Real Estate's Healthy Engine

A friend of mine works for a major car manufacturer in his capacity as a mechanic and technician – he’s been with the same company for over 20 years, so it’s safe to say he knows a thing or two about how engines work, right? Whenever I have a problem with my car that extends beyond needing new tires or an oil change, I always reach out to him to see if he can give me an idea of what’s going on and how much it’s going to cost to fix it.

In the times he’s kindly come over to look at one of my ailing vehicles, I’ve learned a couple of things. One is you don’t need nearly as many “things” to change your spark plugs as the folks at the auto parts store try to sell you. The other little morsel of wisdom is in order for a car to start and run, it needs three things: air, spark, and fuel. For an internal combustion engine, if you take one of these three things away, you don’t get the controlled explosion that makes the heart of your engine pump. (Side note: this is not to be confused with Earth, Wind, and Fire – the band whose music you need as a vital part of a play list to make the heart of your party pump.)

As if you didn’t see this coming from a mile away, I’m now going to equate this to a successful real estate transaction – one that lives and breathes. The air, spark, and fuel in a successful real estate transaction is, respectively, an agent, a buyer, and a mortgage person – if you take one of these three things away, you just have a couple of people trying to make pleasant but possibly awkward conversation.

The agent supplies the oxygen – the vitality, if you will – with her/his knowledge, expertise, attention to detail, and zealous representation of the buyer’s best interests. The buyer provides the spark – the excitement and drive – to acquire that first investment, a home in which to start a family, a vacation property or second home, or a home after relocation. And the lender, of course, provides the right type of fuel and the correct amount to get everyone to that finaldestination.

There are specific things that each party MUST do that the other two parties can’t, of course. In most instances, this is understood and doesn’t need to be discussed. However, would it be a bad idea to get all three parties in one room before a property is previewed or a prequalification occurs to discuss the expectations everyone has of one another and have all three agree to live up to their parts? If this were to occur (assuming everyone did, in fact, live up to what they promised to do), we would have smoother, shorter, and more seamless closings. Why? One word: accountability. When someone is accountable (buyer included), they pay better attention.

Let’s return to our car analogy: whether it’s a Mercedes-Benz S 560 (a luxury home) or a Fiat 500c (a one-bedroom condo), you still need air, spark, and fuel – you can’t substitute even one of those things, and each one has to do its part equally well, or all you have is a hunk of materials that no one wants to buy or own.