Real Estate Market Conditions continue to improve. As Sales activity increases and listing inventory is depleted, it’s much easier today to explain to buyers why they should break their old habit of “Sitting on the fence” and buy now. After all, all indicators are beginning to point to recovery, which likely means the bottom of the market has come and gone. The fear of making a mistake, has been replaced by the fear of paying more for less of a selection. In short, the buyer arguments that an agent can use with buyer prospects are powerful and logical.
But, what about the sellers? Where buyers can look at the strategy of “Sitting on the fence” and realize it will not work in the future, based on the changing market indicators, don’t those same indicators reinforce the strategy Sellers have employed for years? Now that the market is recovering, doesn’t it finally make sense to wait for prices to recover as well? An agent that expects to be successful encouraging sellers “Sell now” and “Properly price their properties”, must be able to identify the risk a seller undertakes by waiting for prices to recover. (Fear of Loss Motivation).
What is this risk? The answer to that key question lies in the economic and geopolitical uncertainties that exist in the world. Consider how the following issues could impact the U.S. Economy and Real Estate Prices if they happen?
– If the U.S. Deficit continues to spiral out of control?
– If taxes and spending increase if President Obama is re-elected?
– If Romney is elected President and enacts austerity measures that stifle the economy and consumer confidence?
– If war breaks out in the Middle East?
– If the Euro-zone enters a deep recession, dragging the U.S. Economy along with it?
– If China’s economy that has be single-handedly propping up the world economy, finally starts to slow down?
– If Unemployment continues to worsen?
The answer, if any of the myriad of possible risks comes to fruition, is obvious. Any one of a number of scenarios, could spell catastrophe to the U.S. Economic Recovery and improving real estate markets. So, every seller must ask themselves a questions critical to making the best decision based on their personal situations:
“Is the benefit of possibly getting a little more for their home, that little extra money, worth taking on the risk associated with waiting for the better price?” And, ultimately doesn’t the “Quality of Life” override financial considerations?”
As A Trusted Real Estate Advisor, it’s every agent’s obligation to point out the risk of the “What If’s” and “Is it Possible’s” to help their clients manage their risks to make the best possible decision.