April blog 2 - Steve Outlook - Markets Move in Tandem.png

Markets Move In Tandem

Facts are funny things. There are facts that are undisputed, and then there are beliefs that have the weight of being repeated. Remember when people thought asbestos was a fantastic building material, two weeks would stop the spread, and Prince Harry and Meghan wanted to live private lives? History is littered with “truths” that the masses believed but later discovered were only considered fact because enough people repeated the myth.

A myth repeated often enough starts to gain the weight of fact.

There are many myths in real estate. Here are three common ones;

1. Falling home prices mean that you have lost money. Most people don’t realize that the real estate market moves in tandem. This means when the house you are selling goes down in value, the house you are buying also goes down in value. Your $500,000 house may now only be worth $400,000 but the $700,000 house you are drooling over is now only $560,000. You only lose money if you cash out in a down market and don’t buy anything else.

2. Anyone can sell real estate and all agents are created equal. While it’s true that all agents possess the same licenses not all agents have the same skills as the next. There is a reason that 5% of licensed agents do 90% of the business. The sad fact is that 9 out of 10 agents give up before they get two years of experience. There is an industry built on agent churn and the percentage of failed agents rivals that of restaurant failure rates. Talent does make a difference.

3. Dollar per square foot of a home is how value is determined. This one has driven more people crazy than telemarketers and people who yell while on their cell phones. The fact that a house down the street sold for $250 a square foot does not mean that yours will sell for $250 a square foot. There are many factors to consider in pricing including, size, age, condition, trees, yard, location, upgrades, and on and on. Make sure you hire an agent who knows the facts on pricing so you can get every penny possible when you sell.

When you are told something is fact always be skeptical. Information is cheap and plentiful. Be careful when assuming something you’ve heard is true. Your financial future is too important to depend on the opinion of a TikTok star with 132 followers.

About Dripping Springs Elite Real Estate Professionals

Dripping Springs Elite is NOT a brokerage. We are a professional organization of top real estate agents in the Dripping Springs area from different brokerages who collaborate and work together to make buying and selling the best we can be for our clients. DS Elite is also dedicated to building up our community and its nonprofits to strengthen the quality of life for all residents. Contact one of our agents today https://drippingspringselite.com/#agents.