Homebuyer Associates Mobile Menu

A Natural Human Condition

A Natural Human Condition

Pull back the curtain. Go ahead. It’s your money.

Pulling back the curtain is my metaphor for seeking truth, seeking honesty and character over alternative facts and celebrity – in real estate, life and politics.

I’m aware of the human condition and its preference for celebrity over character. Celebrity is more fun. People like big names. Advertising sells. Bigger is better. (Well not really.) If you pull back the curtain (think Wizard of 0z) you might be surprised at what you find.

The person who has managed my money for 35 years often works in shorts and a t-shirt in a 150 square foot office. He doesn’t own a car and only uses a suit for weddings.

His style might cause alarm if you didn’t take the time to pull back the curtain. How can you be successful if you don’t wear suits, drive a fancy car or work in a fancy office? His approach to investing and low overhead translates to a winning strategy for me. I could use a larger firm but that approach would cost more in fees and fees compounded over time matter. If I hadn’t pulled back the curtain I’m confident I’d be a poorer man today.

As Homebuyer Associates enters its 34th year of business I encourage you to pull back the curtain. Seek truth and look past celebrity, because your money is at play.

$ – If an agent implies or suggests you pay any price in a competitive real estate market because you “can’t lose money,” pull back the curtain or Google real estate 2005-2008.

$ – If an agent claims to be a “buyer agent” ask him what percentage of his business is for buyers and what percentage is listing homes for sale. Pull back the curtain.

 $ – If an agent claims to be a “buyer agent” ask the agent how she will negotiate on your behalf against a fellow agent of the same company if the home you are interested in is listed by the same company your “buyer agent” works for. An agent working against a fellow agent of the same company? Pull back the curtain.

In 2019 you will read about how difficult it is to buy a home due to low inventory, or debt or mortgage rates or…all of it true. In 34 years working for homebuyers our business statement (character) has been we work only for home buyers – from day 1. No mixed messages here.

An attorney friend offered some housing insight recently. To wit:

1. It is difficult to convince someone in their twenties or thirties to make decisions based on the premise that it will pay off in 30 years.

2. There are three things that are true about real estate: a) you will live somewhere; b) where you live will cost you money; and c) the money you pay for your living space will include profit.

The fundamental question in the rent/buy issue is: Do you want to keep the profit or give the profit to a third person (landlord)?

Real estate, like savings, should be done early. It is far better to save $50 early on than to wait until you can afford to save $100. Much is lost in failing to save the $50. And so it is with housing. Sometimes you are better off buying a home that needs some paint-up/fix-up work initially. You can then move up over time.

In upcoming newsletters I’ll write about how to overcome some of the problems home buyers will face in 2019 – but first, speaking of small vs. large, I have to take on the New York Times in my upcoming newsletter.

If you have real-estate-related questions, please contact Seamus, Mike or me. Let’s work towards some truth and increase your chances of a successful home purchase in 2019. You can always pull back our curtain.

Best to you in all the things you do in 2019.

Thanks for reading,
Michael D. Holloway

forward this e-note to a friend.

Newsletter sign-up

Homebuyer Associates
1835 N. Riverwalk Way
Milwaukee, WI 53212
Phone: 414-254-4129