Real Event Horizon

: When a buyer or seller makes a decision, there are experiences that they may not have to help their decision. What I call the real estate event horizon is, simply, the specific time that a client’s decision is pivotal and critical in the sale or purchase of a home.  The “horizon” is the point of no [or a costly] return.

The event horizon of a black hole is the boundary (‘horizon’) between its ‘outside’ and its ‘inside’; those outside cannot know anything about things (‘events’) which happen inside. (And there’s no turning back.)

A seller has AT LEAST two “horizons” in a real estate endeavor that makes or breaks their achievement of the goal of that event.

  1. To list their home for sale — it can be difficult or costly to back out of this decision.
  2. To accept an offer from a legal buyer — it can be difficult or costly to cancel this transaction.
  3. (optional) To accept a renegotiated offer from a legal buyer.

A buyer, also simplistically, experiences EXACTLY three “horizons” in a real estate endeavor that makes or breaks their achievement:

  1. To write an offer for a home — it can be costly to back out.
  2. To spend cash/time to validate their selected home — this shouldn’t be optional but IS a sunk cost.
  3. To commit to the purchase of that home — it can be costly to cancel after this.

These are critical questions that require my clients’ decisions.  They are not MY decisions.  My client makes ALL decisions, especially these.  My ethical standard means my duty is to help my client deal with THEIR events. 

Their “event horizons” happen to be my favorite parts of every client’s experience. That’s the only time to truly prove my “fiduciary duty” – a client’s wish to cancel MUST be the only factor in that “event horizon”.  Otherwise, I’m putting my benefit above my client’s.  That is a breach of fiduciary duty.

My least favorite part of ANY endeavor is guiding a reticent client.  But, having a client is better than NOT having one.  

Once I have been hired, my favorite part (Event Horizon) could easily become my least favorite part (No Client). In fact, when a client decides to walk away from a transaction, if I were to try to save it, it could be for the wrong reason.

My “raison d’etre” has to be my client and THEIR event horizons.

 

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