Here is a good excerpt about real estate in this seemingly negative market. Prospective is key in everything you do and being positive is a great step towards being successful in real estate.

I am sure you’ve heard the expression, “Attitude is everything.” This is very true. Right now, it’s simply your attitude and mentality that will give you the edge over others who are trying to invest in this highly volatile market. You’ve undoubtedly heard the importance of thinking positive and having the right attitude. Most people are intelligent enough to know that this statement is true. Some people reading this will argue that a positive attitude doesn’t always work. Well, maybe not, but I know one thing for sure - negative thinking and a negative attitude NEVER works! So your only choice and your only chance for success in this market are to pick the positive things in life and maintain a positive attitude at all times.

I once read a fortune cookie that said, “An optimist is someone who tells you to cheer up when things are going his way”. I know that if you are reading this article, times may be difficult and you need serious answers to your burning questions such as, “How I profit in a slow market”? There are many answers to this question, but first I need to impart to you some relative perspective.

A History Lesson on Real Estate Cycles

About every ten to twelve years, as an average, real estate values tend to double in most major metropolitan areas. For example, in the 1920’s, the original colonial homes sold for just under $2,500 in Long Island, New York. Since then, real estate prices have doubled almost eight times over the last 80 years. That averages out to a 100% increase approximately every ten years. An interesting note to this is that about every ten to twelve years, real estate values must correct before they enter their next “doubling cycle”.

It’s Not a Matter of If, It’s a Matter of When

The evolutionary process is three steps forward and one step backwards. For example, imagine a 100% increase occurring in three steps of one-third parts each. The last market cycle of the 1980’s was one in which real estate values doubled, followed by a correction of the early 1990’s, which equated to a 20-30% decrease over a three to five year period. This cycle was then followed by the post-millennium cycle boom of 100% from the last high point of the previous cycle. We are now in the naturally-occurring phase of a correction in the cycle. This essential and beneficial adjustment gives the market pause to reflect and re-gather momentum and strength for the next doubling cycle. This has occurred time and time again because the long-term demand for housing is growing an exponential rate based on population growth to almost double in the United States by 2050. This will continue to drive prices higher as it has for the last 100 years.

Since we now know based on history that nearly all real estate prices will double again, it’s not a matter of if, it’s a matter of when your existing houses will sell. Sharing these facts with your prospective buyers will put them in the right frame of mind to buy now versus next year if they plan on staying in the home more than five years. If a buyer is apprehensive about being the right time to invest, ask him if he’d like to buy his parent’s home for the price they paid for it – the answer will be obviously “yes”.

Maintain a Positive Attitude Assuming a Negative Result

In “Winning Through Intimidation” author Robert Ringer talks of the importance of maintaining a positive attitude through the assumption of a negative result. In other words, Ringer suggests that you be prepared for the worst case scenario while at the same time putting your best foot forward to get the best possible result. This will take the mental pressure off of you and allow you to focus on getting the job done. This approach, I believe, allows you to be positive and realistic in your mental assessment buying and selling houses.

Excerpt from William Bronchick’s New Book,  How to Sell a House Fast in a Slow Real Estate Market: A 30-Day Plan for Motivated Sellers