This ongoing consumer-education column about "Decisions & Communities" seeks to eliminate ignorance, which creates the battleground, and it consistently contributes knowledge, which wins the war -- but that may not be enough. To paraphrase the "you can lead a horse to water, but you can't make it drink" description of the weakness of education: you can lead consumers to powerful knowledge, but you can't make them act in their own best interests.

Real estate brokers, mortgage brokers and a host of other professionals concerned with providing high-quality, relevant services and accurate information to real estate buyers and sellers are often frustrated when consumers ignore available expertise and do not act in their own best interest. In spite of the tremendous volume of information and the elevated standards of professionalism available to support consumers these days, poor decisions seem as common as they were in the last century.

Relying on the way things have always been done won't help since much of what lies ahead is uncharted territory for everyone. Whatever stage you're at now, you probably have more living ahead of you than your parents and grandparents had at that point in their lives. Retirement is no longer the handful of quiet years that it was in the 19th century and part of the 20th. Today's equivalent consists of decades of active, involved living.

This new "unretirement" (as this writer considers it) will inspire an ever-expanding variety of choices in everything from housing and careers to lifestyles and recreation, all designed to promote active independent living to well over age 100. This celebration-of-living smorgasbord will offer alternatives that were never widely available to past generations and expand on those that are currently only present in a few communities. Many new options will appear and there'll also be a wide range of not-even-thought-of-yet solutions to life's challenges. Accompanying financial choices will compound the complexity while offering greater lifestyle flexibility.

Isn't it way beyond time for consumers who want to become successful real estate buyers or sellers to begin addressing the future by asking themselves, "Am I committed to acting in my own best interest, short- and long-term?" Personal commitment will facilitate the definition of goals, which, in turn, reveals strategies for success and sets the tone for subsequent decision making.

Real estate professionals deliver their services according to Agency Law, which commits them to providing clients and customers with accurate, up-to-date information, essential to the pending transaction. They must maintain a professional-level of competence on relevant issues and details, so they can ensure clients are well equipped to make informed decisions. Brokers do not tell buyers and sellers what to do, nor make decisions for them, but provide support for the consumer to accurately evaluate the benefits and risks of a specific real estate transaction. The clearer consumers are about what they want to accomplish -- what their best interests are -- the easier it is for professionals to determine what the correct and most-timely information, expertise and services are in any situation.

Reverse mortgages illustrate the decision dilemma consumers unknowingly face. Most explanations of reverse mortgages assume an understanding of traditional mortgages that is not common knowledge to the average consumer. One descriptive approach involves comparing traditional and reverse mortgages as opposites of each other, but the significance of the reverse mortgage differences may not automatically be clear to those whose knowledge of traditional mortgages is limited to interest rates and monthly payments. Without a deeper understanding of mortgages, a property owner might not realize that qualification for a reverse mortgage rests not on income, but largely on the value of the real estate. Consumers may not understand the importance of this fact, or others, to their choices. There are many more differences between traditional and reverse mortgages that involve significant, and often dire, ramifications if the wrong choice is made.

When a reverse mortgage is the right choice, there will not be another solution that is such a perfect fit. When there are other alternatives that would suit the homeowner's situation as well or better, a reverse mortgage may be a very expensive choice. "Best friend or worst enemy" depends on how accurately property owners identify their own needs and understand the significant issues attached to rights and responsibilities. This is one example of many where professional insight and expertise is crucial to making the right decision and not missing out on an opportunity.

Too often people ricochet through life, bouncing off adversity and opportunity in directions that hindsight labels as "good luck" or "bad luck." You may have accepted this "wait and see how it turns out" approach in the past, but do you want a hit-or-miss future? Time, not money, is the most valuable commodity, so a more strategic approach may be useful if you decide it's in your best interest to have results matter every time from now on.

Ignorance creates the battleground, but knowledge wins the war. With clearly defined goals and the right professional support, it's an easy victory.

Source: Have Your Home and Money Too

Published: February 20, 2007

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Strategist and Futurist is The Catalyst -- intent on "Helping The Best Get Better." An internationally-recognized "new retirement" authority, PJ's research, writing and speaking programs focus on decisions Baby Boomers face to achieve a successful future. Author of 6 books, PJ knows that, since home is headquarters for the "new retirement," professionals and consumers need relevant knowledge and insights, along with solid decision-making skills, to protect and enhance this private oasis. As The Catalyst, PJ provides strategic communication, client appreciation and advanced education services to the financial, tourism, lifestyle and service sectors -- and the clients they serve. A frequently quoted financial and business commentator, PJ is a thought-provoking strategic speaker who offers practical, real-life suggestions on leaving "the box" behind and embracing Forward Thinking -- a talent she regularly demonstrates in this column. For more, visit TheCatalyst.com.