As I sat pondering what my New Year Resolutions should be? I immediately knew that I wanted to diet, exercise & spend more quality family time, etc. But I also wanted 2008 to be my most successful year in Real Estate. Let’s face it 2007 was tough to all of us: renters, owners, buyers, sellers & Realtors. In order for 2007 to be a better year, we need to get the message & learn the lessons of 2007.
The dose of reality for renters is simple, renting is not a dirty word. Yes, many renters felt ashamed that they were throwing money away, but in 2007 they regained dignity. With the insanity of taxes & insurance, renters are making out like bandits. However the lesson here is: Don’t throw away your savings each month! Clean up your credit, Save at least 10% for a down payment & find a Realtor, Mortgage Broker, Home Inspector & Title Company that will truly serve you with professionalism, credibility & knowledge. Once you are ready take the plunge & go from renter to buyer, but only when it makes financial sense for you.
Homeowners have been hit hard by the insurance companies, adjustable rate mortgages, hurricanes, property taxes, etc. Many of you have considered heading for the hills (literally to North Carolina), but the grass is not always greener! The lesson is: Get involved & let your voices be heard with local & state government. Local governments have increased their budgets without your say, go to the budget hearings to stop them. We need to vote out the politicians that do not share our views, email & send letters to our elected officials to make our voices loud & strong.
Buyers have gone from impulsive to demanding and from worried to scared. I think 2007 was so confusing for Buyers. Buyers did not know when it is a right time to buy & just how to make an offer. The lesson for Buyers is: Buy when it makes sense to you & at a price you can afford. Do not buy out of peer pressure (family pressure). Do not buy because everyone on HGTV does it. Buy because it is financially intelligent. Buy because it is right for you & your family. The media will continue to torture us all with tabloid-like stories on the real estate market. But each of us has a unique financial situation & buyers are not cattle. You need to consult with professionals & be pre-approved through a reputable lender. Use a Realtor, it does not cost a buyer any money…yet it can make all the difference.
Sellers have been our toughest customers this year. They feel beat up, sad & robbed. Sellers read books on becoming automatic millionaires by just selling real estate. They were giddy as they watched shows on flipping properties. 2007 was your wake up call. But the lesson is: It ain’t so bad for sellers! Sure your neighbor down the lane sold for higher, but most of you are still making an insane profit compared to markets past. A home is a great investment but it is not a slot machine!
My fellow Realtors & I have to sharpen our skills & be ready for whatever comes are way. I have been lucky to have been trained by colleagues that were in the business long enough to teach me that our business is cyclical & we need to be diversified. I will hang on for the cycle in 2008!