Why do homeowners who are thinking about selling and buyers who are thinking about buying roll back and slow decision making by delaying?
My professional and personal opinion is that they are going through a phase that I call FEAR, which means fanatical, expectation, emergence, real! However, what really drives change and slows down the markets is the psychological aspect of the statistics and information provided by the US government and other gurus, which can be somewhat accurate or imprecise, while at the same time influencing the mindset of sellers. and buyers.
This is especially true for those who must sell at the most opportune moment, as demand is still @ historically high, but either decides to wait, or worse, postpones and postpones making a more profitable and positive decision for themselves in order to keep most of them. their most valuable asset is represented by their home. As I discussed in my column last week, waiting isn’t good, be it a sale or a buy, if you factor in the current interest rates at the time of any event.
I made an Excel spreadsheet that proves that waiting is detrimental to your wallet and future fortune. We are currently in the perfect storm for both sellers and buyers. However, there are always exceptions to everything, but for most who think about selling and / or buying, waiting will not be your best financial and wealthy future.
I have seen graphs and analysis over the past few months and realize that one thing, as mentioned earlier in the column, is the beginning of a “fear factor” that is mostly unfounded. Those looking for a sale, as well as those considering buying, need to ask themselves why? The reason is that you feel that prices will continue to rise in double digits and why not wait a little longer to get some more, or if you are a buyer, we may be on top but don’t understand the value of your monthly nut if you had to wait until prices fell? The answer to this scenario is a little greed and misunderstanding of the market.
What do you think will happen when interest rates eventually rise; do you think this might affect your listing price and selling price? If you don’t think this will happen, “I have a cheap bridge to sell to you.” You may just not be very worried or care about the price or value of your home and how much you can financially get if you sell, because you just feel very comfortable where you are and where you are. there is also a winter dwelling and are either a snowbird or a snowflake.
You will be in your main house until the end, and then your kids will take care of it, right? Well, if so, when was the last time you renewed your will? Recently, five to 30 years ago? Nobody thinks that we have three guarantees in life: “birth, taxes (if you earn any amount of money) and death. The rest is by agreement!
Do you have a living trust to manage not only your home, but all of your assets and investments? As a potential future salesperson, you have a lot to think about to prepare for whatever path you choose. Buyers who have either left the market or now decide to step back also have a lot to ponder and reflect on why they came to this decision.
Then there is a group of individuals and families who have moved and moved from New York, and also permanently from New York and other high-value states to other states with more moderate prices. Yes, we all know that the Covid-19 pandemic has been and still is having a serious impact on those who chose to move to less populated areas with more space, privacy and home offices in order to be able to work. Now, a new and current Delta variant has been added to the mix, as well as adding insult to injury, contributing to future decision-making to stay put or leave populated cities.
Another factor that goes hand-in-hand with all the other negative issues is consistent and constant price increases, too fast and too strong in a historically low stock market for many buyers to feel comfortable. But at the end of the day, FEAR shouldn’t go into the equation. But reliable, pragmatic and logical information such as “critical thinking” (critical thinking is no longer critical) is necessary in order to draw the correct and more important conclusion, leading to a more accurate answer and solution.
Philip A. Rice is the owner / broker of Turn Key Real Estate at 3 Grace Ave Suite 180 in Great Neck. He has 40 years of experience in the real estate industry and is a Graduate of the Realtors Institute (GRI) as well as a Certified International Real Estate Specialist (CIPS). For a “FREE” 15 minute consultation, an analysis of the value of your home, or to answer any questions or concerns you may have with it, please call the mobile phone: (516) 647-4289 or email: Phil@TurnKeyRealEstate.Com Just write or regular mail.