My $50,000 Lesson
I recently finished a transaction where I made VERY small fraction of what I potentially should have. Yes, you read that right! And trust me, when I look at the numbers, yeah, it churns s the gut just a tad.
I had been working with my clients for multiple years trying to find a particular type of property that would be perfect for them. Nothing we ever looked at seemed to be the right fit.
Enter my amazing assistant. She referred me to a couple who was looking for an investor as they had a unique piece of property they were wanting to sell. It is a cool piece of property; Fifty-seven acres, 3 living dwellings, 3 water taps with developments going on all around it. A great investment for the now and future.
The investment property wasn’t going to work for us. But I loved it. So, I sent the property info on to multiple developers, but none were interested.
I thought about my clients. Realistically, the price was far too high for them, especially if you didn’t think out of the box. However, if you know me, you know I like to venture out of the box.
I sent my clients the property and just said – “Just tell me if you like the property and would want to take on the work and opportunity.” They did. So, we made the introduction and negotiated the price. ALL THE WHILE, I do not have a listing agreement made with the sellers, I am just running cavalier because I love the property.
We end up going under contract on this property. Which means we had to sell my clients original property.
Years ago, I had made an agreement with my clients, that I would sell their home for a discount since I was going to be their representation on the buy side. Made sense to me and seemed fair to them. It was finally time and I had to follow through on my commitment, which I did happily so, despite knowing I was not going to make a dollar on the buyer’s side.
As for the seller’s, I decided, I had done the exact definition of a real estate agent and then some for these owners of this 57-acre property. I had marketed their property to multiple buyers, introduced them to their current buyer, and negotiated terms and price for both sides. I believed I could ask the sellers for a commission I felt was earned. I didn’t ask for close to what would be market commission for this deal. But it didn’t matter, they said nope, nothing, zip, zilch, $0.
Serves me right.
We ended up closing on both properties after months of extensions, negotiations and obstacles. My clients are now in their dream home. I can hold my head high knowing that, ultimately, I did my job and my clients and friends are happy.
It was a $50,000 lesson.