The 3 L’s
The first rule of real estate used to be the 3 L’s….Location, Location, and Location. In a declining market such as this we might think about dumping this old phrase and adopting a new first rule comprised of 3 new L’s. In my opinion these would be Listen, Learn, and Let Go.
Listen to the economic forecasters such as Peter Yen from the National Association of Realtors. He was recently in St. Louis speaking about how the unemployment rate is directly tied to real estate trends. He believes if unemployment goes down in the next quarter we can most likely consider the worst is behind us. Listen to an established real estate professional; These are the ones that have made this their career. Every single day they access the latest available property list. He/She can tell you what has gone down in price, what is under contract, and what has sold for less than asking price. Point being, they actually do know what is happening in the market place and it’s not just from watching the nightly news. Listen to what these people are telling and follow their advice. Remember this is why you look to them.
Learn to adapt to this market. Realize that what worked before is not necessarily going to work today so learn how to price your property appropriately and then learn how and when to adjust it. If you are looking to buy, learn how to make a solid offer before your dream home becomes available. You don’t want to be caught in the dark, being prepared is always best. Learn all of the parts of a sale contract and the process of buying/selling a house so that you feel comfortable discussing all possible scenarios and variables when that contract is written.
Let go of anger and resentment about the economic climate. Let go of blaming anyone or anything for the current state of the market. Let go of comparing neighborhood sales from the past 3 years to what they are selling for now. If you can get past these things and understand that it is a fact that people still need to move for their own reasons. Then you are truly “letting go.” A house may not be worth as much as it was in 2006 (when it was, in all probability, over-inflated) but that should also come as good news if you are looking to buy.
By listening to the information provided by professionals, learning how to react and adapt to this market, and letting go of negative re-enforcements, I believe you hold the keys to a successful real estate transaction.
