Doing Nothing While Expecting Something to Happen
When I look at the world of real estate and the people who think about it daily (which is most of us) it is interesting to see a common trait known as “waiting” on both sides of the real estate playground.
On one side you have buyers who are waiting to see if home prices and interest rates are going to continue to decline. On the other side we have sellers who are waiting to see if the market stops declining and the worth of their homes begins to rise. Most people who are watching real estate activity find themselves in one of these two groups. But there is an interesting group in the middle, a group that few people pay attention to. And that group is shopping, buying, selling and moving. And that group is growing. How do I know? Because I work as a broker, as do over one hundred other agents in my office. And we are seeing an increase in activity, just in the last several weeks. So there . . . Now, back to those that are waiting.
Waiting can be defined as “doing nothing while expecting something to happen”. It is really contrary to the way most of us live our lives. If we utilized this concept when it comes to other areas of our lives, such as lawn work or raising children, the outcome could be disastrous! Yet waiting somehow makes us think we are accomplishing something. Let me give you my thoughts.
To sellers – folks, the price of your homes has been in decline for at least four years and the prospect of your house increasing in value anytime soon is somewhat dim. In fact if last year you decided to wait till this year to sell, then you your home is worth 5% – 9% less. The market may begin to level out according to some “experts”, but all are in agreement that it will take several years for homes to rise in value to any negligible value in relation to what they were. And the clock keeps ticking and everyone keeps waiting . . . .
To Buyers – just how low do you honestly think prices & interest rates will drop and what are your chances of hitting them at their lowest? By the way, there are many other buyers waiting for the same thing and, more likely than not, you’re going to end up in bidding wars over a piece of property that you could walk in and buy now for a great deal.
One final thought is in order and I believe it is the catalyst for the “waiting syndrome”. Let’s start with a thought that might be rattling around in your head as you read this. “Sure Dave, I know what you’re after here, a quick sale, a new client. You seem to have forgotten that we are in the worst housing market in our lifetime!” To frame that properly I would simply say to all involved. We have the lowest interest rates in history, or at least since the 1940’s (that’s 70 years!). Secondly and finally, “worst housing market” = “best time to buy and get great deals”. This also applies to those who need to sell. You may not get the price you had hoped for with your home, but that is out of your control. Where you might lose some of your capital on the sale you will most certainly realize a better gain on the purchase of a new home in times like these.
My encouragement and my practice? Get off the fence that keeps you in the group “who are doing nothing and expecting something to happen”! By the end of summer you will most certainly be glad you did!
Dave
No comments:
Post a Comment