There is a constant panic in the air when you’re a real estate agent, I’ve come to observe.
- Where will I get my next deal?
- Am I good enough to attract clients?
- How will I convince the next person to work with me?
These types of questions lead us down the rabbit hole of finding ways to create “content” that will trigger a powerful CTA (call to action) with people.
And in real estate, specifically in the Phoenix market, there are a lot of buzzwords and phrases from which to draw from.
- “Inventory is very low”
- “Interest rates are at HISTORIC LOWS”
- “Phoenix IS A TOP RANKING PLACE TO LIVE”
- “Rent is getting way to expensive”
There are so many…I won’t bore you with them all – but all of these ideas are designed to PROMPT YOU as a potential buyer or seller to take action.
Here’s the problem and struggle I have in the face of all of this.
When people ask me:
- “Hey Ramneek, is this a good time for me to sell my house?”
- “Hey Ramneek, is this a good time for me to buy a home?”
- “Hey Ramneek, is this a good time for me to buy an investment property”
If I was to be honest, the true answer is NOT a call to ACT.
My answer is a call to evaluate.
‘It depends” is typically my initial answer to these questions to anyone who asks.
I know, not very sexy – but I can’t in good faith simply snap respond with “YES” or “NO”.
Because here is the truth.
There are a few important factors that need to be considered when looking to engage in a real estate transaction.
Most “real estate ads” are attempting to prompt you to act because of the market not because of your situation.
There several powerful ideas and concepts to evaluate when thinking about selling or buying a home – for personal or investment reasons that have less to do with the market – and more to do with the context of your life.
Here are some to consider:
- As Is Evaluation: ie. what is your current situation? Are you currently renting? Are you currently owning? When did you buy the house you are living in (equity and cashflow evaluation)? What is your current rent (cashflow evaluation)?
- Market Exposure and Market Driven Hinderances: ie. where do you see yourself in 3 to 5 years in the context of your current career and also other goals? Is there a chance your current living situation would have to be evaluated if things were to change IN or NOT in your favor 3 to 5 years from now? Would you want more flexibility in your 3 to 5 year window than you have now?
These are just a sample of questions that I must learn about my clients before putting together potential options and strategies around making a real estate decision.
And yes the current market is a FACTOR but it is not THE FACTOR.
The market shouldn’t be the reason we decide to do something, the market should always be and simply serve as a vehicle for the things we wish to do.
This distinction in my work is often the reason I find it challenging to endorse the “YES” or “NO” answer when someone asks me, “Hey Ramneek, is it a good time to buy/sell”?
The true and honest answer is and always will be it depends.
- INTEREST RATES ARE AT HISTORIC LOWS (so you should buy).
- INVENTORY IS EXTREMELY LOW THIS IS A SELLER’S MARKET (so you should sell)
- RENT IS PAYING SOMEONE ELSE’S MORTGAGE (so you should buy).
None of these headlines matter or have any relevance until someone takes the time to sit down and understand the following about you.
- Who you are?
- What are you working on and hope to become?
- Where are you today?
- Where do you wish to go?
Life is about experiences, not opportunities.
The rest is noise.