The Charleston Real Estate Search.com

The Deluge, weather and the economy

Heavy rains separate the weak from the strong

Braving the deluge this morning, Jack and I ventured out to take pictures.  Getting soaked to the bone I couldn’t help but think that I must be crazy.  I would much prefer to stay warm and snuggly inside with hot coffee and a sweet danish.  As I snapped away I noticed the way different leaves responded to the downpour.  Some leaves were curled over barely surviving the beating while others seemed to welcome the moisture.  Others till seemed born for heavy rains allowing the water to just stream down in large beads.

It reminded me of how people respond to heavy circumstances.  In these days of economic concern, when it’s difficult to predict what’s coming the pike, many of us are tempted to fold, take our losses and get out of the market.  Others are getting ripped to shreds because they are not financially prepared for such risks, too exposed to the foul weather of a down market.  And then there are the bellwethers, those against whom the market is an opportunity to wait and take advantage of great buys. 

Caladiums

To those of us who are somewhere in the middle, advise from my mother:  When in doubt do nothing and the answers will appear. My interpretation of that advice:  Make sure you are somewhere in between, i.e. diversified.  Make sure your bank accounts are spread out among several institutions if you are lucky enough to have over $100,000.00 to worry about.  Call your financial advisor to check on the status of your 401-k or other retirement accounts.  During a downpour, the safest place to be is under a shelter.  It’s the same thing during an economic deluge.  When the market is going down,  that is the time to let go of the highest risk accounts/stocks and hold onto your strongest investments even if they are temporarily in the tank.  Letting go may mean taking a loss but sometimes it is better to take a big loss upfront than suffer a slow and painful loss over time. 

My suggestion to all real estate investors, Charleston investment property should be averaging an 8% return per year over a 10 year period.  Do the math or I’ll do it for you and see if that’s where you are.  Don’t just look at the last 2-3 years.  Real Estate investments should be a long-term commitment.  The days of quick flips are over right now, to return at some future date, but not for at least 3-5 years. If you are thinking about scooping up deals as a bottom feeder, proceed with rental investment income in mind.

If you are trying to sell and it seems like it will never happen, it’s time to re-examine your commodity.  In a bull market, houses need two important elehas sold ments to sell, price and condition.  It has to look nicer than the other 150 houses in your competition to get noticed and it has to be priced better than all the others as well. 

If you are desperate to sell, it’s time to talk auction.  Don’t let the bank take your home without giving this a serious consideration.  Auctions have gained popularity in the last year for good reason. Everyone loves a bargain and despite what the news is telling you, there are lots of folks out there with cash to burn who would rather put it into a tangible asset like real estate.  I have a great auctioneer on my team who can guide you through the process painlessly.

If you don’t need to sell, don’t.  Wait it out, let the inventory get absorbed and revisit the market next Spring.  Remember that heavy rains allow the weakest things to get washed away, making room for the stronger to survive and flourish.  I want you to be on the strong side. 

If I can be of any assistance during this period, feel free to call me.