Fast and Shallow

Fast and Shallow

Don’t panic, or as a famous quarterback once said, Relax. The real estate industry loves panic. Hell, the shoe industry loves panic. I recently received a notice from Zappos that a pair of running shoes I wanted was now available, but they only had one pair. Really? New Balance only made one pair of the shoes I wanted? I passed. I don’t buy shoes or real estate from a position of panic.

Whether buying running shoes or real estate, don’t let hyperbole replace accurate information. A relaxed approach might save you some serious dough. Below are some recent headlines and comments I’ve come across – the fast and shallow noise.

“Home sales are sizzling” (J/S Headline)

H.A. – What does this mean? Is this across all four counties, in certain cities, in “pockets” of cities?

“It’s crazy. Today I presented 7 offers to a seller we listed last week” (Real Estate Agent)

H.A. – This one listing represents .0006% of the monthly home sales. Does this sale represent the rule or the exception? Should you make an offer based on the exception or the rule?

“Interest rates are crazy low now” (same Real Estate Agent)

H.A. – This particular agent likes the word “crazy.” I use the word to describe the actions of many home buyers today who fall prey to “all the noise of fast and shallow communication.”

“It is a seller’s market” (Real Estate Agent)

H.A. – Based on the J/S headline or actual data? The data says the average time on market is 85 days.

“Homes are going fast, even the ones undesirable to us”(Potential Client)

H.A. – Well if they are not desirable why count them? It probably means people are making bad purchases based on emotion – not information.

“We are hoping the market stays like this in the future”(Potential Client)

H.A. – This is all starting to read an awful lot like 2000-2006. We know what happened then. There is a lot of noise out there people and it’s your money. Don’t hope, be careful and don’t try to predict the future.

I’d like to think the real estate craziness (there’s that word again) from early 2000 to 2006 taught us all something about getting the right information, the greater fool theory and panic – but maybe not.

Before starting the home buying process, how about a real real estate coffee talk with Seamus or me? We’ll offer you a “quieter sound that emanates from the depths.”

Coffee may save you dough.

P.S. If you know of anyone in the market for real estate foward this E-Note to them (top of E-Note). It never hurts to be reminded to buy wisely.

Thanks for reading,
Michael D. Holloway