Who is Warren Buffett?
According to Wikipedia Mr. Buffett "is an American business magnate, investor, and philanthropist. He is widely considered the most successful investor of the 20th century. Often introduced as "legendary investor, Warren Buffett",he is the primary shareholder, chairman and CEO of Berkshire Hathaway. He is consistently ranked among the world's wealthiest people. He was ranked as the world's wealthiest person in 2008 and is the third wealthiest person in the world as of 2011. In 2012, American magazine Time named Buffett one of the most influential people in the world."
So now I am sure you are asking yourselves, why Warren Buffett? And what does this have to do with market conditions?
Yesterday I attended a Career Compass Seminar teaching how to become an agent in the top 10%. We touched on many different topics and I am sure a lot of you are familiar with Career Compass. We got to this section where we discussed "How to overcome a Reluctant Buyer" In this current market I think we can all relate to the "reluctant buyer", the "scared buyer" and unfortunelty "the unfaithful buyer" (which really when you think about it, is just a scared buyer with commitment issues). But really as an agent you should be firm in your ideal that there is NOTHING TO BE AFRAID OF!.....take it in.......breathe......repeat it to yourself a few times.......got it? GREAT! Now, how do we convince our buyers that this is the best time to buy, buy, BUY!
So you've gone through the motions. You've searched the MLS to find them homes. Granted not the highest amount of available inventory right now but let's say you've looked and you have found them THE ONE. That's you're leverage. And even though the house is perfect and there's absolutely not one thing about it they do not like, THEY STILL WON'T COMMIT! Frustrating, because here you are using your valuable time and left feeling it was wasted, but it's not, because here's your chance to present them with the facts!
When asked once, how to get rich, Warren Buffett replied, "
Exhibit A:
When looking at the chart above, You'll notice that 90% of the market drop happened within a one to two year period! That is an intense decline in a short period of time. Now interestingly enough, the peak where home prices were the highest lasted less than a year, it's somewhere around 6-8 months. Now if you look at the graph for "to present" true, it's not the best prices we've seen but its evident they arn't going down any, and its also evident they've been stable for two years. So at the front of the graph, you have this really steep incline leading to the peak, the pop, the drop to today. Now ask yourself, if you were Warren Buffett when would you say the mass of the population was greedy? If you were Warren Buffett would you have bought a home between Jan 2007- Jul 2007, or today, when everyone else is fearful and pinching their pennys?
It's not to say you would've denied your clients a home then, it'd be ridiculous to tell people not to buy a house then because you had a strange feeling in your stomach. Warren Buffett did also say once "
So, you want your buyers to start buying, explain to them just that. The Facts: The market isn't going anywhere, and if it is it's definitely going up, not down! Stop futzing around waiting for a price reduction that may or may not happen. Approx 90% of price drops are over (for homes priced correctly) and most additional price adjustments are within 7%. Realize that one thing that is happening, FOR SURE, is interest rates ARE on the rise.
If you have to use Warren Buffett!
Client fear is the number one reason for non purchase right now, So I hope somewhere in this you found ammunition to help put your client's minds at ease. Best of luck on your next appointment!
Sources:
Some text and % recieved and wuoted from Career Compass Training class
Housing prices original Graph found on:
http://ggvalues.com/california-real-estate-reports/california-in-context-3.html/attachment/msp-c1Warren Buffett Quotes found on: http://www.brainyquote.com/quotes/authors/w/warren_buffett.html#xD4EJEmQQTVkKhgb.99
According to Wikipedia Mr. Buffett "is an American business magnate, investor, and philanthropist. He is widely considered the most successful investor of the 20th century. Often introduced as "legendary investor, Warren Buffett",he is the primary shareholder, chairman and CEO of Berkshire Hathaway. He is consistently ranked among the world's wealthiest people. He was ranked as the world's wealthiest person in 2008 and is the third wealthiest person in the world as of 2011. In 2012, American magazine Time named Buffett one of the most influential people in the world."
So now I am sure you are asking yourselves, why Warren Buffett? And what does this have to do with market conditions?
Yesterday I attended a Career Compass Seminar teaching how to become an agent in the top 10%. We touched on many different topics and I am sure a lot of you are familiar with Career Compass. We got to this section where we discussed "How to overcome a Reluctant Buyer" In this current market I think we can all relate to the "reluctant buyer", the "scared buyer" and unfortunelty "the unfaithful buyer" (which really when you think about it, is just a scared buyer with commitment issues). But really as an agent you should be firm in your ideal that there is NOTHING TO BE AFRAID OF!.....take it in.......breathe......repeat it to yourself a few times.......got it? GREAT! Now, how do we convince our buyers that this is the best time to buy, buy, BUY!
So you've gone through the motions. You've searched the MLS to find them homes. Granted not the highest amount of available inventory right now but let's say you've looked and you have found them THE ONE. That's you're leverage. And even though the house is perfect and there's absolutely not one thing about it they do not like, THEY STILL WON'T COMMIT! Frustrating, because here you are using your valuable time and left feeling it was wasted, but it's not, because here's your chance to present them with the facts!
When asked once, how to get rich, Warren Buffett replied, "
We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful."
Exhibit A:
When looking at the chart above, You'll notice that 90% of the market drop happened within a one to two year period! That is an intense decline in a short period of time. Now interestingly enough, the peak where home prices were the highest lasted less than a year, it's somewhere around 6-8 months. Now if you look at the graph for "to present" true, it's not the best prices we've seen but its evident they arn't going down any, and its also evident they've been stable for two years. So at the front of the graph, you have this really steep incline leading to the peak, the pop, the drop to today. Now ask yourself, if you were Warren Buffett when would you say the mass of the population was greedy? If you were Warren Buffett would you have bought a home between Jan 2007- Jul 2007, or today, when everyone else is fearful and pinching their pennys?
It's not to say you would've denied your clients a home then, it'd be ridiculous to tell people not to buy a house then because you had a strange feeling in your stomach. Warren Buffett did also say once "
In the business world, the rearview mirror is always clearer than the windshield." So yes, yes learn your lesson, b
ut right now the only people willing to buy and commit are investors, why? Because they see that buying now when the market if stable, prices arn't going anywhere any time soon and reductions arn't in the very near future is GOOD. So, you want your buyers to start buying, explain to them just that. The Facts: The market isn't going anywhere, and if it is it's definitely going up, not down! Stop futzing around waiting for a price reduction that may or may not happen. Approx 90% of price drops are over (for homes priced correctly) and most additional price adjustments are within 7%. Realize that one thing that is happening, FOR SURE, is interest rates ARE on the rise.
If you have to use Warren Buffett!
Client fear is the number one reason for non purchase right now, So I hope somewhere in this you found ammunition to help put your client's minds at ease. Best of luck on your next appointment!
Sources:
Some text and % recieved and wuoted from Career Compass Training class
Housing prices original Graph found on:
http://ggvalues.com/california-real-estate-reports/california-in-context-3.html/attachment/msp-c1Warren Buffett Quotes found on: http://www.brainyquote.com/quotes/authors/w/warren_buffett.html#xD4EJEmQQTVkKhgb.99
