Irvine Real Estate Link, CA – Effects of adverse economic situation

by Robert Mack on August 7, 2008

in Irvine Real Estate

As we are all aware of the slow real estate pace not only in Irvine, Orange County, but across the board, many brokers and real estate professionals believe in changing course in order to put bread on their tables. Some may not be as hasty as to quit the trade altogether yet others simply give in and change direction. In fact the business of selling/buying real property maybe best realized in hard times such as what we are having today, if you are willing to put your heart into it. Yes, it is a huge buyers’ market, yes; the real property values are not only stagnant but in many cases have dropped; yes, the budget deficit is now approaching half a trillion dollars; yes, the financial institutions and banks are foreclosing on homeowners who cannot meet their periodic responsibilities, and yes, the gasoline prices have over doubled in the past eight months or so. But is this a reason to feel panicky? Not necessarily. To overcome such adverse economic state of affairs you, as an Irvine real estate professional, must change accordingly to possibly offset such adversities. Buyers think twice, many times, during the course of their search for an ideal home before they are committed. Even a simple grocery shopping is calculated nowadays.

My wife and I like entertainment and eating out, especially after a wearing day. A lot of people do. Instead of going to the movies once a week we go once a month or once a fortnight, same with restaurants. Our shopping trips are calculated so as not to waste energy. Let alone buying a house. I’m talking about middle to upper-middle class Americans, not the millionaires; they have no worries—in most cases. When the time comes to pay our semi-annual Irvine property taxes we get our knickers in the twist, yet we don’t think about it during the year and spend where unnecessary. You may think I am contradicting myself in this last statement but there are such people. People who own property and fall behind their payments. The latter class of people, like the millionaires, is at the other end of the spectrum. In order to survive and hopefully be successful we must learn to compromise.

Today’s Irvine real estate situation is in the form of Buyer’s Market and at the same time, the sellers are not willing to part with a great chunk of their equity. There is an abundance of homes for sale. Unfortunately only a fraction of it will eventually be sold. These days, even buyers are not willing to commit themselves. The situation is somewhat weird but what is it that hinders the market so strongly? If you said that it is the economic circumstances you are only half right. The other half of the reason is simply fear. The fear of uncertainty. “Will my job last?” “God forbid, will I be sick and accumulate hospital bills?” “By the time we settle in our new home, will my job require me to transfer to a different state?” “Perhaps if I wait a little prices and rates may fall further”. These are quite valid concerns. Here is where the agent shows his or her initiative to reason with the potential buyer. To use the training and experience he or she has received in closing the deal. To turn these negatives into possible positives. To convince, with reason, as to why wait any longer and possibly loose a great deal with no guarantees as to what tomorrow may bring. The agent’s initiative is of utmost importance in ascertaining how desperate the buyer/seller is. This is a vital piece information that must be handled with great subtlety and be used as a decision-making factor.

Views, comments, responses and constructive criticisms are welcome.

Make it a great day.

The Mack Team
Robert & Tania Mack

Century21 Professionals

Irvine, Orange County, California.

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