The Massachusetts real estate market is taking off, but the spreading of the recovery is also carrying a virus infecting local Realtors and landlords…
Across the state demand for buying and leasing real estate from multifamily to single homes, retail stores and office space is heating up but the side effects may not all be pleasant.
Multiple offer situations are increasingly resulting in bitter bidding wars pitting prospective buyers and tenants against each other. In fact, while industry players have heralded a dozen or several dozen offers on a good percentage of property listings as a sign of rebound in places like Southern California and South Florida, Massachusetts apparently set a new record recently. MA real estate brokers stopped accepting bids after receiving 250 of them for a pair of local condos, which ended up selling for $400,000 above asking price.
Unfortunately this has turned some landlords and Realtors into monsters, with at least one proclaiming to the press “I ask for blood” when deciding which offers to accept. And we wonder why the industry has such a bad reputation!
Some may get away with this bloodsucking stance for a little while, and even find it lines their pockets with a little silver in the short term. Yet, there is also definitely something to be said for those that choose to inoculate themselves against this egotistical and predatory short term thinking.
It pays to play nice…
Sales people, sellers and real estate investors should absolutely capitalize on current market conditions and they should expect their representatives from full service property management companies to Realtors and attorneys to assist in maximizing their profit potential.
However, besides just being the right thing to do, showing a little decency, compassion and care can go a long way. In fact, it doesn’t just make you feel a lot better about what you do and how you make your money or boost your reputation, it has real, tangible financial benefits too.
If you want to play dirty hardball and act the bully anticipate buyers, vendors and tenants to be equally abrasive. As the owner of commercial properties in MA, whether you are leasing multifamily property, office buildings or retail space you are in a service business. You aren’t punting vacuum cleaners door-to-door, pushing used cars or even flipping dirt cheap single family homes. So winning and realizing the maximum returns and enjoying the most rewards in the long term requires a slightly different approach.
Look at how T-Mobile has scooped the mobile phone industry recently by serving up more of what customers want and treating them better than the competition. Contrast that with the dramatic fall of Apple on setting aside their focus on the customer for quick profits and milking everything they could out of existing clients.
Aside from building loyalty, enabling landlords to demand a well-earned premium and gaining referrals, playing nice also reduces liability. If you are a little more likeable the risk of malicious and frivolous lawsuits can be slashed and tenants are instinctively convicted to keep up their properties and go the extra mile for their landlords on their own.
Of course being nice or even just patient isn’t always easy as a landlord. It can be incredibly trying. That’s why having the right property manager in place can be invaluable.