Category Archives: business of real estate

Many of you might know that I have a three (and a half) year old son. He has graced a variety of my posts, and is one of the primary inspirations for me being in real estate… but I digress… Often.

So, while it isn’t the first time, I wanted to relay a little story involving the “Boy Wonder.”

Upon my return from the NAR Convention, my wife promptly left town… to do a little scrap-booking with her mother. She left Mini-Me in my care for the weekend. During one of our dinners, he became impatient. It went something like this…

“Daddy, is dinner ready yet?”

“No buddy, I just started it… give me a few minutes.”

“But, Daddy, I’m hungry nooowwwww.”

“Well, a few minutes ago when I asked if you were getting hungry, you said that you weren’t.”

“Is it ready yet?”

“No.”

“Yes it is!”

“No, it isn’t… no matter how much you want to change it… it won’t be ready until it is ready.”

Seems simple enough, right?

So, Lane… why are you writing this on a real estate blog?

Simple. He isn’t the only one that is prone to statements like that. I’ve been seeing a lot more of them in the last few months. Sometimes it is from those that lobby on our behalf. Other times it is from those inside the industry.

“Real estate sales are off by 15%”

“That isn’t bad.”

“The trends aren’t pointing to a recovery yet. It could happen, but we can’t know.”

“Yes they are! Everything is hunky-dory. We are already seeing the recovery.”

“No, it isn’t… no matter how much you want to change it… it won’t be ready until it is ready.”

Let me make this clear. I believe that real estate will see a large scale recovery in the next year or so… but it might not. Then again, it could be sooner. Where I have the problem is when we are faced with a difficult market, some in the NAR, and many agents simply say that everything is great. One might almost think that they feel if they say it enough, it will be so. But, just as with the media talking of values “tumbling” when they drop a few percent, saying that there is “nothing to see here” when there clearly is… doesn’t help make us look honest and transparent.

There are incredible opportunities. But, as investors know, there have to be risks. Those that get in BEFORE the recovery is piling away at full steam will get the best returns… and, as in the last cycle change, the last ones to the party just get to clean up and don’t get to play in the fun.