As we continue to navigate the impact that the economy has had on real estate values in our area, we are challenged to provide the correct market valuation for each seller and buyer. We compare being able to value a property to reading a weather barometer, a rising barometer is an indication that the air pressure is increasing and a falling barometer indicates decreasing air pressure. Changes in the air pressure can be caused by many factors related to the air temperature of the earth, oceans and continental landmasses.
Real estate valuations also rely on many factors: location, condition, availability, and the pressure that the sale and pricing of short sale properties and bank owned properties is placing on real estate valuations. During the late Seller’s market, prices could not keep up with demand, an artificially inflated demand, but nevertheless a demand. For some homeowners it was like winning the lottery, cash in your ticket and you can retire. Once you have that mindset of owning a winning lottery ticket, it is difficult to accept that it is no longer the winning ticket that you thought it was. So the inclination is to hold on to the ticket and wait for the value to come back. Unfortunately, you can’t cash in an expired lottery ticket. So you need to buy a new lottery ticket.
We encounter homeowners that are waiting for the value to come back and while waiting have basically put their lives on hold. Change is a good thing, it is tough to accept, but it is a good thing. I am an Air Force brat and we moved every two years. I learned at an early age that nothing in life is permanent and you need to be adaptable. When I talk to people that are waiting for the real estate market to go up or down, I ask them “What would you do if you weren’t waiting?” The answers are varied and many, but boil down to getting on with their plans for their life. The one item that we can not manufacture more of is time. It is our most precious commodity and I counsel people, to understand and value that commodity the most. Yesterday, I was told the story of a 101 year old lady who was selling her condominium because it was time to retire into an assisted living facility. She was looking forward to making new friends. She knew that it was time to get on with her plans for the rest of her life and the value of her condominium is what it is in today’s market.
Alexander Graham Bell once said “When one door closes, another opens; but we often look so long and so regretfully upon the closed door that we do not see the one which has opened for us.” I hope when I grow up, I am as smart as the lady I described to you and know enough to go through the open door of opportunity.
I hope everyone has a great day and spends it wisely.