Uncategorized September 21, 2021

The False Sirens of Real Estate

At first glance that headline would seem counterintuitive for two real estate brokers to start with. But it is tied into one of our core philosophies of business:  tell the truth because the truth is more important than our next commission check. We discuss with clients everyday about what they want from their next home or what proceeds they should expect from the sale of their home.  In almost all cases, it makes financial sense to buy vs rent. And right now, everyone is netting more from the sale of their homes than they expected just a few years ago.

 

So what do we mean by “false sirens?” Right now, due to low interest rates, everyone’s buying power has been about as good as it has ever been.  And the temptation to over buy based on capacity and what is available is very strong.  For those who have been prosperous in work and in the stock market during the pandemic, it seems reasonable to purchase near the top of your budget. And maybe it is. The false siren is the belief that the bigger house with the more expensive finishes and details will bring you joy. The world of marketing, including real estate marketing, is all about selling us ideas of what we don’t have but could have.  In the creation of that longing in the presence of greater capacity, the temptation to over buy is as strong as it can be.  Now it might still make sense for other reasons to upsize or relocate to a more expensive zip code. But happiness, joy and shalom cannot be bought.

 

If you have questions about buying, selling or just want to talk about the real estate market, give us a call.