Mr-Know-All-BuyerI often meet people who are smart, educated professionals, successful in their respective fields and who have come up in their life through hard work and determination. I truly respect and admire their accomplishments in life.

However, often some of these folks forget that they may be expert professionals in their respective fields or line of work but not in other people's professions. They may even be best in class by virtue of their education be it in Medicine, Engineering, Law or any other.

Their degrees and qualifications don't really matter when it comes to expertise in a different profession. By the same token, if I as a Realtor, was to seek their advice in their respective professions, I would simply trust them.

I am quoting from a real example of not one but quite a few smart "Mr. Know It All" buyers.

One Example

I showed one "Mr. Know It All" a home. This property was priced lower than fair market value. By virtue of bad habit or negotiation beyond reason, this person asked for discount on discount. He wanted to bid lower than what the real price should be. I explained to him the facts (comparable prices and seller's market conditions, we were in), but the dude wouldn't listen. I also explained to him that similar home last year sold for 6-8% less and in the next 6 months to 1 year, it might move up by 5-6%.

Penny wise, Pound foolish

The guy did not understand my wisdom and thought himself to be the king of negotiation. In the end, he lost the home and subsequently lost two more homes. Still wouldn't get it and decided not to buy.

Today, if "Mr. Know It All" has to buy, he will have to shell out 10% more than what he could have paid last year. In other words, it will cost him $50,000 more on a $500K home. It is hard to predict when market will go up or down. But the fact is that this person did not get anything because of his attitude.

Moral of the Story

When it comes to real estate, first choose your real estate professional wisely, and after you have made your choice, please TRUST your professional.