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Perception is the primary driver of how prices move in the real estate industry. When people believe that prices will rise, they rise. Similarly, when people think that prices will drop, they drop. Perception is everything.
We currently live in a world in which people’s minds are governed by fear and distress, and it projects in their perceptions — and, more importantly, in their actions. People see what they want to see. After years of hearing how “the bubble is deflating in the real estate market,” it’s easy for people to assume that the bubble has finally burst. My advice? Stay calm.
Yes, This Is A Storm. And Yes, It Shall Pass.
During a storm, our biggest enemy is fear. Friends who just bought their first home are now being laid off. Friends who have little savings are struggling to find work. Yes, this is a storm. And yes: This, too, shall pass.
It’s helpful for us to visualize the direction in which the economy is heading to learn in which direction we should move next. Think ahead; project 10 different scenarios that could play out in the next two years and design a reaction for each one of those. Don’t get caught up in the common mistake of looking only a month ahead. Visualize your potential futures. If you even want to go one step further, you may project how the future of those around you may play out as well.
Find Clarity In Your Thoughts To Visualize Your Future
I’ve always loved whiteboards — they help me organize my thoughts. I’ve always had one at home, and I have used it for everything from designing my life to designing what has now become the user interface of my real estate company’s mobile app. I use it for everything. Find your whiteboard, whether it’s a piece of paper, a napkin, a note on your phone or a conversation with a close friend. Find a platform to organize your thoughts and find clarity in what is likely to become your next move.
When you lay out the different outcomes of the storm, opportunities begin to rise. If you feel like you’re drowning in a sea of uncertainty, making projections to visualize how the future can end up looking for you will bring lifesavers into sight, allowing you to detect opportunities in different scenarios. It is essential to stay calm.
Use Education As Your Compass
Being aware of how homes around you are currently moving by reading the real estate section in your local newspaper may bring awareness as to when an economy is beginning to stabilize. Keep track of the movements throughout some periods to detect trends in your neighborhood. Educating yourself will be the compass that guides you toward learning if it’s the best time to make a move.
Stay calm. The American economy will bounce back more quickly than you may think. And during times of distress, those who succeed will be the ones who are able to find clarity and face their fears.