As I mentioned in my previous post, Joseph P. Kennedy, multi-millionaire and father of John F. and Robert F., used to say "Only a fool holds out for the top dollar." Considering his successes in business and in the stock market, maybe he was on to something. And maybe it says something about our current "housing crisis". Let's remember that "Crisis" is comprised of both "Danger" and "Opportunity". Granted, there is a glut of homes on the market fueled, largely, by the frantic and endless building of new homes everywhere (not to mention predatory lending and foreclosures). But, as others have pointed out, that means it's a Buyer's Market!
Two of our problems are the age old human qualities of greed and fear.
Sellers are in denial and are holding out for "top dollar".
Buyers are frightened, undestandably, or are waiting for the market to bottom out. I would paraphrase Kennedy in suggesting that "only a fool would wait until we hit rock bottom before buying. No one knows when we've hit bottom until the market has already turned around." I have also seen a number of buyers who don't seem to appreciate what the market has done for them. They seem to want an extra pound of flesh, regardless of how much the seller may have already lost. As I've been saying for a long time, it's a Buyer's Market. Don't let irrational fear hold you back but don't let greed convince you that you can make a "killing".
Friday, December 7, 2007
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