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FEAR VS. GREED - Is Now The Time To Buy Real Estate?

Fear vs. Greed - I$ Now The Time To Buy Real E$tate?

So often we hear about Fear and Greed and how it's the two motivating factors of investing in the real estate market. With the media driving *fear* down our throat about "*now is not the time to buy real estate, wait it out, don't buy"* Nothing is further from the truth! We read our local papers, watch our local and national news, "market is crashing, wait it out!!" What??? Quite the opposite my friends! If you ever thought about buying real estate, NOW is the time to buy, invest NOW! Think about it, NOW is the time to invest in Real Estate, with foreclosures and short sales at an all time high, now is the time to take advantage of the real estate market. A very wise, rich man Warren Buffet worth over $58 billion, a successful investor has been quoted saying, "Be fearful when everyone is greedy and greedy when everyone is fearful." Now doesn’t that make so much sense? My brother turned me onto this quote as he was one of those buyers who opted out of fighting against multiple offers when our market went crazy in 2005 in Arizona. He had a little foresight and followed his gut and has taken Warren Buffet’s advice to heart. He has currently returned to investing now and building a larger portfolio and as a real estate buyer taking advantage of the market.		As we experience record lows with interest rates, the inventory is fantastic in a buyers market and there are still great loans available for all types of buyers. Don’t sit back and wait it out and lose your opportunity. Remember, there isn’t anyone on this planet that can predict when the right time is to buy, if we all knew when the swing in the market would take place we all would be sitting on the beach with a little umbrella in our drink dreaming our day away! I would like to share a video with you called “Say Cheese.” It’s a story of a little mouse who bites off more than he can chew. Literally… His greed drives him to eat so much cheese that he can hardly move, and as he hears a cat’s meow in the distance, his fears take over. Driven by sheer terror he manages to laboriously heave himself across the house towards safety. However, when he finally arrives at his little mouse hole, he no longer fits in it. The conclusion is a bittersweet happy-end mixed with relief and embarrassment as he discovers that his fears and appetites were his only real enemies. Long story short, if you are considering real estate, don’t let fear be your biggest enemy. Take advantage of the market and make it your friend and greed will turn into a safe, sound and solid investment. "Be fearful when everyone is greedy and greedy when everyone is fearful." - Warren Buffet

Posted by Gilbert Arizona Real Estate - Candace Robinson on 01/25/2008 06:51 PM

Comments (53)

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Originally posted at: The Phoenix Housing Blog: FEAR VS. GREED - Is Now The Time To Buy Real Estate?

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53 Comments on FEAR VS. GREED - Is Now The Time To Buy Real Estate?

JAN

2008

well well well look who it is

I love the Warren Buffet quote. Your posts always look so professional...they make the rest of us look so amateur. Where have you been?

Hey Candace, love, love, love the quote. And love your post - of course. Great job girl! I know what you've been doing today - or was it last night. ;-)

Nice blog....love the Warren Buffet quote.

Very nice, Candace. I really like Warren Buffett's methods. The quote is very applicable to the sentiment these days.

Candace...What a treat!

Your posts are not only full of great information, they are also a treat for the eyes. It would take me forever to get those graphics, etc. to make it look the way you do. Thank you.

Cheers,

Kathleen

Candace- What a wonderful post you wrote! IT is SO pleasing to the eye. I love it! And you are right, buy now, because you will not know when the market hits bottom until it is already on its way up! Katerina

We're still selling homes. I'm selling new construction and my buyers are delighted. Our agents are selling just about everything, but negotiating tough. That's the key today.

It's not a bad time to buy if you know the market and buy a home, not an investment.

Very nice post.

Great post Candace! Of course you are right, now is a great time to look at investing in real estate. First time buyers would do well to consider looking now, too. There is so much available and prices are down in some areas. (lots, actually) I think that quote makes a lot of sense after what we've seen, doesn't it?

I love the way this post looks. Cute video, too. :)

Dez - Yes-- I have come to life and ready to get busy blogging! Look out ActiveRain she is back! Hope you are well and off to a Happy New Year my pal in the east! So... Is it Fear or Greed for you now? *wink*

Kelly - Thank you so much. I wouldn't say my associates and friends here on AR are amatuers, they are wise and sharp, yourself included. I just have some disorder trust me with what they label, perfectionism..it will be the death of me yet! Thanks for stopping by!

Hello my friend! It's so great to see you back here Candace. This post is very well done and I love the quote. What an important quote that is to live by. Thank YOU for the incredible amount of work you have gone to as I know your consumer's will greatly appreciate this very valuable information.

Teri - I am thrilled you liked the outcome and even more thrilled I have this behind me. I have been stewing and chewing on this quote for some time now and certainly wanted to get it out to my buyers/clients and the consumers! I didn't spend much time today, finished it last night and just published it when I got back to my office this afternoon after a long day out previewing homes. Thanks again for your continued support and I have certainly enjoyed our time yesterday on the phone! Let's do it again sooner than later! Golf and lunch too!

Michael - Thank you for the compliment! It has been a quote now that I have been sharing with so many right now when they ask me about the real estate market. It seems to ring a bell for some reason! Enjoyed browsing your blog and subscribe tonight! Look forward to seeing you around. Thanks fro stopping by.

Elaine - I can't agree more! Thanks for your comments. Good to see you! Happy New Year!

Kathleen - You are so sweet and kind. I appreciate your words, I really do. I don't know how I have managed to put my posts together, they just truly just happen. I have had a dry spell as of late and I am up and motivated to get some more out. Feel free to contact me anytime if you ever have any questions about pictures or graphics, always happy to help where I can. Have a great weekend.

JAN

2008

Katerina - Awwwh you are so sweeeeet. I have been away and have missed you all so much. Now I know why, you are always so supportive and share such great words of affirmation! I have had this quote on my mind for a few weeks and have wanted to get it posted and finally made it today.

Consumers: Now is the time to buy, we have been asking for a market with great rates, lots of inventory and great deals. IT'S NOW...buyers...find your agent and put your offer in TODAY!!

Lenn - Great success is happening in your neck of the woods and I am confident if you are on the buyers side they can't go wrong. I agree with all the right tools, great agent and informed decisions being made, now makes perfect sense to buy real estate! Thanks so much for your valuable comments. I so do appreciate it more than you know. Happy New Year my friend, continued success in 2008 and beyond.

Doreen - Thanks my friend, I so totally agree with this quote on so many levels of investing. Real Estate is one that I find as a great investment as a second time buyer or first time buyer. With great deals and a great agent negotiating on your side, it's a win/win market. Thanks for your continued support and for your friendship. Happy New Year to you and make 2008 be your best year ever!!

Julie, Julie, Julie -- Oh how I have missed you. I am so glad to see your happy words and support today on my page. I have been slacking in the blogging arena but I am back and ready to rumble in the blogging world. I hope all is going well with you and yours. Spread the quote if you get the chance, it seems to ring a bell to those asking about the real estate market. Thanks for stopping by!

Hi Candi - I love the quote by Warren Buffet. Cute video, too. It is great to see a new post from you, my friend. I hope you are staying busy, as I'm sure you are!

Jason - Hi there, gosh I can't believe how much I have missed all my AR friends! Thanks for the comments and I too, love this quote now! It has been burned into my brain as of late. As for being busy, yes, I have written five contracts this month and 2 are in escrow and waiting on a third one to be accepted. With REO's and Short Sales buyers are coming out of the woodwork. I think the consumers are seeing the time has arrived. With the rates potentially only getting better in the next six months (fingers crossed) we are going to see a new wave of home buyers coming around. Great to see you around, I will be making my way by your blog to see all that I have missed, I imagine it's going to take some time to catch up with the #1 blogger on AR...miss you my friend! Hope all is well in Austin and with your family!! God Bless.

Hi Candace: What an incredible post, Candace. You've got enough stuff in there for perhaps four separate posts. You're going to wear yourself out. How are things going at HomeSmart ? Nice to see you back and posting. Take care... be well...

I'll be greedy when everyone is sittin' back scared to make a move. I'm toying with some local purchasing myself. We got rid of all our investment properties in Sept. Oct 2005. Didn't know for fact that the market would change but it was a intuition.

My intuition is saying within the next six months I should buy. Greed Baby Greed

Candace, I love the Warren Buffet quotes. Thanks.

Candace,

I just think people don't want greed and fear at the same time but they should because there is always fear with greed...we just don't always see it on the top.

Karen - Oh this was nothing! I had a great point to make with Warren Buffet's quote and wanted to get it out to make sure there is another perspective on Buying Now! Thanks for your continued support and glad to be back. Now off to show properties. Have a great weekend.

Dez - I think you should go for it and buy that property we talked about, if you need a great agent to negotiate it for you, let me know. She is on a great team in New Jersey!! *wink*... A woman's intuition is better than anything..just a gut feeling!

Dan - So glad you enjoyed it, I know it made total sense to me when my brother shared it with me.

Neal -

Fear can be several things, fear of loss, fear of missing out! Either way we don't want fear to be our enemy if we can help it. Simply be aware of the market and some of your best deals are done in the markets we have currently today. Think ABOUT IT!! When everyone was grabbing all up all the market and supply and demand runs out, everything goes nuts and we experience increase. With markets like today we see reasonable prices, lots of inventory and then is the time we need to shop and find the great deals! It makes total sense to me...my time to be greedy..in a good way financially!! Sorry for the soap box... Good to see you my friend!! Have a great weekend.

Candace,

This is why I subscribe to your blog. Great Post!

Great point and beautifully written blog. All buyers are hard to deal with right now!

Candace,

I really don't understand the whole, "don't buy now" mentality. If prices have been forced down so low in some areas and frantic sellers are giving the farm away, why wouldn't you buy? The obvious truth is that this is the best time to buy in years. The blood is in the streets and those with the wisdom to see it will be the ones becoming rich over the next few months.

Steve - Thank You! You made my whole day. I appreciate your continued support. You're great!

Tina - Thanks for the comments. I don't know that buyers are hard to deal with, I believe they are skeptical with all the confusion in the media. I just feel it's our responsibility as professionals to help them understand that this could be the best time for them to act and buy. Don't you agree? Educate your buyer and they will in turn feel more confident in buying and you as their agent.

Andrew - You would think the so, however we live in a society where we can't escape the critics and naysayers that want to spoil it and suggest that it will get better if they wait... where do they come up with this stuff... Logic tells me that we have asked for these conditions and now that we have them, take advantage of it. Great comment, thank you!

JAN

2008

Candace...this is another great post!This is something that should be featured and isn't.

This is why I so enjoy your posts!Keep em coming!

Gilbert...

False

Evidence

Appearing

Real

And that's all I have to say on the topic :)

TLW...ROAR!

BLR - You are the best! Thank you for your comment and your continued support. You deserve a 'star' today! Have a great day! Thanks for subscribing too! You're great.

TLW - I love that acronym....another great comment out of the lioness herself. So true, so true. Thank you for contributing. Hope your weekend is going swell.

Hi Candace,

Long time no hear. Love your post, as always. Hope all is well with you in your new office. Everyone likes that Buffet quote but I love that mouse! :)

Lisa

Candance- Nice article....it is so hard to help people overcome fear....and everyone wants to be sure that they get the best deal possible......so how to overcome this is our daily challenge......

JAN

2008

"Be fearful when everyone is greedy and greedy when everyone is fearful." - Warren Buffet

I have not heard that before, but I'm going to remember it NOW! Thanks for sharing that nugget of truth.

As you know, I've been away from AR for a while...packing and moving my office. I'm still not finished, but I just had to pop in for a little encouragement from my buddies. I'm so glad I did. I've been missing you!! GBU!

Candace, I am really impressed by your posts. Do you write the HTML yourself or do you use a program?

The "structure" is so great, but I also want to compliment you on the content. Very good. You are a tough act to follow.

Bill Roberts

Love the post and LOVE the video... I may need to share with others in my office. Terrific!

Excellent, sound content. Thanks for writing it....

Candace, Love the quote and I am going to memorize it not just for my job, but to teach it to my children.

Candace, glad to see your blog again! I too, love that quote, it's very true!

Lisa - It's great to see you too! I have missed AR and ready to be back full force! So glad you enjoyed the 'Say Cheese' video... I am glad you took the time to view it. I enjoyed it equally the same. Things have been going well with HomeSmart and looking forward to a great year! Hope all is going well with you.

Kathy - I agree as professionals in one of the toughest industries we have to do our part to educate and let clients know that the hype in the media is not all that they say it is. Like in the video, the poor mouse who stuffed himself when the opportunity came and now fears loss (meow with the cat) panics when he imagines the big gnarly teeth of the cat who only turns out to be a friendly little kitty. Much like the market, it's not a tough and bad as so many want to make out, make it your friend and find the deals and find a great agent to help you along the way. Happy Blogging!

Elizabeth - So glad you stole of moment of a busy time in your world to steal this nugget of truth! I am surprised I was able to get one past you. I love this quote and have talked a lot about it lately. I have missed you and was able to catch up some on your blog. Looking forward to catching up more. GBU my friend.

Hi Candace,
What a wonderful post and see appealing to the eye! I give Desiree credit for pointing me in your direction. But...now that I know, I'll be back.

Bill- Thanks for your comments and compliments. I do use Microsoft Frontpage for most of my HTML posts (they no longer sell that and have something in it's place). It's part of my Office 10 that I use on my home office computer. If you have any questions feel free to email me and I will be happy to help or answer any questions. Thanks for stopping by and your support.

Pamela- So glad you liked it enough to share, feel free to pass it on to anyone! Thank you for your comments. Look forward to seeing more of you in the future. I will stop by and check out your blog too! Have a great day.

Mana - Thanks! So glad you enjoyed the post and quote. Hope all is well.

Mike - Thanks, so happy to know I was missed. I missed you all to and was eager to get back but put business first as always that is our goal here in the Rain, right? Thanks for stopping by!

Cynthia - Thanks so much for coming on by and be sure to thank Ms. Dez for sending you my way! I think we have crossed paths before in my monthly challenges haven't we? Good to see you again anyway, be sure to come back again. Have a good one.

JAN

2008

That was totally great, what a cool blog post. I can say this, I totally agree that those two dynamics of greed and fear play out. Without risk there will not be the opportunity for massive gains. Without fear everyone would be jumping in, thus no great gains either. I really like the way you laid this out. Great Stuff, keep posting these thought provoking articles. Lance.

Lance - Thanks for your comment! As with most things in life, we have to risk to seek success, however fear might think one might lose and yet one might fear he will miss out too! Isn't it interesting how both fears can work against us, I say follow the heed of Warren Buffet's quote. Thanks for such a great input!

Candace - Loved the video, loved your post. Just last night someone was over at the house telling me she thought prices were going to drop much further in a year. I told her now was an excellent time to buy, as I firmly believe it is. It's an uphill battle somedays.

Hello Candace - welcome back and as usual An Academy Award Winning Post !!!- cute video too...the buyers are coming out of the woodwork already here in NW IN! Interst rates are low and prices are great- most wise investors who follow Warren Buffet know NOW IS THE TIME :)

Sincerely,

Grace

O.K. How did you get those totally cute & really cool buttons at the bottom of your post? I love the idea, and would love you forever if you helped me get those on my posts.

Thanks!!!!!!!!!!!

Candace, great post. I think if you are a buyer ready to buy, JUST BUY. Put forth the price you think a property is worth and get on with your life. Interest rates are great. I think the media frenzy is keeping too many on the fence.

JAN

2008

Tom - I agree and I know that with the rates going like they are and inventory great.. now is the time for buyers to get serious! This is what they have been wanting..I think you very sound advice to your friend was spot on! Thanks for sharing! Just a FYI...I have been writing for a buyer the past two weeks and we have been up against 'multiple offers' in the short sale and REO homes... buyers are out folks, find the deals.

Grace - Yes, I can't agree more! Thank you as always for your support and so glad the buyers are moving your area! So glad you enjoyed the video..it has become a one of my favorite posts to date. Have a great weekend!

Erika - Be sure to email me and I will help you out. I have a service as well that I design graphics, banners and buttons if you need them. However, if you do a search for tutorials on the AR home page, there are lots of ideas found right here within the rain!! Thanks for the kind words. Email me, I can help.

Gary - Absolutely, trying to guess when the bottom will be will only potentially make you miss the mark! If your a buyer and have intent to buy, now is a great time to seek a licensed professional Realtor in your area and make that move. Great comment. Thank you!

APR

2008

Buffet's advice is definitely good, but it is important not to mistake it for a full financial analysis of the underlying asset (in this case, a house).

The advice is contrarian in nature, yet it is important to realize that many contrarians get wiped out by incorrectly analyzing the market. Just because an asset has begun to fall out of favor does not mean that it is necesarily the best time to buy it. Attention must be paid to FUNDAMENTAL VALUE, and in a market where RE values are tending to decline (which is not the norm at all), determining value can be a big challenge.

One poster above says that those who buy now will become rich over the NEXT FEW MONTHS??? Please. It is the height of professional recklessness to suggest that not only will the market have bottomed, but houses will once again be providing gains beyond normal inflation.

I realize that cheerleading can pump up the soul, but what if prices decline for another year? The continued housing boom for the last decade has given many agents the impression that they are economic forecasters. I'm sorry, but the vast majority of agents I have talked to and read denied that declining values would ever hit the housing market. The evidence is in, however, and declines are present in most markets, with some down over 20% from peak.

Now those same agents are going to call the bottom? Why, as a buyer, should I believe in their forecasts now?

House price appreciation has been the primary driver of the housing boom, and it is understandable that many agents are loathe to lose this powerful ally. But the facts must be faced - houses are depreciating, and any bottom-calling is opening up that individual to loss of credibility.

If you call a bottom, are you willing to indemnify me against further price losses? I hear a lot about the mythical five-year holding period, as in "if you hold the house for five years, you'll be okay." Care to enter into a contract that guarantees me at least break-even at five years or you pay the difference? Maybe even just promise a commission-free sale if I sell at a loss?

The exuberant and non-analytical buyers already bought during the bubble, and now you have people like me left. I'm not trying to be difficult; I want you to sell houses and make a good living. But stop insulting my financial intelligence by promising blue skies in the near future. I want to believe in your professionalism and ability. But I'm not swayed by sound-bite financial advice, or bumper-sticker analysis (the fear/greed Buffet saying). That's essentially an adage, otherwise why would he have an army of analysts working for him?

Bottom line - most agents are VERY good at determining current value, i.e. the price that will effect a sale. That said, most have no real basis for determining future values. Doing so requires much economic analysis (and not from the NAR's paid staff economists).

Deal with me honestly about house prices, and don't try to convince me that 'now is the best time to buy', because when has an agent ever said otherwise?

JUN

2008

Christina: Please note: The seven lines you included in your comment above... your name, your top agent stuff, email address, website, phones and two lines of Real Living stuff... are ALL in violation of Active Rain guidelines. This is seen as spamming and hijacking of the auther's post. I suggest that you remove all of it.

Also... there are many menbers of Active Rain who, if you included that in your comment on their post, would delete your entire comment. Thanks for your cooperation.