Your home is not a stock option so just get over it

fruitWhat is it about human nature that we only want what we can’t have.  Or the weird tendency to place value on something, only if it comes with a hyper-inflated price tag?  It’s a phenomenon that has no boundaries…from lemons to relationships to houses.

I can place a basket of  fruit (fresh off the tree in my backyard), affix a “free” sign to the basket and place it on a table in front of my house and people will walk right by ignoring the opportunity.  Citrus is plentiful in the valley this time of year.  Everyone knows someone with a basket of fruit they’re trying to get rid of.  But come summer, people will lay down a dollar for a lemon.

On the relationship front, everyone knows if you play hard to get, you’ll get a lot more attention than if you act the least bit interested.  It’s all about wanting what you can’t, or at the very least is difficult, to have.

I think that’s the theory we’re seeing in the real estate market today.  Why IS it called a buyer’s market when buyers aren’t buying?  3 years ago I could put a cardboard box with a door cut into the side along side one of our busiest roads.  If I labeled it a one bedroom home and put a for sale sign in front of it, I would have had 15 offers on it by noon.  Why?  Supply and demand.  We want what we can’t have and there really weren’t enough houses to go around. 

Three years ago, people wanted a home so bad they were willing to pay thousands more than the house was worth.  Today, we can get a buyer a home for thousands less than it’s worth and they’ve got to think about it.  What’s up with that?

Due to that crazy era of mega appreciation, Buyers now think they have to buy at the bottom and sell at the top and they’re still waiting for the “bottom”.  Well, good luck there.  No one predicted the bottom before.  No one predicted the top either.  Why?  If I’m drawing a line on a sheet of paper and ask you to guess when I come to the bottom of my line, you’ll never get it right.  You say that’s the bottom and I keep drawing.  I hit bottom and start back up and you’ve already missed it. happy-house

It’s time to take advantage of those great home prices and go back to the days when we thought of our home as a comfortable place to live.  A place to enjoy our lives and raise our families.  A place that will probably be worth more than you paid for it in a few years, during which time you’ll enjoy a few tax benefits…but more importantly you’ll have the joy of simply living in the home that makes you happy. 

It’s time to stop thinking of a home as a stock option.  It’s time to take a piece of fruit out of that basket and call it good.

Comments

  1. Amy another great post. Always look forward to reading your work. I hope buyers read this post, it would help them and us as agents.

  2. Thanks for reading, Dean. I really hope buyers start thinking like homeowners instead of stock traders. I think it would help!