Note: Neither THE NATIONAL NETWORKER ("TNNW") nor any of its members, directors, officers, employees or authors offers investment, accounting, tax or legal advice. The article which follows reflects the opinion of its author, Yossi Feigenson, and should not be construed under any circumstances as an offering of advice of any sort. The views of this author do not necessarily reflect those of THE NATIONAL NETWORKER, or its owners.___________________________________
It’s a buyer’s market - shouldn’t I buy?
As a so-called real estate professional, I get this question a lot. People want to know when is the exact time for them to be in the market for real estate. Let me say up front and get this out of the way: I have no idea. I don’t have a crystal ball, nor am I a licensed prognosticator. What I do know, however, is that market conditions alone cannot be the lone factor in making that determination.
It seems to be the prevailing thought out there right now that its not a good time to be in the market, whether for a home, or office use. For proof, simply take a look at the number of closed transactions. They are way down from the numbers of, say, six months ago. In this latest run-up, grub-fest, land-grab people were grabbing every piece of real estate in sight, (or in some cases, sight unseen) with apparent disregard for cost, value, terms of deal and their own needs. And now, we have all frozen up like an Alaskan glacier (if such a thing exists). And me, the little real estate broker, is left to ponder, what exactly is going on here?
Research for this essay landed at my doorstep this past weekend in the form of an article in the NYT Real Estate Section, titled: “Don’t Even Say the Word”. It goes on to say that as much as real estate was such a hot topic of discussion back in the day, it has now become a dirty word.
Where has all the love gone?
To answer this quandary, I look at what drives people’s decisions in real estate, and often in other aspects of life. Instead of focusing on what will satisfy a person’s needs, and what they can afford people tend to follow the “monkey see, monkey do approach.
Back in the day, when we were pitching an apartment building for sale, we often had to choke on it for a while. But, the moment, and I mean the moment, there was interest by one party, we couldn’t keep the vultures away. We often said when you’re close to a deal lock it up as fast as you can, because when one person wants something, everybody else does.
Our actions are too often guided by what the current conditions are feeding into our psyches. Instead of thinking about what we really need and can afford, we’re busy chasing the dream. When things are flying everyone is in the game and is willing to play no matter the cost. As we now see so clearly.
This particular form of playing on our emotions is what carried the market to the insane stratospheres it reached, and is precisely the reason we are in the stalemate we are in now.
Better judgment would lead to more efficient markets.
So, when is the right time to be in the market?
I believe this determination requires a two-step process: First, analyze from within, and then "play" the market accordingly. Be certain of what you need, what you can handle, and then, by all means, go into the market and negotiate the best possible arrangement.
As a so-called real estate professional, I get this question a lot. People want to know when is the exact time for them to be in the market for real estate. Let me say up front and get this out of the way: I have no idea. I don’t have a crystal ball, nor am I a licensed prognosticator. What I do know, however, is that market conditions alone cannot be the lone factor in making that determination.
It seems to be the prevailing thought out there right now that its not a good time to be in the market, whether for a home, or office use. For proof, simply take a look at the number of closed transactions. They are way down from the numbers of, say, six months ago. In this latest run-up, grub-fest, land-grab people were grabbing every piece of real estate in sight, (or in some cases, sight unseen) with apparent disregard for cost, value, terms of deal and their own needs. And now, we have all frozen up like an Alaskan glacier (if such a thing exists). And me, the little real estate broker, is left to ponder, what exactly is going on here?
Research for this essay landed at my doorstep this past weekend in the form of an article in the NYT Real Estate Section, titled: “Don’t Even Say the Word”. It goes on to say that as much as real estate was such a hot topic of discussion back in the day, it has now become a dirty word.
Where has all the love gone?
To answer this quandary, I look at what drives people’s decisions in real estate, and often in other aspects of life. Instead of focusing on what will satisfy a person’s needs, and what they can afford people tend to follow the “monkey see, monkey do approach.
Back in the day, when we were pitching an apartment building for sale, we often had to choke on it for a while. But, the moment, and I mean the moment, there was interest by one party, we couldn’t keep the vultures away. We often said when you’re close to a deal lock it up as fast as you can, because when one person wants something, everybody else does.
Our actions are too often guided by what the current conditions are feeding into our psyches. Instead of thinking about what we really need and can afford, we’re busy chasing the dream. When things are flying everyone is in the game and is willing to play no matter the cost. As we now see so clearly.
This particular form of playing on our emotions is what carried the market to the insane stratospheres it reached, and is precisely the reason we are in the stalemate we are in now.
Better judgment would lead to more efficient markets.
So, when is the right time to be in the market?
I believe this determination requires a two-step process: First, analyze from within, and then "play" the market accordingly. Be certain of what you need, what you can handle, and then, by all means, go into the market and negotiate the best possible arrangement.
--Yossi Feigenson
