"It was the best of times, it was the worst of times."

Charles Dickens had something different in mind when he wrote his classic, "A Tale of Two Cities", but his words describe the real estate market today. While many people contend that current conditions (low interest rate/ low inflation/ low unemployment) offer one of the best buying opportunities imaginable, others feel the pressures inherent in such a market far outweigh any advantages.

As Good As It Gets

For consumers at either end of the real estate spectrum, this market is as good as it gets. Entry Level Buyers find today's low interest rate climate translates into a buying opportunity not otherwise available. Each rate drop means more marginal buyers are newly qualified. For Last Time Sellers, today's conditions signify a golden opportunity to reap 'sellers' market' benefits, without then having the stress of becoming a buyer in such an environment.

For Everyone Else

The rest of the home buying public have to contend with a mixed bag. Buyers do reap the benefits of lower interest rates, but they also experience a great deal of tension. In less hectic times, a home seeker could preview a property, and then feel comfortable pondering his choice for a few days, or even a few weeks. Today, increased competition from other potential purchasers often forces buyers to believe they must react quickly, or risk losing the property. At best, the pressure to make such an important decision 'under the gun' causes discomfort; at worst, the sense of urgency causes friction, belligerence, and true mental anguish.

In addition, some buyers express disappointment that they never get the opportunity to fully exercise their negotiating skills. Pressured into offering full asking price for a property, they must forever live with the uncertainty: could they have gotten it cheaper? To many purchasers, giving the seller his full asking price is akin to paying the dealer the sticker price on the car!

Whose Fault Is It?

Buyers are only human and, finding themselves stressed-out, sometimes look for someone to blame. The whipping boy, more often than not, is their real estate agent. They may feel their agent is rushing them, or insisting they bid higher, initially, than they think they should. They resent being told that market conditions favor the seller, and they hate finding themselves in the middle of a bidding war. Somehow, some way this must be the agent's fault. If their agent were only: more caring/less emotional; more aggressive/less pushy; more experienced/less busy.

Whose Fault Is It, Really ?

In actuallity, no one is to blame for the pace of today's market. The principle of Supply and Demand dictates market time and price, and agents merely operate within that market and reflect its current real estate conditions. Buyers may take some comfort from another 'principle' at work: the "no free lunch" axiom, which teaches that everything has its price. The 'cost' for low interest rates is increased traffic in the marketplace. How many of today's buyers would--or could-- choose for interest rates to rise to the 12% or 13% range, in order to weed out competition?

The Remedy.

The solution to removing stress resides within each buyer. Those consumers who find the pressure of making a fast decision intolerable should allow themselves plenty of time for their move. How much time? Six to nine months, minimum. However, if a move must be made within the next three months, then buyers should realize that their time frame is the culprit creating the pressure. They might try concentrating on the positive aspects of the move, taking the hectic pace in stride.

Published: October 29, 1998

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