{"id":2139,"date":"2007-10-31T17:16:22","date_gmt":"2007-11-01T00:16:22","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=2139"},"modified":"2007-10-31T17:27:24","modified_gmt":"2007-11-01T00:27:24","slug":"real-estate-perfect-storm-warning-do-not-miss-this-window-of-opportunity","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2139\/real-estate-perfect-storm-warning-do-not-miss-this-window-of-opportunity\/","title":{"rendered":"Real Estate Perfect Storm Warning: Do Not Miss This Window of Opportunity"},"content":{"rendered":"

One very unique thing about investing is the valuation process.\u00a0 While there are numerous ways to value an investment, the only true measure is what it can be sold for.\u00a0 While I can say a piece of property is worth $1 million, if it does not sell at that value it is simply not worth $1 million.<\/p>\n

This is essentially the free market concept.\u00a0 You can set your own price and your business will succeed or fail based on the number of people who think they are getting value.\u00a0 Another interesting part of this equation is time.\u00a0 The more time you have to wait, the more likely you are to find someone who agrees with your valuation.\u00a0 However, as the saying goes, \u201cthe market can stay irrational longer than you can stay solvent.\u201d<\/p>\n

This is the crux of a very important issue in investor perception.\u00a0 Most investors make irrational decisions quite rationally.\u00a0 If I see a house that seems unreasonably valued, and then I see a similar house that is even more unreasonably value, the first house now seems like a bargain.\u00a0 This cycle continues until investors either run out of money or some event scares investors back into rationality.<\/p>\n

The problem then over corrects itself.\u00a0 Investors go the other way, thinking that every house is overvalued, when it may have only been a handful.\u00a0 This happens until there is an overwhelming amount of value on the table; so much value that even the most na\u00efve investor could make money.\u00a0 And the cycle begins again, and again, and again.<\/p>\n

Small investors are always the most susceptible to these cycles because they have the least amount of information.\u00a0 They have no idea where interest rates are heading or where the next hot spot is emerging.\u00a0 At best they might read the Wall Street Journal or Businessweek.\u00a0 The problem with this strategy is that by definition news is old.\u00a0 By the time something is reported, it will already have happened.\u00a0 Furthermore, by the time your neighbor mentions it to you or by the time you see a special report, the market has most certainly moved on.<\/p>\n

This begs Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

One very unique thing about investing is the valuation process.\u00a0 While there are numerous ways to value an investment, the only true measure is what it can be sold for.\u00a0 While I can say a piece of property is worth $1 million, if it does not sell at that value it is simply not worth […]<\/p>\n","protected":false},"author":16,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,5],"tags":[],"class_list":{"0":"post-2139","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-investment","7":"category-real-estate","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2875,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2875\/automated-valuation-models-my-new-favorite\/","url_meta":{"origin":2139,"position":0},"title":"Automated Valuation Models – My New Favorite","author":"Eric Blackwell","date":"April 1, 2008","format":false,"excerpt":"The quest for automated valuation is a thirst unquenched, a fire that cannot be extinguished and seeming itch that cannot be scratched. Man is forever curious about the worth of an asset. Whether it is one's home or one's home on the web, curiosity slays its share of felines and\u2026","rel":"","context":"In "Casual Friday"","block_context":{"text":"Casual Friday","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/casual-friday\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":503,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/503\/the-bloodhoundblog-valuation-challenge\/","url_meta":{"origin":2139,"position":1},"title":"The BloodhoundBlog Valuation Challenge . . .","author":"Greg Swann","date":"October 3, 2006","format":false,"excerpt":"Here's a cute little game for people who think they know a thing or two about real estate... I'm looking at houses for an investor client who is also a close friend of the family. He picked out a house he was interested in, and, as a matter of course,\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1565,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1565\/zillowcom-off-the-hook-in-arizona-state-rethinks-crackdown-on-online-home-appraisals\/","url_meta":{"origin":2139,"position":2},"title":"Zillow.com off the hook in Arizona?: “State rethinks crackdown on online home appraisals”","author":"Greg Swann","date":"June 22, 2007","format":false,"excerpt":"This is me in the Arizona Republic (permanent link). State rethinks crackdown on online home appraisals The move by the Arizona Board of Appraisal and Attorney General Terry Goddard to prosecute Zillow.com, and potentially other Internet-based home valuation services, may be at an end. Last June and November, the board\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":590,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/590\/losing-your-zest-for-life-maybe-you-need-to-give-yourself-a-frank-eppraisal\/","url_meta":{"origin":2139,"position":3},"title":"Losing your Zest for life? Maybe you need to give yourself a frank eppraisal . . .","author":"Greg Swann","date":"October 31, 2006","format":false,"excerpt":"The folks behind the RealtyThoughts weblog today launch eppraisal.com, a Zillow-like Automated Valuation Method promising results for 70,000,000 homes. The site is wicked clean, but it wasn't wicked fast -- but I'm willing to cut 'em a break on the assumption that they're seeing a lot of first-day traffic. Differences\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10972,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10972\/lets-play-the-trulia-valuation-game-prizes-to-the-winner\/","url_meta":{"origin":2139,"position":4},"title":"Let’s Play the Trulia Valuation Game! Prizes to the Winner!","author":"Eric Blackwell","date":"January 23, 2010","format":false,"excerpt":"I was thinking this weekend about all of the rumors about Trulia and Google buying them and all of that. I was thinking as well about how both Trulia and Zillow are both seeming to be angling to be the next Realtor.com... What does that mean...trying to be the next\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1324,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1324\/zillow-notes-fear-and-ludditism-advertsing-a-better-farming-strategy-and-more\/","url_meta":{"origin":2139,"position":5},"title":"Zillow.com notes: Fear and Ludditism, advertising, a better farming strategy and more","author":"Greg Swann","date":"April 20, 2007","format":false,"excerpt":"Zillow notes: Jay Thompson, The Phoenix Real Estate Guy asks \"Why do so many agents fear Zillow?\" He makes the same point in a BusinessWeek article on the Seattle-based Realty.bot. Brian Brady, America's Most Opinionated Mortgage Broker and a BloodhoundBlog contributor, covers some of the same ground: \"Is your Realtor\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/2139","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=2139"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/2139\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=2139"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=2139"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=2139"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}