Black Friday and the Real Estate Market
You know there is a great parallel between Black Friday and the Real Estate market. Actually, the parallel goes with any market...not just Real Estate.
We often laugh at (or with) our friends that line up outside of Best Buy over 12 hours before the doors open in the cold just so they can get that TV they have lusted after all Thanksgiving Day in the glossy newspaper ads. But why all the hype? Why all the madness?
A couple of weeks ago Wall Street announced that numerous retail stores reported earnings less than what was expected for the last quarter. Did that effect the consumer this morning? No. Did the consumer still stand in sub freezing temperatures just to be first at the door? Yes. Did they care what Wall Street said about earnings? No. The consumer saw that they could save over $1000.00 on a TV if they bought today...its all about price. Black Friday is simply another way to say, "buy today or regret tomorrow."
So here is the parallel. You may have heard that the market is bad or that buyers are no longer buying. That is a false statement. When we look at what is selling in the markets, the properties that are selling have been on the market less than 60 days. For the Real Estate market, that is NOT a long time.
So why are the days on market so short for what is selling? Because the consumer knows value when they see it. The buyers are online and in the papers everyday looking for the home that can be bought for $200,000 today, but would cost $210,000 to build. Furthermore, when the consumer sees value, they act on it and purchase. Buyers are everywhere, but we have convinced ourselves they are not there because some of the listings in the market are stagnant (fancy word for overpriced).
No class, let's conclude our discussion. Is your price compelling? Would you sleep outside of your home in the cold to buy it at the price you're listed at? If not, you may want to take a lesson from Mr. Black Friday.
Happy Black Friday and Merry Christmas.
Written by: Ashton Gustafson - Owner - Bishop Realtor Group
Ashton Gustafson is one of top producing Real Estate agents in North Texas. He was selected by Realtor Magazine in 2010 as on the top 30 agents in the U.S. under the age of 30. Currently, he is an owner at the Bishop Realtor Group in Wichita Falls, Texas with his grandparents, Ann and Denny Bishop.
For more information on Ashton go to:
www.TheFallsHomeFinder.com - Looking to buy?
www.TexomaHomeValue.com - What's my home worth?