What’s your real estate market like this week? Is it better than it was a year or two ago?
Back then we had the difficult task of sharing mostly bad news. A rational Fear Of Loss kept buyers who wanted to move from making a move. It was simple logic, buy too soon and home values might fall, resulting in a financial loss.
Last year the Federal Homebuyer Tax Credit artificially stimulated 1st Quarter home sales. The free-money party ended in April of 2010 and real estate sales activity went from gangbusters to bust. It pretty much stayed crappy until January 2011.
From what I can see across the inter-webs and personal experience, the unstimulated 1st Quarter of 2011 is equal to or better than the artificially stimulated 1st Quarter of 2010. Which means that most likely, the balance of 2011 will be way better than 2010. Not a month to soon, amen.
But I’m worried. Real worried.
I’m Worried About Shell Shock
It’s been so crappy for so long, some us may be suffering from Shell Shock. When someone asks if now would be a good time to buy, we start mumbling, our shoulders slump and the light in our eyes dim. We hem and haw. Because we’ve been so beat up for so long, our answer limps from our mouth to their ears. On occasion we allow past emotional scaring to over ride currentintellect and logic. This is normal human behavior, but we’re not paid to be normal. We’re paid to perform.
People are counting on us for unbiased and expert real estate opinion and analysis. When they ask the question, “Is now a safe time to make a move?” they expect a thoughtful and intellectual answer. Not an emotional reaction steeped in Shell Shock.
It’s Time To Bury The Past and Rise UP
The Fear Of Loss is perpetually valid. Yesterday, the likely hood of suffering a financial loss by buying in falling market was high. Today’s and tomorrow’s market is 180 degrees different. If our buyer clients want to make a move and they don’t, waiting may cause them financial loss.
It’s a new day and a new market. Let’s think, advise and act like it.
Let’s start by reviewing and sharing a few important factors with our homebuyer clients.
Price & Value and Cost & Expense Factors
Advising our buyer clients to Not-Buy-Now because home values may go down, and they will have lost money by overpaying, is an example making a decision based on the Value & Price factor. Last year in many micro-markets this was smart, simple and logical.
Today, if we’re sincere about helping our clients avoid financial loss, we’ll want to include Cost & Expense factors in our advisory analysis.