Moving forward in this shaky economy...

Featured article in the Monmouth Journal- October 3, 2008

As market experts, economists, and political pundits weigh in with their opinion of the bail out and other assorted plans to move forward, I can only hope whatever path chosen is laced with common sense.

Any fool should known that prices do not go up forever and that interest rates do not come down indefinitely. The real estate market is not a ball-it does not "bounce back" or plunge in a matter of days. It quietly and reliably cycles up around and down again and so on. In fact it is always in the process of one or the other. It is probably the best and most consistent long term investment strategy there is. I am not a stock market investor, I am a real estate investor, and I can tell you with certainty that I am looking to buy. I am making offers and buying what I can that meets my criteria.

I have never been an investor in the stock market, mainly because I do not understand it will enough and my expertise and interest has always been in real estate. Sometimes, I have felt a little dumb not being a savvy stock market player, but in the last few days- I have been feeling pretty smart!

I have been a broker for over 20 years and managed an office during the tough times of the late 80s, I have seen this happen before. I have some advice for both sellers and potential buyers.

To sellers: We have been cycling down since the second have of 2005, and yet many sellers have been valiantly trying to achieve 04 and 05 pricing. It is not going to happen, it was not going to happen last week and it sure is not going to happen next week. If your agent has not been firmly telling you what to do...and is in the yes-ing you to death business: Get a new agent. Now is not the time for the weak. Tough times call for tough agents.\

Conversely, if you have a tough agent, you are receiving ongoing communication and you know that truthfully there is nothing that the agent is not doing...don't jump ship from one agency to another. Sit down with your agent and the broker and discuss options and ideas. Frankly, agencies spend a lot of money on marketing a property and jumping ship-if you are not following their advice-it is definitely not going to help. If the price is not right, it will not be right with another agency. If the house does not show well, it will not show well with another agency. Same thing with showing...now is not the time to be coy; buyers are in shorter supply they have more to look at. Make sure you can get them in your property without any obstacles. Such as, "try back tomorrow, 24 hr notice, pick up key from office" etc. Get as showing friendly as possible. Is it inconvenient? YEP. It is a necessary inconvenience if you want to sell your house. Your tough agent should be telling you that.

To Buyers: Don't overlook this opportunity that is on our hands: low interest and lowering prices. Don't try to calculate the bottom, it could be tomorrow-it could be 6 months from now. Whenever it is, it will be irrelevant if the interest rates have gone up! I have noticed that the Fed did not lower interest rates as a response to the financial news this week. The Fed will not lower them forever. In fact, during previous recessions the interest rates have gone up. Use this time to make great deals, like the investors are. Just remember that on the whole-real estate is a long term investment, and when it is also a short-term investment-that's a beautiful thing. Don't buy above your means, don't borrow based on tomorrow's pay check. There is more to choose from today than in previous years, and there ARE lenders that are willing to lend money. Not every bank forgot the common sense practice of making smart loans to qualified buyers.

In summary, whether a buyer or a seller, be smart, use some common sense and a tough agent who will negotiate on your behalf. Now is not the time for timidity, and is definitely not the time for inexperience or less than a full time commitment from your real estate professional.

Carolynn Ozar-Diakon

Broker/Owner, RESOURCES Real Estate

Email: carolynn@resourcesrealestate.com