Stop paying attention to news about the plummeting real estate market. It is a tough market, yes; but this market is laden with opportunity in both commercial and residential markets. Lending is difficult, but not impossible. Lenders will put up funds so long as the purchases make sense. Figuring out what makes sense is not impossible – would you buy it with your money?
The best outcome of this market is price correction. Residential properties which sold for outrageous numbers are again affordable (Miami Beach was selling at $1500/sf!). Commercial investment properties which sold at low CAP rates (and made no sense at those rates) are now selling at rates of actual value. Sellers are starting to wise up about what is actually happening. Desirable locations will always remain desirable.
Bottom line – Educate Sellers on the realities of the market. Show them comparables. If they don’t change their stance, give them time. Reality will hit them (or they are not really Sellers). If the buyers have the budget, tell them not to be afraid to buy, opportunities about – Seize the opportunity!
