The Real Estate Shift - Part 1

Posted on September 17, 2008 
Filed Under News, Real Estate

If you have just awakened and realized that the real estate market has “shifted,” let me explain why this happens. “Real Estate is a cyclical business. What goes up must come down. And what is down won’t stay there. Shifts are never unexpected but rarely predictable. You know one is coming. You just don’t know when. They are, in fact, inevitable - shifts happen.” (Pg.7 of The Shift by Gary Keller, Dave Jenks and Jay Papasan.)

Most buyers today are bombarded by the media, well-meaning family and friends and are letting others do their thinking for them. Although these trusted sources have been time tested, one thing is obvious. They are not real estate experts and everyone has a different take on what to do with this market.

What to do? Seek out the experts! Just like you would with any professional, you want to make sure that the information you are getting is correct and timely. This real estate market is changing monthly so each month brings a different set of strategies for buyers and sellers. Buyers and sellers need Realtors® to help them more than ever. You should expect your Realtor® to be armed with numbers and facts in this market.

“Reality is you can’t sell high and buy low at the same time. If you sell and then buy during a seller’s market, you will get more when you sell and pay more when you buy. When you sell and then buy in a buyer’s market it only makes sense you will get less from your sale, but be able to make it up with greater savings when you buy.” (The Shift, p. 182)

The end result should be that home ownership is best viewed as a long-term investment just like shares in the stock market. The current market brings opportunities and once they are gone, they won’t come back until the next cycle. And then prices will be higher.

I will bring you more from the best selling book The Shift in future posts. This book is about real estate in today’s market and I believe it should be required reading for every Realtor® out there.

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