Do you want to jump from the Frying Pan into the fire?

The red hot housing market is starting to show signs of cooling off.

Many of the large national firms are reporting that sales are slumping and properties are no longer receiving multiple offers.

Gee, I wonder why.

During the feeding frenzy, a number of Real estate agents I know were pushing customers to bid above asking price, write letters begging for the property, and to forgo common sense, time honored traditions like having a home inspection.

“Pay in cash if you really want the property, or at least make the deal not contingent upon financing.” was the mantra.

Bitcoin was the poster child for this round of madness and delusion of crowds, and salespeople who earn their living from pushing their wares leave buyers and sellers easy prey.

Reminder, in Florida it assumed that agents are neutral and work to put a deal together, not to give you counsel.

Caveat Emptor.

No one knows when “the top” is in, but these are certainly warning signs.

Interest rates are the problem (obviously), as well as sky high prices.

Doom and Gloom?

Why? We need a roof over our head, but at what price?

Inventory is admittedly low, but that does not translate into “This time it’s different.”

Affordability will be the problem UNLESS hyperinflation kicks in.

Then we will need to bring a wheelbarrow full of money to buy a loaf of bread.

Locations where retirees are moving will get hit last and bounce back first, especially in desirable locations like Naples and South West Florida in my opinion.

There is always an opportunity to play one of the many varieties of strategies in the Real Estate game.

Let me know how I may help you.

Home ownership may or may not still be the American Dream.

What is clear, however, is that we all need a roof over our heads. With interest rates still at historically low rates, we should assume that buying a home is within many people’s reach.

Job secuirty, tax structure, length of time in your home, and mobility are also factors that need to be considered when making these important decisions.

Flight to the suburbs will impact property values locally. I expect the exodus to warmer climates and away from high tax states will continue.

Cost of rent vs buying calculators are available to help us make decisions.

THe election has ended in chaos and controversy, and how that plays out may affect our game plan.

It is probably prudent to avoid making hasty decisions until we get more clarification of economic policy that will be determined by who is the resident in the White House for the next four years.

Need help? Reach out and let’s see if we cant help you unemotionally consider your alternatives..

Why Do Real Estate Values Fluctuate?

Any or all of the following factors are in a constant state of flux and are important in determining the true value of a property. Please consult a real estate agent for further details on how you can use this information to better understand the process and attend to your own personal needs.

Location

• Location, Neighborhood, Climate,Schools
• Proximity to Shopping, Healthcare, Culture
• Proximity to Water, “Property” or Land characteristics
• Natural surroundings, topography, power lines, view
• Density of population
• Residential area, not commercial,industrial or mixed use neighborhood
• Town Services and local taxes
• Crime

General Economy

• General economy, Inflation and the value of the Dollar
• Supply and Demand, available inventory
• Employment
• Business Cycles
• Type of Market (Buyer, Seller or Balanced)
• Multi-year Trend, Intra-year cycle (seasonal factors)
• Present cost to rebuild

Government Policy

• Interest Rates, availablity of financing
• Government Interference
• Inflation or Deflationary Trends
• High Taxes

Current Trends and Fads

• Kitchens and Baths
• Staging and Illusions, Cosmetics, Landscaping
• Floor Plan, Obsolescence of Home, Age of Home
• Condition of home, Features and amenities, Quality
• Type of Market (Buyer, Seller or Balanced)

Human Emotion and Motivation

• Motivated Sellers (People problems or Home problems)
• The Appraisal factor, Available Bank property and Foreclosures
• “A reason to be there”
• Fear and Greed

Experience suggests these are important factors to consider

Unique

• Real Estate is local and everyone’s situation is “similar” yet unique.
• Real Estate provides shelter, lifestyle, pride and a pathway to wealth.
• For most people our home is our sanctuary for our family.
• Real estate is about property, people and financing.
• “Too much” information available confuses many first time buyers.
• “Location, Location, Location” is important.
• The Taxpayer’s Relief Act of 1997 currently offers one of the best wealth building strategies available to the average homeowner.

Timing

• Timing, Condition, Price, Terms and Financing is also important”.
• FSBO property is usually overpriced, unless it sells within the first two weeks.
• Real Estate has normal business cycles where prices can and will fluctuate.
• It is difficult for many people to negotiate unemotionally.
• A paradox: When buying a home, be very patient looking for the right opportunity; when you find it move on it quickly.

Pricing

• Sellers reduce stress and maximize returns by pricing their home correctly.
• Most, but not all, new listings are overpriced.
• Different types of Real Estate markets require different strategies.
• If markets are going up, price your home above current prices if you are selling.
• If markets are going down, price it below current prices.
• It is possible to structure win-win transactions where everyone benefits.

Agents

• An experienced Real Estate professional may save you money in most markets.
• Time is valuable; but Agents get paid for Results, not time.
• A professional Real Estate Broker or Agent can help reduce the stress of complicated transactions, like buying and selling simultaneously.
• Dual Agency is illegal in Florida as Real Estate Agents cannot serve two masters.

It is well to remember that Joseph Schumpeter coined a phrase “Creative Destruction”.

Whatever we are going through, this too shall pass.

Time waits for no one, so the sooner we understand how best to be self-reliant and fend for ourselves and family, the better.

Think outside the box and understand the importance of adapting ourselves.

Complaining is for losers.

Be a winner. Team up your skills with a few others and create something awesome that will help a lot of people.

It’s not business as usual.

The underlying stucture of how commerce operates will change rapidly.

Quarantine, social distancing, government regulation are just the tip of the iceberg.

The Law of Unintended Consequences will soon rear it’s ugly head.

Obtaining mortgage loans may be difficult if you are currently unemployed even if you are fortunate enough to find new work. Virtual tours, electronic signatures, private mortgage money, barter, creative financing, remotely operated services are all part of our immediate future.

Let me help you with a free consultation to see how I may assist you and your family with a game plan for these challenging times.