When the Stimulus Ends, Another Door Opens

A rush is on and the first attribute to be discarded in the pressure paced flurry is logic. The focus is on "get the credit", common sense aside, the credit must be gotten. "Time is Running Out...Time is Short" shout the warnings by Realtors and mortgage bankers. We are fueling the fire---fear is a motivator.

 From my position on the field I see the people least prepared for a backlash making the greatest rush---the first time buyer. Not seeing a significant rise in motivation of persons who would qualify for the $6,500 credit, but the first time buyer who might have been calm and calculated is now pressed and highly motivated. The competition for the remaining good homes severe.  Tension is up, heads are down, the determination is great.  It's Christmas time at Toys R Us.

Consequences of the actions we facilitate are unknown but if this last year is a small version of 2002-2006, the results could be the same; a new generation of upside down home owners, but this time they will be in the entry level price points in our market.  Three percent down is a safe mortgage when appreciation is 2-5% per year for the first three years. It's not sufficient when the economy is struggling, appreciation is spelled with a "d", and jobs are not secure. Add to that concoction a requirement to pay back any part of the $8,000 tax credit for selling before three years and the dangers of buying to get a credit are worth slowing to consider.

When the stimulus end,  another door will open. Fear may be a motivator, but patience is a virtue. Rewards for virtuous behavior are well documented, and patience is a virtue apparent in the survivors of the last great depression. There are lessons of caution to be taken to heart from people over 80 and I'm seeing those lessons put to practice by people who have learned from the most recent experience. Slow and Steady wins the race it's said. I'm encouraging slow and steady.

Here's an idea---Searching and researching gives you knowledge. Asking questions and partnering with people who know adds insight. Knowledge with insight removes fear. An attitude of abundance is what you will have when fear is out. Confidence is an attribute of a person with an attitude of abundance--Confidence, not ego. Confidence in knowing preparation is in place and information is logical.

May 1 is a new day. I look forward to the end of the stimulus and the beginning of real recovery.