The "Wishful Thinking" Syndrome
October 26, 2009
I subscribe to an on-line newsletter called Inman News. Recently, Dian Hymer had an article entitled "Sellers stung by wishful thinking". The expression, "wishful thinking" caught my attention. It seems to me that sellers are not the only individuals that are in a wishful thinking mode. Buyers and agents can also qualify as "wishful thinkers".
Agents wish that sellers would listen to them when they present a market analysis. They wish that asset managers (bank representatives) would respond to their clients offers in a timely manner. They wish that buyers would understand that they are not in charge; i.e. that the sellers will be so happy that someone wants their property that they will accept any offer, no matter how out-of-whack- the offer might be with the comparable sales data. They wish that the real estate market would start an upward price trend. Etcetera, etcetera, etcetera.
Buyers are wishful thinkers when they think that they can offer 20% under a listed price and have a seller accept their offer. They wish that they could purchase a property with nothing down. They wish that they can be a successful bidder on a property if they offer the listed price.
They wish that there were more homes on the market. They wish that sellers would make all the repairs that they request, so that they could move right in. Etcetera, etcetera, etcetera.
Sellers, of course, having been wishing for two years that the appraisal they obtained in 2006 would be the price at which they could sell their property in 2009. They wish that buyers would not make an offer 20% under their listed price. They wish that they would not have to negotiate repairs. They wish that the market will recover in a year. Etcetera, etcetera, etcetera.
There is an old nursery rhyme that goes something like: "If wishes were horses, then beggars would ride..."
This has been a traumatic real estate market, but wishing it to be different is not helpful. It has given some an opportunity to become homeowners. It has given some an opportunity to reduce their debts. Taking advantage of programs designed to keep homeowners in their homes and to allow folks to become homeowners is the first step to get out of the "wishful thinking' syndrome.
I subscribe to an on-line newsletter called Inman News. Recently, Dian Hymer had an article entitled "Sellers stung by wishful thinking". The expression, "wishful thinking" caught my attention. It seems to me that sellers are not the only individuals that are in a wishful thinking mode. Buyers and agents can also qualify as "wishful thinkers".
Agents wish that sellers would listen to them when they present a market analysis. They wish that asset managers (bank representatives) would respond to their clients offers in a timely manner. They wish that buyers would understand that they are not in charge; i.e. that the sellers will be so happy that someone wants their property that they will accept any offer, no matter how out-of-whack- the offer might be with the comparable sales data. They wish that the real estate market would start an upward price trend. Etcetera, etcetera, etcetera.
Buyers are wishful thinkers when they think that they can offer 20% under a listed price and have a seller accept their offer. They wish that they could purchase a property with nothing down. They wish that they can be a successful bidder on a property if they offer the listed price.
They wish that there were more homes on the market. They wish that sellers would make all the repairs that they request, so that they could move right in. Etcetera, etcetera, etcetera.
Sellers, of course, having been wishing for two years that the appraisal they obtained in 2006 would be the price at which they could sell their property in 2009. They wish that buyers would not make an offer 20% under their listed price. They wish that they would not have to negotiate repairs. They wish that the market will recover in a year. Etcetera, etcetera, etcetera.
There is an old nursery rhyme that goes something like: "If wishes were horses, then beggars would ride..."
This has been a traumatic real estate market, but wishing it to be different is not helpful. It has given some an opportunity to become homeowners. It has given some an opportunity to reduce their debts. Taking advantage of programs designed to keep homeowners in their homes and to allow folks to become homeowners is the first step to get out of the "wishful thinking' syndrome.
posted by shirley harry at 8:25 AM
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