Selling houses fast for the most money may be easier if you visit the field of cybernetics to examine the Law of Requisite Variety.
Immediately some people are going to say that the best use of cybernetics in selling houses is to put an ad on Craigslist or Realtor.com. And, of course, those are good and effective ideas.
But cybernetics is more than Cyberspace. It is the science of how people, machines, and animals control and exchange information. From that science came the Law of Requisite Variety. And according to W. Ross Ashby, who introduced the concept of the law, said it applies to a €wealth of possible applications.€ Why not the process of selling a house fast?
How to Make Things Hapen!
Basically the Law of Requisite Variety holds that in any system (the process of selling a house) of people or machines the element in the system (buyer, seller, lender, or appraiser) with the widest range of variety will be the controlling element (deal maker). And logically, the element with the least variety, if depended upon, will retard or strangle change (the sale).
For example, look at the €old days,€ when A wanted to sell a house to B and B said, €Pay me $10,000 if you want the house. I won't take a penny less.€
Assuming B, being equally uninformed of the Law of Requisite Variety, says €I won't pay a penny more than $8,000.€
Sale Springs From Impasse
For a sale to spring from this impasse requires €variety€ from at least one side. Assuming A really wants to sell and B really wants to buy.
Owner finance sales today can easily pay the seller three times as much income as selling for cash and putting the cash in the bank. Conversely, while bank interest is low, the banks' variety, in approving loans is at a low and it is estimated less than 19 per cent of the U. S. population can get bank loan to buy a house.
Banks, appraisers, loan originators and real estate agents are not needed for a real estate sale. However, for anyone selling or buying a house for the first hundred times or so, the services of a real estate attorney are absolutely required and the closing services of an attorney or title company.
What Would Popeye Do?
While negotiating to the finish and eating €me spinach€ are all workable parameters Popeye's determination to maintain the status quo €I yam what I yam€ will keep him either €living in a garbage can€ or with a home he no longer needs, depending if Sailor Man is potential buyer or seller
Perhaps the most meaningful endeavor at this time is finding what each side really wants. The seller wants a sale price of $10,000 and the buyer has only $8,000 in cash and has dependable income, which could be $5,000 now and payments to the seller from the buyer of $100 a month for 50 months.
Not a Recommendation, But a Suggestion!
That is not a recommendation of the end of the negotiations, but a suggestion that variety in thought and an examination of the needs of both parties may help both get what they really want.
Today, more often than not, it is the bank or the appraiser who is the element with no variety. And as in the €old days,€ you do not need a bank or an appraiser to sell a house. The seller knows what he wants. And with a little honest self examination he can determine his true needs.
He may need to move quickly for good job in San Diego. He may have lost a job and need to get rid of the monthly payments. House may be in foreclosure and he wants €out.' Hardly ever is the need for a bundle of cash she can put in the bank at 1.5 per cent?
Owner financing today can easily pay the seller three times as much income as selling for cash an putting the money in the bank. Conversely, while bank interest is low, the banks' variety, in approving loans is at a low and it is estimated less than 19 per cent of the U. S. population can get bank financing to buy a house.
Some Third Parties Are Necessary
Banks, appraisers, loan originators and real estate agents are not essential for a real estate sale. However, for anyone selling or buying a house for the first hundred times or so, the services of a real estate attorney are absolutely required. For the closing and title search, as well, professional services of an attorney and title company are de rigueur.
And as long as you are looking for the parts in the sale process to have variety, look to attorneys and title companies that are knowledgeable enough to also consider the Law of Requisite Variety.