There is not much difference in principles involving casino gambling and real estate – they are both driven by human emotions. However, the only variation between the two is that casino gambling, whether one wins or loses, happens fast, usually at one table sitting.
Despite the fact that everyone knows from having repeatedly been told many times growing up since childhood “Don’t you ever gamble at casinos, gambling will ruin you. Casinos always come out the winners and players are losers” or “The odds are always in favor of the house”, people grow up and eventually will go to casinos to gamble, disregarding those warnings. In fact, casino gambling is a healthy and flourishing industry rapidly spreading through the country.
When players are on a winning streak at casino tables, greed immediately sets in while Lady Luck seduces those players to hook them tight so they won’t quit until they eventually lose a hand (or dice throw), and lose another, and another. Players continue playing hoping that Lady Luck will come back around to reverse their nightmares.
Residential real estate practice of late has emulated casino gambling. From 1998 to mid 2005, selling homeowners were having a lucky vein. They named their prices and buyers bought as if their properties were the last one for sale in the entire Nation. In January 2005 warnings that the proverbial “balloon is about to burst” were written all over the media. Assuredly, Lady Luck soon abandoned sellers. In spite of hearing constant warnings, sellers held on gambling and continued asking higher prices for their homes.
Throughout 2006, sellers were stunned by the sudden real estate turn around, buyers became confused and everyone stayed put. The time of awareness of the "real estate meltdown” for both sellers and buyers came about at the beginning of 2007 following the side effects of the sub-prime loan crisis which fostered a plethora of “short-sales”, foreclosures, and personal bankruptcies. Yet, many sellers continue to hold on to their prices – “I am not giving it away” they said while buyers were low-balling their purchase offers. Most of 2007 was a tug-of-war between buyers and sellers.
Sellers now recognize that the real estate market has reached bottom and they are more amicable to entertain offers par with present real estate market values.
Undoubtedly, buyers are in the driver’s seat and they persist on gamble their hands. Buyers are holding back convinced that Lady Luck is on their side and she will make real estate prices go down even more next year and beyond.
In Kenny Rogers’ song, The Gambler, he sings: ” You got to know when to hold 'em, know when to fold 'em, know when to walk away and know when to run.”
The bottom (Inflation) has risen significantly in the past five years. Consequently, sellers’ real estate prices have since reached bottom. Ultimately, NOW is the best time for Buyers to quit gambling and make great buys!