Buyers and sellers: What are you waiting for?
Buyers and sellers: If you’re waiting to participate in this market, why? What’s holding you back from entering this market that is giving us the lowest rates we’re likely ever going to see on a product that’s only going up in value as it becomes more scarce? This isn’t like Dogecoin, where there are a bazillion of them, and values only go up because of a funny tweet from Snoop Dogg or Elon Musk; real estate is arguably the greatest commodity we have in this country.
When it comes to acting in this market, there are two things to keep in mind:
1. Understand the risk factors, which can be low. I can tell you from having bought and sold eight properties in the past six years, my fear of downside risk has completely changed. The homes I was most worried about losing money on ended up being the ones that appreciated the most after I sold them. Now I’m forced to drive by these properties on a daily basis and think about the large margin that I’d left on the table that’s now being absorbed by someone else.
2. If you’re doing your due diligence, it’s very hard to lose in the long run. I’ve had multiple sellers who waited for the market to go up before selling the first time—instead, the market started going down. They waited again, and they ended up missing out on opportunities where they could have gotten great money on the house for sale and also purchased fantastic properties that would yield better returns. If you’re going to sell a property in order to buy another one, you’ll never find a perfect market.
For sellers, if you don’t sell this time around, you’ll have to wait for another market cycle, which lasts seven years on average. Maybe that makes sense for you, but if it doesn’t, you’ll need to pull the trigger fast as long as the numbers make sense.
Don’t get me wrong—there are definitely risks associated with buying or selling anything, and in this case, we’re talking about something that costs hundreds of thousands of dollars, if not millions. One of my most trusted references in real estate once pointed out to me that “If you track the history of the real estate market, you’ll see that downtrends usually last about half as long as uptrends.” When you look at it that way, it’s impossible to find another asset class that’s had such repeatable success.
As a final note: In this market, strategy is key. Real estate has so much wealth-creation potential that if you’re not working with someone who clearly puts you at an advantage, you’re leaving a lot of opportunity on the table. If you’re a seller who’s worked with me before, you know that I spend a lot of time ensuring that we are properly positioning ourselves in the market to yield the highest rate of return possible. For buyers, we spend lots of time analyzing market data, and when it comes time to place an offer on a property, we’ll go to an even higher level and break down that analysis to make sure you’re placing the right offer on the right home.
No matter if you’re looking to buy or sell, if you have any questions, feel free to reach out to me. I’ll always take the time to make sure that I’m giving you the proper advice and positioning you to outpace the market.
