“The early bird gets the worm” is true in real estate.
Just ask any Real Estate Sales Professional, Consultant, Strategist about the importance of making the tough decisions QUICKLY and embracing the risk this entails. You’ll hear myriad sad tales of clients who waited too long and missed out on the golden egg.
Strike while the iron’s HOT!
Buy low – Sell high!
In this morning’s blog post When to decide, Seth Godin says:
“Make high leverage decisions early, and profit from your ability to take advantage of commitments when others are still in limbo.”
This got me thinking of ways I’ve witnessed House Buyers and Sellers imprison themselves in the purgatory of “Real Estate Limbo” – Real estate decisions are clearly “high leverage decisions,” and timing of those decisions is critical.
- Analysis Paralysis hits some Buyers who find the PERFECT house and then obsess over the comps or the condition or the economy or the world news until they miss their opportunity.
- Many buyers miss buying in the “Pioneer Neighborhoods” on the fringes of “gentrification” because they want to wait to be sure the area will become “HOT.” While they wait, Real Estate Investors and flippers are making those high leverage decisions faster and buying property “at a steal” – By the time the snoozers are comfortable with the area, their only choices are high dollar in-fill or renovated houses, and the flippers are already moving on to other pioneer areas.
- “Chasing the Market” – Some House Sellers adopt a waiting strategy that seldom bears fruit . . . Price the house at a higher price than the current market supports with the hope that the market “will come to their price”. the logic is that, over time in a good housing market, values are steadily increasing and therefore the Seller will ultimately get the price. The reality is that this strategy creates a “Stale” listing and becomes labelled as “That over-priced listing” even when the market rises . . . as the Seller’s motivation to sell increases, the seller reduces the price and invariably ends up selling the house BELOW the current market because of the perceived stigma of being “over-priced”
- Waiting for a personal financial event – If you’re in the mood to move, MOVE! If you don’t have enough cash for the down-payment and closing costs of a $400,000 (What you want), then BUY LESS HOUSE ($200,000). Waiting for that raise? Waiting for a relative to die (Morbid but real)? Waiting to win the lottery? DON’T do this! BUY NOW knowing that whatever house you buy now will not be the “final” house for you. It’s OK if this house isn’t perfect as long as it’s a reasonable financial decision up front. Consider this purchase to be “stepping stone” on the path to your ultimate dream home.
- Waiting for the PERFECT house – See #4 above – DON’T do this.
My belief is that Buying real estate is an INVESTMENT (not just a purchase), and the smartest investors accept some level of risk and make relatively fast decisions. They keep everything in perspective and check their emotions at the door because they know that none of these investments are “Final/Permanent.”
They know that they won’t always win and/or make the best decisions, and they know that if they wait, they’re choosing to forfeit opportunities to knock the ball out of the park.
So . . . Quit worrying . . .
“Worry is like a rocking chair – It’ll give ya something to do but won’t get you anywhere“
(refrigerator Magnet on our refrigerator)
Are you still waiting?
It’s time to MOVE!
Connect with me (or your favorite REALTOR) NOW to get this process started.