Many are familiar with the "Five Stages of Grief." It seems to apply to many things... including dealing with real estate markets. There are two distinct groups that need to be addressed here. I will try to address both parallel.
The 5 stages are:
- Denial: The initial stage: "It can't be happening."
- Anger: "Why me? It's not fair."
- Bargaining: "Just let me live to see my children graduate."
- Depression: "I'm so sad, why bother with anything?"
- Acceptance: "It's going to be OK."
So... here we go...
Denial. "There is nothing wrong with the market." And, either "My house is still worth the same as it was before." or "I don't need to adjust my business model."
There is still a lot of this. Without going into whether a buyer's market is "better" than a seller's market (or vice-versa), the market is certainly different. In many areas of the country, it is not "business as usual" for either agents or consumers. Of course, the same was true as the market shifted into a seller oriented mode after the 1990s. Sellers. There is a good chance that the market dynamic has changed. Consult an agent that pays attention (like me). Agents. Plopping a sign in the yard and entering basic info in the MLS is NOT going to make a house sell with multiple offers (like it ever worked here in the Atlanta area...)
Anger. "That #@T^ media. It's all their fault." Let's not forget Congress, the banks, mortgage brokers and real estate agents...
I see this one a couple of ways. But, it boils down to anger. I have had consumers tell me that agents made it all happen because we pushed prices up to make more money, and because we pushed prices down to make more sales... and make more money (often the same consumer). Agents tend to be mad at the media for being negative. Sellers. It is what it is. EVERYONE wants to sell their house for more, and buy the next one for less. The balance changed because the prices got out of whack, and then financing started to collapse. It wasn't from agents driving prices up or down. Agents. It wasn't the media either. Even if they didn't help, they didn't make it a story until that pile of snow started running down hill.
Bargaining. "If you can just hold off selling until this is over, it will be ok." This one is tough.
I think a large part of the market is here. If we can make a bargain, it will all go away. I've seen agent posts telling sellers not to sell right now to decrease inventory until the market stabilizes. People have to move, and saying this is like telling people not to buy gas until the price comes down... not going to happen. Sellers. If you have to move, you have to move. If you don't... this might not be your market... or it could if you are in the right position. Agents. Just do what you should be doing anyway. Sell properties that are priced right.
Depression. "I'm just going to walk away. I can't take it any more."
This is where most of the rest of the market is. NAR membership is dropping. People are walking away from homes they are upside-down in. Agents are waiting tables. Foreclosures. Sellers. This is a tough stage. You just have to do what you have to do. If you had equity, keep in mind it was never real money. It is a tough thing to accept. Don't take lightly the decision to walk away. The equity will come back... and the more people that walk away, the longer it will take. You can help or you can hurt. Agents. You also have to do what you have to do. You aren't alone. But, be honest. Is this where you really need to be? If so, hang tough.
Acceptance. "It is what it is, now let's get down to business."
Look inside, Grasshopper. Examine your heart. If you are here, you are ready to move on and make things happen. There are fewer agents. There are lots of opportunities. Investment properties that cash flow RIGHT NOW. The sun is ready to crest over the horizon. You just have to accept that the market needs to expand AND contract. Sellers. Price for today, and your property will sell today. In most cases, you can find a new property to buy that is also priced for today. When you look at the long term (both forward and backward) trends, life isn't bad. Agents. If you have made it here, you are ready to grow. Just do it. Look at the new reality and operate and make changes accordingly.
Wake up to the new (old) reality.
If you are ready to sell, let me know.
Unless otherwise noted, all content of this blog is the property of Lane Bailey, ©2012 Lane Bailey.
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