Special Guest Blogger Tyler Phillips From Keller Williams Capital District
Photo From minds-eye on Flickr.
The daily transactions in Real Estate can be compared to any transaction at your local market. In both arenas you can find shopping, haggling and negotiation, and finally, purchasing and closing. But arguably the most significant factor in any business transaction isn’t so apparent. This factor is motivation. Most times this word is associated with distressed sellers facing financial issues. This is clearly evident in the current foreclosure and REO numbers. It is important to analyze your own motivation as a buyer. As a real estate agent, it is called creating urgency to buy. The reality is, us real estate professionals aren’t creating anything. All the motivating factors are there; cheap money, high supply, additional tax incentives, first time homebuyer programs, etc. Homebuyers are proceeding with extreme caution while investors are taking action. The irony is, the homebuyer is concerned about the market when the reality is the market truly has no impact on the buyers motivation. Regardless if the market is up or down, it doesn’t affect the motivating factors listed above. “We don’t want to overpay for our house.” Than don’t! In fact, you are more likely to underpay for your house in a down market. 2005 and 2006 homebuyers overpaid for their homes. That is clear. In this market, when you look at cost of money, the tax incentives, and the lower values, you can be prepared to buy a $300,000 house disguised as a $250,000 house.
- Tyler Phillips, Keller Williams Capital District Licensed Real Estate Agent
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