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Rogers, Real Estate, and sooner

Rodgers, Real Estate, and sooner

A life truism: Fear hurts because unreasonable fear freezes, it inhibits getting the thing done. Words cause fear when misused or not understood – in real estate, finance and life.

If you’re thinking of buying a home (or selling and buying) thawing the fear freeze begins with information and education – about your finances and the real estate market. The same approach works for money management and life.

Your understanding of real estate and your investments, along with your spending habits, will determine your financial freedom and how well you retire.

Charley Munger (Berkshire Hathaway) sums it up well: “My system in life is to figure out what is really stupid, and then avoid it.

To avoid stupid, let’s look at real estate, words and value.

“This may be the worst time in my living history for the home buyer – it just doesn’t make sense.”

– Mark Zandi of Moody’s Analytics

“Worst” When subjective language is used to describe objective data, confusion reigns. When Aaron Rodgers says, “A decision about whether I play football in 2023 will come sooner than later.”

I don’t know what that means. Is sooner a week, a month, 4 months? Absent definition, there is no value.

The word worst causes fear. Words should have value and be used appropriately. Getting to “word value” takes thought. Think about words – spoken or written – especially when your money is involved.

It’s difficult to buy a home now, but worst is an individual circumstance. The best time to buy a home is when you find something you like, your questions are answered and the numbers work.

If you are thinking of buying a home, start with 4 questions. Make sure the words in the answers meet the value test.

1. Should I buy a home?

2. Is this the right home for me?

3. Am I paying the right price for the home?

4. What are the consequences of paying more than value?

(At Homebuyer Associates we provide an honest assessment of a home’s value before you       make an Offer or whether to make an offer.) Speaking of words, if you’re thinking of buying a home (or investing in the market) understand   what “fiduciary” and “agency” mean. If you don’t, you’re at financial risk. Go ahead, Google it.   It’s the foundation upon which Homebuyer Associates was started.

Unlike Mr. Zandi, I think the present times provide an opportunity for homebuyers – if a   buyer is willing to buy based on counsel (information) and not being sold stuff (emotion).

Yes, higher mortgage rates will decrease your buying power, but higher rates will also slow the pace of rising home prices. You may still pay a bit more than value, but substantially less more in value than you would have 3 months ago.

While economic uncertainly may keep you on the sidelines I don’t believe it’s possible to “time the real estate market,” i.e. wait for prices and rates to fall. My opinion at this writing is that prices will not fall significantly, and rates will remain in the 6%+ range.

Many buyers will sit on the sidelines because of fear (pricing and rates). That means you have an edge in looking now

I came across a thought recently when planning a bicycle adventure in Colorado. It may hold true for real estate; it may hold true for life.

Everything you want is on the other side of fear.

If you (or someone you know) want to discuss fears, contact us and we’ll have a cup of coffee and talk.

Nothing fearful about that.

Thanks for reading,
Michael D. Holloway

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