoyment, there is nothing wrong with that. However, understand that not everyone has your style. Just because you spend 100k renovating does not mean you will increase the value of the house by 100k. Likewise, just because someone has great family memories in a house or put their heart and soul into the landscaping does not equate to increased sales price. 

Intentional real estate investors know the importance of removing emotion from real estate. Often when I’m helping an investor find a property to add to their portfolio, they don’t even go shopping with me. They will send me their property criteria. I’ll scout out properties and send them pics and numbers. The numbers drive the deal. 
REALTORS® bring a lot of value through knowledge of the market, expertise in negotiating, knowledge of contracts, expertise in marketing, and so much more. Perhaps the biggest value a REALTOR® can bring a client is helping them control emotions and looking at the bigger long-term picture. 

Investment property can be even more emotional than buying and selling. Buying and selling are short transactions and each side goes their separate ways after closing. With investment property you may have the same tenant for many years. It is easy to develop a friendship that can lead to tension when life happens. A landlord might let a tenant take advantage by consistently paying late or move in without a deposit. I have seen situations where owners frequently go to the property and check on the house, even peeping in the windows. Property visits are fine but there is a legal term- quiet enjoyment that needs to be respected. A great property manager can help insulate you from the emotion and save you a lot of headaches and money. 

Controlling emotions in real estate will save you thousands of dollars and countless amounts of undue stress and heartache. If you have not considered a REALTOR® or a great property manager for all the other value they can bring, it is worth it if for no other reason than helping you remove the emotion from real estate. If you know anyone that could use help buffering their emotions in real estate have them give me a call.

Shane Cargile
Real Estate Agent, Property Manager, Real Estate Investor
3 Options Realty
555 Sun Valley Drive Suite B4
Roswell, GA 30076
770-241-3524
shane@3optionsrealty.com

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