Jan
16
Can we do more to hurt ourselves?
Posted by David Boyer under For Realty Professionals
I had a disturbing conversation with a sales executive I have liked and respected for years, in which the sales executive told me they were giving advice to “all their buyers” to wait to buy, since the market still has a ways to go before it bottoms out. Needless to say, I was shocked into silence by this short-sighted and narrow view.
Where did we as professionals get the idea that real estate was like the stock market? Why do we think that we can time the bottom or the top of the market. Why do we even think of real estate as an investment at all? Don’t we sell homes in which our clients and customers can live and create memories. How do you value that? Since when do we value real estate by what we can sell for next quarter, rather than 3 years or 5 years or more?
Certainly we all deal with investors. For heaven sakes I am an investor too! But why is it we as professionals allow ourselves to fall into the trap of thinking like day traders, and worry 12 times an hour if we have made or lost money? Aren’t we supposed to be the PROFESSIONALS here? Why can’t we counsel our clients that investments made in real estate today are going to be worth more in the future? If there are ups and downs in the market, then there will be ups and downs in the value of our real estate. The trend, however, is historically upwards, especially here in Las Vegas. So a REAL professional will properly advise his or her clients.
We have multiple BILLIONS of dollars in construction going on as I write this blog, and those billions mean tens of thousands of new jobs over the next few years. Those jobs mean people, and those people need to live somewhere. Is is professional to tell our buyers that now is not the time to buy, when interest rates are low, inventories are at all time highs, and we know tens of thousands of people will be moving here to more than soak up that inventory? I say not, and shame on those who do!
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COMMENTS (6)
Your comments reflect those same comments by Dick Gaylord in his interview on Fox in November - its not our job to measure the market - down or up - if it hits bottom, it will be to late for the buyer to make a move on the property they want... I had this exact quote arrive to me in an e-mail from a client I had show property to - Andy - call me in the fall - all of the economic indicators are pointing to further reductions. AAAAGH!!! January 16, 2008 at 9:11 pm
David- I believe that it's reckless to advise like that. What is interest rates suddenly drop and the housing boom starts over again. We are Professional and not speculators. No crystal ball here. January 17, 2008 at 11:41 am
As a follow on to this discussion, my wife and I met last evening with a young couple who will be moved by his company later this year. I sold them their home at the very height of the market, and obviously it is now worth less that when it was purchased 3 years ago. While not overjoyed at the news, at least they understood the realities of the market and can now take appropriate steps to negotiate their relocation benefits. That's what we as professionals are supposed to do for our clients! January 17, 2008 at 11:52 am
Well-said, David. I always advise owner-occupied buyers to buy the home they want to live in and if you make money when you sell it in x years, what a nice bonus! February 27, 2008 at 5:24 pm
Our investors are having a field day buying up properties. They know that now is an opportunity to invest while inventory is high and interest rates are low. www.laceyandwanda.com February 29, 2008 at 2:55 pm
You're right Lacey, and when they make great returns on their investments over the next several years I hope they remember who the agent was that helped them! February 29, 2008 at 11:46 pm