While I have many passions, I recently realized my top two have some very real similarities.
Growing up, I watched my dad play poker at our house with his brothers and his friends on Friday nights after my mom made a big dinner. It never ceased to amaze me how he would consistently win. Call it luck, or call it skill, I think a lot of it had to do with his ability to read his opponents. At the end of the night, he was almost always the big winner.
My dad also had his fair share of luck and skill buying and selling real estate. Some properties were for investment, and some were the homes in which we lived, but, either way, he always was able to negotiate great offers, and that resulted in him buying low and selling high.
So, what do poker and real estate have in common, you ask? Success in poker requires a certain amount of luck, a good head for math, and the ability to be very observant. Did your opponent call or raise in a weak fashion? Did he show aggression when none was needed? Did he twitch his left eye when that ace of spades came on the turn? These are all essential bits of information, which must be analyzed in order to make the most informed decision.
The same skills can be applied to real estate. When I receive an offer on one of my listings, the first thing I do is sit back and let all of the information in front of me sink in before I respond. Next, a conversation with the buyer’s agent is critical. I try to gather as much information about the buyers as I can get their agent to divulge. Then, there is the math. There are many ways to craft a deal that will work for all parties. The same applies when I am representing a buyer. Even with a tight inventory in the marketplace, I want my buyers to get the very best deal on the property that works for them.
Poker and real estate also must be looked at as business transactions. In poker, if you think someone is raising you just to be a bully, the worst thing to do is to let your pride get the best of you and play right into his trap. You need to play the cards, the odds, the position and the person collectively, or you will ultimately lose.
In real estate, if a buyer submits a lowball offer, don’t get insulted. While the property you are selling might be your home, to the buyer, it is still just a house. Take a step back, and think of selling your home solely as a business decision. Forget about the notches in the doorjamb with your kid’s height marked along the sides. Forget about the custom mural your aunt painted on the wall. These memories don’t have any monetary value to anyone but you, and they shouldn’t get in the way of the ultimate goal of selling your investment. Similarly, when buying a home, it is important to assess when it is wise to get in a bidding war, and when it is wise to wait until the right property comes along.
John Karadsheh is a licensed REALTOR® with Coldwell Banker, Trails and Paths Premier Properties. He also is an Associate Broker, Accredited Buyers Representative, a Certified Residential Specialist, and was voted in the Top 10 Residential Real Estate Agents in Arizona for 2012 and 2013 by Ranking Arizona, the Best of Arizona Business. You can contact John with any of your real estate questions. Call him at (602) 615-0843, or go to his Web site at www.BuyAndSellAZ.com.