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 photo credit: adam
These days there are many deal killers out there in the real estate market. We have all seen them in the past, they have always been out there, lurking around dark corners, but today they lurk around well lit corners and often jump right out in the open. How fun for us! The real estate industry is still moving along, but there are many more deal stoppers these days then there have been in the past. I mean other than the obvious recession.
Why is it that when the market is at its most vulnerable there seems to be more problems then when the market was sound and we could easily deal with such problems? I guess that Murphy guy strikes again! Not too long ago we had much more flexibility and we could come up with creative solutions to our real estate problems. That may still be the case, but not for most, we just dont have the wiggle room we once did.
An unstable environment simply causes panicked reactions and responses from people. They dont behave normally or as they would if the environment was at its best. Unfortunately, the market is driven by emotion. We all wish it wasnt the case, but it is. We all wish logic was the biggest factor, but its panic driven emotion that affects the market.
After the Tax Credit expiration things should have simply gone back to normal, but because people panicked we experienced all time lows in the market. The government just stopped giving out something we shouldnt have had in the first place. If you could afford a home before the Tax Credit, you should have been able to afford a home after the Tax Credit. Emotion!
There are other causes of deal killers. For instance, inaccurate appraisals, greedy buyers and sellers, credit problems, these days we see more spooked buyers. There are many reasons deals fall apart these days. Lets try to keep our heads about us and use sound reason to judge the situation.
Read the full article from Inman News
Posted on August 09, 2010 14:10:45 by  IPTV.Boyz
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