Real Estate is a Religion. We're Athiests

Housing is a religion in America.? We’re atheists.?

I write about money and real estate because I think they are intertwined. I don’t venture into religion other than as a metaphor. ?I heard an interesting statistic in a TED talk the other day.?

In 1989 adults 70+ had 19% of the wealth.? Today they have 30%.

In 1989 adults under 40 had 12% of the wealth.? Today they have 7%.? A wealth gap.

Home ownership is a driving force behind this gap. As one who has benefited from home ownership, I have great empathy for those trying to buy a home because it’s very hard to buy a home today.? That doesn’t mean you shouldn’t try, it means you should have a plan and not be sold.

Be careful with your financial decision-making now because buying a home is a major financial decision that affects your future.

How do you begin to make homebuying decisions?? First, without objective information, you place yourself at risk.? “Isn’t this a lovely kitchen?” isn’t information. ?What else?

Should you buy a home?? What kind and where should the home be?? Is the home value (not the asking price) your offer price? What is the condition of the big-ticket items: roof, basement, furnace, air conditioner? Is the information objective or are you being sold something?? If the home needs modest rehab what is the after-rehab value?

If you suffer from illusory superiority - a cognitive bias that causes people to overestimate their positive qualities and abilities and underestimate their negative qualities relative to others you are at risk.? The antidote?? Look for a circle of competence.?

Warren Buffet believes a circle of competence consists of businesses with which the investor is familiar and understands the business.? In real estate, it’s being familiar with housing and understanding the process to buy a home.

An example? ?A distance acquaintance, who didn’t use Homebuyer Associates, had an Offer to Purchase fall apart the day before closing.? He mentioned this to me and said, “It was a foreclosure and I didn’t know much about foreclosures.”?

I responded, “If you didn’t know much about foreclosures, why were you trying to buy one?” ?(By the way, he had given notice on his rental and now had nowhere to live.)? As Buffet might say, “Invest in what you know or find somebody who does.”

I’ve learned to accept that everyone knows real estate.? It’s on TV.? It may be more.? It may be illusory superiority.

Our approach:? Objective information gathering while limiting emotional decisions helps our clients avoid financial mistakes.? It’s what we do as not just buyer agents but Exclusive Buyer Agents.? There is a big difference.

It helps that we know what we don’t know (anti-illusory superiority).? When we venture into “don’t-know” land we consult people who do.? We learn and our clients benefit.?

Look, I know that the real estate industry sells on emotion.? It’s why it’s called sales, a term we never use, and why companies promote their sales leaders.

If housing is a religion in America today, Homebuyer Associates are atheists.? Showing my age I’ll quote R.E.M. from “Losing My Religion:”?

??????? ? ?"Consider this.? Consider this, the hint of the Century'

Selling??We don’t list homes for sale so contact us for an?objective, independent opinion?on price and the process of selling in today’s market. We’ll give you the inside scoop on the good and bad practices in real estate.

Having helped over 1,800 homebuyers you learn a lot about the selling side.? The?goal: Make educated and informed decisions.