The Immutable Laws of Buying and Selling Real Estate
A (Terrific) Post from Jay Thompson
Posted by: Thompsons Realty
Jay Thompson regularly blows us away with his insightful, clever prose. Here's another gem from his blog. You'll laugh; you'll cry; you'll nod your head in agreement.You’ve got Netwon’s Laws of Motion (depicted mathematically at the right). You’ve got the Laws of Thermodynamics, the economic Law of Supply and Demand, heck you’ve even got Murphy’s Law.
Why aren’t there any Laws of Real Estate?
Well, there are now.
First Law of Real Estate: It doesn’t matter what your neighbors home sold for in the past. The corollary to the First Law of Real Estate is that it doesn’t matter what your own home was worth in the past.
It. Doesn’t. Matter. Home prices are dynamic. They rise and fall, wax and wane, and can change daily – seemingly on a whim. What a home was worth five years ago, last month or yesterday has no bearing on what it is worth today. If you are in the Phoenix real estate market, this can be a difficult pill to swallow. You need to stop thinking about “woulda, coulda and shoulda”. You didn’t sell your home two years ago when you could have gotten twice what you’ll get today, so getting upset about what it sells for today simply is a waste of energy. You can’t go back in time (according to Einstein, a pretty sharp dude) and sell your home, so stop worrying about it.