Oct 20, 2012

0 Holding ..or Hoarding Power

Aaaah..dramatic use of words when trying to push a sale through.

Holding Power, nothing but a showy announcement of wealth. Property agents love spouting these words to intimidate potential buyers into resigning to the fact that prices ARE going to be this expensive.

I don't allow pride to overcome sense.  So these words, to me, are a crude way of getting the message across. If you have holding power, then by all means keep the property and walk away. The last thing I want to know is if anyone has "hoarding power".

What does it mean to me really, the ordinary layperson outside the realm of property business. It is only a seller who can pay for maintenance, loan interest and utility bills for years until he gets a buyer to sign at a price he wants. They risk lower gains after putting in so much to upkeep the place, but optimistic greed tells them there will be that jackpot buyer coming along soon. It doesn't look like a good move investment-wise but I could be wrong.

So, are sellers with holding power really just people hoard what they can't sell. They hoard out of pride.

But then again, perhaps the property isn't on loan and the seller is earning good rental money...I'll keep an open mind.

Otherwise, it only tells me that the seller can ill afford to sell it lower because he wouldn't be able to settle the debt he has with the bank, but who is big enough to admit that...

I was keen on purchasing a unit in Villa Damansara once. It was a two-storey corner unit with an unkempt garden and windows dressed in old curtains which tore at the slightest pull. The upstairs was dingy and it was obvious that it had seen better days when it was in the company of fresh air. The ceiling was stained with brown spots evident that water had sipped through.

The asking price was an eye-rolling RM750k. For that amount, we could consider buying a new property elsewhere. But since the seller had "hoarding power", we did not initiate negotiations. He had been hoarding this property for almost a year. 

We went home satisfied with letting it go.

Two days later, the agent called offering a discount of RM100k. I was hardly excited but she rattled on like it was the best deal anyone could get.

My feelings bordered on irritation by the end of the conversation because I could have ended up paying RM100k more if I was the fool who believed that the worth of the home is in the location and the design.

No, the worth of a home, to me, has always been about the people we live with and the beautiful memories we build together. It can be a cheap apartment somewhere but it would be priceless for the wonderful moments that colour its history. I'm looking for a place to make a home, not for a house to shelter my ego.

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