“Jamil, the market’s gone crazy!”
Yes. Yes, it has and it’s throwing people for a loop. It seems like everywhere you turn or look, people are talking about inflation and an uncertain housing market.
But as I’ve mentioned before, I don’t believe that we’re about to experience a housing market crash similar to what happened in 2006.
However, I do think we’re going to see some price corrections.
With all that said, it still doesn’t change the fact that the market is doing some strange things right now, but that doesn’t mean that we, as wholesalers, aren’t able to navigate some of these changes.
Why is the Housing Market So Screwy Right Now?
There’s actually a lot that’s gone into making the housing market act the way it is.
My pal Dave Meyer at BiggerPockets actually did a great podcast on how the ‘work from home’ phenom affected the current housing market:
Essentially, when the pandemic began, many businesses allowed their employees to work from home. While WFH wasn’t anything new, it was something that became mainstream like never before.
Two years later, as Dave mentions, nearly 90% of people are able to work from home which from all the talk on the internet is just a preferable choice for them.
Regardless of how you feel about WFH, this actually does have an impact on the current housing market.
Add to that soaring costs for food, gas, and everything else – plus talks of a recession are spooking buyers and sellers.
So how do we, as wholesalers, react to their reactions?
Navigating Choppy Housing Waters as a Wholesaler
First and foremost, we have to understand how our sellers are reacting. A recent call I had with one of my Astro members demonstrated how some sellers are increasing their prices.
If sellers are increasing prices, that’s good right?
Not exactly.
The reason these prices are increasing are most likely because of conflict between agents and sellers; this is the “story” they’re trying to tell on the MLS to get buyers to buy.
This isn’t just indicative of the US, either. This is happening everywhere – in Canada, in the UK, everywhere.
Unfortunately, this is just an effect of people not knowing what the heck is happening!
It’s perfectly normal to be confused about what’s happening, what’s not normal is people not being truthful about their properties so they can attract buyers.
This is especially true when a property has been on the market for some time. The price shouldn’t be increasing, if anything, it should be decreasing.
Another reason sellers are reacting this way is because their agent wasn’t honest with them – so it becomes a vicious cycle.
As wholesalers, it’s our duty and responsibility to be truthful to our sellers and buyers, so they know exactly what to expect and what the outcome will be.
For obvious reasons, this builds trust and you want people to trust in you and in your business.
Guys, the market’s coming back.
And wholesalers will see a lot of opportunity because we do very well in changing markets.
If you’re still confused or even concerned about how to navigate in this weird, crazy market, then come join us at AstroFlipping.
Our student members come from all walks of life, from the very new to the business to the very seasoned. So if you’re looking for guidance, advice, or even just some support, we’ve got you!