Market Condition

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I was talking with a friend the other day, and she said something I hear a lot: “oh, you must be having a tough time in real estate with this market”.  I’m not quite sure what aspect of the market that she was referring to, but I assured her that in my area of the real estate market, there’s never a tough time.

How can that be?  Interestingly, where people get their “data” is from news reports, and we already know that the news outlets love nothing more than bad news.  It’s sooooo dramatic and sometimes sad, but somebody’s got to get the word out there, right?

Well, we know that the RETAIL real estate market has its cycles.  First, there’s the micro-cycle of local seasonal conditions where a lot of real estate is transacted in the spring, and not so much in the fall and winter.  Of course, this seasonal cycle depends on where you are in the country, too.

Then there’s the macro-cycle of the housing industry at large.  The best recent example of this was the precipitous descent we took around 2008 when prices crashed through the floor.  People were trying to dump their houses left and right – some from fear, some for legitimate reasons.  Didn’t matter.

And that visibility is about the retail side of real estate – the buying and selling of homes by people who occupy those homes.  That’s not our side of real estate, where we look at a different cycle and different market conditions.

Now, it would be folly to say that those retail conditions have no impact on what we do – they surely do.  But those conditions don’t dictate an “up or down” market for real estate investors.  When you tell that to people, they don’t understand how that could be.

The reason is simple – we look for properties that are in a distressed situation.  Not necessarily that the property itself is distressed, although they frequently are, but the situation is distressed.  What exactly does that mean?  Distress is created by many factors – loss of job, death, divorce, unwanted rentals, inheriting a property – just to name a few.

These factors are not exclusively related to the state of the economy, either.  There are external forces that come to bear on people that create untenable situations.  And when selling their property is key to them moving forward, that’s where we can step in and help.

And while it’s true that more distressed situations are created with economic downturn, the fact is that these situations are constantly happening, and with good marketing, a real estate investor will come across more than he or she needs to eke out a good living.

Some people accuse real estate investors of “preying” on people who are down.  Nothing could be further from the truth.  The truth is that we offer a service that can bring immediate financial and emotional relief to people when no one else can.  Banks would happily foreclose on these people, and selling with a REALTOR is expensive and can take a long time.

Like with any profession, you need to be steeped in the practice of what you do to truly understand the intricacies of the process.  I hope this brief explanation has you understand a little better.



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