The Psychology Of Selling Homes – Jacob Dornbos
On this episode of The Closing Table, we sat down with Jacob Dornbos!
To watch the full episode, check it out on YouTube below. In the meantime, here’s a summary of the conversation…
Here’s what you missed from Jacob Dornbos…
The conversation began with a this or that icebreaker on appraised value, property management, and more. Jacob then identifies himself as a dedicated husband and loving father of two little kids, a role that occupies a significant portion of his time as he joyfully chases his little ones around. Beyond his familial duties, He also plays a pivotal role in a family-owned business that specializes in crafting street signs, road signs, and more. However, his passion for real estate is equally noteworthy, and he is committed to seizing every opportunity that comes his way, making deals that matter.
Jacob’s primary market is located in Charlotte, MI, but his business endeavors also extend to the Greater Lansing area. In Charlotte, he is intimately familiar with the city’s streets, thanks to his years of experience. The properties he deals with typically have an average price of around $200,000. Over the four years since obtaining his real estate license, Jacob has predominantly navigated a seller’s market, where appropriately priced properties often go under contract within a week. Describing Charlotte as a unique blend of suburb and city, the area features downtown homes with close proximity, as well as suburban subdivisions and expansive farmland, offering a mix of housing options.
Reflecting on the pivotal moment that shaped his real estate journey, Jacob takes us back to his post-college days after graduating with a degree in Psychology from MSU in 2016. Realizing the financial limitations of his chosen field, he ventured into the family sign shop business. However, a turning point arrived when a friend invited him to attend a “Rich Dad Poor Dad” seminar in 2018, a book that had a profound impact on him. The seminar opened his eyes to the world of real estate investment, sparking his curiosity to learn how people were able to invest in properties with minimal upfront capital.
Initially not considering becoming an agent, Jacob experimented with wholesaling and soon recognized the demand for traditional real estate services. Responding to the interest from people seeking his expertise, he decided to acquire his real estate license and take his involvement to the next level. Although the beginning was humble, with modest earnings, Jacob’s dedication to learning led him to pursue and obtain his broker’s license, paving the way for a promising and steadily rising career in the real estate industry.
When asked about the strangest thing he’s encountered at a property, Jacob recalls a memorable experience with a potential seller during a “for sale by owner” visit. The house itself was stunning, but what stood out were the numerous peculiar paintings adorning every room. Much to Jacob’s surprise, each artwork was an assortment of unique and unconventional nude paintings. It certainly made for an interesting and unforgettable visit!
As a real estate agent, Jacob understands the significance of ensuring his clients are well-prepared before embarking on their home-buying journey. He shares that one of his standard practices is to discuss mortgage pre-approval with every client, particularly first-time homebuyers. During their initial meeting, Jacob inquires about their pre-approval status. If they are not yet pre-approved, he educates them on the process and the valuable insights a mortgage lender can provide, helping them understand their specific financial standing and what they need to do to obtain pre-approval. Jacob prides himself on working with reputable and professional lenders, who offer guidance to clients regardless of whether it’s their first home purchase or their twentieth. If a client doesn’t qualify for pre-approval at that moment, the lenders provide a roadmap, outlining the necessary steps to take to enhance their chances of securing pre-approval in the future, typically after a few months of improvement.
Reflecting on unique situations where a real estate transaction did not culminate as anticipated, Jacob recalls two noteworthy instances. In one of his early deals, everything seemed to be progressing smoothly – from the appraisal to the inspection – and they were eagerly approaching the closing date. However, just two days before the scheduled closing, the lender delivered disheartening news. It turned out that the buyer had ceased employment at the company where he had been working, leading to the cancellation of the closing process. This unforeseen change in employment status derailed the transaction entirely. In another intriguing case, Jacob encountered a buyer who had purchased a truck just a week before the closing date. This seemingly unrelated vehicle purchase somehow impacted the buyer’s financial situation, causing the deal to fall through.
Next, Jacob shares that he has encountered various unexpected obstacles in his real estate career, but one transaction stands out as particularly demanding. This particular ordeal took place during the pandemic, when restrictions on real estate activities were in place. A client in Eaton Rapids wished to sell their house, but the timing coincided with the period when the governor declared real estate non-essential. Realtors were unable to show houses, photographers couldn’t take photos, and the situation was chaotic.
Undeterred, Jacob and his client decided to list the property with self-taken photos and attempt to sell it amidst the challenging circumstances. However, the pandemic had dampened the housing market, making it difficult to attract buyers who were hesitant to view homes due to safety concerns. Jacob then received an inquiry from a veteran interested in purchasing the property as his first home. To comply with regulations, they scheduled an inspection, allowing the buyer to legally visit the house with an inspector. The negotiation process turned out to be complex, as the house required some work, and it was a VA loan. Jacob played the role of mediator, striking a deal where the buyers agreed to perform some repairs to assist the seller, with the seller covering the material costs. They worked tirelessly to prepare the house for the appraisal process.
During the appraisal, the appraiser requested additional photos and a video walk-through since they were unable to conduct an in-person assessment. The seller diligently repainted certain areas based on the appraiser’s recommendations. Despite the hurdles and extra effort, they finally received the appraisal’s approval and successfully closed the transaction. Despite the challenges, their determination and hard work paid off, leaving both the buyer and the seller in a better place, content in their new homes.
Regarding client gifts, Jacob usually opts for a meaningful gesture, presenting a nice card along with a charming Michigan-themed item. However, he once witnessed a more extravagant gift given to a client at a closing. When he walked into the closing, he noticed an impressive sight – a huge bottle of champagne laid out for the client. It made Jacob feel a bit embarrassed as he stood there with a humble card in hand, realizing that some real estate professionals go the extra mile to celebrate their clients’ accomplishments.
For Jacob, a local volunteer event that holds a special place in his heart takes place annually at downtown Charlotte’s Bennett Park. The park is graced by a flowing river, and during this event, Jacob joins others in the community to clean up the area, picking up trash from the trails and the river. This act of preserving nature resonates deeply with him. Additionally, he had the opportunity to volunteer at the Woldumar Nature Center in the Lansing area a few years ago, further solidifying his passion for environmental conservation through volunteering.
The conversation wraps up with Jacob looking back on his journey in the real estate industry. He shares some essential lessons he has learned. One of the most significant insights he gained early on was the importance of admitting when he doesn’t know something. Acknowledging his lack of knowledge rather than pretending to know has proven to be a wise approach. Instead of taking uninformed actions, Jacob seeks the guidance of professionals who possess the necessary expertise, such as title companies, lenders, or other experienced agents. This approach has garnered appreciation and support from the seasoned professionals, fostering a cooperative and learning-oriented environment.
Embracing the idea that “you don’t know what you don’t know,” Jacob has come to understand the value of continuous learning and growth. He recognizes that his journey in real estate is a process of constant improvement and expansion. As he encountered unfamiliar situations throughout his career, he learned to persevere, ask questions, and seek mentorship when needed. This mindset has allowed him to push himself further, enabling him to become a successful real estate broker and investor, achievements he once might not have believed possible.
These key lessons have significantly shaped Jacob’s future goals and aspirations as a real estate entrepreneur. He is determined to continue his path of growth and exploration, embracing new challenges and opportunities with an open mind. The willingness to ask questions and seek guidance remains an integral part of his approach to both brokerage and investing ventures. As he reflects on his progress, Jacob is filled with a sense of optimism, knowing that there is still so much potential to be realized. He understands that he may encounter unfamiliar territories in the future, but he faces them with confidence, knowing that learning and adaptability are the keys to overcoming any obstacles that come his way.
Check out Jacob Dornbos:
Facebook: https://www.facebook.com/jacob.dornbos.18
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